N.Y. MCF Law § 6 — New York Code / Act MCF / Section 6
Bonds and notes of the agency
Status: in_force

§ 6. Bonds and notes of the agency. 1. (a) The agency shall have power\nand is hereby authorized from time to time to issue its negotiable bonds\nand notes in conformity with applicable provisions of the uniform\ncommercial code in such principal amount as, in the opinion of the\nagency, shall be necessary to provide sufficient funds for achieving its\ncorporate purposes, including the making of mortgage loans, project\nloans, or equipment loans, or loans to owners of Hmo projects or Hmo\ninvestment loans and the construction, acquisition, reconstruction,\nrehabilitation or improvement of health facilities, the payment of\ninterest on bonds and notes of the agency, establishment of reserves to\nsecure such bonds and notes, and all other expenditures of the agency\nincident to and necessary or convenient to carry out its corporate\npurposes and powers;\n  (b) The agency shall have power, from time to time, to issue renewal\nnotes, to issue bonds to pay notes and whenever it deem refunding\nexpedient, to refund any bonds by the issuance of new bonds, whether the\nbonds to be refunded have or have not matured, and to issue bonds partly\nto refund bonds then outstanding and partly for any other purpose. The\nrefunding bonds shall be sold and the proceeds applied to the purchase,\nredemption or payment of the bonds to be refunded;\n  (c) Except as may otherwise be expressly provided by the agency, every\nissue if its notes or bonds shall be general obligations of the agency\npayable out of any revenues or monies of the agency, subject only to any\nagreements with the holders of particular notes or bonds pledging any\nparticular receipts or revenues.\n  2. The notes and bonds shall be authorized by resolution of the\nmembers, shall bear such date or dates, and shall mature at such time or\ntimes, in the case of any such note, or any renewals thereof, issued for\nachieving its corporate purposes other than the making of mortgage\nloans, not exceeding five years, from the date of issue of such original\nnote, and in the case of any such note, or any renewals thereof, issued\nfor the purpose of making mortgage loans, not exceeding seven years,\nfrom the date of issue of such original note, and in the case of any\nsuch bond not exceeding fifty years from the date of issue, as such\nresolution or resolutions may provide. The notes and bonds shall bear\ninterest at such rate or rates, be in such denominations, be in such\nform, either coupon or registered, carry such registration privileges,\nbe executed in such manner, be payable in such medium of payment, at\nsuch place or places and be subject to such terms of redemption as such\nresolution or resolutions may provide. The notes and bonds of the agency\nmay be sold by the agency, at public or private sale, at such price or\nprices as the agency shall determine. No notes or bonds of the agency\nmay be sold by the agency at private sale, however, unless such sale and\nthe terms thereof have been approved in writing by (a) the comptroller,\nwhere such sale is not to the comptroller or, (b) the director of the\nbudget, where such sale is to the comptroller.\n  3. Any resolution or resolutions authorizing any notes or bonds or any\nissue thereof may contain provisions, which shall be a part of the\ncontract with the holders thereof, as to:\n  (a) pledging all or any part of the fees and charges made or received\nby the agency, and all or any part of the monies received in payment of\nmortgage or project loans and interest thereon, and other monies\nreceived or to be received, to secure the payment of the hospital and\nnursing home project bonds or hospital nursing home project notes or of\nany issue thereof, subject to such agreement with bondholders or\nnoteholders as may then exist;\n  (b) pledging all or any part of the assets of the agency, including\nmortgages and obligations securing the same, to secure the payment of\nthe hospital and nursing home project bonds or hospital and nursing home\nproject notes, subject to such agreements with bondholders or\nnoteholders as may then exist, provided that no resolution or\nresolutions of the agency authorizing hospital and nursing home project\nbonds and hospital and nursing home project notes shall (i) pledge all\nor any portion of the rentals paid to the agency with respect to health\nfacilities financed with the proceeds of health facilities bonds or\nhealth facilities notes, or (ii) pledge any other assets, monies or\naccounts pledged to the agency as security for the payment of rentals\nwith respect to health facilities financed with the proceeds of health\nfacilities bonds or health facilities notes;\n  (c) the use and disposition of the gross income from mortgages owned\nby the agency and payment of principal of mortgages owned by the agency;\n  (d) pledging all or any part of the rentals paid to the agency with\nrespect to health facilities financed with the proceeds of health\nfacilities bonds or health facilities notes or any other assets, monies\nor accounts pledged or assigned to the agency as security for the\npayment of such rentals, all subject to any agreement with noteholders\nor bondholders as may then exist and provided that no resolution or\nresolutions authorizing health facilities bonds and health facilities\nnotes shall (i) pledge all or any part of the fees and charges made or\nreceived by the agency pursuant to subdivision twelve of section five in\nconnection with the making of mortgage loans or commitments therefor, or\nall or any part of the monies received in payment of such mortgage loans\nand interest thereon, or (ii) pledge all or any part of the mortgages of\nthe agency or obligations securing the same, or (iii) provide as to the\nuse and disposition of the gross income from mortgages owned by the\nagency or as to the payment of principal of mortgages owned by the\nagency;\n  (e) the setting aside of reserves or sinking funds and the regulation\nand disposition thereof;\n  (f) limitations on the purpose to which the proceeds of sale of notes\nor bonds may be applied and pledging such proceeds to secure the payment\nof the notes or bonds or of any issue thereof;\n  (g) limitations on the issuance of additional notes or bonds; the\nterms upon which additional notes or bonds may be issued and secured;\nthe refunding of outstanding or other notes or bonds;\n  (h) the procedure, if any, by which the terms of any contract with\nnoteholders or bondholders may be amended or abrogated, the amount of\nnotes or bonds the holders of which must consent thereto, and the manner\nin which such consent may be given;\n  (i) limitations on the amount of monies to be expended by the agency\nfor operating, administrative or other expenses of the agency;\n  (j) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the agency may determine, which may include any or\nall of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to this act, and limiting or abrogating the right\nof the bondholders to appoint a trustee under this act or limiting the\nright, powers and duties of such trustee;\n  (k) any other matters, of like or different character, which in any\nway affect the security or protection of the notes or bonds.\n  (l) pledging all or any part of the fees and charges made or received\nby the agency, and all or any part of the monies received pursuant to a\nlease, sublease, loan or other financing agreements entered into\npursuant to section nine-a of this act and interest thereon, and other\nmonies received or to be received, to secure the payment of mental\nhealth services facilities improvement notes or bonds or of any issue\nthereof, subject to such agreements with bondholders or noteholders as\nmay then exist;\n  (m) pledging all or any part of the assets of the agency, including\nlease, sublease, loan or other financing agreements entered into\npursuant to section nine-a of this act, and obligations securing the\nsame, to secure the payment of mental health services improvement\nfacilities notes or bonds or of any issue of notes or bonds, subject to\nsuch agreements with noteholders or bondholders as may then exist;\n  (n) the use and disposition of the gross income from lease, sublease,\nloan or other financing agreements entered into pursuant to section\nnine-a of this act and payment of principal of lease, sublease, loan or\nother financing agreements entered into pursuant to section nine-a of\nthis act;\n  (o) pledging or depositing all or any part of the assets of the\nagency, including moneys paid to the agency by the comptroller and the\ncommissioner of taxation and finance of the state of New York pursuant\nto the provisions of section ninety-seven-f of the state finance law, to\npay or provide for the refunding of mental hygiene improvement bonds\nissued pursuant to section forty-seven-b of the private housing finance\nlaw.\n  4. It is the intention hereof that any pledge made by the agency shall\nbe valid and binding from the time when the pledge is made; that the\nmonies or property so pledged and thereafter received by the agency\nshall immediately be subject to the lien of such pledge without any\nphysical delivery thereof or further act; and that the lien of any such\npledge shall be valid and binding as against all parties having claims\nof any kind in tort, contract or otherwise against the agency,\nirrespective of whether such parties have notice thereof. Neither the\nresolution nor any other instrument by which a pledge is created need be\nrecorded.\n  5. Neither the members of the agency nor any person executing the\nnotes or bonds shall be liable personally on the notes or bonds or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n  6. The agency, subject to such agreements with noteholders or\nbondholders as may then exist, shall have power out of any funds\navailable therefor to purchase notes or bonds of the agency, which shall\nthereupon be cancelled, at a price not exceeding (a) if the notes or\nbonds are then redeemable, the redemption price then applicable plus\naccrued interest to the next interest payment date thereon, or (b) if\nthe notes or bonds are not then redeemable, the redemption price\napplicable on the first date after such purchase upon which the notes or\nbonds become subject to redemption plus accrued interest to such date.\n  7. The state shall not be liable on notes or bonds of the agency and\nsuch notes and bonds shall not be a debt of the state, and such notes\nand bonds shall contain on the face thereof a statement to such effect.\n