§ 14 — Bonds and notes of the corporation

New York § 14

• Jurisdiction: New York
• Law UDR: Urban development research corporation act 173/68

Text

§ 14. Bonds and notes of the corporation. (1) Subject to the\nprovisions of subdivision (2) of section sixteen of this act, the\ncorporation shall have the power and is hereby authorized from time to\ntime to issue its negotiable bonds and notes in such principal amounts,\nas, in the opinion of the corporation, shall be necessary to provide\nsufficient funds for achieving any of its corporate purposes, including\nthe payment of interest on bonds and notes of the corporation,\nestablishment of reserves to secure such bonds and notes, and all other\nexpenditures of the corporation incident to and necessary or convenient\nto carry out its corporate purposes and powers.\n (2) All bonds and notes issued by the corporation shall be general\nobligations of the corporation payable out of any revenues or monies of\nthe agency, subject only to any agreements with the holders of\nparticular notes or bonds pledging any particular revenues or receipts,\nexcept as may otherwise be expressly provided by the corporation. Such\nbonds and notes may be executed and delivered by the corporation at any\ntime and from time to time, may be in such form and denominations and of\nsuch tenor and maturities, may be in bearer form or in registered form,\nas to principal and interest or as to principal alone, all as the\ncorporation may determine.\n (3) Bonds may be payable in such installments and at such time or\ntimes as shall be determined by the corporation, not exceeding fifty\nyears from the date thereof.\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 on the face of the\nbonds or notes, but nothing herein contained shall be construed to\nconfer on the corporation any right or option to redeem any bonds or\nnotes except as may be provided in the proceedings under which they\nshall 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 or\nany bonds or notes, and revenues, receipts 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) The resolution under which the bonds or notes are authorized to be\nissued shall contain provisions that\n (a) title to any industrial project for the acquisition, construction,\nreconstruction, rehabilitation or improvement of which bonds or notes\nare authorized to be issued shall pass to the state upon retirement of\nsuch indebtedness, and\n (b) the state shall have the option to purchase, subject to the rights\nof any lessee, mortgagee or beneficiary of any deed of trust, any\nindustrial project for the acquisition, construction, reconstruction,\nrehabilitation or improvement of which bonds or notes are authorized to\nbe issued at any time for an amount equal to the indebtedness then\noutstanding, together with the interest thereon, with interest on any\nunpaid installments of interest. In the event of any such sale to the\nstate, the corporations shall either\n (i) redeem the bonds or notes which were issued to acquire, construct,\nreconstruct, rehabilitate or improve the industrial project so sold the\nstate, or\n (ii) create a special reserve fund for the payment of the principal of\nand interest on such bonds or notes and pay into such reserve fund the\nreceipts derived from such sale. The funds paid into such reserve fund\nmay be invested and reinvested in obligations of or guaranteed by the\nUnited States of America, or in certificates of deposit or time deposits\nsecured in such manner as the corporation shall determine, maturing at\nsuch time or times as shall be appropriate to assure the prompt payment\nof the principal of and interest on such bonds or notes. Any moneys\nreceived by the corporation from the sale of such project to the state\nafter the redemption of such bonds or notes or the creation of such\nreserve fund may be used by the corporation in any lawful manner.\n (10) 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 (11) 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 (12) All bonds or notes authorized under this section and the interest\ncoupons applicable thereto are hereby made and shall be construed to be\nnegotiable instruments.\n