Bill Text: NY S07582 | 2009-2010 | General Assembly | Introduced
Bill Title: Extends certain provisions relating to the powers of the state of New York mortgage agency.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2010-07-15 - SIGNED CHAP.218 [S07582 Detail]
Download: New_York-2009-S07582-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
7582
I N S E N A T E
April 23, 2010
___________
Introduced by Sen. PERKINS -- (at request of the State of New York Mort-
gage Agency) -- read twice and ordered printed, and when printed to be
committed to the Committee on Corporations, Authorities and Commis-
sions
AN ACT to amend chapter 915 of the laws of 1982 amending the public
authorities law relating to the powers of the state of New York mort-
gage agency, in relation to the effective date thereof; and to amend
the public authorities law, in relation to the powers of 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 16 of chapter 915 of the laws of 1982 amending the
2 public authorities law relating to the powers of the state of New York
3 mortgage agency, as amended by chapter 177 of the laws of 2009, is
4 amended to read as follows:
5 S 16. This act shall take effect immediately except that the amend-
6 ments to law effected by sections one through ten of this act, as
7 amended, shall cease to be of force and effect on and after July 16,
8 [2010] 2011, on which date the provisions of the public authorities law
9 amended by such sections shall be as they were in force and effect imme-
10 diately prior to this act taking effect.
11 S 2. Section 2407 of the public authorities law, as amended by chap-
12 ter 177 of the laws of 2009, is amended to read as follows:
13 S 2407. Bond limits. (1) Except for notes issued in nineteen hundred
14 seventy and nineteen hundred seventy-one, the agency shall not issue
15 bonds and notes, the interest on which is not included in the gross
16 income of the holders of the bonds and notes under the United States
17 Internal Revenue Code of 1986, as amended, or any subsequent correspond-
18 ing internal revenue law of the United States, in an aggregate principal
19 amount exceeding [eight] NINE billion [seven] TWO hundred twenty million
20 dollars, excluding from such limitation (a) an amount equal to any
21 original issue discount from the principal amount of any bonds or notes
22 issued, (b) bonds and notes issued to refund outstanding bonds and
23 notes, and (c) bonds and notes not described in paragraph (b) of this
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15678-01-0
S. 7582 2
1 subdivision issued to refund outstanding bonds and notes in accordance
2 with the provisions of the Internal Revenue Code of 1986 or the Tax
3 Reform Act of 1986, as amended, where such bonds or notes are not
4 included in the statewide volume cap on private purpose bonds under
5 section 146 of such code provided, however, that upon any refunding
6 pursuant to this paragraph or paragraph (b) of this subdivision, such
7 exclusion shall apply only to the extent that the amount of the refund-
8 ing bonds or notes does not exceed (i) the outstanding amount of the
9 refunded bonds or notes, plus (ii) to the extent permitted by applicable
10 federal tax law, costs of issuance of the refunding bonds or notes to be
11 financed from the proceeds of the refunding bonds or notes. No such
12 bond or note shall be issued by the agency on or after July sixteenth,
13 two thousand [ten] ELEVEN, excluding bonds and notes issued to refund
14 outstanding bonds and notes. No more than five hundred million dollars
15 of proceeds of bonds or notes issued by the agency pursuant to this
16 subdivision shall be used for mortgage purposes by blending with
17 proceeds of bonds issued pursuant to subdivision two of this section.
18 (2) In connection with the issuance of bonds for the purpose of
19 furthering programs described in this title, the agency is authorized to
20 covenant and consent that the interest on any of its bonds, notes or
21 other obligations shall be includable, under the United States Internal
22 Revenue Code of 1986, as amended or any subsequent corresponding inter-
23 nal revenue law of the United States, in the gross income of the holders
24 of the bonds to the same extent and in the same manner that the interest
25 on bills, bonds, notes or other obligations of the United States is
26 includable in the gross income of the holders thereof under said Inter-
27 nal Revenue Code or any such subsequent law. Pursuant to this subdivi-
28 sion, the agency shall not issue bonds, notes or other obligations in an
29 aggregate principal amount exceeding eight hundred million dollars,
30 excluding from such limitation bonds, notes or other obligations issued
31 to refund outstanding bonds, notes or other obligations. No such bond,
32 note or other obligation shall be issued by the agency on or after July
33 sixteenth, two thousand [ten] ELEVEN, excluding bonds, notes or other
34 obligations issued to refund outstanding bonds, notes or other obli-
35 gations and no mortgages shall be purchased with the proceeds of such
36 bonds, notes or other obligations after such date. The board of direc-
37 tors of the agency shall establish program guidelines for purposes of
38 bonds, notes or other obligations issued pursuant to this subdivision.
39 The board of directors shall establish from time to time maximum income
40 limits of persons eligible to receive mortgages financed by bonds, notes
41 or other obligations issued pursuant to this subdivision, which income
42 limits with respect to one-third of the total principal amount of mort-
43 gages authorized to be so financed shall not exceed one hundred twenty-
44 five percent of the latest maximum income limits permitted under the
45 Internal Revenue Code of 1986, as amended, for mortgagors financed by
46 mortgage revenue bonds, with respect to one-third of such principal
47 amount authorized to be so financed, shall not exceed one hundred thir-
48 ty-five percent of such income limits, and with respect to one-third of
49 such principal amount authorized to be so financed, shall not exceed one
50 hundred fifty percent of such limits.
51 (3) The fixing of the statutory maximums in this section shall not be
52 construed as constituting a contract between the agency and the holders
53 of its bonds or notes that additional bonds and notes may not be issued
54 subsequently by the agency in the event that such statutory maximums
55 shall subsequently be increased by law.
56 S 3. This act shall take effect immediately.
