§ 6 — Bonds and notes of the agency

New York § 6

• Jurisdiction: New York
• Law NYP: NYS Project Finance Agency Act7/75

Text

§ 6. Bonds and notes of the agency.\n 1. (a) The agency shall have power and is hereby authorized from time\nto time to issue its negotiable or non-negotiable bonds and notes in\nsuch principal amount as, in the opinion of the agency, shall be\nnecessary to provide sufficient funds for achieving its corporate\npurposes, including the making of eligible purchases and eligible loans,\nthe payment of interest on bonds and notes of the agency, establishment\nof reserves to secure such bonds and notes, and all other expenditures\nof the agency incident to and necessary or convenient to carry out its\ncorporate purposes and powers;\n (b) The agency shall have power, from time to time, to issue renewal\nnotes, to issue bonds to pay notes and, whenever it deems 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 agency, every\nissue of its notes or bonds shall be general obligations of the agency\npayable out of any revenues or monies of the agency, subject only to any\nagreements with the holders of particular notes or bonds pledging any\nparticular receipts or revenues or other property.\n 2. The notes and bonds shall be authorized by resolution of the\nmembers, shall bear such date or dates, and shall mature at such time or\ntimes, in the case of any such note, or any renewals thereof, not\nexceeding ten years from the date of issue of such original note, and in\nthe case of any such bond not exceeding fifty years from the date of\nissue, as such resolution or resolutions may provide. The notes and\nbonds shall bear interest at such rates, be in such denominations, be in\nsuch form, either coupon or registered, carry such registration\nprivileges, be executed in such manner, be payable in such medium of\npayment, at such place or places and be subject to such terms of\nredemption as such resolution or resolutions may provide. The notes and\nbonds of the agency may be sold by the agency, at public or private\nsale, at such price or prices as the agency shall determine. No notes or\nbonds of the agency may be sold by the agency at private sale, however,\nunless such sale and the terms thereof have been approved in writing by\n(a) the comptroller, where such sale is not to the comptroller, or (b)\nthe director of the budget, where such sale is to the 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 agency, and all or any part of the payments to be received in\nrespect of corporation first mortgages purchased by the agency or in\nrespect of eligible loans, and any amounts realized on account of the\ncorporation first mortgages and other assets or revenues pledged or\nassigned as security for such eligible loans, and other monies received\nor to be received, to secure the payment of bonds or notes or of any\nissue thereof, subject to such agreements with bondholders or\nnoteholders as may then exist;\n (b) pledging all or any part of the assets or revenues of the agency,\nincluding mortgages and other obligations, owned by or pledged or\nassigned to the agency, to secure the payment of the bonds or notes,\nsubject to such agreements with bondholders or noteholders as may then\nexist;\n (c) the use and disposition of payments received on account of\nmortgages and other obligations owned by or pledged or assigned to the\nagency;\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 agency\nfor operating, administrative or other expenses of the agency;\n (i) vesting in a trustee or trustees or an agent or agents, for\nbondholders or noteholders, such property, rights, powers and duties in\ntrust or as security as the agency may determine, which may, but not by\nway of limitation, include any or all of the rights, powers and duties\nof the trustee which may be appointed by bondholders or noteholders\npursuant to section thirteen of this act, and limiting or abrogating the\napplicability of section thirteen of this act to the affected bonds or\nnotes, the holders thereof or any trustee or agent for such holders;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the notes and bonds.\n 4. It is the intention hereof that any pledge or assignment for\nsecurity made by the agency shall be valid and binding from the time\nwhen the same is made; that the monies or property so pledged or\nassigned and then held or thereafter received by the agency shall\nimmediately be subject to the lien or security interest of such pledge\nor assignment without any physical delivery thereof or further act; and\nthat the lien or security interest of any such pledge or assignment\nshall be valid and binding as against all parties having claims of any\nkind in tort, contract or otherwise against the agency, irrespective of\nwhether such parties have notice thereof. Neither the resolution nor any\nother instrument by which any such pledge or assignment is created need\nbe recorded, and no filing with respect to such pledge or assignment\nneed be made under the uniform commercial code.\n 5. Neither the members of the agency nor any person executing the\nnotes or bonds shall be liable personally on the notes or bonds or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n 6. The agency, subject to such agreements with noteholders and\nbondholders as may then exist, shall have power out of any funds\navailable therefor to purchase notes or bonds of the agency, 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. The state shall not be liable on notes or bonds of the agency and\nsuch notes and bonds shall not be a debt of the state, and such notes\nand bonds shall contain on the face thereof a statement to such effect.\n