N.Y. HHC Law § 12 — New York Code / Act HHC / Section 12
Issuance of bonds and notes by the corporation
Status: in_force

§ 12. Issuance of bonds and notes by the corporation. 1. Subject to\nthe provisions of section thirteen, the corporation shall have the power\nand is hereby authorized, from time to time, to issue negotiable bonds\nand notes in such aggregate principal amounts as shall, in the opinion\nof the corporation, be necessary together with such other moneys or\nfunds as may be available to the corporation, to provide funds\nsufficient to enable the corporation to carry out its corporate\npurposes, including site acquisition, construction, maintenance and\nrepair of health facilities, the payment of interest on and amortization\nof, or payment of such bonds and notes, the establishment of reserves or\nsinking funds to secure such bonds and notes, and all other expenditures\nof the corporation incident to and necessary or desirable for the\ncarrying out of its corporate purposes and the exercise of its powers.\nExcept as may otherwise be expressly provided by the corporation, every\nissue of its bonds and notes shall be general obligations of the\ncorporation payable out of any revenues or moneys of the corporation,\nsubject only to any agreements with the holders of particular bonds or\nnotes pledging any particular revenues or moneys. Whether or not the\nbonds or notes are of such form and character as to be negotiable\ninstruments under the provisions of article eight of the uniform\ncommercial code, the bonds and notes shall be and are hereby made\nnegotiable instruments within the meaning of and for all the purposes of\narticle eight of the uniform commercial code, subject only to the\nprovisions of the bonds or notes for registration.\n  2. The corporation shall have the power and is hereby authorized, from\ntime to time, to issue renewal notes, and to refund any bonds by the\nissuance of new bonds, whether the bonds to be refunded have or have not\nmatured, and to issue bonds to pay notes or partly to refund bonds then\noutstanding and partly for any of its corporate purposes.\n  3. The said bonds and notes shall be authorized by resolution or\nresolutions of the board, and shall be dated and shall mature as such\nresolution or resolutions may provide, except that no note or any\nrenewal thereof shall mature more than five years after the date of\nissue of the original note and no bond shall mature more than forty\nyears from the date of its issue. Bonds and notes shall bear interest at\nsuch rate or rates, be in such denominations, be in such form, either\ncoupon or registered, carry such registration privileges, be executed in\nsuch manner, be payable in such medium of payment, at such place or\nplaces, and be subject to such terms of redemption as such resolution or\nresolutions may provide. Bonds and notes may be sold by the corporation\nat public or private sale at such price or prices as the corporation\nshall determine; provided, however, that no such bonds or notes may be\nsold at a private sale unless the sale and the terms thereof have been\napproved by the comptroller in writing.\n  4. Any resolution or resolutions authorizing any bonds or notes may\ncontain provisions, which shall be a part of the contract or contracts\nwith the holders thereof, as to\n  (a) pledging all or any part of the moneys or revenues or other assets\nof the corporation to secure the payment of such bonds or notes,\nincluding, but not limited to, fees, rentals and charges for the use of\na health facility and the proceeds of any grant in aid of the\ncorporation received from any public or private source and contracts\nauthorized by section seven of this act;\n  (b) the setting aside of reserves or sinking funds and the regulation\nor disposition thereof;\n  (c) limitations on the purposes to which the proceeds of the sale of\nany issue of bonds or notes then or thereafter to be issued may be\napplied and pledging such proceeds to secure the payment of the bonds or\nnotes or any issue thereof;\n  (d) limitations on the issuance of additional bonds or notes; the\nterms upon which such additional bonds or notes may be issued and\nsecured; the refunding of outstanding or other bonds or notes;\n  (e) the procedures, if any, by which the terms of any contract with\nthe holders of bonds or notes may be extended or abrogated, the amount\nof bonds or notes the holders of which must consent thereto and the\nmanner in which such consent may be given;\n  (f) the creation of special funds into which any moneys or revenues of\nthe corporation may be deposited;\n  (g) limitations on the amounts that the corporation may expend for\nadministrative or other expenses thereof;\n  (h) vesting in a trustee or trustees such properties, rights, powers\nand duties in trust as the corporation may determine which may include\nany or all of the rights, powers and duties of the trustees appointed by\nthe holders of the bonds or notes pursuant to section seventeen of this\nact and limiting or abrogating the right of the holders of the bonds or\nnotes to appoint a trustee under such section or limiting the rights,\nduties and powers of such trustee;\n  (i) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the corporation to the holders\nof the bonds or notes and providing for the rights and remedies of the\nholders of the bonds or notes in the event of such default, including as\na matter of right the appointment of a receiver; providing, however,\nthat such rights and remedies shall not be inconsistent with the general\nlaws of the state and the other provisions of this act;\n  (j) any other matters, of like or different character, which in any\nway affect the security or protection of the holders of the bonds or\nnotes.\n  5. Any pledge of revenues, moneys or property made by the corporation\nshall be valid and binding from the time when the pledge is made; the\nrevenues, moneys or property so pledged and thereafter received by the\ncorporation shall immediately be subject to the lien of such pledge\nwithout any physical delivery thereof or further act, and the lien of\nany such pledge shall be valid and binding as against all parties having\nclaims of any kind in tort, contract or otherwise against the\ncorporation irrespective of whether such parties have notice thereof.\nNeither the resolution or resolutions nor any other instrument by which\na pledge is created need be recorded.\n  6. Neither the directors of the corporation nor any other person\nexecuting such bonds or notes shall be subject to any personal liability\nor accountability by reason of the issuance thereof.\n  7. The corporation, subject to such agreements with the holders of\nbonds or notes as may then exist, shall have the powers out of any funds\navailable therefor to purchase any bonds or notes issued by it at a\nprice not exceeding the redemption price thereof which price shall be\n  (a) if the bonds or notes are then redeemable, the redemption price\nthen applicable plus accrued interest to the next interest payment date\nthereon, or\n  (b) if the bonds or notes are not then redeemable, the redemption\nprice applicable on the first date after such purchase upon which the\nbonds or notes become subject to redemption plus accrued interest to\nsuch date.  All bonds or notes so purchased shall be cancelled.\n