2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 11 - (570 - 582) HOUSING DEVELOPMENT FUND COMPANIES
576-D - Master servicing agreement.

 
    §  576-d.  Master  servicing  agreement. 1. The commissioner is hereby
  authorized to use the monies held in the  housing  development  fund  to
  make  advances  to  a  local  loan administrator that has entered into a
  written  master  servicing  agreement  prescribed  by  the  commissioner
  pursuant to subdivision two of this section.
    2.  The  commissioner,  in  consultation  with  the comptroller, shall
  prescribe  a  master  servicing  agreement  to  be   executed   by   the
  commissioner and local loan administrators. Such agreement shall provide
  that:  (a) any advances made to a local loan administrator shall be used
  solely for the purpose of providing loans to agricultural producers  for
  undertaking  farmworker  housing projects; (b) the total amount of loans
  made to any single agricultural producer shall not  exceed  one  hundred
  thousand  dollars  per  annum; (c) the term of any loan shall not exceed
  ten years and equal payments of principal  payable  no  less  frequently
  than  annually shall be required to be made on such loan during the term
  such loan is  outstanding  which  payments  will  liquidate  the  entire
  principal  balance  of  the  loan  over  its  term;  (d)  the local loan
  administrator is required to pay to the commissioner  for  deposit  into
  the  housing development fund all repayments including interest, if any,
  received from any agricultural producers on account of such loan, except
  for  that  portion  permitted  to  be  retained  by   the   local   loan
  administrator  as  a fee pursuant to the master servicing agreement. The
  master servicing agreement shall also set forth: (i)  the  form  of  any
  note  and security agreement to be executed by the agricultural producer
  in connection with any loan, which shall include a provision that use of
  the loan to provide housing for a family member of the borrower  or  its
  principals  shall  constitute  a  default  under  the  loan and security
  agreement; (ii) the rate of interest, if any, to be charged on any loan;
  (iii)  the  amount  of  any  fee  to  be  retained  by  the  local  loan
  administrator  for  servicing  any  loan;  (iv)  the form of application
  required to be completed by an agricultural producer for any  loan;  (v)
  the  form  of  requisition and certification to be required from a local
  loan administrator to obtain an advance of funds from the  commissioner;
  (vi) any other conditions to be imposed upon an agricultural producer as
  a  condition  of  receiving  a  loan;  (vii)  the responsibilities to be
  performed by the local loan administrator in connection with  reviewing,
  approving  and  servicing the loan and the circumstances under which the
  commissioner  may  terminate  a  master  servicing   agreement;   (viii)
  conditions  necessary  to insure prompt closing on loans for which funds
  are advanced, including payment of  interest  of  funds  from  the  time
  advanced  until  utilized;  and  (ix)  such  other  requirements  as the
  commissioner may from time to time establish by  rules  and  regulations
  consistent with the purposes of this section.
    3. (a) The commissioner shall, subject to the availability of funds as
  appropriated  by  the  legislature, advance from the housing development
  fund to a local loan administrator the amount of funds requested in  any
  requisition  within  fifteen  business  days after receipt of all of the
  following: a completed requisition for an advance of  funds;  copies  of
  any   applications  and  any  supporting  documentation  to  which  such
  requisition  pertains;  and  a  certification  from   the   local   loan
  administrator  with respect to such requisition in addition to any other
  representation  and  statement  required  by   the   commissioner.   The
  certification  from  the  local loan administrator shall state that: (i)
  the loan administrator has performed its responsibilities in  connection
  with  review  and  approval  of  applications  to which such requisition
  pertains, (ii) to the best of the local loan  administrator's  knowledge
  the  loans,  to  which  the  advances  pertain,  comply  with the master
  servicing agreement and the provisions of this section,  and  (iii)  the

  borrowers  have  demonstrated  their  ability  to  make  the  repayments
  required under the loan. In the event that funds are  not  available  or
  the   commissioner  determines  that  the  requisition,  application  or
  certification   is   defective,  it  shall  so  notify  the  local  loan
  administrator  within  fifteen  business  days  after  receipt  of   the
  requisition.
    (b)  The  commissioner  shall establish criteria for prioritizing loan
  applications in  the  event  that  the  requisitions  submitted  to  the
  commissioner  by one or more local loan administrators exceed the amount
  then available for the purposes of this  section.  Such  criteria  shall
  give  a  priority  to housing for farmworkers and take into account: (i)
  whether the farmworker housing project to which the application pertains
  is  for  the  purpose  of  bringing  non-conforming  accommodations   in
  compliance  with  the provisions of the state sanitary code or the state
  fire prevention and building code; (ii) whether the  farmworker  housing
  project  to  which  the  application pertains is the most cost effective
  approach  to  enable  the  agricultural   producer   to   construct   or
  rehabilitate  dwelling accommodations for farmworkers; (iii) whether the
  agricultural producer making application lacks the  financial  resources
  to  undertake  the  farmworker  housing project without obtaining a loan
  pursuant  to  this  section;  and  (iv)  such  other  factors   as   the
  commissioner deems relevant. In applying the criteria to be utilized for
  prioritizing  loans,  the  commissioner shall be entitled to rely on the
  information contained in the copies of the applications  submitted  with
  the requisition.