§ 57. Insured mortgage reserve fund. 1. The agency shall create and
establish a special fund, to be known as the insured mortgage reserve
fund, and shall pay into such fund all monies appropriated and made
available by the state for the purposes of such fund and any other
monies from any other source or sources available therefor. The monies
held in such fund shall be used (1) to meet the agency's obligations
under an agreement with the federal government pursuant to subdivision
twenty-eight of section forty-four of this article, (2) to meet the
agency's obligations to pay the principal of and interest on notes
issued for the purpose of making a mortgage loan to a company which
mortgage loan or a subsequent mortgage loan to such company has been
insured by the federal government, only however to the extent that all
other revenues of the agency, including the proceeds of any sale,
assignment or other disposition of a mortgage loan insured by the
federal government, available for such purposes are not sufficient to
meet such obligations of the agency, (3) to establish escrow accounts as
may be required by the federal government as a condition for the
issuance of mortgage insurance, (4) to pay for installation of such life
safety devices as may be required by the federal government which
devices are in addition to and not in substitution for any requirement
heretofore imposed on the company, and (5) to pay closing costs arising
out of the company's obtaining mortgage insurance from the federal
government. Any income or interest earned by, or increment to the
insured mortgage reserve fund may be used for authorized purposes
including, but not limited to, the addition of such income or interest
earned, or increment to the monies held in such fund for the purposes
herein provided, the repayment of appropriation expenditures made to the
credit of such fund, or to secure the payment of the principal of and
interest on notes or revenue housing bonds. Any portion of the monies
held in such fund shall, if the federal government so requires, be
segregated from any other portion thereof and applied solely to meet the
agency's obligations under any agreement made pursuant to subdivision
twenty-eight of section forty-four, provided that the amount so
segregated shall not exceed the maximum obligation under any such
contract or contracts.