N.Y. Comp. Codes R. & Regs. tit. 9 § 1760.4

Current through Register Vol. 46, No. 39, September 25, 2024

Section 1760.4 - Request for modification of division's supervisory role

At the lender's request, under appropriate circumstances the division may agree to modifications of its supervisory role, the terms of which may be embodied in an inter-agency memorandum of understanding, multi-party agreement, or approval letter issued by the division; including, but not limited to, the following:

(a) Remedies for default. The division may agree to promptly act within its authority to remedy a default on a loan, including proceedings to re-establish the rents/maintenance, provided that the division will not agree to act in a predetermined manner, but must retain discretion to choose the appropriate remedy under the circumstances.

(b) Administration of reserve funds. The division may permit the lender to hold, free of encumbrance by the division, certain reserve funds, such as repair and replacement reserves pending completion of capital work, and to encumber those accounts as security for the loan which can be withdrawn without the division's approval in the event of a default.

(c) Administration of escrow funds. The division may permit the lender to hold, free of encumbrance by the division, certain escrow funds for payment of debt service, taxes, and insurance, that are normally held in accounts controlled by the division.

(d) Supervision of capital work. The division may modify its procedures for supervision of capital work, which normally includes review of contracts, specifications, bids, change orders, and approval of progress payments in order to insure that the division's participation is not duplicative of another agency's functions, and does not unduly delay completion of the work.

N.Y. Comp. Codes R. & Regs. Tit. 9 § 1760.4