2023 New York Laws › PBG - Public Housing › Article 3 - Municipal Housing Authorities › 47 - Bond Covenants of an Authority.

§  47.  Bond  covenants  of  an authority.   1. In connection with the
issuance of bonds or the incurring of an obligation, and to  secure  the
payment  of  such bonds or obligations, an authority, in addition to its
other powers, may: (a) Pledge, covenant to pledge, or  covenant  against
pledging,  all  or  any  part  of  its rents, fees, revenues, subsidies,
grants or contributions to which its right then exists or may thereafter
come into existence; covenant against permitting or suffering  any  lien
thereon; it is the intention hereof that any pledge of revenues or other
moneys  made  by  the authority shall be valid and binding from the time
when the pledge is made, that revenues or other moneys  so  pledged  and
thereafter  received by an authority 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 authority, irrespective of  whether  such  parties
have notice thereof;
(b) Mortgage, covenant to mortgage or covenant against mortgaging, all
or  any part of its property, real or personal, then owned or thereafter
acquired; covenant against permitting or suffering any lien thereon;
(c) Covenant with respect to limitations on its right to sell,  lease,
or otherwise dispose of any project or part thereof;
(d)  Covenant  as  to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition  of
the  proceeds thereof; provide for the replacement of lost, destroyed or
mutilated bonds;
(e) Covenant as to what other, or additional debts may be incurred  by
it;
(f) Covenant that the authority warrants the title to the premises;
(g)  Covenant as to the rents and fees to be charged, the amount to be
raised each year or other period  of  time  by  rents,  fees  and  other
revenues, and as to the use and disposition to be made thereof;
(h)  Covenant  as  to  the  use of any or all of its property, real or
personal;
(i) Create or authorize the creation of special funds segregating  (1)
the  proceeds  of any loans, grants, subsidies or contributions; (2) all
the rents, fees and revenues of any project or projects; (3) any  moneys
held  for  the  payment  of  the  costs  of operation and maintenance of
projects, or as a reserve  for  the  meeting  of  contingencies  in  the
operation  and  maintenance thereof; (4) any moneys held for the payment
of the principal of and interest on its bonds or the sums due under  its
leases  or  as  a reserve for such payments; and (5) any moneys held for
any other reserves or contingencies; and covenant  as  to  the  use  and
disposal of the moneys held in such funds;
(j)  Redeem  the  bonds and covenant for their redemption, and provide
the terms and conditions thereof;
(k) Covenant against extending the time for the payment of  its  bonds
or interest thereon;
(l)  Prescribe  the  procedure,  if  any,  by  which  the terms of any
contract with bondholders may be amended or  abrogated,  the  amount  of
bonds the holders of which must consent thereto, and the manner in which
such consent may be given;
(m)  Covenant  as  to the maintenance of its property, the replacement
thereof,  the  insurance  to  be  carried  thereon,  and  the  use   and
disposition of insurance moneys;
(n) Vest in an obligee, in the event of a default by an authority, the
right  to  cure any such default and to advance any moneys necessary for
such purpose, and covenant that the money so advanced be  an  additional
obligation  of  such authority with such interest, security and priority

as may be provided in any resolutions, trust indenture, mortgage,  lease
or contract;
(o)  Covenant  and prescribe as to the events of default and terms and
conditions upon which any or all of its bonds shall  become  or  may  be
declared  due  before  maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived;
(p) Covenant as to the rights, liabilities, powers and duties  arising
upon the breach by it of any covenant, condition or obligation;
(q) Covenant to surrender possession of a project or projects or parts
thereof  upon  the  happening  of  an  event  of default; and vest in an
obligee the right, upon such default, without judicial  proceedings,  to
take  possession  and use, operate, manage, and control such projects or
any part thereof, and to collect and receive rents,  fees  and  revenues
arising  therefrom in the same manner as such authority itself might do,
and to dispose of the moneys collected in accordance with the  agreement
of such obligee with the authority;
(r) Vest in a trustee or trustees the right to enforce any covenant to
secure,  or  pay the bonds, or otherwise relating to such bonds; provide
for the powers, duties and limitations of liabilities of such trustee or
trustees, and provide the terms and conditions upon which the trustee or
trustees, or the holders of  bonds,  or  any  proportion  of  them,  may
enforce any such covenant;
(s)  Vest in a government, in a trustee or in other obligee the right,
upon any happening of an event of default, to foreclose through judicial
proceedings or through the exercise of a power of sale without  judicial
proceedings,  any  mortgage  as  to  all  or  such  part or parts of the
property covered thereby as such government, trustee  or  other  obligee
shall  elect;  the  institution,  prosecution and conclusion of any such
foreclosure proceedings or the sale of any such parts of  the  mortgaged
property shall not affect in any manner or to any extent the lien of the
mortgage  on  the  parts  of the mortgaged property not included in such
proceedings or not sold as aforesaid;
(t) Make such other covenants and do any and all such acts and  things
as  may  be  necessary or convenient or desirable in order to secure its
bonds or make them more marketable, notwithstanding that such covenants,
acts or things may not be enumerated  herein;  execute  all  instruments
necessary or convenient in the exercise of the powers herein granted, or
in  the  performance  of its covenants or duties, which may contain such
covenants and provisions, in addition to those above specified,  as  the
government or any purchaser of the bonds of an authority may require.
2.  In  case  of conflict between this section and article nine of the
uniform commercial code, this section shall control.