§ 2437 — Bonds and notes of the agency

New York § 2437

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 18: State of New York Municipal Bond Bank Agency Act
• Art. 8: Miscellaneous Authorities

Text

§ 2437. Bonds and notes of the agency. (1) Subject to the provisions\nof section two thousand four hundred thirty-eight of this title, the\nagency shall have the power and is hereby authorized from time to time\nto issue its negotiable bonds and notes in conformity with applicable\nprovisions of the uniform commercial code in such principal amounts as,\nin the opinion of the agency, shall be necessary to provide sufficient\nfunds for achieving the corporate purposes thereof, including the\npurchase of municipal bonds, the providing of certain amounts to special\nprogram municipalities from the proceeds of special program bonds, the\nproviding of certain amounts to special school purpose municipalities\nfrom the proceeds of special school purpose bonds, the providing of\ncertain amounts to a special school deficit program district from the\nproceeds of special school deficit program bonds, the payment of\ninterest on bonds and notes of the agency, establishment of reserves to\nsecure such bonds and notes, payment of letter of credit, bond insurance\nand other credit and liquidity support facility fees, premiums,\nreimbursements and expenses, fees and expenses of trustees and paying\nagents and other financing costs including any accrued costs payable to\nthe New York state housing finance agency pursuant to any contract\nentered into under subdivision twelve of section two thousand four\nhundred thirty-four of this title and all other expenditures of the\nagency incident to and necessary or convenient to carry out its\ncorporate purposes and powers, except the operating expenses of the\nagency.\n (2) Except as may otherwise be expressly provided by the agency, all\nbonds and notes issued by the agency shall be general obligations of the\nagency, secured by the full faith and credit of the agency and may be\npayable out of any moneys, assets, or revenues of the agency, subject\nonly to any agreements with holders of particular bonds or notes\npledging any particular moneys, assets or revenues, all as may be\ndesignated in the proceedings of the agency under which the bonds or\nnotes shall be authorized to be issued.\n (3) Bonds and notes shall be authorized by a resolution or resolutions\nof the agency adopted as provided by this title; provided, however, that\nany such resolution authorizing the issuance of bonds or notes may\ndelegate to an officer of the agency the power to issue such bonds or\nnotes from time to time and to fix the details of any such issues of\nbonds or notes by an appropriate certificate of such authorized officer.\n (4) Such bonds or notes shall bear such date or dates, shall mature at\nsuch time or times, shall bear interest at such rate or rates, shall be\nof such denominations, shall be in such form, carry such registration\nprivileges, be executed in such manner, be payable in lawful money of\nthe United States of America at such place or places within or without\nthe state, be subject to such terms of redemption prior to maturity and\nhave such other terms as may be provided by such resolution or\nresolutions or such certificate with respect to such bonds or notes, as\nthe case may be; provided, however, that the maximum maturity of bonds\nother than special program bonds, special school purpose bonds or\nspecial school deficit program bonds shall not exceed forty years from\nthe date thereof, the maximum maturity of special program bonds shall\nnot exceed thirty years, the maximum maturity of special school purpose\nbonds shall not exceed twenty years, the maximum maturity of special\nschool deficit program bonds shall not exceed ten years and the maximum\nmaturity of notes or any renewals thereof shall not exceed five years\nfrom the date of the original issue of such notes.\n (5) Any bonds or notes of the agency other than special program bonds,\nspecial school purpose bonds, special school deficit program bonds,\nrecovery act bonds or public safety communications bonds shall be sold\nat public sale and from time to time upon such terms and at such prices\nas may be determined by the agency, and the agency may pay all expenses,\npremiums and commissions which it may deem necessary or advantageous in\nconnection with the issuance and sale thereof. Any special program\nbonds, special school purpose bonds, special school deficit program\nbonds, recovery act bonds or public safety communications bonds shall be\nsold at public or private sale and from time to time upon such terms and\nat such prices as may be determined by the agency, and the agency may\npay all expenses, premiums and commissions which it may deem necessary\nor advantageous in connection with the issuance and sale thereof\nprovided, however, that special program bonds relating to a special\nprogram agreement entered for the purpose described in paragraph (b) of\nsubdivision one of section twenty-four hundred thirty-five-a of this\ntitle shall be sold on or before June thirtieth, two thousand one. No\nspecial program bonds, special school purpose bonds, special school\ndeficit program bonds, or recovery act bonds, or public safety\ncommunications bonds of the agency may be sold by the agency at private\nsale, however, unless such sale and the terms thereof have been approved\nin writing by (a) the comptroller, where such sale is not to the\ncomptroller, or (b) the director of the budget, where such sale is to\nthe comptroller.\n (6) The agency is authorized to provide for the issuance of its bonds\nor notes for the purpose of refunding any bonds or notes of the agency\nthen outstanding, including the payment of any redemption premiums\nthereon and any interest accrued or to accrue to the redemption date\nnext succeeding the date of delivery of such refunding bonds or notes.\nThe proceeds of any such bonds or notes issued for the purpose of so\nrefunding outstanding bonds or notes, may, in the discretion of the\nagency, be applied to the purchase or retirement at maturity of such\noutstanding bonds or notes or the redemption of such outstanding bonds\nor notes on the redemption date next succeeding the date of delivery of\nsuch refunding bonds or notes, or both such purposes, and may, pending\nsuch application, be placed in escrow to be applied to such purchase or\nretirement at maturity or redemption on such date as may be determined\nby the agency. Any such escrowed proceeds, pending such use, may be\ninvested and reinvested in obligations of or guaranteed by the state or\nthe United States of America, or in certificates of deposit or time\ndeposits secured in such manner as the agency shall determine, maturing\nat such time or times as shall be appropriate to assure the prompt\npayment, as to principal, interest and redemption premium, if any, on\nthe outstanding bonds or notes to be so refunded by purchase, retirement\nat maturity or redemption, as the case may be. The interest, income and\nprofits, if any, earned or realized on any such investment may also be\napplied to the payment of the outstanding bonds or notes to be so\nrefunded by purchase, retirement at maturity or redemption, as the case\nmay be. After the terms of the escrow have been fully satisfied and\ncarried out, any balance of such proceeds and interest, if any, earned\nor realized on the investments thereof may be returned to the agency for\nuse by it in any lawful manner. All such bonds or notes shall be issued\nand secured and shall be subject to the provisions of this title in the\nsame manner and to the same extent as any other bonds or notes\nauthorized pursuant to this title.\n (7) Whether or not the bonds and notes are of such form and character\nas to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds and notes are hereby made negotiable\ninstruments within the meaning of and for all the purposes of the\nuniform commercial code, subject only to the provisions of the bonds and\nnotes for registration.\n (8) Subject only to the provisions of sections two thousand four\nhundred thirty-eight and two thousand four hundred thirty-nine of this\ntitle, any resolution or resolutions authorizing any bonds or notes of\nthe agency may contain provisions which may be a part of the contract\nwith the holders of such bonds or notes, as to: (a) pledging or creating\na lien, to the extent provided by such resolution or resolutions, on all\nor any part of any monies or assets of the agency or of any moneys held\nin trust or otherwise by others for the payment of such bonds or notes;\n(b) otherwise providing for the custody, collection, securing,\ninvestment and payment of any moneys of the agency; (c) the setting\naside of reserves or sinking funds and the regulation or disposition\nthereof; (d) limitations on the purpose to which the proceeds of sale of\nany issue of such bonds or notes then or thereafter to be issued may be\napplied; (e) limitations on the issuance of additional bonds or notes,\nthe terms upon which additional bonds or notes may be issued and\nsecured, and upon the refunding of outstanding or other bonds or notes;\n(f) the procedure, if any, by which the terms of any contract with the\nholders of bonds or notes may be amended or abrogated, the amount of\nbonds or notes the holders of which must consent thereto and the manner\nin which such consent may be given; (g) the creation of special funds\ninto which any moneys of the agency may be deposited; (h) vesting in a\ntrustee or trustees such properties, rights, powers and duties in trust\nas the agency may determine, which may include any or all of the rights,\npowers and duties of the trustee appointed pursuant to section two\nthousand four hundred forty of this title, and limiting or abrogating\nthe right of the holders of bonds or notes to appoint a trustee under\nsuch section or limiting the rights, duties and powers of such trustee;\n(i) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the agency and providing for\nthe rights and remedies of the holders of bonds or notes in the event of\nsuch default, providing, however, that such rights and remedies shall\nnot be inconsistent with the general laws of this state and other\nprovisions of this title; and (j) any other matters of like or different\ncharacter, which in any way affect the security and protection of the\nbonds or notes and the rights of the holders thereof.\n (9) Any resolution or resolutions or trust indenture or indentures\nunder which bonds or notes of the agency are authorized to be issued may\ncontain provisions for vesting in a trustee or trustees such properties,\nrights, powers and duties in trust as the agency may determine which may\ninclude any or all of the rights, powers and duties of the trustee\nappointed by the holders of any issue of notes or bonds pursuant to\nsection two thousand four hundred forty of this title, in which event\nthe provisions of said section two thousand four hundred forty\nauthorizing the appointment of a trustee by such holders of bonds or\nnotes shall not apply.\n (10) It is the intention of the legislature that any pledge of\nearnings, revenues, other moneys or assets made by the agency shall be\nvalid and binding from the time when the pledge is made; that the\nearnings, revenues, other moneys or assets so pledged and thereafter\nreceived by the agency shall immediately be subject to the lien of such\npledge without any physical delivery thereof or further act, and that\nthe lien 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.\nNeither the resolution nor any other instrument by which a pledge is\ncreated need be recorded.\n (11) Neither the members of the agency nor any person executing the\nbonds or other obligations shall be liable personally on the bonds or\nother obligations or be subject to any personal liability or\naccountability by reason of the issuance thereof.\n