1. Definitions. As used in this section, the following words and terms shall have the following meanings unless the context shall indicate another or different meaning or intent:

1. (a) "Cash equivalent". A letter of credit, insurance policy, surety, guarantee, indemnity or other security arrangement.
2. (b) "Financial institution". (i) Any bank, trust company, national bank, state or federal savings bank, state or federal savings and loan association, or state or federal credit union, insurance company, pension fund or retirement system of any corporation, association, any other entity which is owned or controlled by any one or more of the above, provided such bank, trust company, national bank, state or federal savings bank, state or federal savings and loan association, or state or federal credit union, insurance company, pension fund or retirement system of any corporation or association, and, if an entity which is owned by one or more of the above, such entity, is supervised by or responsible to any agency of the federal government, the state, any department thereof or the governing body of any city, town or village of the state, or (ii) any other entity approved by the subsidiary corporation, or (iii) any one or more of the above when lawfully acting as a trustee or otherwise in a fiduciary capacity. The term "financial institution" shall also include the New York state housing finance agency, the New York state medical care facilities finance agency, the state of New York mortgage agency, the New York state urban development corporation, the corporation, the New York city department of housing preservation and development, the community preservation corporation, any governmental agency of the United States which customarily makes, purchases or holds residential mortgages and any person who is approved as a mortgage lender by the federal housing administration for purposes of insurance issued by such administration or licensed by the state of New York as a mortgage banker.
3. (c) "Housing accommodation". Any existing building, structure, unit thereof (including an owner-occupied unit in a condominium and a lessee-occupied dwelling unit in which the lessee retains a proprietary lease with respect to such dwelling unit and has an allocable ownership interest in a cooperative housing corporation) or unimproved real property, which is used or occupied, or is intended to be used or occupied as the home or residence of one or more persons, a portion of which may also be used for commercial and other community facilities ancillary to such residence provided that, in the case of any housing accommodation consisting of more than six dwelling units, the floor area of above-ground commercial facilities shall not exceed one-quarter of the above-ground floor area of such housing accommodation (inclusive of such commercial facilities).
4. (d) "Housing insurance contracts". All contracts entered into by the subsidiary corporation to insure mortgages pursuant to this section, but not including (i) any contracts to insure mortgages entered into by the predecessor corporation which are imposed upon and assumed by the subsidiary corporation pursuant to paragraph (d) of subdivision two of this section, or (ii) any contracts to insure mortgages entered into by the subsidiary corporation with respect to which a commitment to insure was issued by the predecessor corporation.
5. (e) "Housing insurance fund". The housing insurance fund as established pursuant to subdivision twelve of this section.
6. (f) "Housing insurance fund requirement". As of any particular date of computation, an amount equal to the aggregate of (i) one hundred per centum of the insured amounts due and payable by the subsidiary corporation pursuant to housing insurance contracts, plus (ii) twenty per centum of the insured amounts under housing insurance contracts other than insured amounts which are due and payable pursuant to (i) above, plus (iii) twenty per centum of the amounts to be insured under housing insurance contracts pursuant to the subsidiary corporation's commitments to insure.
7. (g) "Mortgage". A first mortgage on real property located within the city of New York, securing a preservation loan or a rehabilitation loan, with a term not to exceed forty years, on real estate, held in fee simple or on a leasehold under a lease having a period of years to run at the time a mortgage is insured under this section of at least twenty per centum greater duration than the remaining term of such mortgage; the term "first mortgage" means such first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate under the laws of the state, together with the credit instruments, if any, secured thereby.
8. (h) "Mortgage insurance contracts". All contracts to insure mortgages entered into by the predecessor corporation that are imposed upon and assumed by the subsidiary corporation pursuant to paragraph (d) of subdivision two of this section and all contracts to insure mortgages entered into by the subsidiary corporation with respect to which a commitment to insure was issued by the predecessor corporation.
9. (i) "Mortgage insurance fund". The mortgage insurance fund as established pursuant to subdivision twelve of this section.
10. (j) "Mortgage insurance fund requirement". As of any particular date of computation, an amount equal to the aggregate of (i) one hundred per centum of the insured amounts due and payable by the subsidiary corporation pursuant to mortgage insurance contracts, plus (ii) an amount equal to the greater of (A) seven million five hundred thousand dollars or (B) twenty per centum of the insured amounts under mortgage insurance contracts other than insured amounts which are due and payable under subparagraph (i) of this paragraph, plus (iii) twenty per centum of the amounts to be insured under the predecessor corporation's commitments to insure; provided, however, that notwithstanding the foregoing, at no time shall the mortgage insurance fund requirement exceed the aggregate of (1) insured amounts due and payable by the subsidiary corporation pursuant to mortgage insurance contracts, plus (2) one hundred per centum of the insured amounts under mortgage insurance contracts other than insured amounts which are due and payable under clause (1) of this paragraph, plus (3) one hundred per centum of the amounts to be insured under the predecessor corporation's commitments to insure.
11. (k) "Mortgagee". The mortgage lender under a mortgage insured by the predecessor corporation or insured pursuant to subdivision ten of this section, and its successors and assigns.
12. (l) "Mortgage loan". A mortgage loan secured by a mortgage.
13. (m) "Mortgagor". The original borrower under a mortgage loan insured by the predecessor corporation or insured pursuant to subdivision ten of this section, and its successors and assigns.
14. (n) "Multi-family housing accommodation". A housing accommodation with five or more dwelling units.
15. (o) "Operating expenses". All costs of administering the subsidiary corporation, including, but not limited to, salaries and wages, expenses of administering staff functions, fees of professional consultants, legal fees, charges incurred for servicing of mortgage loans, money management fees, office rents, utility charges, costs of supplies, furnishings, equipment, machinery and apparatus, maintenance and repair of property, payment to the corporation for services rendered, amounts due and owing under contracts validly entered into by the predecessor corporation or the subsidiary corporation, other than mortgage insurance contracts and housing insurance contracts, respectively, and other expenses incurred in connection with any of the foregoing.
16. (p) "Other real property". Any building, structure or unimproved property which is used or occupied, or is intended to be used or occupied, primarily for emergency, transitional or shelter housing, a portion of which may also be used for commercial and other community facilities ancillary to such use provided that, the floor area of above-ground commercial facilities shall not exceed one-quarter of the above-ground floor area of such other real property (inclusive of such commercial facilities).
17. (q) "Predecessor corporation". The New York city rehabilitation mortgage insurance corporation created by section one of chapter nine hundred twenty-four of the laws of nineteen hundred seventy-three, being, prior to repeal, article fourteen of the private housing finance law.
18. (r) "Preservation loan". A mortgage loan extended by a financial institution with a term not to exceed forty years for the purposes of refinancing existing indebtedness secured by one or more mortgages on a housing accommodation or other real property located within the city of New York and/or financing the acquisition of a housing accommodation or other real property located within the city of New York and which otherwise complies with the conditions established pursuant to subdivision ten of this section.
19. (s) "Rehabilitation". Repairs, alterations or improvements of a housing accommodation or other real property designed to raise the housing standards therein or, in the case of other real property, designed to provide needed improvements therein. Rehabilitation shall also include the construction of a housing accommodation or other real property.
20. (t) "Rehabilitation loan". A mortgage loan extended by a financial institution with a term not to exceed forty years which may include the refinancing of existing indebtedness, if any, secured by one or more mortgages on the housing accommodation or other real property to be rehabilitated, or financing the acquisition of the housing accommodation or other real property to be rehabilitated, which housing accommodation or other real property shall be located within the city of New York and which otherwise complies with the conditions established pursuant to subdivision ten of this section, provided, however, that a sum equal to at least twenty-five percent of the amount of the mortgage loan shall be used for the cost of rehabilitation of, or construction of improvements on, a housing accommodation or other real property.

8. Powers. The subsidiary corporation shall have the power:

1. (a) To sue and be sued;
2. (b) To have a seal and alter the same at pleasure;
3. (c) To make and alter by-laws for its organization;
4. (d) To adopt, amend or rescind rules and regulations appropriate to carry out its corporate purposes, including rules and regulations governing the use of its property and facilities and to establish such requirements and enter into such agreements to achieve the objectives of this section;
5. (e) To make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this section;
6. (f) To acquire, hold and dispose of real and/or personal property for its corporate purposes;
7. (g) To engage the services of private consultants on a contract basis for rendering professional and technical assistance and advice;
8. (h) To appoint officers, agents and employees, prescribe their duties and qualifications and fix their compensation;
9. (i) To invest any funds, or other moneys under its custody and control in the same manner as the corporation;
10. (j) To establish and levy fees and charges in connection with the processing of applications for mortgage insurance and fix premium charges for mortgage insurance;
11. (k) To enter into commitments to insure mortgages and contracts of insurance and enter into any additional agreements as the subsidiary corporation deems appropriate to further the objectives of this section;
12. (l) To fulfill its obligations and enforce its rights under any contract of insurance, or commitment to insure so furnished as provided in this section and such rules and regulations as may be adopted by the subsidiary corporation;
13. (m) To pay, pursue to final collection, compromise, waive or release any right, title, claim, lien or demand, however acquired, including any equity or right of redemption;
14. (n) To foreclose any mortgage in default or commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase such property at any foreclosure or at any other sale, or otherwise to acquire or take possession of any such property;
15. (o) To deal with, hold, administer, manage, rent, repair, insure or sell, lease or otherwise dispose of any property conveyed to or acquired by the subsidiary corporation and to enter into agreements with the state, the city, or any person, firm, entity, partnership or corporation, either public or private, with regard thereto;
16. (p) To procure insurance against any loss in connection with its property and other assets and to procure reinsurance in connection with its obligations, all in such amounts and from such insurers as it deems necessary or desirable;
17. (q) To consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security or any other term, of any mortgage, mortgage loan, contract or agreement of any kind which the subsidiary corporation has insured or to which the subsidiary corporation is a party;
18. (r) To sell, at public or private sale, any mortgage, mortgage participation or other obligation held by the subsidiary corporation;
19. (s) To procure cash equivalents for deposit in its funds;
20. (t) To enter into co-insurance agreements with any entity authorized by law to provide mortgage insurance with respect to property located within the city of New York, including, but not limited to the state of New York mortgage agency and the United States department of housing and urban development;
21. (u) To do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this section.