2012 New York Consolidated Laws
PBG - Public Housing
Article 3 - (30 - 60) MUNICIPAL HOUSING AUTHORITIES
47 - Bond covenants of an authority.

 
    §  47.  Bond  covenants  of  an authority.   1. In connection with the
  issuance of bonds or the incurring of an obligation, and to  secure  the
  payment  of  such bonds or obligations, an authority, in addition to its
  other powers, may: (a) Pledge, covenant to pledge, or  covenant  against
  pledging,  all  or  any  part  of  its rents, fees, revenues, subsidies,
  grants or contributions to which its right then exists or may thereafter
  come into existence; covenant against permitting or suffering  any  lien
  thereon; it is the intention hereof that any pledge of revenues or other
  moneys  made  by  the authority shall be valid and binding from the time
  when the pledge is made, that revenues or other moneys  so  pledged  and
  thereafter  received by an authority shall immediately be subject to the
  lien of such pledge without any physical delivery thereof or further act
  and that the lien of any such pledge  shall  be  valid  and  binding  as
  against  all  parties  having  claims  of  any kind in tort, contract or
  otherwise against the authority, irrespective of  whether  such  parties
  have notice thereof;
    (b) Mortgage, covenant to mortgage or covenant against mortgaging, all
  or  any part of its property, real or personal, then owned or thereafter
  acquired; covenant against permitting or suffering any lien thereon;
    (c) Covenant with respect to limitations on its right to sell,  lease,
  or otherwise dispose of any project or part thereof;
    (d)  Covenant  as  to the bonds to be issued and as to the issuance of
  such bonds in escrow or otherwise, and as to the use and disposition  of
  the  proceeds thereof; provide for the replacement of lost, destroyed or
  mutilated bonds;
    (e) Covenant as to what other, or additional debts may be incurred  by
  it;
    (f) Covenant that the authority warrants the title to the premises;
    (g)  Covenant as to the rents and fees to be charged, the amount to be
  raised each year or other period  of  time  by  rents,  fees  and  other
  revenues, and as to the use and disposition to be made thereof;
    (h)  Covenant  as  to  the  use of any or all of its property, real or
  personal;
    (i) Create or authorize the creation of special funds segregating  (1)
  the  proceeds  of any loans, grants, subsidies or contributions; (2) all
  the rents, fees and revenues of any project or projects; (3) any  moneys
  held  for  the  payment  of  the  costs  of operation and maintenance of
  projects, or as a reserve  for  the  meeting  of  contingencies  in  the
  operation  and  maintenance thereof; (4) any moneys held for the payment
  of the principal of and interest on its bonds or the sums due under  its
  leases  or  as  a reserve for such payments; and (5) any moneys held for
  any other reserves or contingencies; and covenant  as  to  the  use  and
  disposal of the moneys held in such funds;
    (j)  Redeem  the  bonds and covenant for their redemption, and provide
  the terms and conditions thereof;
    (k) Covenant against extending the time for the payment of  its  bonds
  or interest thereon;
    (l)  Prescribe  the  procedure,  if  any,  by  which  the terms of any
  contract with bondholders may be amended or  abrogated,  the  amount  of
  bonds the holders of which must consent thereto, and the manner in which
  such consent may be given;
    (m)  Covenant  as  to the maintenance of its property, the replacement
  thereof,  the  insurance  to  be  carried  thereon,  and  the  use   and
  disposition of insurance moneys;
    (n) Vest in an obligee, in the event of a default by an authority, the
  right  to  cure any such default and to advance any moneys necessary for
  such purpose, and covenant that the money so advanced be  an  additional
  obligation  of  such authority with such interest, security and priority

  as may be provided in any resolutions, trust indenture, mortgage,  lease
  or contract;
    (o)  Covenant  and prescribe as to the events of default and terms and
  conditions upon which any or all of its bonds shall  become  or  may  be
  declared  due  before  maturity, and as to the terms and conditions upon
  which such declaration and its consequences may be waived;
    (p) Covenant as to the rights, liabilities, powers and duties  arising
  upon the breach by it of any covenant, condition or obligation;
    (q) Covenant to surrender possession of a project or projects or parts
  thereof  upon  the  happening  of  an  event  of default; and vest in an
  obligee the right, upon such default, without judicial  proceedings,  to
  take  possession  and use, operate, manage, and control such projects or
  any part thereof, and to collect and receive rents,  fees  and  revenues
  arising  therefrom in the same manner as such authority itself might do,
  and to dispose of the moneys collected in accordance with the  agreement
  of such obligee with the authority;
    (r) Vest in a trustee or trustees the right to enforce any covenant to
  secure,  or  pay the bonds, or otherwise relating to such bonds; provide
  for the powers, duties and limitations of liabilities of such trustee or
  trustees, and provide the terms and conditions upon which the trustee or
  trustees, or the holders of  bonds,  or  any  proportion  of  them,  may
  enforce any such covenant;
    (s)  Vest in a government, in a trustee or in other obligee the right,
  upon any happening of an event of default, to foreclose through judicial
  proceedings or through the exercise of a power of sale without  judicial
  proceedings,  any  mortgage  as  to  all  or  such  part or parts of the
  property covered thereby as such government, trustee  or  other  obligee
  shall  elect;  the  institution,  prosecution and conclusion of any such
  foreclosure proceedings or the sale of any such parts of  the  mortgaged
  property shall not affect in any manner or to any extent the lien of the
  mortgage  on  the  parts  of the mortgaged property not included in such
  proceedings or not sold as aforesaid;
    (t) Make such other covenants and do any and all such acts and  things
  as  may  be  necessary or convenient or desirable in order to secure its
  bonds or make them more marketable, notwithstanding that such covenants,
  acts or things may not be enumerated  herein;  execute  all  instruments
  necessary or convenient in the exercise of the powers herein granted, or
  in  the  performance  of its covenants or duties, which may contain such
  covenants and provisions, in addition to those above specified,  as  the
  government or any purchaser of the bonds of an authority may require.
    2.  In  case  of conflict between this section and article nine of the
  uniform commercial code, this section shall control.