2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 26 - New York City Stabilization Reserve Corporation › 2536 - Notes and Bonds of the Corporation.

§  2536.  Notes  and  bonds of the corporation. 1. (a) The corporation
shall have power and is hereby authorized from time to time to issue its
negotiable notes and bonds in conformity with applicable  provisions  of
the uniform commercial code in such principal amount, as the corporation
shall  determine  to  be  necessary,  to  provide  sufficient  funds for
achieving its corporate purposes, including the making  of  payments  to
the city, the payment of interest on notes and bonds of the corporation,
the  establishment  of  reserves to secure such notes and bonds, and the
payment of all operating expenses  of  the  corporation  and  all  other
expenditures of the corporation incidental to or necessary or convenient
to carry out its corporate purposes and powers.
(b)  The corporation shall have the power, from time to time, to issue
(i) notes to renew notes and (ii) bonds  to  pay  notes,  including  the
interest  thereon  and, whenever it deems 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 of  its  other  corporate  purposes.  The
refunding  bonds  may  be exchanged for the bonds to be refunded or sold
and the proceeds applied to the purchase, redemption or payment of  such
bonds.
(c)  Except as may otherwise be expressly provided by the corporation,
every issue of its notes and bonds shall be general obligations  of  the
corporation payable out of any revenues of the corporation, subject only
to any agreements with the holders of particular notes or bonds pledging
any particular revenues.
(d)  The  notes  and  bonds  shall  be authorized by resolution of the
corporation, shall bear such date and shall mature at such time as  such
resolution  may  provide,  except that no note or bond or the renewal or
refunding thereof shall mature more than ten years from the date of  the
original  issue  of such note or bond. The bonds may be issued as serial
bonds or as term bonds or as a combination thereof.  Provision  for  the
payment  of principal of and interest on bonds shall be made in not more
than ten approximately equal annual installments or  in  not  more  than
twenty approximately equal semi-annual installments. The notes and bonds
shall  bear  interest at such rate and shall be in such denomination, 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 and be subject to such  terms  of  redemption  as
such  resolution  may  provide.  The  notes and bonds may be sold by the
corporation at public or private sale, at such price as the  corporation
shall determine.
2.  Any resolution 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 revenues to secure the payment of
the notes or bonds or of any issue thereof, subject to  such  agreements
with noteholders or bondholders as may then exist;
(b)  pledging  all  or  any  part  of the assets of the corporation 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 setting aside of reserves or sinking funds and the regulation
and disposition thereof;
(d) 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;
(e)  limitations  on  the  issuance  of additional notes or bonds; the
terms upon which additional notes or bonds may be  issued  and  secured;
and the refunding of outstanding or other notes or bonds;
(f)  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;
(g)  limitations  on  the  amount  of  moneys  to  be  expended by the
corporation for operating expenses of the corporation;
(h) vesting in a trustee such property, rights, powers and  duties  in
trust  as the corporation may determine, which may include any or all of
the  rights,  powers  and  duties  of  the  trustee  appointed  by   the
bondholders pursuant to this title, and limiting or abrogating the right
of the bondholders to appoint a trustee under this title or limiting the
rights, powers and duties of such trustee;
(i)  the  acts or omissions to act which shall constitute a default in
the obligations and duties of the corporation  to  the  holders  of  the
notes  or bonds and providing for the rights and remedies of the holders
of the notes or bonds in event of such default, including the  right  to
appointment  of  a  receiver;  providing,  however, that such rights and
remedies shall not be inconsistent with the general laws  of  the  state
and the other provisions of this title;
(j)  any  other  matters, of like or different character, which in any
way affect the security or protection of the holders  of  the  notes  or
bonds.
3.  Any pledge made by the corporation shall be valid and binding from
the time when the pledge is made. The revenues or  property  so  pledged
and  thereafter received by the corporation shall immediately be subject
to the lien of such pledge without  any  physical  delivery  thereof  or
further  act, and 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 corporation, irrespective of whether such parties
have notice thereof. Neither the resolution nor any other instrument  by
which  a  pledge  is  created  need be recorded or filed to protect such
pledge except in the office of the corporation.
4. Neither the directors of  the  corporation  nor  any  other  person
executing  the notes or bonds of the corporation shall be subject to any
personal liability or accountability by reason of the issuance thereof.
5. The corporation, 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 corporation, which
shall thereupon be cancelled, at a price not exceeding:
(a) if the notes or bonds are then redeemable,  the  redemption  price
then applicable.
(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 becme subject to redemption.
6.  In  the  discretion of the directors of the corporation, the bonds
may be secured by a trust indenture by and between the corporation and a
corporate trustee, which may be any trust company  or  bank  having  the
powers of a trust company in the state. Such trust indenture may contain
such  provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation  of
law,  including covenants setting forth the duties of the corporation in
relation to the exercise  of  its  corporate  powers  and  the  custody,
safeguarding  and application of all moneys. The Corporation may provide
by such trust indenture for the payment of the proceeds of the bonds and
the revenues  to  the  trustee  under  such  trust  indenture  or  other

depository,  and  for  the  method  of  disbursement  thereof, with such
safeguards and restrictions as it may determine. All  expenses  incurred
in  carrying  out  such  trust indenture may be treated as a part of the
operating  expenses of the corporation. If the bonds shall be secured by
a trust indenture, the bondholders shall have no authority to appoint  a
separate trustee to represent them.
7.  Whether  or not the notes and bonds are of such form and character
as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
commercial  code,  the  notes  and  bonds  are  hereby  made  negotiable
instruments within the meaning of  and  for  all  the  purposes  of  the
uniform commercial code, subject only to the provisions of the notes and
bonds for registration.
8.  The  corporation  shall not issue any bonds or notes if such issue
would bring the aggregate amount of indebtedness evidenced by  bonds  or
notes  of  the  corporation  issued  pursuant to this title to an amount
exceeding five hundred twenty million dollars. In calculating the amount
of indebtedness issued by the corporation pursuant to this title,  there
shall  be  excluded the amount of indebtedness to be refunded or renewed
from the proceeds from  the  sale  of,  or  to  be  exchanged  for,  new
obligations.