NY Priv Hous Fin L § 46 (2021)
2021 New York Laws PVH - Private Housing Finance Article 3 - New York State Housing Finance Agency 46 - Notes and Bonds of the Agency.

§  46. Notes and bonds of the agency. 1. (a) Subject to the provisions of section forty-seven of this article, the agency shall have 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 amount as, in the opinion of the agency, shall be necessary  to  provide  sufficient  funds  for  achieving  its corporate purposes, including the making  or  financing  the  making  of  mortgage loans,  the  payment  of  interest  on  bonds  and  notes of the agency, establishment of reserves to secure such bonds and notes, and all  other expenditures  of  the  agency incident to and necessary or convenient to carry out its corporate purposes and powers;  (b) The agency 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 agency, every issue of its notes or bonds shall be general obligations of  the  agency payable out of any revenues or monies of the agency, subject only to any agreements  with  the  holders of particular notes or bonds pledging any particular receipts or revenues;   2. a. The notes and bonds, except as  provided  in  paragraph  (c)  of subdivision  four  of this section, shall be authorized by resolution of the members, 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, issued for achieving its corporate purposes other  than  the  making  or financing  the  making  of mortgage loans, not exceeding the term of any applicable lease or sublease, and in the case of any such note,  or  any renewals  thereof,  issued  for  the  purpose of making or financing the making of mortgage loans, not exceeding the term for  the  repayment  of the  mortgage  loan  or  the federally guaranteed securities acquired to finance such mortgage loan, and  in  the  case  of  any  such  bond  not exceeding  fifty  years  from  the  date of issue, as such resolution or resolutions may provide.   b. In no event, however, shall any such note mature, in the case of  a note  or  any  renewals thereof, issued for the purpose of achieving its corporate purposes other than the making  or  financing  the  making  of mortgage  loans,  later  than eight years from the date of issue of such original note, and, in the case of  a  note  or  any  renewals  thereof, issued  for  the  purpose  of making or financing the making of mortgage loans, later than ten years from the date  of  issue  of  such  original note,  unless in each year at least that amount of principal is required to be paid as would be required if (i) the principal of and interest  on any  such note were payable in such manner that the total annual charges required for the payment of principal and  interest  were  approximately equal  and  constant for the period of such lease, sublease or mortgage, as the case may be, and (ii) at the  expiration  of  the  term  of  such lease,  sublease  or  mortgage, the total of such required payments were sufficient to pay the full  principal  amount  of  such  note;  provided however, that such manner of payment of principal shall be required only from  the  date of the issuance of such note or from the commencement of the lease or sublease term in the case of a lease or sublease  and  from the  occupancy  date  in  the case of a mortgage whichever later occurs. Such payment of principal may be made either to the holder of such  note or  into  a  sinking  fund.  Notwithstanding the foregoing, no such note shall be issued pursuant to this paragraph b unless the  state  director  of  the  budget  has  approved  the issuance of any such note in writing prior to such issuance.   c.  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  agency  may  be  sold  by  the agency, at public or private sale, at such price or prices as the agency shall  determine.  No  notes  or  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.   3. Except as provided in paragraph (d) of  subdivision  four  of  this section, 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 agency, and all or any part of the monies received in payment of mortgage loans  or  the  federally  guaranteed  securities  acquired  to finance  such  mortgage  loans  and  interest  thereon, and other monies received or to be received, to secure the payment of the 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  agency,  including mortgages  or  the  federally  guaranteed securities acquired to finance such mortgage loans and obligations securing the  same,  to  secure  the payment of the 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 from mortgages owned or financed by the agency and payment of principal of mortgages owned by the agency;  (d) the setting aside of reserves or sinking funds and the  regulation 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  agency for operating, administrative or other expenses of the agency;  (i) vesting in a trustee or trustees such property, 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 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. (a) Subject to the provisions of subdivisions  three  and  four  of section  forty-seven of this article and notwithstanding anything to the contrary hereinabove provided in this section,  the  agency  shall  have  power  and  is  hereby  authorized from time to time to issue negotiable bonds and notes in such principal amount, as,  in  the  opinion  of  the agency, shall be necessary to provide sufficient funds for the making of equity  loans,  the  payment  of  interest  on bonds and notes issued to provide funds for the making of such equity loans, the establishment  of reserves  to  secure such bonds and notes, and all other expenditures of the agency incident to and necessary or convenient  for  the  making  of such equity loans;  (b)  The  provisions of paragraphs (b), (c) and (d) of subdivision one of this section shall apply to equity notes  and  bonds  issued  by  the agency for the making of equity loans.  (c)  The  provisions of subdivision two of this section shall apply to equity notes and bonds issued by the agency for  the  making  of  equity loans  except  that  any such equity notes, or any renewals thereof, and any such equity  bond  shall  mature  at  such  time  or  times  as  the resolution  of  the  members  shall  provide,  but in no event at a time subsequent to six months after the latest  maturity  date  of  the  last maturing  equity  loan  made  from  the proceeds of such equity notes or bonds.  (d) Any resolution or resolutions  authorizing  any  equity  notes  or equity  bonds  or  any  issue thereof for the making of equity loans may contain any of the provisions set forth in  subdivision  three  of  this section, which shall be a part of the contract with the holders thereof, except  that  no such resolution or resolutions shall pledge any fees or charges collected by  the  agency  pursuant  to  subdivision  eleven  of section  forty-four,  income  from mortgages owned by the agency, or any payments of principal of mortgages owned by the agency.   5. It is the intention hereof that any pledge made by the agency 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 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.   6.  Neither  the  members  of  the agency 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.   7.  The  agency,  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 agency, 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.   8. The state shall not be liable on notes or bonds of the  agency  and such  notes  and  bonds shall not be a debt of the state, and such notes and bonds shall contain on the face thereof a statement to such effect.