2006 New York Code - Bonds And Notes Of The Agency.

 
    §  2437. Bonds and notes of the agency.  (1) Subject to the provisions
  of section two thousand four hundred thirty-eight  of  this  title,  the
  agency  shall  have the power and is hereby authorized from time to time
  to issue its negotiable bonds and notes in  conformity  with  applicable
  provisions  of the uniform commercial code in such principal amounts as,
  in the opinion of the agency, shall be necessary to  provide  sufficient
  funds  for  achieving  the  corporate  purposes  thereof,  including the
  purchase of municipal bonds, the providing of certain amounts to special
  program municipalities from the proceeds of special program  bonds,  the
  providing  of  certain  amounts to special school purpose municipalities
  from the proceeds of special school  purpose  bonds,  the  providing  of
  certain  amounts  to  a special school deficit program district from the
  proceeds of  special  school  deficit  program  bonds,  the  payment  of
  interest  on bonds and notes of the agency, establishment of reserves to
  secure such bonds and notes, payment of letter of credit, bond insurance
  and  other  credit  and  liquidity  support  facility  fees,   premiums,
  reimbursements  and  expenses,  fees and expenses of trustees and paying
  agents and other financing costs including any accrued costs payable  to
  the  New  York  state  housing  finance  agency pursuant to any contract
  entered into under subdivision  twelve  of  section  two  thousand  four
  hundred  thirty-four  of  this  title  and all other expenditures of the
  agency incident  to  and  necessary  or  convenient  to  carry  out  its
  corporate  purposes  and  powers,  except  the operating expenses of the
  agency.
    (2) Except as may otherwise be expressly provided by the  agency,  all
  bonds and notes issued by the agency shall be general obligations of the
  agency,  secured  by  the full faith and credit of the agency and may be
  payable out of any moneys, assets, or revenues of  the  agency,  subject
  only  to  any  agreements  with  holders  of  particular  bonds or notes
  pledging any particular moneys,  assets  or  revenues,  all  as  may  be
  designated  in  the  proceedings  of the agency under which the bonds or
  notes shall be authorized to be issued.
    (3) Bonds and notes shall be authorized by a resolution or resolutions
  of the agency adopted as provided by this title; provided, however, that
  any such resolution authorizing the  issuance  of  bonds  or  notes  may
  delegate  to  an  officer of the agency the power to issue such bonds or
  notes from time to time and to fix the details of  any  such  issues  of
  bonds or notes by an appropriate certificate of such authorized officer.
    (4) Such bonds or notes shall bear such date or dates, shall mature at
  such  time or times, shall bear interest at such rate or rates, shall be
  of such denominations, shall be in such form,  carry  such  registration
  privileges,  be  executed  in such manner, be payable in lawful money of
  the United States of America at such place or places within  or  without
  the  state, be subject to such terms of redemption prior to maturity and
  have such  other  terms  as  may  be  provided  by  such  resolution  or
  resolutions  or such certificate with respect to such bonds or notes, as
  the case may be; provided, however, that the maximum maturity  of  bonds
  other  than  special  program  bonds,  special  school  purpose bonds or
  special school deficit program bonds shall not exceed forty  years  from
  the  date  thereof,  the maximum maturity of special program bonds shall
  not exceed thirty years, the maximum maturity of special school  purpose
  bonds  shall  not  exceed  twenty years, the maximum maturity of special
  school deficit program bonds shall not exceed ten years and the  maximum
  maturity  of  notes  or any renewals thereof shall not exceed five years
  from the date of the original issue of such notes.
    (5) Any bonds or notes of the agency other than special program bonds,
  special school purpose bonds or special  school  deficit  program  bonds
  shall  be  sold at public sale and from time to time upon such terms and
  at such prices as may be determined by the agency, and  the  agency  may
  pay  all  expenses, premiums and commissions which it may deem necessary
  or advantageous in connection with the issuance and  sale  thereof.  Any
  special  program  bonds,  special school purpose bonds or special school
  deficit program bonds shall be sold at public or private sale  and  from
  time  to time upon such terms and at such prices as may be determined by
  the  agency,  and  the  agency  may  pay  all  expenses,  premiums   and
  commissions  which  it  may deem necessary or advantageous in connection
  with the issuance and  sale  thereof  provided,  however,  that  special
  program  bonds  relating  to a special program agreement entered for the
  purpose described  in  paragraph  (b)  of  subdivision  one  of  section
  twenty-four  hundred  thirty-five-a  of  this  title shall be sold on or
  before June thirtieth, two  thousand  one.  No  special  program  bonds,
  special  school purpose bonds or special school deficit program bonds of
  the agency may be sold by the agency at private  sale,  however,  unless
  such sale and the terms thereof have been approved in writing by (a) the
  comptroller,  where  such  sale  is  not  to the comptroller, or (b) the
  director of the budget, where such sale is to the comptroller.
    (6) The agency is authorized to provide for the issuance of its  bonds
  or  notes  for the purpose of refunding any bonds or notes of the agency
  then outstanding, including  the  payment  of  any  redemption  premiums
  thereon  and  any  interest  accrued or to accrue to the redemption date
  next succeeding the date of delivery of such refunding bonds  or  notes.
  The  proceeds  of  any  such bonds or notes issued for the purpose of so
  refunding outstanding bonds or notes, may,  in  the  discretion  of  the
  agency,  be  applied  to  the purchase or retirement at maturity of such
  outstanding bonds or notes or the redemption of such  outstanding  bonds
  or  notes on the redemption date next succeeding the date of delivery of
  such refunding bonds or notes, or both such purposes, and  may,  pending
  such  application, be placed in escrow to be applied to such purchase or
  retirement at maturity or redemption on such date as may  be  determined
  by  the  agency.  Any  such  escrowed proceeds, pending such use, may be
  invested and reinvested in obligations of or guaranteed by the state  or
  the  United  States  of  America,  or in certificates of deposit or time
  deposits secured in such manner as the agency shall determine,  maturing
  at  such  time  or  times  as  shall be appropriate to assure the prompt
  payment, as to principal, interest and redemption premium,  if  any,  on
  the outstanding bonds or notes to be so refunded by purchase, retirement
  at  maturity or redemption, as the case may be. The interest, income and
  profits, if any, earned or realized on any such investment may  also  be
  applied  to  the  payment  of  the  outstanding  bonds or notes to be so
  refunded by purchase, retirement at maturity or redemption, as the  case
  may  be.    After  the terms of the escrow have been fully satisfied and
  carried out, any balance of such proceeds and interest, if  any,  earned
  or realized on the investments thereof may be returned to the agency for
  use  by it in any lawful manner. All such bonds or notes shall be issued
  and secured and shall be subject to the provisions of this title in  the
  same  manner  and  to  the  same  extent  as  any  other  bonds or notes
  authorized pursuant to this title.
    (7) Whether or not the bonds and notes are of such form and  character
  as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
  commercial  code,  the  bonds  and  notes  are  hereby  made  negotiable
  instruments  within  the  meaning  of  and  for  all the purposes of the
  uniform commercial code, subject only to the provisions of the bonds and
  notes for registration.
    (8) Subject only to the  provisions  of  sections  two  thousand  four
  hundred  thirty-eight  and two thousand four hundred thirty-nine of this
  title, any resolution or resolutions authorizing any bonds or  notes  of
  the  agency  may  contain provisions which may be a part of the contract
  with the holders of such bonds or notes, as to: (a) pledging or creating
  a lien, to the extent provided by such resolution or resolutions, on all
  or  any part of any monies or assets of the agency or of any moneys held
  in trust or otherwise by others for the payment of such bonds or  notes;
  (b)   otherwise   providing   for  the  custody,  collection,  securing,
  investment and payment of any moneys of  the  agency;  (c)  the  setting
  aside  of  reserves  or  sinking funds and the regulation or disposition
  thereof; (d) limitations on the purpose to which the proceeds of sale of
  any issue of such bonds or notes then or thereafter to be issued may  be
  applied;  (e)  limitations on the issuance of additional bonds or notes,
  the terms upon which  additional  bonds  or  notes  may  be  issued  and
  secured,  and upon the refunding of outstanding or other bonds or notes;
  (f) the procedure, if any, by which the terms of any contract  with  the
  holders  of  bonds  or  notes may be amended or abrogated, the amount of
  bonds or notes the holders of which must consent thereto and the  manner
  in  which  such  consent may be given; (g) the creation of special funds
  into which any moneys of the agency may be deposited; (h) vesting  in  a
  trustee  or trustees such properties, rights, powers and duties in trust
  as the agency may determine, which may include any or all of the rights,
  powers and duties of the  trustee  appointed  pursuant  to  section  two
  thousand  four  hundred  forty of this title, and limiting or abrogating
  the right of the holders of bonds or notes to appoint  a  trustee  under
  such  section or limiting the rights, duties and powers of such trustee;
  (i) defining the acts or omissions  to  act  which  shall  constitute  a
  default  in  the  obligations and duties of the agency and providing for
  the rights and remedies of the holders of bonds or notes in the event of
  such default, providing, however, that such rights  and  remedies  shall
  not  be  inconsistent  with  the  general  laws  of this state and other
  provisions of this title; and (j) any other matters of like or different
  character, which in any way affect the security and  protection  of  the
  bonds or notes and the rights of the holders thereof.
    (9)  Any  resolution  or  resolutions or trust indenture or indentures
  under which bonds or notes of the agency are authorized to be issued may
  contain provisions for vesting in a trustee or trustees such properties,
  rights, powers and duties in trust as the agency may determine which may
  include any or all of the rights,  powers  and  duties  of  the  trustee
  appointed  by  the  holders  of  any issue of notes or bonds pursuant to
  section two thousand four hundred forty of this title,  in  which  event
  the   provisions  of  said  section  two  thousand  four  hundred  forty
  authorizing the appointment of a trustee by such  holders  of  bonds  or
  notes shall not apply.
    (10)  It  is  the  intention  of  the  legislature  that any pledge of
  earnings, revenues, other moneys or assets made by the agency  shall  be
  valid  and  binding  from  the  time  when  the pledge is made; that the
  earnings, revenues, other moneys or assets  so  pledged  and  thereafter
  received  by the agency 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 agency irrespective of whether such  parties  have  notice  thereof.
  Neither  the  resolution  nor  any other instrument by which a pledge is
  created need be recorded.
    (11) Neither the members of the agency nor any  person  executing  the
  bonds  or  other  obligations shall be liable personally on the bonds or
  other  obligations  or  be  subject  to  any   personal   liability   or
  accountability by reason of the issuance thereof.