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:

  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  177 of the laws of 2009, 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,
[2010]  2011, 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  chap-
ter 177 of the laws of 2009, 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] NINE billion [seven] TWO 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

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

                                                           LBD15678-01-0

S. 7582                             2

subdivision  issued  to refund outstanding bonds and notes in accordance
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 [ten] ELEVEN, 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  [ten] ELEVEN, 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.