§ 17 — Bonds and notes of the corporation

New York § 17

• Jurisdiction: New York
• Law UDA: Urban Development Corporation Act 174/68

Text

§ 17. Bonds and notes of the corporation. (1) Subject to the\nprovisions of section eighteen of this act, the corporation shall have\nthe power and is hereby authorized from time to time to issue its\nnegotiable bonds and notes in conformity with applicable provisions of\nthe uniform commercial code in such principal amounts, as, in the\nopinion of the corporation, shall be necessary to provide sufficient\nfunds for achieving any of its corporate purposes, including the payment\nof interest on bonds and notes of the corporation, establishment of\nreserves to secure such bonds and notes, and all other expenditures of\nthe corporation incident to and necessary or convenient to carry out its\ncorporate purposes and powers.\n (2) All bonds and notes issued by the corporation may be secured by\nthe full faith and credit of the corporation or may be payable solely\nout of the revenues and receipts derived from the lease, mortgage or\nsale by the corporation of its projects or of any thereof, all as may be\ndesignated in the proceedings of the corporation under which the bonds\nor notes shall be authorized to be issued. Such bonds and notes may be\nexecuted and delivered by the corporation at any time and from time to\ntime, may be in such form and denominations and of such tenor and\nmaturities, may be in bearer form or in registered form, as to principal\nand interest or as to principal alone, all as the corporation may\ndetermine.\n (3) Bonds may be payable in such installments and at such time or\ntimes not exceeding fifty years from the date thereof, as shall be\ndetermined by the corporation.\n (4) Notes, or any renewals thereof, may be payable in such\ninstallments and at such time or times as shall be determined by the\ncorporation, not exceeding ten years from the date of the original issue\nof such notes.\n (5) Bonds and notes may be payable at such place or places whether\nwithin or without the state, may bear interest at such rate or rates\npayable at such time or times and at such place or places and evidenced\nin such manner, and may contain such provisions not inconsistent\nherewith, all as shall be provided in the proceedings of the corporation\nunder which the bonds or notes shall be authorized to be issued.\n (6) If deemed advisable by the corporation, there may be retained in\nthe proceedings under which any bonds or notes of the corporation are\nauthorized to be issued an option to redeem all or any part thereof as\nmay be specified in such proceedings, at such price or prices and after\nsuch notice or notices and on such terms and conditions as may be set\nforth in such proceedings and as may be recited in the face of the bonds\nor notes, but nothing herein contained shall be construed to confer on\nthe corporation any right or option to redeem any bonds or notes except\nas may be provided in the proceedings under which they shall be issued.\n (7) Any bonds or notes of the corporation may be sold at such price or\nprices, at public or private sale, in such manner and from time to time\nas may be determined by the corporation, and the corporation may pay all\nexpenses, premiums and commissions which it may deem necessary or\nadvantageous in connection with the issuance and sale thereof. No bonds\nor notes of the corporation may be sold at private sale, however, unless\nsuch sale and the terms thereof have been approved in writing by (a) the\ncomptroller where such sale is not to the comptroller, or (b) the state\ndirector of the budget, where such sale is to the comptroller.\n (8) Any moneys of the corporation, including proceeds from the sale of\nany bonds or notes, and revenues, reciepts and income from any of its\nprojects or mortgages, may be invested and reinvested in such\nobligations, securities and other investments as shall be provided in\nthe resolution or resolutions under which such bonds or notes are\nauthorized.\n (9) Issuance by the corporation of one or more series of bonds or\nnotes for one or more purposes shall not preclude it from issuing other\nbonds or notes in connection with the same project or any other project,\nbut the proceedings whereunder any subsequent bonds or notes may be\nissued shall recognize and protect any prior pledge or mortgage made for\nany prior issue of bonds or notes unless in the proceedings authorizing\nsuch prior issue the right is reserved to issue subsequent bonds or\nnotes on a parity with such prior issue.\n (10) The corporation is authorized to provide for the issuance of its\nbonds or notes for the purpose of refunding any bonds or notes of the\ncorporation then outstanding, including the payment of any redemption\npremium thereon and any interest accrued or to accrue to the earliest or\nsubsequent date of redemption, purchase or maturity of such bonds or\nnotes, and, if deemed advisable by the corporation, for the additional\npurpose of paying all or any part of the cost of acquiring,\nconstructing, reconstructing, rehabilitating, or improving any project,\nor the making of any mortgage loan on any project. The proceeds of any\nsuch bonds or notes issued for the purpose of refunding outstanding\nbonds or notes, may, in the discretion of the corporation, be applied to\nthe purchase or retirement at maturity or redemption of such outstanding\nbonds or notes either on their earliest or any subsequent redemption\ndate, and may, pending such application, be placed in escrow to be\napplied to such purchase or retirement at maturity or redemption on such\ndate as may be determined by the corporation. Any such escrowed\nproceeds, pending such use, may be invested and reinvested in\nobligations of or guaranteed by the United States of America, or in\ncertificates of deposit or time deposits secured in such manner as the\ncorporation shall determine, maturing at such time or times as shall be\nappropriate to assure the prompt payment, as to principal, interest and\nredemption premium, if any, on the outstanding bonds or notes to be so\nrefunded. The interest, income and profits, if any, earned or realized\non any such investment may also be applied to the payment of the\noutstanding bonds or notes to be so refunded. After the terms of the\nescrow have been fully satisfied and carried out, any balance of such\nproceeds and interest, income and profits, if any, earned or realized on\nthe investments thereof may be returned to the corporation for use by it\nin any lawful manner. The portion of the proceeds of any such bonds or\nnotes issued for the additional purpose of paying all or any part of the\ncost of acquiring, constructing, reconstructing, rehabilitating, or\nimproving any project, or the making of any mortgage loan on any\nproject, may be invested and reinvested in obligations of or guaranteed\nby the United States of America, maturing not later than the time or\ntimes when such proceeds will be needed for the purpose of paying all or\nany part of such cost, or the making of any such mortgage loan. The\ninterest, income and profits, if any, earned or realized on such\ninvestments may be applied to the payment of all or any part of such\ncost, or the making of any such mortgage loan, or may be used by the\ncorporation in any lawful manner. All such bonds or notes shall be\nissued and secured and shall be subject to the provisions of this act in\nthe same manner and to the same extent as any other bonds or notes\nissued pursuant to this act.\n