N.Y.
State Finance Law Section 99-V
Mortgage settlement proceeds trust fund
1.
There is hereby established in the joint custody of the state comptroller and the commissioner of taxation and finance a trust and agency fund known as the “mortgage settlement proceeds trust fund”.2.
Such fund shall consist of monies paid pursuant to the settlement agreement dated November nineteenth, two thousand thirteen between J.P. Morgan Securities LLC (f/k/a “Bear, Stearns & Co. Inc.”), JPMorgan Chase Bank, N.A., EMC Mortgage LLC (f/k/a “EMC Mortgage Corporation”) and the People of the State of New York and that were transferred thereto pursuant to law from the department of law restitution fund and the general fund.3.
Up to $439,549,965 of the monies of the fund shall be distributed in accordance with a plan approved in a memorandum of understanding executed by the director of the budget, the speaker of the assembly, and the temporary president of the senate, or their designee, in consultation with the commissioner of the division of housing and community renewal, to provide compensation to the state of New York and its communities for harms purportedly caused by the allegedly unlawful conduct of J.P. Morgan Securities LLC (f/k/a “Bear, Sterns & Co. Inc.”), JPMorgan Chase Bank, N.A., EMC Mortgage LLC (f/k/a “EMC Mortgage Corporation”) for purposes intended to avoid preventable foreclosures, to ameliorate the effects of the foreclosure crisis, to enhance law enforcement efforts to prevent and prosecute financial fraud or unfair or deceptive acts or practices, and to otherwise promote the interests of the investing public. Such permissible purposes for allocation of the funds include, but are not limited to, providing funding for housing counselors, state and local foreclosure assistance hotlines, state and local foreclosure mediation programs, legal assistance, housing remediation and anti-blight projects, and for the training and staffing of, and capital expenditures required by, financial fraud and consumer protection efforts, and for any other purpose consistent with the terms of the settlement agreement dated November nineteenth, two thousand thirteen between J.P. Morgan Securities LLC (f/k/a “Bear, Stearns & Co. Inc.”), JPMorgan Chase Bank, N.A., EMC Mortgage LLC (f/k/a “EMC Mortgage Corporation”) and the People of the State of New York.4.
Up to $81,500,234 of the monies of the fund shall be distributed in accordance with a plan developed by the attorney general to provide compensation to the state of New York and its communities for harms purportedly caused by the allegedly unlawful conduct of J.P. Morgan Securities LLC (f/k/a “Bear, Stearns & Co. Inc.”), JPMorgan Chase Bank, N.A., EMC Mortgage LLC (f/k/a “EMC Mortgage Corporation”), for purposes intended to avoid preventable foreclosures, to ameliorate the effects of the foreclosure crisis, to enhance law enforcement efforts to prevent and prosecute financial fraud or unfair or deceptive acts or practices, and to otherwise promote the interests of the investing public. Such permissible purposes for allocation of the funds include, but are not limited to, providing funding for housing counselors, state and local foreclosure assistance hotlines, state and local foreclosure mediation programs, legal assistance, housing remediation and anti-blight projects, and for the training and staffing of, and capital expenditures required by, financial fraud and consumer protection efforts, and for any other purpose consistent with the terms of the Settlement Agreement dated November 19, 2013 between J.P. Morgan Securities LLC (f/k/a “Bear, Stearns & Co. Inc.”) JPMorgan Chase Bank, N.A., EMC Mortgage LLC (f/k/a “EMC Mortgage Corporation”) and the People of the State of New York. * NB There are 2 § 99-v’s
Source:
Section 99-V — Mortgage settlement proceeds trust fund, https://www.nysenate.gov/legislation/laws/STF/99-V (updated Nov. 14, 2014; accessed Oct. 26, 2024).
