N.Y. Retirement and Social Security Law 177-C – Investment in mortgage pass-through certificates
§ 177-c. Investment in mortgage pass-through certificates. Notwithstanding the provisions of section one hundred seventy-seven, or of section one hundred seventy-eight of this article, the trustees of any fund may invest in mortgage pass-through certificates. As used in this section, the term "mortgage pass-through certificates" shall mean certificates evidencing ownership of undivided interests in pools of mortgage loans secured by first mortgages on real property located in this state improved by one-to-four family residential dwellings, provided, however, that (i) such mortgage loans are originated on or after January first, nineteen hundred eighty by any bank, trust company, national banking association, savings bank, federal mutual savings bank, savings and loan association, federal savings and loan association, credit union, or federal credit union authorized to do business in this state or by any lender approved by the secretary of housing and urban development for participation in any mortgage insurance program under the National Housing Act, (ii) such mortgage loans are assigned to a bank, trust company, federal mutual savings bank or federal savings and loan association as trustee for the benefit of the holders of such certificates and, (iii) such certificates are rated within the three highest grades by an independent rating service designated by the superintendent of financial services. In no event shall the aggregate unpaid principal on conventional mortgages securing mortgage pass-through certificates exceed ten percent of the assets of such fund nor shall the total unpaid principal on any single pool of conventional mortgages securing mortgage pass-through certificates exceed one percent of the assets of a fund. Mortgage loans secured by first mortgages on a condominium unit designed for residential use, together with its common interest, may be included in pools of mortgage loans provided for above.
Terms Used In N.Y. Retirement and Social Security Law 177-C
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- fund: as used in this article four-a, shall mean any public retirement system or pension fund which grants retirement or pension benefits to employees of the city of New York, employees of the state of New York, employees of any department or agency of the city of New York or the state of New York, and employees of any municipality or other participating employer participating in the New York state and local employees' retirement system or the New York state and local police and fire retirement system. See N.Y. Retirement and Social Security Law 176
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Trustee: A person or institution holding and administering property in trust.