New York Consolidated Laws, Public Authorities Law - PBA § 2428-a. Development corporation credit support account as source of development corporation credit support

1. The agency is authorized, subject to the provisions of this title, to provide the development corporation credit support account as a source or potential source of payment of development corporation credit support.  The agency may provide the development corporation credit support account as a source or potential source of payment of all or any development corporation credit support upon the terms (which shall include a requirement to repay to the mortgage insurance fund any amounts transferred to the corporation or the convention center development fund) and under the conditions it shall set forth in the applicable contracts between the agency and such other parties (including the corporation) as the agency shall deem appropriate with respect to the applicable reserve and financial support funds which are to receive the benefit of such development corporation credit support.  The agency may not execute a contract to provide development corporation credit support if, at the time such contract is executed, such execution would impair any then-existing credit rating of the single family pool insurance account or the project pool insurance account.

2. For purposes of determining the mortgage insurance fund requirement with respect to the development corporation credit support account, the board of directors of the agency, by a vote of a majority of all of its members, shall approve or authorize the applicable contracts which shall establish the amount of the required or permitted deposits in each reserve and financial support fund (which may be determined by reference to percentages of such required or permitted amounts) for which the development corporation credit support account is or will be a source or potential source of development corporation credit support.  Such amounts (or percentages) may be different for each reserve and financial support fund.

3. For purposes of section twenty-four hundred eleven of this title, a development corporation credit support agreement shall be deemed and regarded as a mortgage insurance contract for the benefit of parties to such agreement.