§ 2429-b. Mortgage insurance fund. * 1. (a) The agency shall create
and establish a mortgage insurance fund. Within such fund, the agency
shall establish: (i) a special account, which shall be divided into
sub-accounts for each region as defined in subdivision nine of section
twenty-four hundred twenty-six of this title; (ii) a single family pool
insurance account; (iii) a project pool insurance account; and (iv) a
development corporation credit support account. The single family pool
insurance account shall be used for all business relating to the
insurance of mortgages on properties with one to four dwelling units,
the project pool insurance account shall be used for all business
relating to the insurance of mortgages on properties other than those
with one to four dwelling units, and the development corporation credit
support account shall be used for all business relating to development
corporation credit support. Separate sub-accounts may be established
within the special account, the pool insurance accounts, and the
development corporation credit support account as deemed appropriate by
the agency.

(b) (i) The mortgage insurance fund shall be used as a revolving fund
for carrying out the provisions of this title with respect to mortgages
insured and development corporation credit support, provided thereunder.
(ii) The agency shall pay into such fund all moneys which may be made
available to the agency for the purposes of such fund from any source,
including but not limited to the moneys received from recording officers
pursuant to the provisions of subdivision two of section two hundred
sixty-one of the tax law. The agency shall credit the amount of moneys
received from the recording officer of each county, pursuant to
subdivision two of section two hundred sixty-one of the tax law, to the
special account. In any fiscal year, no more than fifty per centum of
the amount received from the recording officers during the consecutive
twelve month period ending on the preceding March thirty-first may be
used by the agency for the purpose of insuring mortgages on property
located in any one region pursuant to section two thousand four hundred
twenty-eight of this part, provided, however, that this provision shall
not include or be applied to pool insurance of mortgage loans purchased
by the agency. The agency shall credit any other moneys which may be
made available to the agency for the purposes of such fund from any
other source to the special account, the single family pool insurance
account, the project pool insurance account, or the development
corporation credit support account, as appropriate. Any income or
interest earned by, or increment to, the mortgage insurance fund due to
the investment thereof shall be credited to the special account, the
applicable pool insurance account, or the development corporation credit
support account, as appropriate.

(c) The agency may credit from the special account to the single
family pool insurance account, to the project pool insurance account and
to the development corporation credit support account such moneys as are
required to satisfy the mortgage insurance fund requirement of such
accounts, except that during any twelve-month period ending on March
thirty-first the aggregate amount credited to the development
corporation credit support account (excluding amounts described in the
last sentence of paragraph (b) of this subdivision) shall not exceed the
lesser of (i) fifty million dollars or (ii) the aggregate of the amounts
required under the contracts executed by the agency to provide
development corporation support.

(d) Moneys, investments and cash equivalents of the special account,
the single family pool insurance account, the project pool insurance
account and the development corporation credit support account shall be
kept separate and shall not be commingled with each other or with any
other accounts which may be established from time to time, except as
otherwise authorized by this section.

(e) Moneys, investments and cash equivalents of the pool insurance
accounts and the development corporation credit support account shall be
excluded from the excess balance calculation set forth in subdivision
two of this section. However, if at any time the moneys, investments and
cash equivalents (valued as determined by the agency) of either pool
insurance account or the development corporation credit support account
exceed the amount necessary to attain and maintain the credit rating or,
with respect to development corporation credit support, credit
worthiness (as determined by the agency) required to accomplish the
purposes of such account the agency shall transfer such excess to the
special account and such excess shall be included in the excess balance
calculation.

* NB Effective until July 23, 2025

* 1. The agency shall create and establish a mortgage insurance fund.
Within such fund, the agency shall establish a special account, which
shall be divided into sub-accounts for each region as defined in
subdivision nine of section twenty-four hundred twenty-six of this part
and a development corporation credit support account. The development
corporation credit support account shall be used for all business
related to development corporation credit support. Separate sub-accounts
may be established within the development corporation credit support
account as deemed appropriate by the agency. The mortgage insurance fund
shall be used as a revolving fund for carrying out the provisions of
this title with respect to mortgages insured and development corporation
support provided thereunder. The agency shall pay into such fund all
moneys which may be made available to the agency for the purposes of
such fund from any source, including but not limited to the moneys
received from recording officers pursuant to the provisions of
subdivision two of section two hundred sixty-one of the tax law. The
agency shall credit the amount of moneys received from the recording
officer of each county, pursuant to subdivision two of section two
hundred sixty-one of the tax law, to the special account. In any
calendar year, no more than fifty per centum of the amount received from
the recording officers and credited to the special account during the
consecutive twelve month period ending on the preceding December
thirty-first may be used by the agency for the purpose of insuring
mortgages on property located in any one region pursuant to section two
thousand four hundred twenty-eight of this part. The agency shall credit
any other moneys which may be made available to the agency for the
purposes of such fund from any other source to the special account or
the development corporation credit support account, as appropriate. Any
income or interest earned by, or increment to, the mortgage insurance
fund due to the investment thereof shall be credited to the special
account or the development corporation credit account, as appropriate.

* NB Effective July 23, 2025

* 1-a. All moneys held in the mortgage insurance fund, except as
hereinafter provided, shall be used, as required, solely for the payment
of the agency's liabilities arising from mortgages insured as provided
in section twenty-four hundred twenty-nine-a of this part and from the
provision of development corporation credit support as provided in
section twenty-four hundred twenty-eight-a of this part; provided,
however, that no moneys shall be withdrawn from any account at any time
in such amount as would reduce the amount of, as applicable, the special
account, either pool insurance account or the development corporation
credit support account to less than its applicable mortgage insurance
fund requirement, except for the purpose of paying such liabilities as
the same become due and for the payment of which other moneys of the
agency are not available. All payments pursuant to section twenty-four
hundred twenty-nine-a of this part, and expenses attributable thereto
shall be debited to the special account or the single family pool
insurance account or the project pool insurance account or the
development corporation credit support account, as appropriate, within
the mortgage insurance fund. All other operating expenses of the agency
with respect to insurance of mortgages and providing development
corporation credit support shall be debited to the special account, the
single family pool insurance account, the project pool insurance account
or the development corporation credit support account within the
mortgage insurance fund, as appropriate.

* NB Effective until July 23, 2025

* 1-a. All moneys held in the mortgage insurance fund, except as
hereinafter provided, shall be used, as required, solely for the payment
of the agency's liabilities arising from mortgages insured as provided
in section twenty-four hundred twenty-nine-a of this part and from the
provision of development corporation credit support as provided in
section twenty-four hundred twenty-eight-a of this part; provided,
however, that no moneys shall be withdrawn from any account at any time
in such amount as would reduce the amount of, as applicable, the special
account or the development corporation credit support account to less
than its applicable mortgage insurance fund requirement, except for the
purpose of paying such liabilities as the same become due and for the
payment of which other moneys of the agency are not available. All
payments pursuant to section twenty-four hundred twenty-nine-a of this
part, and expenses attributable thereto shall be debited to the special
account or the development corporation credit support account within the
mortgage insurance fund. All other operating expenses of the agency with
respect to insurance of mortgages and providing development corporation
credit support shall be debited to the special account or the
development corporation credit support account within the mortgage
insurance fund, as appropriate.

* NB Effective July 23, 2025

2. On or before March twentieth in each year, the board of directors
of the agency shall determine the amount estimated to be received by the
agency from the additional tax imposed pursuant to subdivision one-a of
section two hundred fifty-three of the tax law and deposited in the
mortgage insurance fund and credited to the special account plus any
other monies deposited in such account plus the amount of reserves
available in such special account with respect to mortgage loans that
were previously insured in accordance with section twenty-four hundred
twenty-eight or development corporation credit support previously
provided pursuant to section twenty-four hundred twenty-eight-a of this
part under contracts or commitments that have been satisfied or
cancelled, pursuant to subdivision one of this section, except charges
and fees levied by the agency pursuant to section twenty-four hundred
twenty-nine-c of this part, which shall be added in the computation only
when such a commitment is cancelled or expires or when the insurance or
contractual arrangement to provide development corporation credit
support applied for is declared effective. Such determination made on or
before March twentieth in each year shall be made for the consecutive
twelve-month period ending on the subsequent March thirty-first. The
board shall then determine the estimated excess balance, if any, in such
special account by determining the amount by which such credits exceed
twenty per centum, or such other per centums or amounts as may have been
established by the board of directors of the agency pursuant to
subdivision seven of section twenty-four hundred twenty-eight of this
part, of the amounts insured or committed to be insured and the amounts
of development corporation credit support established by the board of
directors of the agency pursuant to section twenty-four hundred
twenty-eight-a of this part to be provided during such twelve-month
period plus any payments by the agency during such twelve-month period
on account of a mortgage or development corporation credit support
contract entered into during such twelve-month period ending on such
March thirty-first, plus the operating expenses of the agency during
such twelve-month period with respect to insurance of mortgages or
provision of development corporation credit support, which amount may
not exceed an amount determined and certified by the director of the
budget, with notification to the chairman of the senate finance
committee and chairman of the assembly ways and means committee. On or
before May fifteenth, the board shall determine any adjustment to the
estimated excess balance necessary to reflect the variance, if any,
between such estimated excess balance and the actual excess balance
computed as of March thirty-first, and shall certify such adjustment to
the director of the budget. The agency shall include such adjustment in
the estimated excess balance determination for the following fiscal
year, unless otherwise instructed by the director of the budget. The
agency shall submit to the director of the budget an estimate of such
operating expenses on or before the tenth business day in March of each
year and the director of the budget shall make such certification before
March twentieth of each year.

Upon making the determination of the estimated excess balance, the
agency shall certify such determination to the director of the budget,
the chairmen of the senate finance committee and the assembly ways and
means committee, and the comptroller. Payment of such actual or
estimated excess balance shall be made within ninety days after March
twentieth. The agency shall, at the direction of the director of the
budget, pay such estimated or actual excess balance, if any, from the
special account to the comptroller for deposit to the state general
fund; provided, however, that if the aggregate amount in the special
account as of such date is less than the mortgage insurance fund
requirement, the agency shall retain all or that portion of any such
estimated or actual excess balance in such special account necessary to
increase the aggregate amount in such special account to the mortgage
insurance fund requirement. The director of the budget shall notify the
chairmen of the senate finance committee and the assembly ways and means
committee ten days prior to the issuance of the directive in respect to
the payment of the estimated or actual excess balance to the general
fund.

Further provided, however, that the budget to be submitted to the
legislature by the governor pursuant to article seven of the
constitution shall separately state the amount of such estimated or
actual excess balance determined as hereinabove prescribed, if any,
which shall be included in the monies and revenues estimated to be
available during the current and ensuing fiscal years, respectively.

3. The moneys in such fund shall be deposited in one or more banks or
trust companies designated in the manner provided by law, as
depositories of the funds of the state. The agency may invest the moneys
in such fund in obligations specified in subdivision four of this
section. Any interest earned or capital gain realized on the money so
deposited or invested shall accrue to and become part of such fund. The
separate identity of such fund shall be maintained whether its assets
consist of cash or investments or both.

4. Moneys in such fund may be invested (a) in special time deposit
accounts in, or certificates of deposit issued by, a bank, trust
company, savings bank or savings and loan association located and
authorized to do business in this state, provided, however, that such
time deposit account or certificate of deposit shall be payable within
such time as the proceeds may be needed to meet expenditures estimated
to be incurred by the agency and provided further that such time deposit
account or certificate of deposit be secured by a pledge of obligations
of the United States of America or obligations of the state, any city of
the state, or other municipal corporation, school district or district
corporation of the state or obligations of agencies of the federal
government; or (b) in obligations of the United States of America or the
state which may from time to time be legally purchased by savings banks
within the state as an investment of funds belonging to them or in their
control, or in obligations of the Federal National Mortgage Association,
or (c) in Government National Mortgage Association mortgage backed
securities, provided such obligations shall be payable or redeemable at
the option of the owner within such times as the proceeds may be needed
to meet expenditures estimated to be incurred by the agency.

5. In computing the amount of the mortgage insurance fund for the
purposes of this section, securities in which all or a portion of such
fund shall be invested shall be valued at par if purchased at par, or if
purchased at other than par, at amortized value. Amortized value, when
used with respect to securities purchased at a premium above or a
discount below par, shall mean the value as of any given date obtained
by dividing the total premiums or discount at which such securities were
purchased by the number of interest payments remaining to maturity on
such securities after such purchase and by multiplying the amount so
calculated by the number of interest payment dates having passed since
the date of such purchase; and (i) in the case of securities purchased
at a premium by deducting the product thus obtained from the purchase
price, and (ii) in the case of securities purchased at a discount by
adding the product thus obtained to the purchase price.

6. The agency may create and establish such other fund or funds as may
be necessary or desirable for the carrying out of its corporate
purposes.