Current through Register Vol. 54, No. 45, November 9, 2024
Section 15.11 - Handling of mortgages(a)Charges for service expenses. Reasonable expenses incurred in servicing mortgages held by a fund may be charged against the income account of the fund and paid to servicing agents, including the institution administering the fund.(b)Reserve accounts.(1) An institution may, but shall not be required to, transfer up to 5.0% of the net income derived by a fund from mortgages held by such fund during any regular accounting period to a reserve account.(2) No transfers to a reserve account shall be made which would cause the amount in such account to exceed 1.0% of the outstanding principal amount of all mortgages held in the fund.(3) The amount of such reserve account, if established, shall be deducted from the assets of the fund in determining the fair market value of the fund for the purposes of admissions and withdrawals.(4) At the end of each accounting period, all interest payments which are due but unpaid with respect to mortgages in the fund shall be charged against such reserve account to the extent available and credited to income distributed to participants. In the event of subsequent recovery of such interest payments by the fund, the reserve account shall be credited with that amount so recovered.