§ 461 — Notes and bonds of the fund

New York § 461

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 10: New York City Educational Construction Fund

Text

§ 461. Notes and bonds of the fund. 1. (a) Subject to the provisions\nof section four hundred sixty-two of this chapter, the fund shall have\nthe power and is hereby authorized from time to time to issue its\nnegotiable bonds and notes in such principal amount as, in the opinion\nof the fund, shall be necessary, after taking into account other monies\nwhich may be available for the purpose, to provide sufficient funds for\nachieving its corporate purposes, including the construction,\nacquisition, reconstruction, rehabilitation or improvement of the school\nportion of combined occupancy structures pursuant to this article, the\npayment of interest on bonds and notes of the fund, establishment of\nreserves to secure such bonds and notes, and all other expenditures of\nthe fund incident to and necessary or convenient to carry out its\ncorporate purposes and powers;\n (b) The fund shall have power, from time to time, to issue renewal\nnotes, to issue bonds to pay notes and whenever it deem refunding\nexpedient, to refund any bonds by the issuance of new bonds, whether the\nbonds to be refunded have or have not matured, and to issue bonds partly\nto refund bonds then outstanding and partly for any other purpose. The\nrefunding bonds shall be sold and the proceeds applied to the purchase,\nredemption or payment of the bonds to be refunded;\n (c) Except as may otherwise be expressly provided by the fund, every\nissue of its notes or bonds shall be general obligations of the fund\npayable out of any revenues or monies of the fund, subject only to any\nagreements with the holders of particular notes or bonds pledging any\nparticular receipts or revenues;\n (d) Whether or not the notes or bonds are of such form and character\nas to be negotiable instruments under the provisions of article eight of\nthe uniform commercial code, the notes or bonds shall be and hereby are\nmade negotiable instruments within the meaning of and for all the\npurposes of the uniform commercial code, subject only to the provisions\nof the notes or bonds for registration.\n 2. The notes and bonds of the fund shall be authorized by resolution\nof the trustees, shall bear such date or dates, and shall mature at such\ntime or times, in the case of any such note, or any renewals thereof,\nnot exceeding five years, from the date of issue of such original note,\nand in the case of any such bond not exceeding forty years from the date\nof issue, as such resolution or resolutions may provide. The notes and\nbonds shall bear interest at such rate or rates, be in such\ndenominations, be in such form, either coupon or registered, carry such\nregistration privileges, be executed in such manner, be payable in such\nmedium of payment, at such place or places and be subject to such terms\nof redemption as such resolution or resolutions may provide. The notes\nand bonds of the fund may be sold by the fund, at public or private\nsale, at such price or prices as the fund shall determine. No notes or\nbonds of the fund may be sold by the fund at private sale, however,\nunless such sale and the terms thereof have been approved in writing by\nthe city comptroller.\n 3. Any resolution or resolutions authorizing any notes or bonds or any\nissue thereof may contain provisions, which shall be a part of the\ncontract with the holders thereof, as to:\n (a) pledging all or any part of the fees and charges made or received\nby the fund, and all or any part of (i) the rentals or other payments to\nbe received by the fund with respect to the school portion of combined\noccupancy structures financed with the proceeds of such bonds and notes,\nand (ii) the rentals or other payments to be received by the fund with\nrespect to the non-school portion of combined occupancy structures and\n(iii) any other monies, assets or accounts received or to be received by\nthe fund or pledged or assigned to the fund to secure the payment of\nsuch notes or bonds or of any issue thereof, subject to such agreements\nwith bondholders or noteholders as may then exist;\n (b) pledging all or any part of the assets of the fund to secure the\npayment of such notes or bonds or of any issue of notes or bonds,\nsubject to such agreements with noteholders or bondholders as may then\nexist;\n (c) the use and disposition of the gross income of the fund in\nconnection with combined occupancy structures financed or constructed,\nacquired, reconstructed, rehabilitated or improved by it or on its\nbehalf;\n (d) the setting aside of reserves or sinking funds and the regulation\nand disposition thereof;\n (e) limitations on the purpose to which the proceeds of sale of notes\nor bonds may be applied and pledging such proceeds to secure the payment\nof the notes or bonds or of any issue thereof;\n (f) limitations on the issuance of additional notes or bonds; the\nterms upon which additional notes or bonds may be issued and secured;\nthe refunding of outstanding or other notes or bonds;\n (g) the procedure, if any, by which the terms of any contract with\nnoteholders or bondholders may be amended or abrogated, the amount of\nnotes or bonds the holders of which must consent thereto, and the manner\nin which such consent may be given;\n (h) limitations on the amount of monies to be expended by the fund for\noperating, administrative or other expenses of the fund;\n (i) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the fund may determine, which may include any or all\nof the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to this article, and limiting or abrogating the\nright of the bondholders to appoint a trustee under this article or\nlimiting the rights, powers and duties of such trustee;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the notes or bonds.\n 4. It is the intention hereof that any pledge made by the fund shall\nbe valid and binding from the time when the pledge is made; that the\nmonies or property so pledged and thereafter received by the fund shall\nimmediately be subject to the lien of such pledge without any physical\ndelivery thereof or further act; and that the lien of any such pledge\nshall be valid and binding as against all parties having claims of any\nkind in tort, contract or otherwise against the fund, irrespective of\nwhether such parties have notice thereof. Neither the resolution nor any\nother instrument by which a pledge is created need be recorded.\n 5. Neither the trustees of the fund nor any person executing the notes\nor bonds shall be liable personally on the notes or bonds or be subject\nto any personal liability or accountability by reason of the issuance\nthereof.\n 6. The fund, subject to such agreements with noteholders or\nbondholders as may then exist, shall have power out of any funds\navailable therefor to purchase notes or bonds of the fund, which shall\nthereupon be cancelled, at a price not exceeding (a) if the notes or\nbonds are then redeemable, the redemption price then applicable plus\naccrued interest to the next interest payment date thereon, or (b) if\nthe notes or bonds are not then redeemable, the redemption price\napplicable on the first date after such purchase upon which the notes or\nbonds become subject to redemption plus accrued interest to such date.\n 7. Neither the state nor the city of New York shall be liable on the\nnotes or bonds of the fund and such notes and bonds shall not be a debt\nof the city or the state, and such notes and bonds shall contain on the\nface thereof a statement to such effect.\n