Bill Text: NY S06413 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to the powers of the New York state housing finance agency and the New York state mortgage agency.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO HOUSING, CONSTRUCTION AND COMMUNITY DEVELOPMENT [S06413 Detail]
Download: New_York-2017-S06413-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6413 2017-2018 Regular Sessions IN SENATE May 17, 2017 ___________ Introduced by Sen. LITTLE -- (at request of the Division of Housing & Community Renewal) -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Communi- ty Development AN ACT to amend the private housing finance law and the public authori- ties law, in relation to the powers of the New York State Housing Finance Agency and the State of New York Mortgage Agency The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 44 of the private housing finance law is amended by 2 adding a new subdivision 33 to read as follows: 3 33. (a) To form one or more subsidiaries for the purpose of limiting 4 the potential liability of the agency when exercising the powers and 5 duties conferred upon the agency by this article in connection with the 6 exercise of remedies by the agency against any borrower that has 7 defaulted in its obligations under its loan agreement or mortgage with 8 the agency and for which an event of default has been declared by the 9 agency. Each such subsidiary created pursuant to this subdivision may 10 exercise and perform one or more of the purposes, powers, duties, func- 11 tions, rights and responsibilities of the agency (other than the issu- 12 ance of indebtedness) in connection with real and personal property with 13 respect to which the agency holds or held a mortgage, security interest 14 or other collateral interest including: (i) bidding for, taking, hold- 15 ing, selling, conveying, assigning or transferring title to such proper- 16 ty; (ii) entering into leases, subleases, operating agreements, security 17 agreements, loan agreements or other encumbrances or arrangements with 18 regard to such property and acting in a manner consistent with the 19 rights, obligations or responsibilities of the owner of such property 20 pursuant to such agreements or encumbrances; and (iii) assuming any 21 indebtedness or other liabilities secured by such property. Notwith- 22 standing any other provision of law to the contrary, but in all EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10100-01-7S. 6413 2 1 instances subject to the provisions of any contract with bondholders, 2 the transfer of title to any such subsidiary or any other actions taken 3 by the agency or such subsidiary to enforce the agency's rights under 4 the mortgage, security interest or other collateral interest or to 5 protect, acquire, manage or dispose of the property shall be deemed to 6 be a corporate purpose of the agency and shall not impair the validity 7 of any bonds, notes or other obligations of the agency to which the 8 mortgage, security interest or other collateral interest relates. 9 (b) Each such subsidiary authorized by paragraph (a) of this subdivi- 10 sion shall be established in the form of a public benefit corporation by 11 executing and filing with the secretary of state a certificate of incor- 12 poration which shall identify the agency as the entity organizing such 13 subsidiary and set forth the name of such subsidiary public benefit 14 corporation, its duration, the location of its principal office and its 15 corporate purposes as provided in this subdivision and which certificate 16 may be amended from time to time by the filing of amendments thereto 17 with the secretary of state. Each such subsidiary shall be organized as 18 a public benefit corporation, shall be a body politic and corporate, and 19 shall have all the privileges, immunities, tax exemptions and other 20 exemptions of the agency. The members of each such subsidiary shall be 21 the same as the members of the agency and the provisions of section 22 fifty-six-a of this article shall in all respects apply to such members 23 when acting in such capacity. 24 (c) Nothing in this subdivision shall be construed to impose any 25 liabilities, obligations or responsibilities of any such subsidiary upon 26 the agency and the agency shall have no liability or responsibility 27 therefor unless the agency expressly agrees to assume the same. 28 (d) Each such subsidiary created pursuant to this subdivision shall be 29 subject to any other provision of this article pertaining to subsid- 30 iaries of public authorities. 31 § 2. Section 2427 of the public authorities law is amended by adding a 32 new subdivision 11 to read as follows: 33 11. (a) To form one or more subsidiaries for the purpose of limiting 34 the potential liability of the agency only with respect to insuring 35 mortgage loans and providing development corporation credit support. 36 Each such subsidiary created pursuant to this subdivision may exercise 37 and perform one or more of the purposes, powers, duties, functions, 38 rights and responsibilities of the agency with respect to insuring mort- 39 gage loans and providing development corporation credit support in 40 connection with real and personal property with respect to which the 41 agency holds or held a mortgage, security interest or other collateral 42 interest including: (i) bidding for, taking, holding, selling, convey- 43 ing, assigning or transferring title to such property; (ii) entering 44 into leases, subleases, operating agreements, security agreements, loan 45 agreements or other encumbrances or arrangements with regard to such 46 property and acting in a manner consistent with the rights, obligations 47 or responsibilities of the owner of such property pursuant to such 48 agreements or encumbrances; and (iii) assuming any indebtedness or other 49 liabilities secured by such property. Notwithstanding any other 50 provision of law to the contrary, but in all instances subject to the 51 provisions of any contract of insurance, the transfer of title to any 52 such subsidiary or any other actions taken by the agency or such subsid- 53 iary to enforce the agency's rights under the mortgage, security inter- 54 est or other collateral interest or to protect, acquire, manage or 55 dispose of the property shall be deemed to be a corporate purpose of the 56 agency.S. 6413 3 1 (b) Each such subsidiary authorized by paragraph (a) of this subdivi- 2 sion shall be established in the form of a public benefit corporation by 3 executing and filing with the secretary of state a certificate of incor- 4 poration which shall identify the agency as the entity organizing such 5 subsidiary and set forth the name of such subsidiary public benefit 6 corporation, its duration, the location of its principal office and its 7 corporate purposes as provided in this subdivision and which certificate 8 may be amended from time to time by the filing of amendments thereto 9 with the secretary of state. Each such subsidiary shall be organized as 10 a public benefit corporation, shall be a body politic and corporate, and 11 shall have all the privileges, immunities, tax exemptions and other 12 exemptions of the agency. The members of each such subsidiary shall be 13 the same as the members of the agency and the provisions of section 14 fifty-six-a of the private housing finance law shall in all respects 15 apply to such members when acting in such capacity. 16 (c) Nothing in this subdivision shall be construed to impose any 17 liabilities, obligations or responsibilities of any such subsidiary upon 18 the agency and the agency shall have no liability or responsibility 19 therefor unless the agency expressly agrees to assume the same. 20 (d) Each such subsidiary created pursuant to this subdivision shall be 21 subject to any other provision of this article pertaining to subsid- 22 iaries of public authorities. 23 § 3. Subdivision 9 of section 2404 of the public authorities law, as 24 amended by chapter 1023 of the laws of 1971, is amended to read as 25 follows: 26 (9) Subject to any agreement with bondholders or noteholders, to sell 27 any mortgages or other personal property acquired by the agency at 28 public or private sale and at such price or prices as it shall deter- 29 mine[, provided, however, that a private sale shall be limited to an30agency of the federal government, the federal national mortgage associ-31ation, or a sale of a mortgage to a bank from which it was originally32purchased]. If the agency determines to sell mortgages at public sale, a 33 notice of such sale shall be published at least once at least five days 34 prior to the date of such sale in a financial newspaper or journal 35 published in the city of New York; 36 § 4. This act shall take effect immediately.
