N.Y. RSS Law § 177-C

§ 177-c. Investment in mortgage pass-through certificates.\nNotwithstanding the provisions of section one hundred seventy-seven, or\nof section one hundred seventy-eight of this article, the trustees of\nany fund may invest in mortgage pass-through certificates. As used in\nthis section, the term "mortgage pass-through certificates" shall mean\ncertificates evidencing ownership of undivided interests in pools of\nmortgage loans secured by first mortgages on real property located in\nthis state improved by one-to-four family residential dwellings,\nprovided, however, that (i) such mortgage loans are originated on or\nafter January first, nineteen hundred eighty by any bank, trust company,\nnational banking association, savings bank, federal mutual savings bank,\nsavings and loan association, federal savings and loan association,\ncredit union, or federal credit union authorized to do business in this\nstate or by any lender approved by the secretary of housing and urban\ndevelopment for participation in any mortgage insurance program under\nthe National Housing Act, (ii) such mortgage loans are assigned to a\nbank, trust company, federal mutual savings bank or federal savings and\nloan association as trustee for the benefit of the holders of such\ncertificates and, (iii) such certificates are rated within the three\nhighest grades by an independent rating service designated by the\nsuperintendent of financial services. In no event shall the aggregate\nunpaid principal on conventional mortgages securing mortgage\npass-through certificates exceed ten percent of the assets of such fund\nnor shall the total unpaid principal on any single pool of conventional\nmortgages securing mortgage pass-through certificates exceed one percent\nof the assets of a fund. Mortgage loans secured by first mortgages on a\ncondominium unit designed for residential use, together with its common\ninterest, may be included in pools of mortgage loans provided for above.\n