§ 7607. Management and investment of funds. (a) Each of the two funds
governed by this article shall be separate and apart. Each fund shall
also be separate and apart from any other fund and from all other state
moneys, and the faith and credit of the state of New York is pledged for
their safekeeping. The commissioner shall be the custodian of the funds.
All disbursements shall be made by the commissioner upon vouchers signed
by the superintendent, or his deputy. The moneys of the funds may be
invested by the commissioner in obligations of the United States or of
this state and in interest bearing certificates of deposit of a bank or
trust company located and authorized to do business in this state, or of
a national bank located in this state, secured by a pledge of direct
obligations of the United States or of the state of New York in an
amount equal to the amount of such certificates of deposit, or in
accordance with the provisions of section ninety-eight-a of the state
finance law.

(b) With respect to the moneys in the property/casualty insurance
security fund the commissioner may also invest in:

(1) obligations of public benefit corporations whose obligations are
legal for investment by public officers and bodies of this state;

(2) up to thirty-three and one-third percent of the net value of the
fund in mortgage loans or deeds of trust on real property improved by
one, two, three or four family residences owned by one or more
individuals and occupied by an owner and located in this state. The
amount invested in mortgage loans and deeds of trust may not exceed the
lesser of ninety percent of the appraised value of the real property or
thirty-five thousand dollars if a one-family residence, forty thousand
dollars if a two-family residence, forty-five thousand dollars if a
three-family residence, or fifty thousand dollars if a four-family
residence. The mortgage or deed of trust shall provide for monthly
principal and interest payments in amounts sufficient to pay all
interest and effect full repayment of principal within seventy-five
percent of the estimated remaining useful life of the building or thirty
years, whichever is less.

(c) The commissioner may sell any investment of either fund, if
advisable, for proper administration or in the best interests of the
fund.