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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER, PILEGGI, COSTA, BROWNE, WAUGH, ERICKSON, RAFFERTY, FONTANA, BAKER, ALLOWAY, VANCE, STACK, YUDICHAK, FERLO, PIPPY, GREENLEAF, SCHWANK, WOZNIAK, BLAKE, BREWSTER, ARGALL, ORIE AND LEACH, MARCH 6, 2012 |
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| REFERRED TO URBAN AFFAIRS AND HOUSING, MARCH 6, 2012 |
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| AN ACT |
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1 | Providing for the Homeowner Assistance Settlement Act; |
2 | establishing a fund for the purpose of funding the |
3 | Homeowner's Emergency Mortgage Assistance Program; and |
4 | providing for an appropriation. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Short title. |
8 | This act shall be known and may be cited as the Homeowner |
9 | Assistance Settlement Act. |
10 | Section 2. Definitions. |
11 | The following words and phrases when used in this act shall |
12 | have the meanings given to them in this section unless the |
13 | context clearly indicates otherwise: |
14 | "Fund." The Homeowner Assistance Settlement Fund established |
15 | in section 3(a). |
16 | "Homeowner Assistance Settlement Agreement." The settlement |
17 | agreement and related documents entered into on February 9, |
18 | 2012, by the Attorney General of the Commonwealth and the |
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1 | leading United States mortgage servicing companies. |
2 | Section 3. Establishment of special fund, distribution of |
3 | moneys and limitation on annual appropriation. |
4 | (a) Homeowner Assistance Settlement Fund.--There is |
5 | established a special fund known as the Homeowner Assistance |
6 | Settlement Fund. All payments received by the Commonwealth |
7 | pursuant to the Homeowner Assistance Settlement Agreement shall |
8 | be deposited by the Treasury Department into the fund. |
9 | (b) Distribution of funds.--Subject to annual appropriation |
10 | by the General Assembly, the moneys in the fund shall be |
11 | distributed proportionally, subject to the following |
12 | limitations: |
13 | (1) No more than 90% of the funds distributed shall be |
14 | appropriated to the Pennsylvania Housing Finance Agency for |
15 | the purpose of funding the Homeowner's Emergency Mortgage |
16 | Assistance Program. |
17 | (2) No more than 10% of the funds distributed shall be |
18 | appropriated to the Office of Attorney General for the |
19 | purpose of funding housing consumer protection programs. |
20 | (c) Limitation on annual appropriation.--The annual |
21 | appropriation of funds under subsection (b) shall not exceed |
22 | $12,000,000 annually. |
23 | Section 4. Investment of fund and accounts. |
24 | (a) Control and management.--Notwithstanding any other |
25 | provision of law, the State Treasurer shall have exclusive |
26 | control and authority to manage, invest and reinvest money in |
27 | the fund, subject, however, to the exercise of that degree of |
28 | judgment, skill and care under the circumstances then prevailing |
29 | that persons of prudence, discretion and intelligence, who are |
30 | familiar with investment matters, exercise in the management of |
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1 | their own affairs, not in regard to speculation but in regard to |
2 | permanent disposition of the funds, considering the probable |
3 | income to be derived from the investments and the probable |
4 | safety of their capital. The State Treasurer may hold, purchase, |
5 | sell, lend, assign, transfer or dispose of any securities and |
6 | investments, including equity securities, in which money in the |
7 | fund or the accounts has been invested and of the proceeds of |
8 | the investments, including any directed commissions that have |
9 | accrued to the benefit of the fund or the accounts as a |
10 | consequence of the investments, and of money belonging to the |
11 | fund or the accounts subject to the standard of prudence in this |
12 | section. |
13 | (b) Fiduciary status of the State Treasurer.--The State |
14 | Treasurer shall stand in a fiduciary relationship to the |
15 | Commonwealth and its citizens regarding the investments of the |
16 | money of the fund and the accounts and shall not profit, either |
17 | directly or indirectly, with respect thereto. |
18 | (c) Custodian.--The State Treasurer shall be the custodian |
19 | of the fund and the accounts. All investment draws from the fund |
20 | or the accounts shall be made by the State Treasurer in |
21 | accordance with requisitions signed by the secretary of the |
22 | board and ratified by resolution of the board. |
23 | Section 5. Effective date. |
24 | This act shall take effect immediately. |
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