N.Y. ACA Law § 20.19 — New York Code / Act ACA / Title E / Article 20 / Section 20.19
Security for bonds or notes
Status: in_force

§ 20.19. Security for bonds or notes. 1. The principal of and interest\non any bonds or notes issued by a trust may be secured by a pledge of\nany revenues and receipts of the trust, including without limitation the\nreceipt of sums as tax-equivalency payments or loan repayments, and may\nbe secured by a lease, loan agreement, mortgage, pledge, security\ninterest or other instrument covering all or any part of a combined-use\nfacility or cultural facility as authorized by this article, including\nany additions, improvements, extensions to or enlargements of such a\nfacility thereafter made. Bonds or notes issued for a combined-use\nfacility or cultural facility as authorized by this article may also be\nsecured by an assignment of any lease of such combined-use facility or\ncultural facility as authorized by this article and by an assignment of\nthe revenues and receipts of a trust from any such lease and by the\nassignment of any loan agreement with a participating cultural\ninstitution and by an assignment of the revenues and receipts of a trust\nfrom any such loan agreement and by the assignment of any mortgage,\npledge, security interest or other instrument covering a combine-use\nfacility or cultural facility.\n  2. A trust may provide in any proceedings under which bonds or notes\nmay be authorized for the time and manner of and the requisites for\ndisbursements for the cost of a combined-use facility or cultural\nfacility authorized by this article, and for all certificates and\napprovals of construction and disbursements as the trust shall deem\nnecessary.\n  3. Any pledge by a trust of, or security interest granted in,\nearnings, revenues or other monies, including tax-equivalency payments,\naccounts, contract rights, general intangibles or other personal\nproperty shall be valid and binding from the time when the pledge is\nmade; the earnings, revenues or other monies so pledged and thereafter\nreceived by the trust shall immediately be subject to the lien of such\npledge or other security interest, without any physical delivery of the\ncollateral thereof or further act, and the lien of any such pledge or\nother security interest shall be valid and binding as against all\nparties having claims of any kind in tort, contract or otherwise against\nthe trust irrespective of whether such parties have notice thereof. No\nresolution or any other instrument by which a pledge or other security\ninterest is created need be recorded, and no notice thereof need be\nfiled in any public office.\n  4. In the discretion of a trust, the bonds may be secured by a trust\nindenture, which may contain any lawful provisions for protecting and\nenforcing the rights and remedies of the bondholders, by and between the\ntrust and a corporate trustee, as distinguished from a member of the\nboard of trustees of a trust, which may be any trust company or bank\nhaving the powers of a trust company in the state.  A trust may provide\nby such trust indenture for the payment of the proceeds of the bonds and\nthe revenues of a combined-use facility or cultural facility authorized\nby this article to the trustee under such trust indenture or other\ndepository, and for the method of disbursement thereof, with such\nsafeguards and restrictions as it may determine.  If the bonds shall be\nsecured by a trust indenture the bondholders shall have no authority to\nappoint a separate trustee to represent them.\n