Subject to such regulations and restrictions as the superintendent of financial services
finds to be necessary and proper, any bank, trust company or savings bank may invest
in obligations of any corporation organized under any law of this state for the purpose
of acquiring, constructing, owning, maintaining, operating, selling or conveying a
housing project or projects (not including hotels but including accommodations for
retail stores, shops, offices and other community services reasonably incident to
such projects) located within this state, which obligations are (a) secured by a first
mortgage lien on such project, or such part thereof, as was or is to be constructed
or acquired out of the proceeds of such obligations, either directly or by issue under
an indenture of mortgage from such corporation to a corporate trustee having its principal
office in this state, and (b) guaranteed indirectly through the pledge as security
therefor of obligations directly guaranteed under title three of an act of congress
entitled the “Servicemen's Readjustment Act of 1944”, 1 in an aggregate amount equal to at least thirty per centum of the principal amount
of all sums advanced to such corporation under the loan instrument or indenture during
the period of construction and, upon completion, to the extent of at least forty per
centum of the principal amount of such obligations.
38 USCA § 1801 et seq., now repealed. See 38 USCA § 3701 et seq.
Cite this article: FindLaw.com - New York Consolidated Laws, Banking Law - BNK § 6. Investment in obligations of housing corporations indirectly guaranteed pursuant to the “Servicemen's Readjustment Act of 1944” - last updated January 01, 2021
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