§ 41 — Power to issue authority bonds

New York § 41

• Jurisdiction: New York
• Law PBG: Public Housing
• Art. 3: Municipal Housing Authorities

Text

§ 41. Power to issue authority bonds. 1. An authority may from time\nto time for any of the purposes of this chapter borrow money and issue\nbonds in conformity with applicable provisions of the uniform commercial\ncode in such amounts and upon such terms as it may deem advisable. Bonds\nfor state projects and for projects, other than federal projects,\nfinanced without a loan from a government may be issued for periods not\nexceeding fifty years and for a period not exceeding the probable life\nof the project which said period shall be calculated from the date of\nthe bonds. Bonds for projects financed with the aid of municipal loans\nmay be issued for periods not exceeding the probable life of the\nproject. Bonds for federal projects may be issued for a period not\nexceeding sixty years. An authority shall also have power to issue\nrefunding bonds for the purpose of paying or retiring bonds previously\nissued by it but no such refunding bonds shall mature later than the\nexpiration of the maximum period permitted by this subdivision at the\ntime of the issuance of the bonds to be refunded for the project for\nwhich such bonds were issued. Such period shall be construed to\ncommence from the date of issuance of the bonds to be refunded.\n 2. An authority is authorized to issue, whenever it may deem it\nnecessary so to do, notes in conformity with applicable provisions of\nthe uniform commercial code without limitation as to the rate or rates\nof interest in anticipation of the sale of bonds of which a government\nshall have agreed to purchase at least eighty per centum or which shall\nhave been authorized at the time such notes are issued or in\nanticipation of a loan which a government shall have agreed to make to\nthe authority. Such notes shall mature within a period not to exceed one\nyear from the date of their issue but may be made subject to the right\nof earlier payment. The proceeds of the sale of such notes shall be used\nonly for the purposes for which may be used the proceeds of the sale of\nbonds or of the loan in anticipation of which the notes were issued. Any\nsuch notes may be renewed or may be refunded through the sale of similar\nnotes but no such renewal or refunding notes shall be issued after the\nsale of bonds. Such notes, renewal notes or refunding notes shall, with\nthe interest thereon, if any, be paid from funds made available by a\ngovernment pursuant to agreement for the purchase of bonds or the making\nof a loan, or from the proceeds of the sale of the bonds in anticipation\nof the sale of which the notes were issued or, in the event of the sale\nof the project with respect to which such notes were issued, from the\npurchase price paid to the authority by the purchaser of such project.\nSuch notes, renewal notes or refunding notes shall mature within a\nperiod not to exceed one year beyond the maturity date of the last\nmaturing notes outstanding on the date when the authority or, in the\ncase of state projects, the commissioner, makes the determination that\nthe project has been completed and that the project cost has been\nfinally determined, which determination shall be conclusive in any suit,\naction or proceeding upon such notes, renewal notes or refunding notes.\nThe total amount of such notes or renewals thereof issued and\noutstanding shall at no time exceed the total amount of bonds of which a\ngovernment shall have agreed to purchase at least eighty per centum or\nwhich shall have been authorized to be issued or the total amount of the\nloan which a government shall have agreed to make to the authority. The\nforegoing limitations upon the time of payment of notes shall not at any\ntime apply to notes or other obligations which may be issued by an\nauthority to a government in anticipation of the sale of bonds of which\nsuch government shall have agreed to purchase at least eighty per centum\nor in anticipation of a loan which such government shall have agreed to\nmake to the authority. Except as in this section expressly provided, an\nauthority shall, in addition to its other powers, have the same powers\nin connection with the issuance and securing the payments of its notes\nas it has in connection with the issuance and securing payment of its\nbonds.\n 2-a. In connection with a federal project, an authority may,\nnotwithstanding anything to the contrary contained in subdivision two of\nthis setcion, issue notes or renewal or refunding notes in conformity\nwith applicable provisions of the uniform commercial code after the sale\nof bonds for such project and without regard to the limitations as to\ntime of issuance or payment set forth in such subdivision, provided: (a)\nthe total amount of such notes or renewal or refunding notes issued and\noutstanding shall at no time exceed the difference between the estimated\nproject cost if issued prior to the date of physical completion of the\nproject or the project cost if issued thereafter and the principal\namount of the bonds theretofore issued for such project; and (b) such\nnotes or renewal or refunding notes are secured by an agreement between\nthe authority and the federal government or any agency on\ninstrumentality thereof pursuant to which the authority agrees to borrow\nfrom such government or agency or instrumentality thereof, and such\ngovernment or agency or instrumentality thereof agrees to lend to the\nauthority at or prior to the maturity of such notes, monies in an amount\nwhich (together with any other monies irrevocably committed to the\npayment of principal of or interest on such notes) will be sufficient to\npay the principal of such notes with interest thereon to maturity, which\nmonies under the terms of such agreement are required to be used by the\nauthority for the purpose of paying the principal of and interest on\nsuch notes at their maturity. Every note issued in connection with a\nfederal project which is not refunded and any renewals thereof and every\nrefunding note and any renewals thereof shall, with the interest\nthereon, if any, be paid either from funds made available by the federal\ngovernment or agency or instrumentality thereof pursuant to an agreement\nfor the purchase of bonds or the making of a loan or the payment of\nannual contributions, or from the proceeds of the sale of the bonds in\nanticipation of the sale of which the notes were issued.\n 3. The authority may issue its interim certificates, or other\ntemporary obligations, in conformity with applicable provisions of the\nuniform commercial code, to the purchaser of bonds pending the\nauthorization, preparation, execution or delivery of definitive bonds.\nSuch interim certificates, or other temporary obligations, shall be in\nsuch form, contain such terms, conditions and provisions, bear such date\nor dates, and evidence such agreements relating to their discharge or\npayment or the delivery of definitive bonds as the authority may by\nresolution determine.\n 4. Notwithstanding anything to the contrary contained in subdivision\ntwo of this section respecting limitations upon the time of payment of\nnotes, renewal notes or refunding notes, such notes may be issued during\nthe period that negotiations for the sale of a project pursuant to the\nprovisions of the public housing law or the private housing finance law\nare pending, but such notes shall not be renewed or refunded beyond the\nmaturity date of the last maturing notes outstanding on the date of\ntransfer of title to such project by the authority to the purchaser.\nNegotiations for the sale of a project shall be deemed to be pending if\nthe authority shall have adopted a resolution determining that the\nnegotiations for the sale of such project are pending. If the\nnegotiations for such sale are thereafter abandoned, such notes, renewal\nnotes or refunding notes shall mature within a period not to exceed one\nyear beyond the maturity date of the last maturing notes outstanding on\nthe date determined by resolution adopted by the authority as the date\nwhen negotiations for the sale of the project were abandoned, or within\na period not to exceed one year beyond the maturity date of the last\nmaturing notes outstanding on the date when the determination is made\npursuant to subdivision two of this section that the project has been\ncompleted and that the project cost has been finally determined,\nwhichever period is longer.\n