§ 559 — Bonds of an agency

New York § 559

• Jurisdiction: New York
• Law GMU: General Municipal
• Art. 15-A: Municipal Urban Renewal Agencies, Organization and Powers

Text

§ 559. Bonds of an agency. 1. (a) An agency shall have power and is\nhereby authorized from time to time to issue its negotiable bonds and\nnotes in conformity with applicable provisions of the uniform commercial\ncode in such principal amount as, in the opinion of the agency, shall be\nnecessary to provide sufficient funds for achieving its corporate\npurposes.\n (b) An agency shall have power, from time to time, to refund any bonds\nby the issuance of new bonds, whether the bonds to be refunded have or\nhave not matured, and to issue bonds partly to refund bonds then\noutstanding and partly for any other purpose. The refunding bonds shall\nbe sold and the proceeds applied to the purchase, redemption or payment\nof the bonds to be refunded.\n 2. Except as may otherwise be expressly provided by the agency, every\nissue of its notes and bonds shall be general obligations of the agency\npayable out of any revenues or moneys of the agency, subject only to any\nagreements with the holders of particular notes or bonds pledging any\nparticular receipts or revenues, provided, however, that the payment of\nsuch bonds and notes, both as to principal and interest, may be further\nsecured by a pledge of any loan, grant, or contribution from the federal\ngovernment or other source, in aid of any urban renewal program or part\nthereof, or by a mortgage of any such urban renewal program, or part\nthereof, title to which is in the agency, or that payment of such bonds\nand notes, both as to principal and interest, or only as to interest,\nmay be guaranteed by the municipality.\n 3. Bonds and notes of an agency shall be authorized by its resolution,\nshall bear such date or dates, mature at such time or times, in the case\nof any such note, or any renewals thereof, not exceeding seven years\nfrom the date of issue of such original note, and in the case of any\nsuch bond not exceeding fifty years from the date of issue, as such\nresolution or resolutions shall provide. The notes and bonds shall bear\ninterest at such rate or rates, be in such denomination or\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 with or without premium, and be secured in such manner, as\nsuch resolution or resolutions may provide. The bonds and notes may be\nsold by the agency at public or private sale, at such price or prices as\nthe agency may determine.\n 4. Bonds and notes of an agency are hereby made securities in which\nall public officers and bodies of this state and all municipalities and\nmunicipal subdivisions, all insurance companies and associations and\nother persons carrying on an insurance business, all banks, bankers,\ntrust companies, savings banks and savings associations, including\nsaving and loan associations, building and loan associations, investment\ncompanies and other persons carrying on a banking business, all\nadministrators, guardians, executors, trustees and other fiduciaries,\nand all other persons whatsoever who are now or may hereafter be\nauthorized to invest in bonds or other obligations of the state, may\nproperly and legally invest funds, including capital, in their control\nor belonging to them, provided that such bonds and notes (1) are secured\nby an agreement between the agency and the federal government in which\nthe agency agrees to borrow from the federal government and the federal\ngovernment agrees to lend to the agency, prior to the maturity of such\nbonds or notes, monies in an amount which (together with any other\nmonies irrevocably committed to the payment of principal and interest on\nsuch bonds or notes) will suffice to pay the principal on such bonds or\nnotes with interest to maturity thereon, which monies under the terms of\nsaid agreement are required to be used for the purpose of paying the\nprincipal of and the interest on such bonds or notes at their maturity,\nor (2) are guaranteed by the municipality as to principal and interest.\nSuch bonds and notes are also hereby made securities which may be\ndeposited with and shall be received by all public officers and bodies\nof this state and all municipalities, governments, and public\ncorporations of this state, for any purpose for which the deposit of\nbonds or other obligations of this state is now or may be hereafter\nauthorized or required.\n 5. In case any of the members or officers of an agency whose\nsignatures appear on the bonds or coupons shall cease to be such members\nor officers before the delivery of such bonds, such signatures shall,\nnevertheless, be valid and sufficient for all purposes, the same as if\nthey had remained in office until such delivery.\n 6. In connection with the issuance of bonds or the incurring of an\nobligation and to secure the payment of such bonds or other obligations,\nan agency, in addition to its other powers, may:\n (a) pledge, covenant to pledge, or covenant against pledging, all or\nany part of the rents, fees, revenues, subsidies, grants or\ncontributions to which its right then exists or may thereafter come into\nexistence; covenant against permitting or suffering any lien thereon; it\nis the intention hereof that any pledge of revenues or other monies made\nby an agency shall be valid and binding from the time when the pledge\nhas been made, that revenues or other monies so pledged and thereafter\nreceived by an agency shall immediately be subject to the lien of such\npledge without any physical delivery thereof or further act and that the\nlien of any such pledge shall be valid and binding as against all\nparties having claims of any kind in tort, contract or otherwise against\nthe agency, irrespective of whether such parties have notice thereof;\n (b) mortgage, covenant to mortgage or covenant against mortgaging, all\nor any part of its property, real or personal, then owned or thereafter\nacquired; covenant against permitting or suffering any lien thereon;\n (c) covenant with respect to limitations on its right to sell, lease\nor otherwise dispose of any project or part thereof;\n (d) covenant as to the use of any or all of its properties, real or\npersonal;\n (e) create or authorize the creation of special funds segregating (1)\nthe proceeds of any loans, grants, subsidies or contributions; (2) all\nthe rents, fees and revenues of any project or projects; (3) any monies\nheld for the payment of the principal of and interest on its bonds; and\n(4) any monies held for any reserves or contingencies; and covenant as\nto the use and disposal of the monies held in such funds.\n (f) covenant as to any other matters of like or different character,\nwhich in any way affect the security or the protection of the bonds.\n 7. Neither the members of an agency nor any person executing the notes\nor bonds of an agency shall be liable personally on such notes or bonds\nor be subject to any personal liability or accountability by reason of\nthe issuance thereof.\n