§ 2437-A — Tax lien collateralized securities

New York § 2437-A

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

Text

§ 2437-a. Tax lien collateralized securities. (1) The agency or its\ntax lien entity shall have the power and is hereby authorized from time\nto time to issue its tax lien collateralized securities in such\nprincipal amounts as, in the opinion of the agency, shall be necessary\nto provide sufficient funds for the purchase of tax liens, or the\nrefunding of outstanding securities of the agency or its tax lien\nentity, establishment of reserves to secure such tax lien collateralized\nsecurities, payment of letter of credit, bond insurance and other credit\nand liquidity support facility fees, premiums, reimbursements and\nexpenses, fees and expenses of trustees and paying agents and other\nfinancing costs including any accrued costs payable to the New York\nstate housing finance agency pursuant to any contract entered into under\nsubdivision twelve of section twenty-four hundred thirty-four of this\ntitle and all other expenditures of the agency or its tax lien entity\nincident to and necessary or convenient to the purchase of municipal tax\nliens.\n (2) Except as may otherwise be expressly provided by the agency, all\ntax lien collateralized securities issued by the agency or its tax lien\nentity shall be special limited obligations of the agency or its tax\nlien entity payable only upon the redemption of the tax liens purchased\nor the liquidation of the related real estate parcels and other\ncollateral or credit enhancement agreements pledged to secure such\nobligations, subject to any agreements pledging any particular moneys,\nassets or revenues, all as may be designated in the proceedings of the\nagency under which said tax lien collateralized securities shall be\nauthorized to be issued.\n (3) Tax lien collateralized securities shall be authorized by a\nresolution or resolutions of the agency adopted as provided by this\ntitle; provided, however, that any such resolution authorizing the\nissuance of such securities may delegate to an officer of the agency the\npower to issue such securities from time to time and to fix the details\nof any such issues of tax lien collateralized securities by an\nappropriate certificate of such authorized officer.\n (4) Tax lien collateralized securities shall bear such date or dates,\nshall mature at such time or times, shall bear interest at such rate or\nrates, shall be of such denominations, shall be in such form, carry such\nregistration privileges, be executed in such manner, be payable in\nlawful money of the United States of America at such place or places\nwithin or without the state, be subject to such terms of redemption\nprior to maturity and have such other terms as may be provided by such\nresolution or resolutions or such certificate with respect to such\nsecurities, as the case may be.\n (5) Any tax lien collateralized security of the agency or its tax lien\nentity may be sold at public or private sale and from time to time upon\nsuch terms and at such prices as may be determined by the agency, and\nthe agency may pay all expenses, premiums and commissions which it may\ndeem necessary or advantageous in connection with the issuance and sale\nthereof.\n (6) Whether or not tax lien collateralized securities are of such form\nand character as to be negotiable instruments under the terms of the\nuniform commercial code, tax lien collateralized securities are hereby\nmade negotiable instruments within the meaning of and for all the\npurposes of the uniform commercial code, subject only to the provisions\nof the tax lien collateralized securities for registration.\n (7) Any resolution or resolutions authorizing any tax lien\ncollateralized securities of the agency or of its tax lien entity may\ncontain provisions which may be a part of the contract with the holders\nof securities, as to: (i) pledging or creating a lien, to the extent\nprovided by such resolution or resolutions, on all or any part of any\nmoneys or assets of the agency and its tax lien entity or of any moneys\nheld in trust or otherwise by others for the payment of such securities;\n(ii) otherwise providing for the custody, collection, securing,\ninvestment and payment of any moneys of the agency; (iii) the setting\naside of reserves or sinking funds and the regulation or disposition\nthereof; (iv) limitations on the purpose to which the proceeds of sale\nof any issue of securities then or thereafter to be issued may be\napplied; (v) limitations on the issuance of additional securities, the\nterms upon which additional securities may be issued and secured, and\nupon the refunding of outstanding or other securities; (vi) the\nprocedure, if any, by which the terms of any contract with the holders\nof such securities may be amended or abrogated, the amount of such\nsecurities the holders of which must consent thereto and the manner in\nwhich such consent may be given; (vii) the creation of special funds\ninto which any moneys of the agency may be deposited; (viii) vesting in\na trustee or trustees such properties, rights, powers and duties in\ntrust as the agency may determine; (ix) defining the acts or omissions\nto act which shall constitute a default in the obligations and duties of\nthe agency and providing for the rights and remedies of the holders of\nsuch securities in the event of such default, providing, however, that\nsuch rights and remedies shall not be inconsistent with the general laws\nof this state and other provisions of this title; and (x) any other\nmatters of like or different character, which in any way affect the\nsecurity and protection of the tax lien collateralized securities and\nthe rights of the holders thereof.\n (8) Any resolution or resolutions or trust indenture or indentures\nunder which tax lien collateralized securities of the agency or its tax\nlien entity are authorized to be issued may contain provisions for\nvesting in a trustee or trustees such properties, rights, powers and\nduties in trust as the agency may determine.\n (9) It is the intention of the legislature that any pledge of tax\nliens, earnings, revenues, other moneys or assets made by the agency or\nits tax lien entity shall be valid and binding from the time when the\npledge is made; that the tax liens, earnings, revenues, other moneys or\nassets so pledged and thereafter received by the agency or its tax lien\nentity shall immediately be subject to the lien of such pledge without\nany physical delivery thereof or further act, and that the lien of any\nsuch pledge shall be valid and binding as against all parties having\nclaims of any kind in tort, contract or otherwise against the agency or\nits tax lien entity irrespective of whether such parties have notice\nthereof. Neither the resolution nor any other instrument by which a\npledge is created need be recorded.\n (10) Neither the members of the agency nor any person executing the\ntax lien collateralized securities shall be liable personally on the tax\nlien collateralized securities or be subject to any personal liability\nor accountability by reason of the issuance thereof.\n