§ 20.17 — Bonds and notes of a trust

New York § 20.17

• Jurisdiction: New York
• Law ACA: Arts and Cultural Affairs
• Title E: New York State Cultural Resources Act

Text

§ 20.17. Bonds and notes of a trust. 1. A trust shall have the power\nand is hereby authorized to issue from time to time its bonds and notes\nin such principal amounts as the trust shall determine to be necessary\nfor achieving any of its corporate purposes, including: (a) the payment\nof all or any part of the cost of developing cultural facilities or the\ninstitutional portion of combined-use facilities; (b) developing\nfacilities for not-for-profit cultural organizations; (c) the making of\nloans pursuant to this article to not-for-profit cultural organizations\nand to participating cultural institutions; (d) the payment of interest\non bonds and notes of the trust; (e) the establishment of reserves to\nsecure such bonds and notes of the trust; (f) the payment of expenses\nincurred in connection with the issuance of the bonds and notes of the\ntrust; and (g) during the period of development of a combined-use\nfacility or a cultural facility or other facility authorized by this\narticle, the payment of other expenses but, except in the case of a\ntrust created prior to the effective date of this section, such expenses\nshall not include operating expenses of the participating cultural\ninstitution. All bonds or notes and the interest coupons applicable\nthereto whether or not in negotiable form are hereby made and shall be\nconstrued to be negotiable instruments and investment securities under\narticle eight of the uniform commercial code.\n 2. A trust shall have the power to issue from time to time (a) notes\nto renew notes, (b) bonds to pay notes, including the interest thereon\nand redemption premium, if any, (c) bonds to refund any bonds of the\ntrust then outstanding, including the payment of any redemption premium\nthereon and any interest accrued or to accrue to the earliest or\nsubsequent date of redemption, purchase or maturity of such bonds. The\nrefunding bonds may be exchanged for the bonds to be refunded or sold\nand the proceeds applied to the purchase, redemption or payment of such\nbonds, and pending such purchase, redemption or payment, such proceeds\nmay be invested and reinvested in obligations of or guaranteed by the\nUnited States, the state, or any political subdivision of the state, or\nany agency or instrumentality of any of them, secured in such manner as\nthe trust shall determine, maturing at such time or times as shall be\nappropriate to assure the prompt payment, as to the principal, interest\nand redemption premium, if any, on the outstanding bonds to be refunded.\nA trust shall have power out of any funds available therefor to purchase\n(as distinguished from the power of redemption herein provided) any\nbonds or notes of the trust, and all bonds so purchased shall be\ncancelled.\n 3. With respect to notes or bonds issued or renewed on and after the\neffective date of this title, no note or renewal thereof shall mature\nmore than five years from and after the date of the original issue of\nsuch note, and no bond or bond issued to refund such bond shall mature\nmore than thirty years from and after the date of the original issue of\nsuch bond, provided, however, no bond issued to refund bonds issued\nprior to the effective date of this section shall mature more than fifty\nyears from and after the date of the original issue of any such bond.\nNotwithstanding the foregoing, notes issued by a trust for the purpose\nof repaying advances from a participating cultural institution which\nuses or occupies the institutional portion of a combined-use facility\nthe cost of development of which was paid with the proceeds of bonds of\nthe trust which were issued prior to September first, nineteen hundred\nninety-one, shall mature no later than seven years from and after the\ndate of original issue of such note, and bonds issued by a trust for\nsuch purpose, including bonds issued to refund such notes, shall mature\nno later than fifty years from and after the date of original issue of\nsuch bonds.\n 4. The issuance of bonds and notes by a trust shall be authorized by\nresolution of the trust without further authorization or approval, which\nresolution shall be a part of the contract with the holders of the bonds\nor notes thereby authorized. Such resolution may provide that such bonds\nand notes may be registered or registrable as to principal and interest\nor as to interest alone and that such bonds and notes may be payable at\nsuch place or places, within or without the state, may bear interest at\nsuch rate or rates, may be payable and mature at such time or times, may\nbe in such form and evidenced in such manner, may be in such\ndenominations, and may contain such other provisions not inconsistent\nwith this article, including provisions as to reserve or sinking funds,\npayment, redemption or refunding of bonds or notes, security therefor,\nevents of default, remedies of bondholders or noteholders, appointment\nof trustees, as distinguished from members of the board of trustees of a\ntrust for cultural resources, or fiscal agents, custody, collection,\nsecuring, investment and payment of any money and amendment or\nabrogation of such provisions, all as the trust may determine; provided\nthat such resolution may provide for the manner of determining any or\nall of the foregoing provisions for such bonds and notes in lieu of\ndetermining such provisions.\n 5. Bonds may be issued in one or more series as serial bonds, or as\nterm bonds, or as a combination thereof. Any signature, manual or\nfacsimile, of an officer of the trust appearing on bonds or notes or\ncoupons shall be valid and sufficient for all purposes whether or not\nsuch officer shall then be in office. The trust may also provide for the\nauthentication of the bonds or notes by a trustee (as distinguished from\na member of the board of trustees of a trust for cultural resources) or\nfiscal agent.\n 6. The bonds or notes of a trust may be sold at such prices at a\npublic or private sale, in such manner and from time to time, as may be\ndetermined by the trust, and the trust may pay all expenses, premiums\nand commissions which it may deem necessary or advantageous in\nconnection with the issuance and sale thereof. No bonds or notes of a\ntrust may be sold at a private sale unless such sale and the terms\nthereof have been approved in writing by the comptroller of the state\nand the chief fiscal officer of the municipality or county in which the\ncombined-use facility or cultural facility for which such bonds or notes\nare issued is located.\n 7. Neither the trustees, officers or employees of a trust, nor any\nparticipating cultural institution or the members, directors, trustees,\nofficers or employees of such institution, nor any person executing or\nauthenticating the bonds or notes of the trust shall be liable on the\nbonds or notes or be subject to any personal or other liability or\naccountability by reason of the issuance thereof.\n