2023 New York Laws › NPC - Not-For-Profit Corporation › Article 16 - Land Banks › 1611 - Borrowing and Issuance of Bonds.

§ 1611. Borrowing and issuance of bonds.
(a)  A  land  bank  shall  have  power  to  issue bonds for any of its
corporate purposes, the principal and interest of which are payable from
its revenues generally. Any of such bonds may be secured by a pledge  of
any  revenues,  including  grants or contributions from the state of New
York,  the  federal  government,  or  any  agency,  and  instrumentality
thereof, or by a mortgage of any property of the land bank.
(b)  The  bonds  issued by a land bank are hereby declared to have all
the qualities of negotiable instruments under New York state law.
(c) The bonds of a land bank created  under  the  provisions  of  this
article  and  the  income  therefrom  shall  at  all  times be free from
taxation for the state of New York or local purposes under any provision
of New York law.
(d) Bonds issued by the land bank shall be authorized by resolution of
the board and shall  be  limited  obligations  of  the  land  bank;  the
principal  and  interest,  costs of issuance, and other costs incidental
thereto shall be payable solely from the income and revenue derived from
the sale, lease, or other disposition of the assets of the land bank. In
the discretion of the land bank, the bonds may be  additionally  secured
by mortgage or other security device covering all or part of the project
from  which  the revenues so pledged may be derived. Any refunding bonds
issued shall be payable from any source  described  above  or  from  the
investment  of  any of the proceeds of the refunding bonds and shall not
constitute an indebtedness or  pledge  of  the  general  credit  of  any
foreclosing  governmental unit or municipality within the meaning of any
constitutional or statutory limitation of indebtedness and shall contain
a recital to that effect. Bonds of the land bank shall be issued in such
form, shall be in such denominations, shall bear interest, shall  mature
in  such  manner, and be executed by one or more members of the board as
provided in the resolution authorizing the issuance thereof. Such  bonds
may  be  subject  to  redemption  at  the  option  of  and in the manner
determined by the board  in  the  resolution  authorizing  the  issuance
thereof.
(e) Bonds issued by the land bank shall be issued, sold, and delivered
in  accordance  with the terms and provisions of a resolution adopted by
the board. The board may sell such  bonds  in  such  manner,  either  at
public  or at private sale, and for such price as it may determine to be
in the best interests of the land bank.  The  resolution  issuing  bonds
shall  be  published  in  a  newspaper of general circulation within the
jurisdiction of the land bank and posted prominently and continuously on
the homepage of any website maintained by the land bank.
(f) Neither the members of a land bank nor any  person  executing  the
bonds  shall  be  liable  personally  on any such bonds by reason of the
issuance thereof. Such bonds or other obligations of a land  bank  shall
not be a debt of any municipality or of the state of New York, and shall
so  state  on their face, nor shall any municipality or the state of New
York nor any revenues or any property of  any  municipality  or  of  the
state of New York be liable therefor.