2010 New York Code
EDN - Education
Title 1 - GENERAL PROVISIONS
Article 10-B - (475 - 495) CITY OF YONKERS EDUCATIONAL CONSTRUCTION FUND
485 - Notes and bonds of the fund.

§ 485. Notes  and  bonds of the fund. 1. (a) Subject to the provisions
  of section four hundred eighty-six of this chapter, the fund shall  have
  the  power  and  is  hereby  authorized  from  time to time to issue its
  negotiable bonds and notes in such principal amount as, in  the  opinion
  of  the fund, shall be necessary, after taking into account other monies
  which may be available for the purpose, to provide sufficient funds  for
  achieving   its   corporate   purposes,   including   the  construction,
  acquisition, reconstruction, rehabilitation or improvement of the school
  portion of combined occupancy structures pursuant to this  article,  the
  payment  of  interest  on  bonds and notes of the fund, establishment of
  reserves to secure such bonds and notes, and all other  expenditures  of
  the  fund  incident  to  and  necessary  or  convenient to carry out its
  corporate purposes and powers;
    (b) The fund shall have power, from time to  time,  to  issue  renewal
  notes,  to  issue  bonds  to  pay  notes and, whenever it deem refunding
  expedient, to refund any bonds by the issuance of new bonds, whether the
  bonds to be refunded have or have not matured, and to issue bonds partly
  to refund bonds then outstanding and partly for any other  purpose.  The
  refunding  bonds shall be sold and the proceeds applied to the purchase,
  redemption or payment of the bonds to be refunded;
    (c) Except as may otherwise be expressly provided by the  fund,  every
  issue  of  its  notes  or bonds shall be general obligations of the fund
  payable out of any revenues or monies of the fund, subject only  to  any
  agreements  with  the  holders of particular notes or bonds pledging any
  particular receipts or revenues;
    (d) Whether or not the notes or bonds are of such form  and  character
  as to be negotiable instruments under the provisions of article eight of
  the  uniform commercial code, the notes or bonds shall be and hereby are
  made negotiable instruments within  the  meaning  of  and  for  all  the
  purposes  of the uniform commercial code, subject only to the provisions
  of the notes or bonds for registration.
    2. The notes and bonds of the fund shall be authorized  by  resolution
  of the trustees, shall bear such date or dates, and shall mature at such
  time  or  times,  in the case of any such note, or any renewals thereof,
  not exceeding five years, from the date of issue of such original  note,
  and in the case of any such bond not exceeding forty years from the date
  of  issue,  as such resolution or resolutions may provide. The notes and
  bonds  shall  bear  interest  at  such  rate  or  rates,  be   in   such
  denominations,  be in such form, either coupon or registered, carry such
  registration privileges, be executed in such manner, be payable in  such
  medium  of payment, at such place or places and be subject to such terms
  of redemption as such resolution or resolutions may provide.  The  notes
  and  bonds  of  the  fund  may be sold by the fund, at public or private
  sale, at such price or prices as the fund shall determine. No  notes  or
  bonds  of  the  fund  may  be sold by the fund at private sale, however,
  unless such sale and the terms thereof have been approved in writing  by
  the city comptroller.
    3. Any resolution or resolutions authorizing any notes or bonds or any
  issue  thereof  may  contain  provisions,  which  shall be a part of the
  contract with the holders thereof, as to:
    (a) pledging all or any part of the fees and charges made or  received
  by the fund, and all or any part of (i) the rentals or other payments to
  be  received  by the fund with respect to the school portion of combined
  occupancy structures financed with the proceeds of such bonds and notes,
  and (ii) the rentals or other payments to be received by the  fund  with
  respect  to  the non-school portion of combined occupancy structures and
  (iii) any other monies, assets or accounts received or to be received by
  the fund or pledged or assigned to the fund to  secure  the  payment  of

such  notes or bonds or of any issue thereof, subject to such agreements
  with bondholders or noteholders as may then exist;
    (b)  pledging  all or any part of the assets of the fund to secure the
  payment of such notes or bonds or  of  any  issue  of  notes  or  bonds,
  subject  to  such agreements with noteholders or bondholders as may then
  exist;
    (c) the use and disposition  of  the  gross  income  of  the  fund  in
  connection  with  combined occupancy structures financed or constructed,
  acquired, reconstructed, rehabilitated or  improved  by  it  or  on  its
  behalf;
    (d)  the  setting  aside  of  reserves  or sinking funds and the regu-
  lation and disposition thereof;
    (e) limitations on the purpose to which the proceeds of sale of  notes
  or bonds may be applied and pledging such proceeds to secure the payment
  of the notes or bonds or of any issue thereof;
    (f)  limitations  on  the  issuance  of additional notes or bonds; the
  terms upon which additional notes or bonds may be  issued  and  secured;
  the refunding of outstanding or other notes or bonds;
    (g)  the  procedure,  if  any, by which the terms of any contract with
  noteholders or bondholders may be amended or abrogated,  the  amount  of
  notes or bonds the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (h) limitations on the amount of monies to be expended by the fund for
  operating, administrative or other expenses of the fund;
    (i) vesting in a trustee or trustees such property, rights, powers and
  duties  in trust as the fund may determine, which may include any or all
  of the rights, powers  and  duties  of  the  trustee  appointed  by  the
  bondholders  pursuant  to  this  article, and limiting or abrogating the
  right of the bondholders to appoint a  trustee  under  this  article  or
  limiting the rights, powers and duties of such trustee;
    (j)  any  other  matters, of like or different character, which in any
  way affect the security or protection of the notes or bonds.
    4. It is the intention hereof that any pledge made by the  fund  shall
  be  valid  and  binding  from the time when the pledge is made; that the
  monies or property so pledged and thereafter received by the fund  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  fund,  irrespective  of
  whether such parties have notice thereof. Neither the resolution nor any
  other instrument by which a pledge is created need be recorded.
    5. Neither the trustees of the fund nor any person executing the notes
  or  bonds shall be liable personally on the notes or bonds or be subject
  to any personal liability or accountability by reason  of  the  issuance
  thereof.
    6.   The   fund,  subject  to  such  agreements  with  noteholders  or
  bondholders as may then  exist,  shall  have  power  out  of  any  funds
  available  therefor  to purchase notes or bonds of the fund, which shall
  thereupon be cancelled, at a price not exceeding (a)  if  the  notes  or
  bonds  are  then  redeemable,  the redemption price then applicable plus
  accrued interest to the next interest payment date thereon,  or  (b)  if
  the  notes  or  bonds  are  not  then  redeemable,  the redemption price
  applicable on the first date after such purchase upon which the notes or
  bonds become subject to redemption plus accrued interest to such date.
    7. Neither the state nor the city of Yonkers shall be  liable  on  the
  notes  or bonds of the fund and such notes and bonds shall not be a debt
  of the city or the state, and such notes and bonds shall contain on  the
  face thereof a statement to such effect.