§ 407. Participation by certain corporations and individuals. 1. One
or more banking institutions, foundations, labor unions, employers'
associations, veterans' organizations, insurance companies, trustees,
fiduciaries or any combination of the foregoing, shall have the power to
participate and invest, singly or jointly, with a municipality or the
New York city housing development corporation in a bond or note and
single participating mortgage, or in separate bonds or notes and
mortgages pursuant to and in accordance with the provisions of this
article. As used in this section, the terms "trustees" and "fiduciaries"
shall include any fiduciary or fiduciaries holding funds for investment.

2. Banking institutions and insurance companies may exercise such
power on such conditions as may be prescribed or authorized by the
superintendent of financial services.

3. Where one or more banking institutions, foundations, labor unions,
employers' associations, veterans' organizations, insurance companies,
trustees or fiduciaries participates and invests with a municipality or
the New York city housing development corporation as provided in
subdivision one, the interest of each need not be equal as to priority
of lien, interest rate, time or rate of amortization or otherwise.

4. Where a municipality joins with one or more corporations
organizations or individuals of the kind hereinabove mentioned in making
a loan secured by a single participating mortgage or by separate
mortgages, the municipality may make provision, either in the mortgage
or mortgages or by separate agreement, for the performance of such
services as are generally performed by a banking institution or
insurance company which itself owns and holds a mortgage or by a trustee
under a trust mortgage. The agency is hereby authorized to act as
trustee or to consent to the appointment of a banking institution to act
in such capacity.