S T A T E   O F   N E W   Y O R K
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                                   26

                      Eighth Extraordinary Session

                            I N  S E N A T E

                              June 29, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

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:

  Section  1. Section 16 of chapter 915 of the laws of 1982 amending the
public authorities law relating to the powers of the state of  New  York
mortgage  agency,  as  amended  by  chapter  148 of the laws of 2008, is
amended to read as follows:
  S 16. This act shall take effect immediately except  that  the  amend-
ments  to  law  effected  by  sections  one  through ten of this act, as
amended, shall cease to be of force and effect on  and  after  July  16,
[2009]  2010, on which date the provisions of the public authorities law
amended by such sections shall be as they were in force and effect imme-
diately prior to this act taking effect.
  S 2. Section 2407 of the public authorities law, as amended by chapter
148 of the laws of 2008, is amended to read as follows:
  S 2407. Bond limits. (1) Except for notes issued in  nineteen  hundred
seventy  and  nineteen  hundred  seventy-one, the agency shall not issue
bonds and notes, the interest on which is  not  included  in  the  gross
income  of  the  holders  of the bonds and notes under the United States
Internal Revenue Code of 1986, as amended, or any subsequent correspond-
ing internal revenue law of the United States, in an aggregate principal
amount exceeding eight  billion  [four]  SEVEN  hundred  twenty  million
dollars,  excluding  from  such  limitation  (a)  an amount equal to any
original issue discount from the principal amount of any bonds or  notes
issued,  (b)  bonds  and  notes  issued  to refund outstanding bonds and
notes, and (c) bonds and notes not described in paragraph  (b)  of  this
subdivision  issued  to refund outstanding bonds and notes in accordance

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09019-02-9

S. 26                               2

with the provisions of the Internal Revenue Code  of  1986  or  the  Tax
Reform  Act  of  1986,  as  amended,  where  such bonds or notes are not
included in the statewide volume cap  on  private  purpose  bonds  under
section  146  of  such  code  provided, however, that upon any refunding
pursuant to this paragraph or paragraph (b) of  this  subdivision,  such
exclusion  shall apply only to the extent that the amount of the refund-
ing bonds or notes does not exceed (i) the  outstanding  amount  of  the
refunded bonds or notes, plus (ii) to the extent permitted by applicable
federal tax law, costs of issuance of the refunding bonds or notes to be
financed  from  the  proceeds  of the refunding bonds or notes.  No such
bond or note shall be issued by the agency on or after  July  sixteenth,
two  thousand  [nine]  TEN,  excluding  bonds and notes issued to refund
outstanding bonds and notes. No more than five hundred  million  dollars
of  proceeds  of  bonds  or  notes issued by the agency pursuant to this
subdivision shall  be  used  for  mortgage  purposes  by  blending  with
proceeds of bonds issued pursuant to subdivision two of this section.
  (2)  In  connection  with  the  issuance  of  bonds for the purpose of
furthering programs described in this title, the agency is authorized to
covenant and consent that the interest on any of  its  bonds,  notes  or
other  obligations shall be includable, under the United States Internal
Revenue Code of 1986, as amended or any subsequent corresponding  inter-
nal revenue law of the United States, in the gross income of the holders
of the bonds to the same extent and in the same manner that the interest
on  bills,  bonds,  notes  or  other obligations of the United States is
includable in the gross income of the holders thereof under said  Inter-
nal  Revenue  Code or any such subsequent law. Pursuant to this subdivi-
sion, the agency shall not issue bonds, notes or other obligations in an
aggregate principal amount  exceeding  eight  hundred  million  dollars,
excluding  from such limitation bonds, notes or other obligations issued
to refund outstanding bonds, notes or other obligations. No  such  bond,
note  or other obligation shall be issued by the agency on or after July
sixteenth, two thousand [nine] TEN,  excluding  bonds,  notes  or  other
obligations  issued  to  refund  outstanding bonds, notes or other obli-
gations and no mortgages shall be purchased with the  proceeds  of  such
bonds,  notes  or other obligations after such date. The board of direc-
tors of the agency shall establish program guidelines  for  purposes  of
bonds,  notes  or other obligations issued pursuant to this subdivision.
The board of directors shall establish from time to time maximum  income
limits of persons eligible to receive mortgages financed by bonds, notes
or  other  obligations issued pursuant to this subdivision, which income
limits with respect to one-third of the total principal amount of  mort-
gages  authorized to be so financed shall not exceed one hundred twenty-
five percent of the latest maximum income  limits  permitted  under  the
Internal  Revenue  Code  of 1986, as amended, for mortgagors financed by
mortgage revenue bonds, with respect  to  one-third  of  such  principal
amount  authorized to be so financed, shall not exceed one hundred thir-
ty-five percent of such income limits, and with respect to one-third  of
such principal amount authorized to be so financed, shall not exceed one
hundred fifty percent of such limits.
  (3)  The fixing of the statutory maximums in this section shall not be
construed as constituting a contract between the agency and the  holders
of  its bonds or notes that additional bonds and notes may not be issued
subsequently by the agency in the event  that  such  statutory  maximums
shall subsequently be increased by law.
  S 3. This act shall take effect immediately.