* § 2405-b. Purchase of forward commitment mortgages. (1) A purpose of\nthe agency shall be to purchase forward commitment mortgages from banks\nwithin the state during periods when there is an inadequate supply of\ncredit available for new residential mortgages or available for such\nloans at carrying charges within the financial means of persons and\nfamilies of low and moderate income.\n It is hereby found and declared that such activities by the agency\nwill alleviate a condition in this state which is contrary to the public\nhealth, safety and general welfare and which has constituted in the past\nand from time to time in the future can be expected to constitute a\npublic emergency. It is further found and declared that such purposes\nare in all respects for the benefit of the people of the state of New\nYork and the agency shall be regarded as performing an essential\ngovernmental function in carrying out its purposes and in exercising the\npowers granted by this title.\n (2) The agency shall purchase forward commitment mortgages from banks\nat such prices and upon such terms and conditions as it shall determine;\nprovided, however, that the total purchase price, exclusive of any\namounts representing a refund of commitment or other fees paid by a bank\nto the agency, for all mortgages which the agency commits to purchase\nfrom a bank at any one time shall in no event be more than the total of\nthe unpaid principal balances thereof, plus accrued interest thereon.\n (3) In conducting its program of purchasing forward commitment\nmortgages, the agency shall be governed by the provisions of paragraph\n(b) of subdivision three of section twenty-four hundred five of this\npart; however, with respect to new construction loans for single-family\nmodular or manufactured housing purchased and sited on land, the agency\nshall be governed by the provisions of only subparagraph (iii) of\nparagraph (b) of subdivision three of section twenty-four hundred five\nof this part.\n (4) The agency shall require as a condition of purchase of forward\ncommitment mortgages from banks that each such bank certify that each\nsuch forward commitment mortgage is to an individual borrower and is in\naddition to the mortgages such certifying bank otherwise would have\nmade.\n (5) Notwithstanding the maximum interest rate, if any, fixed by\nsection 5-501 of the general obligations law or any other law not\nspecifically amending or applicable to this section, the agency may set\nthe interest rate to be borne by forward commitment mortgages purchased\nby the agency from banks at a rate or rates which the agency from time\nto time shall determine, provided however, that if such mortgages are\nfinanced through the issuance of the agency's bonds or notes, the\ninterest rate shall be at least sufficient, together with any other\navailable monies, to provide for the payment of its bonds and notes, and\nforward commitment mortgages bearing such interest rate shall not be\ndeemed to violate any such law or to be unenforceable if originated by a\nbank in good faith pursuant to an undertaking with the agency with\nrespect to the sale thereof notwithstanding any subsequent failure of\nthe agency to purchase the mortgage or any subsequent sale or\ndisposition of the mortgage by the agency to such bank or any other\nperson.\n (6) The agency shall require the submission to it by each bank from\nwhich the agency has purchased forward commitment mortgages evidence\nsatisfactory to the agency of the making, and if applicable, the\nservicing, of such forward commitment mortgages in conformity with such\nbank's undertaking with the agency and in connection therewith may,\nthrough its employees or agents or those of the department of financial\nservices, inspect the books and records of any such bank.\n (7) Compliance by any bank with the terms of its agreement with or\nundertaking to the agency with respect to the sale, and if applicable,\nthe servicing, of forward
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