To insure a transfer or mortgage by a governmental body, you must verify that (1) it has legal authority (e.g., by statute) to engage in the transaction (the entity may not be able to mortgage in some cases); (2) it has provided all necessary notices and secured all required appraisals (e.g., it may be required to publish and secure an appraisal); (3) it has secured all required approvals (e.g., counsel, commissioner, or board approval; some transfers require public vote of the populace); (4) the proper persons signed the instruments; (5) the instrument contains the appropriate statutory language.
The Company requires for its review satisfactory evidence that this transaction by the seller/borrower has been properly approved as required by applicable law, and that all required notices and appraisals have occurred. At the time the company is furnished those items, the Company may make additional requirements or exceptions.
Comment: To insure a transfer or mortgage by a governmental body, you must verify that (1) it has legal authority (e.g., by statute) to engage in the transaction (the entity may not be able to mortgage in some cases); (2) it has provided all necessary notices and secured all required appraisals (e.g., it may be required to publish and secure an appraisal); (3) it has secured all required approvals (e.g., counsel, commissioner, or board approval; some transfers require public vote of the populace); (4) the proper persons signed the instruments; (5) the instrument contains the appropriate statutory language.
Sample language:
(a) A copy of the resolution passed by __[municipality]__ directing a request be made to the legislature to form ____________ Industrial Development Agency must be furnished to the Company (See Municipal Home Rule Law §40);
(b) Proof of filing with the Secretary of State, within six months of the date of passage of the act creating the IDA, of the certificate stating the name of the IDA, the date it was created and the names and terms of the agency’s members (See General Municipal Law § 856.1(a));
(c) A copy of the IDA’s bylaws should be provided to the Company for review, for a determination of the capacity of the IDA to enter into the proposed transaction, and to ascertain the proper parties to execute the closing instruments;
(d) A copy of the IDA resolution authorizing the transaction to be insured, showing that the resolution was adopted by a majority of the members.
(a) That the terms of sale are beneficial to the state of New York; that the sale does not impair the access of existing frontage of an adjoining owner to the highway (unless the highway is limited-access); and
(b) The Attorney General of the State of New York is required to prepare the conveyance, and must approve the form and manner of the instrument’s execution.
(a) That the proposed mortgagor is an educational institution, as defined in the statute;
(b) That the agreement required by the statute has been entered into, and that the mortgage loan to be insured hereunder is in conformity with the statute; and
(c) That the making of the mortgage will not conflict with specific legislation, trusts, endowments, or other agreements relating to specific funds or properties of the mortgagor.
(d) (in duplicate original) That the transaction is exempt from the mortgage recording tax pursuant to Tax Law § 253.3., by virtue of the mortgage being made to the New York State Dormitory Authority.
(a) Proof is required that the proposed transaction is not prohibited by statute or the bylaws of the Dormitory Authority;
(b) A “certificate of incumbency” and appropriate resolution of the Board of the Dormitory Authority is required, as evidence that the parties executing the mortgage instruments on behalf of the Authority are duly authorized to do so;
(c) Proof is required that the terms, conditions and provisions of agreement between ______________ and the Dormitory Authority do not limit the power of the Dormitory Authority to enter into the transaction; policy will except the terms, conditions and provisions, including the reversionary right, pursuant to Public Authorities Law § 1680.2.(d), upon payment or discharge of the obligation.
(a) That the loan is authorized pursuant to [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale];
(b) That any notices have been given to and approvals obtained from ___[urban renewal agency][municipality]__ required by the [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale] have been given;
(c) Policy excepts the terms, provisions, covenants, conditions and restrictions affecting the property as set forth in the [Urban Renewal Plan][Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale], including any reverter provision.
(a) The Attorney General must approve the form and manner of execution of the instrument to be insured, pursuant to subdivision 18 of Highway Law § 30.
(b) The Commissioner of Transportation must determine that the sale is on terms beneficial to the State of New York; and
(c) The Commissioner of Transportation must execute the closing instrument.
Proof is required that the Governor of New York (pursuant to Unconsolidated Laws §§ 7151 and 7152) and the Governor of New Jersey (pursuant to N.J.S.A. § 32:2-28, ff.) have either approved or not vetoed the proposed transaction, unless the need to do so has been dispensed with.
The requirements of Unconsolidated Laws §6951 must be strictly met.
Consent of the New York State Department of Transportation pursuant to Unconsolidated Laws §6409 and the equivalent New Jersey agency under equivalent statute must be obtained.
{set forth in Urban Renewal Plan dated __/__/__ and filed in the _______ County Clerk’s Office under Index No. ________, as same may have been amended.}
{contained in [Declaration of Restrictions][ Land Disposition Agreement][Contract of Sale][deed] recorded on __/__/__ in __(Liber, Record Liber, Reel)____ (C)p___.}