§ 47 — Bond covenants of an authority

New York § 47

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

Text

§ 47. Bond covenants of an authority. 1. In connection with the\nissuance of bonds or the incurring of an obligation, and to secure the\npayment of such bonds or obligations, an authority, in addition to its\nother powers, may: (a) Pledge, covenant to pledge, or covenant against\npledging, all or any part of its rents, fees, revenues, subsidies,\ngrants or contributions to which its right then exists or may thereafter\ncome into existence; covenant against permitting or suffering any lien\nthereon; it is the intention hereof that any pledge of revenues or other\nmoneys made by the authority shall be valid and binding from the time\nwhen the pledge is made, that revenues or other moneys so pledged and\nthereafter received by an authority shall immediately be subject to the\nlien of such pledge without any physical delivery thereof or further act\nand that the lien of any such pledge shall be valid and binding as\nagainst all parties having claims of any kind in tort, contract or\notherwise against the authority, irrespective of whether such parties\nhave 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 bonds to be issued and as to the issuance of\nsuch bonds in escrow or otherwise, and as to the use and disposition of\nthe proceeds thereof; provide for the replacement of lost, destroyed or\nmutilated bonds;\n (e) Covenant as to what other, or additional debts may be incurred by\nit;\n (f) Covenant that the authority warrants the title to the premises;\n (g) Covenant as to the rents and fees to be charged, the amount to be\nraised each year or other period of time by rents, fees and other\nrevenues, and as to the use and disposition to be made thereof;\n (h) Covenant as to the use of any or all of its property, real or\npersonal;\n (i) 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 moneys\nheld for the payment of the costs of operation and maintenance of\nprojects, or as a reserve for the meeting of contingencies in the\noperation and maintenance thereof; (4) any moneys held for the payment\nof the principal of and interest on its bonds or the sums due under its\nleases or as a reserve for such payments; and (5) any moneys held for\nany other reserves or contingencies; and covenant as to the use and\ndisposal of the moneys held in such funds;\n (j) Redeem the bonds and covenant for their redemption, and provide\nthe terms and conditions thereof;\n (k) Covenant against extending the time for the payment of its bonds\nor interest thereon;\n (l) Prescribe the procedure, if any, by which the terms of any\ncontract with bondholders may be amended or abrogated, the amount of\nbonds the holders of which must consent thereto, and the manner in which\nsuch consent may be given;\n (m) Covenant as to the maintenance of its property, the replacement\nthereof, the insurance to be carried thereon, and the use and\ndisposition of insurance moneys;\n (n) Vest in an obligee, in the event of a default by an authority, the\nright to cure any such default and to advance any moneys necessary for\nsuch purpose, and covenant that the money so advanced be an additional\nobligation of such authority with such interest, security and priority\nas may be provided in any resolutions, trust indenture, mortgage, lease\nor contract;\n (o) Covenant and prescribe as to the events of default and terms and\nconditions upon which any or all of its bonds shall become or may be\ndeclared due before maturity, and as to the terms and conditions upon\nwhich such declaration and its consequences may be waived;\n (p) Covenant as to the rights, liabilities, powers and duties arising\nupon the breach by it of any covenant, condition or obligation;\n (q) Covenant to surrender possession of a project or projects or parts\nthereof upon the happening of an event of default; and vest in an\nobligee the right, upon such default, without judicial proceedings, to\ntake possession and use, operate, manage, and control such projects or\nany part thereof, and to collect and receive rents, fees and revenues\narising therefrom in the same manner as such authority itself might do,\nand to dispose of the moneys collected in accordance with the agreement\nof such obligee with the authority;\n (r) Vest in a trustee or trustees the right to enforce any covenant to\nsecure, or pay the bonds, or otherwise relating to such bonds; provide\nfor the powers, duties and limitations of liabilities of such trustee or\ntrustees, and provide the terms and conditions upon which the trustee or\ntrustees, or the holders of bonds, or any proportion of them, may\nenforce any such covenant;\n (s) Vest in a government, in a trustee or in other obligee the right,\nupon any happening of an event of default, to foreclose through judicial\nproceedings or through the exercise of a power of sale without judicial\nproceedings, any mortgage as to all or such part or parts of the\nproperty covered thereby as such government, trustee or other obligee\nshall elect; the institution, prosecution and conclusion of any such\nforeclosure proceedings or the sale of any such parts of the mortgaged\nproperty shall not affect in any manner or to any extent the lien of the\nmortgage on the parts of the mortgaged property not included in such\nproceedings or not sold as aforesaid;\n (t) Make such other covenants and do any and all such acts and things\nas may be necessary or convenient or desirable in order to secure its\nbonds or make them more marketable, notwithstanding that such covenants,\nacts or things may not be enumerated herein; execute all instruments\nnecessary or convenient in the exercise of the powers herein granted, or\nin the performance of its covenants or duties, which may contain such\ncovenants and provisions, in addition to those above specified, as the\ngovernment or any purchaser of the bonds of an authority may require.\n 2. In case of conflict between this section and article nine of the\nuniform commercial code, this section shall control.\n