* § 2405-c. Purchase of new housing loans. (1) The agency is hereby\ndirected, to the extent it finds it practicable, to establish a program\nwhereby it purchases new housing loans from banks within the state\nduring periods when there is an inadequate supply of credit available\nfor new residential improvement loans or available for such loans at\ncarrying charges within the financial means of persons and families of\nlow or 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 new housing loans from banks at such\nprices and upon such terms and conditions as it shall determine;\nprovided, however, that each borrower receiving a housing loan purchased\nby the agency shall be a person of low or moderate income and provided\nfurther that the total purchase price, exclusive of any amounts\nrepresenting a refund of commitment or other fees paid by a bank to the\nagency, for all housing loans which the agency commits to purchase from\na bank at any one time shall in no event be more than the total of the\nunpaid principal balances thereof, plus accrued interest thereon.\n (3) In conducting its program of purchasing new housing loans, the\nagency shall not be governed or limited by the provisions of clause (i),\n(ii) or (iii) of paragraph (b) of subdivision three of section\ntwenty-four hundred five of this title.\n (4) The agency shall require as a condition of purchase of new housing\nloans from banks that each such bank certify that each such new housing\nloan is to an individual borrower and is in addition to the housing\nloans such certifying bank otherwise would have made.\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 new housing loans purchased by the\nagency from banks at a rate or rates which the agency from time to time\nshall determine to be at least sufficient, together with any other\navailable monies, to provide for the payment of its bonds and notes, and\nnew housing loans bearing such interest rate shall not be deemed to\nviolate any such law or to be unenforceable if originated by a bank in\ngood faith pursuant to an undertaking with the agency with respect to\nthe sale thereof notwithstanding any subsequent failure of the agency to\npurchase the housing loan or any subsequent sale or disposition of the\nhousing loan by the agency to such bank or any other person.\n (6) The agency shall require the submission to it by each bank from\nwhich the agency has purchased new housing loans evidence satisfactory\nto the agency of the making, and if applicable, the servicing, of such\nnew housing loans in conformity with such bank's undertaking with the\nagency and in connection therewith may, through its employees or agents\nor those of the department of financial services, inspect the books and\nrecords 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 new housing loans may be enforced by decree of the\nsupreme court. The agency may require as a condition of purchase of new\nhousing loans from any national bank the consent of such bank to the\njurisdiction of the supreme court over any such proceeding. The agency\nmay
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