§ 46 — Notes and bonds of the agency

New York § 46

• Jurisdiction: New York
• Law PVH: Private Housing Finance
• Art. 3: New York State Housing Finance Agency

Text

§ 46. Notes and bonds of the agency. 1. (a) Subject to the provisions\nof section forty-seven of this article, the agency shall have power and\nis hereby authorized from time to time to issue its negotiable bonds and\nnotes in conformity with applicable provisions of the uniform commercial\ncode in such principal amount as, in the opinion of the agency, shall be\nnecessary to provide sufficient funds for achieving its corporate\npurposes, including the making or financing the making of mortgage\nloans, the payment of interest on bonds and notes of the agency,\nestablishment of reserves to secure such bonds and notes, and all other\nexpenditures of the agency incident to and necessary or convenient to\ncarry out its corporate 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 deem 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;\n 2. a. The notes and bonds, except as provided in paragraph (c) of\nsubdivision four of this section, shall be authorized by resolution of\nthe members, shall bear such date or dates, and shall mature at such\ntime or times, in the case of any such note, or any renewals thereof,\nissued for achieving its corporate purposes other than the making or\nfinancing the making of mortgage loans, not exceeding the term of any\napplicable lease or sublease, and in the case of any such note, or any\nrenewals thereof, issued for the purpose of making or financing the\nmaking of mortgage loans, not exceeding the term for the repayment of\nthe mortgage loan or the federally guaranteed securities acquired to\nfinance such mortgage loan, and in the case of any such bond not\nexceeding fifty years from the date of issue, as such resolution or\nresolutions may provide.\n b. In no event, however, shall any such note mature, in the case of a\nnote or any renewals thereof, issued for the purpose of achieving its\ncorporate purposes other than the making or financing the making of\nmortgage loans, later than eight years from the date of issue of such\noriginal note, and, in the case of a note or any renewals thereof,\nissued for the purpose of making or financing the making of mortgage\nloans, later than ten years from the date of issue of such original\nnote, unless in each year at least that amount of principal is required\nto be paid as would be required if (i) the principal of and interest on\nany such note were payable in such manner that the total annual charges\nrequired for the payment of principal and interest were approximately\nequal and constant for the period of such lease, sublease or mortgage,\nas the case may be, and (ii) at the expiration of the term of such\nlease, sublease or mortgage, the total of such required payments were\nsufficient to pay the full principal amount of such note; provided\nhowever, that such manner of payment of principal shall be required only\nfrom the date of the issuance of such note or from the commencement of\nthe lease or sublease term in the case of a lease or sublease and from\nthe occupancy date in the case of a mortgage whichever later occurs.\nSuch payment of principal may be made either to the holder of such note\nor into a sinking fund. Notwithstanding the foregoing, no such note\nshall be issued pursuant to this paragraph b unless the state director\nof the budget has approved the issuance of any such note in writing\nprior to such issuance.\n c. The notes and bonds shall bear interest at such rate or rates, be\nin such denominations, be in such form, either coupon or registered,\ncarry such registration privileges, be executed in such manner, be\npayable in such medium of payment, at such place or places and be\nsubject to such terms of redemption as such resolution or resolutions\nmay provide. The notes and bonds of the agency may be sold by the\nagency, at public or private sale, at such price or prices as the agency\nshall determine. No notes or bonds of the agency may be sold by the\nagency at private sale, however, unless such sale and the terms thereof\nhave been approved in writing by (a) the comptroller, where such sale is\nnot to the comptroller, or (b) the director of the budget, where such\nsale is to the comptroller.\n 3. Except as provided in paragraph (d) of subdivision four of this\nsection, any resolution or resolutions authorizing any notes or bonds or\nany issue 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 monies received in payment of\nmortgage loans or the federally guaranteed securities acquired to\nfinance such mortgage loans and interest thereon, and other monies\nreceived or to be received, to secure the payment of the notes or bonds\nor of any issue thereof, subject to such agreements with bondholders or\nnoteholders as may then exist;\n (b) pledging all or any part of the assets of the agency, including\nmortgages or the federally guaranteed securities acquired to finance\nsuch mortgage loans and obligations securing the same, to secure the\npayment of the notes or bonds or of any issue of notes or bonds, subject\nto such agreements with noteholders or bondholders as may then exist;\n (c) the use and disposition of the gross income from mortgages owned\nor financed by the agency and payment of principal of mortgages owned by\nthe agency;\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 such property, rights, powers and\nduties in trust as the agency may determine, which may include any or\nall of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to this article, and limiting or abrogating the\nright of the bondholders to appoint a trustee under this article or\nlimiting the rights, powers and duties of such trustee;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the notes or bonds.\n 4. (a) Subject to the provisions of subdivisions three and four of\nsection forty-seven of this article and notwithstanding anything to the\ncontrary hereinabove provided in this section, the agency shall have\npower and is hereby authorized from time to time to issue negotiable\nbonds and notes in such principal amount, as, in the opinion of the\nagency, shall be necessary to provide sufficient funds for the making of\nequity loans, the payment of interest on bonds and notes issued to\nprovide funds for the making of such equity loans, the establishment of\nreserves to secure such bonds and notes, and all other expenditures of\nthe agency incident to and necessary or convenient for the making of\nsuch equity loans;\n (b) The provisions of paragraphs (b), (c) and (d) of subdivision one\nof this section shall apply to equity notes and bonds issued by the\nagency for the making of equity loans.\n (c) The provisions of subdivision two of this section shall apply to\nequity notes and bonds issued by the agency for the making of equity\nloans except that any such equity notes, or any renewals thereof, and\nany such equity bond shall mature at such time or times as the\nresolution of the members shall provide, but in no event at a time\nsubsequent to six months after the latest maturity date of the last\nmaturing equity loan made from the proceeds of such equity notes or\nbonds.\n (d) Any resolution or resolutions authorizing any equity notes or\nequity bonds or any issue thereof for the making of equity loans may\ncontain any of the provisions set forth in subdivision three of this\nsection, which shall be a part of the contract with the holders thereof,\nexcept that no such resolution or resolutions shall pledge any fees or\ncharges collected by the agency pursuant to subdivision eleven of\nsection forty-four, income from mortgages owned by the agency, or any\npayments of principal of mortgages owned by the agency.\n 5. It is the intention hereof that any pledge made by the agency shall\nbe valid and binding from the time when the pledge is made; that the\nmonies or property so pledged and thereafter received by the agency\nshall immediately be subject to the lien of such pledge without any\nphysical delivery thereof or further act; and that the lien of any such\npledge shall be valid and binding as against all parties having claims\nof any kind in tort, contract or otherwise against the agency,\nirrespective of whether such parties have notice thereof. Neither the\nresolution nor any other instrument by which a pledge is created need be\nrecorded.\n 6. 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 7. The agency, subject to such agreements with noteholders or\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 8. 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