2013 New York Consolidated Laws
PVH - Private Housing Finance
Article 2 - (10 - 37) LIMITED-PROFIT HOUSING COMPANIES
27 - Limitations.

 
    § 27. Limitations. No company shall:
    1. Acquire any real property or interest therein unless it shall first
  have  obtained  from  the commissioner or the supervising agency, as the
  case may be,  a  certificate  that  such  acquisition  is  necessary  or
  convenient for the public purpose defined in this article.
    2.  Pay  interest upon its income debentures at a rate higher than six
  per centum per annum except as otherwise provided in this article.
    3. Issue its stock, income debentures and bonds covering  any  project
  in an amount greater in the aggregate than the actual project cost.
    4.   Without   first  having  obtained  the  written  consent  of  the
  commissioner or the supervising agency, as the case may be:
    (a)  Construct,  reconstruct,  rehabilitate,  improve  or  alter   any
  project, or enter into any contract therefor.
    (b)  Sell,  transfer  or assign any real property, except that no such
  consent shall  be  necessary  in  any  sale  in  foreclosure  as  herein
  provided.
    (c)  Except  as otherwise provided in this article, encumber, lease or
  rent all or any part of its real property.
    (d) Enter into contracts for the operation of the project.
    (e) Make a guaranty of payment.
    (f) Voluntarily dissolve.
    (g) Enter into contracts for the payment of salaries  to  officers  or
  employees.
    5. Pay interest on its mortgage indebtedness at a rate higher than six
  per  centum per annum, or at such higher rates as may be approved by the
  commissioner, or the supervising agency, as the case may be, but  in  no
  event  shall any such rate exceed the rate of interest prescribed by the
  superintendent of financial services pursuant to section  fourteen-a  of
  the  banking  law  or, in the case of a mortgage loan insured or held by
  the federal government, the rate approved  by  the  federal  government;
  provided,  however,  that  in the case of a company carrying out a state
  urban development corporation project or in the case of an instrument or
  instruments securing the  residual  indebtedness  of  a  company,  which
  indebtedness is secured by a mortgage on the real property of a project,
  such  rate  shall  not  exceed  the  rate  of interest prescribed by the
  superintendent of financial services pursuant to section  fourteen-a  of
  the  banking  law or nine per centum per annum, whichever is the higher;
  and further provided, however, that, in the case of a company that is  a
  mortgagor  under a mortgage assigned to or acquired by the New York city
  housing development corporation pursuant to  subdivision  twenty-one  of
  section  six  hundred  fifty-four  of  this chapter and whose project is
  aided by a subsidy from the federal government, such rate shall  be  the
  rate of interest approved by the supervising agency. Notwithstanding the
  foregoing  provisions  of  this  section,  the  rate  of interest that a
  company shall have the power to pay on  that  portion  of  its  mortgage
  indebtedness  attributable  to  an investment or participation in a loan
  made pursuant to subdivision one of section fifteen by  an  organization
  or  entity  mentioned in such subdivision, shall be the rate of interest
  approved by the commissioner or the supervising agency, as the case  may
  be.
    6.  Notwithstanding the provisions of subdivision five of this section
  twenty-seven, a company, which has obtained a mortgage loan from the New
  York city housing development corporation or the New York state  housing
  finance  agency  and where it is necessary for additional bonds or notes
  to be issued by the New York city housing development corporation or the
  New York state housing finance agency (i) in order to  obtain  funds  to
  fulfill the mortgage loan commitment to such company, as such commitment
  may  be  amended  or (ii) to refund or renew notes issued in fulfillment

  thereof, for a project partially or temporarily  financed  by  bonds  or
  notes  issued,  in  the  case  of  the New York city housing development
  corporation,  prior  to  the  first  day  of  August,  nineteen  hundred
  seventy-five,  and  in  the  case  of the New York state housing finance
  agency, prior to the thirty-first  day  of  December,  nineteen  hundred
  seventy-five  ,  may  pay  interest  on  that  portion  of  its mortgage
  indebtedness, the funds for which were obtained by  the  New  York  city
  housing  development  corporation  or the New York state housing finance
  agency through the issuance of such additional  or  refunding  bonds  or
  notes,  at a rate not in excess of the cost of financing incurred by the
  New York city housing development corporation  or  the  New  York  state
  housing  finance agency, as the case may be, to issue such additional or
  refunding bonds or notes, provided that, with respect to  the  New  York
  city  housing  development corporation, such corporation determines that
  such cost of  financing  is  reasonable  and  the  commissioner  or  the
  supervising  agency,  as  the  case  may  be, shall approve such cost of
  financing.