N.Y. Private Housing Finance Law 407 – Participation by certain corporations and individuals
§ 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.
Terms Used In N.Y. Private Housing Finance Law 407
- agency: shall mean any officer, board, commission, department, or other agency of the municipality, or the authority or any other public authority, designated by the local legislative body to carry out the functions vested in the agency under this article or delegated to the agency by the local legislative body in order to carry out the purposes and provisions of this article. See N.Y. Private Housing Finance Law 401
- Amortization: Paying off a loan by regular installments.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fiduciary: A trustee, executor, or administrator.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- loan: shall include any grant made by a municipality pursuant to this article, provided, however, that any provision of this article concerning the repayment or forgiveness of, or security for, a loan shall not apply to any grant made pursuant to this article. See N.Y. Private Housing Finance Law 402
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Trustee: A person or institution holding and administering property in trust.
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.