2023 New York Laws › MHA - Municipal Housing Authority (Article 5 of the former State Housing Law) › Article 5 - Municipal Housing Authorities › 72 - Bonds and Security Therefor.

* §  72. Bonds and security therefor. 1. An authority may from time to
time issue bonds in such amounts and upon such  terms  as  it  may  deem
advisable  to  carry  out  the  provisions  of this article. Bonds of an
authority shall be authorized by its resolution an may be issued  singly
or  in  one or more series, and shall bear such date or dates, mature at
such time or times, bear interest at such rate or rates,  not  exceeding
six  per  centum  per  annum,  be in such denomination or denominations,
interchangeable  or  otherwise,  be  in  such  form,  either  coupon  or
registered,  carry  such  registration  privileges,  be executed in such
manner, with or without authentication, be payable  in  such  medium  of
payment,  at  such  place  or  places,  and  be subject to such terms of
redemption, with or without premium, as such resolution may provide. The
authority must obtain the approval as to the amount and  terms  of  such
bonds,  of  the board of estimate and apportionment in cities where such
body exists, and in other cities, of the local legislative body  thereof
as  defined  in  the city home rule law, except that such approval shall
not be required for bonds issued in connection with a  federal  project.
Bonds  issued  for  a  non-federal  project  in  a city of more than one
million  inhabitants  may  include  terms  providing  that  the   amount
necessary  to  pay  the interest thereon until maturity shall be paid to
the authority by such city without reimbursement  or  liability  of  the
authority  to  such  city  therefor.  For  the  purpose  of meeting such
payments to the authority any such city  shall  be  empowered  to  enact
local  laws imposing and collecting an occupation tax in addition to any
and all other taxes which such city has the power to  impose.  Such  tax
shall  be  imposed  upon  any  individual,  copartnership or corporation
occupying  premises  in  any  such  city  as   an   owner,   tenant   or
concessionaire  for  any gainful purpose. Such tax shall be in an amount
of not less than one dollar nor more than six dollars per year for  each
separate  premises  so occupied, the rate of tax to depend upon the size
of such premises or upon such other reasonable standard as may be  fixed
in  such  local  law.  Revenues  resulting  from the imposition of taxes
authorized by this act shall be paid into the treasury of any such  city
and  shall  not be credited or deposited in the general fund of any such
city, but shall be deposited in a separate bank account or accounts  and
shall  be  available  and  used  solely and exclusively for the purposes
aforesaid. In no event and under no circumstances shall the  payment  of
interest  on  such bonds by such city be deemed to modify in any way the
provisions of section seventy-three of this act. The bonds for a federal
project or non-federal project may be sold by the authority at public or
private sale at such price or prices as the authority may determine.
The authority may issue its interim certificates, or  other  temporary
obligations,  to  the  purchaser  of  bonds  pending  the authorization,
preparation, execution or delivery of  definitive  bonds.  Such  interim
certificates,  or  other  temporary  obligations, shall be in such form,
contain such terms, conditions and provisions, bear such date or  dates,
and  evidence  such agreements relating to their discharge or payment or
the delivery of definitive bonds as  the  authority  may  by  resolution
determine.
2. Bonds may be issued for any purposes of the authority including the
payment  or  reimbursement to the municipality for property, services or
facilities furnished by it pursuant to agreement with the authority.
3. The authority shall have power out of any funds available  therefor
to  purchase  any  bonds  issued  by  it  at  a  price not more than the
principal  amount  thereof  and  the  accrued  interest.  All  bonds  so
purchased  shall  be  cancelled.  This  paragraph shall not apply to the
redemption of bonds.
4. No personal liability or accountability shall attach to any  member
of  the  authority  or any official of the municipality or to any person
executing said bonds by reason of the execution or issuance thereof.
5. The bonds of an authority are securities in which the city or state
may  invest.  Such  bonds, when they are (1) secured by a first mortgage
lien not exceeding sixty-six and two-thirds per centum of the  value  of
the property covered thereby, or (2) issued in connection with a project
aided or financed in whole or in part by the federal government pursuant
to the provisions of an act of the congress providing for capital grants
for  low cost housing, or for the making of loans and for the payment of
annual contributions for such purpose under a contract guaranteeing  the
payment  of  such  annual contributions by the federal government to the
authority for a fixed  period  of  years,  are  hereby  declared  to  be
securities  in  which  all  public  officers  and  bodies  of the state,
municipalities, municipal  subdivisions,  all  insurance  companies  and
associations,  all  savings  banks  and  savings institutions, including
savings and loan associations, all executors, administrators, guardians,
trustees, and all other fiduciaries in  the  state  may  legally  invest
funds within their control.
6.  In  connection  with the issuance of bonds or the incurring of any
obligation under a lease, and to secure the payment  of  such  bonds  or
obligations,  an  authority  in  addition  to  its other powers may: (a)
Pledge all or any part of its rents, fees,  or  revenues  to  which  its
right then exists or may thereafter come into existence.
(b)  Mortgage  all or any part of its property, real or personal, then
owned or thereafter acquired.
(c) Covenant against mortgaging all or any part of its property,  real
or personal, then owned or thereafter acquired, or against permitting or
suffering any lien thereon.
(d)  Covenant with respect to limitations on its right to sell, lease,
or otherwise dispose of any project or any part thereof.
(e) Covenant against pledging all or any part of its rents,  fees  and
revenues,  to  which  its  right then exists or may thereafter come into
existence, or against permitting or suffering any lien thereon.
(f) 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.
(g) Covenant as to what other, or additional debts may be incurred  by
it.
(h) Provide for the replacement of lost, destroyed or mutilated bonds.
(i) Covenant that the authority warrants the title to the premises.
(j) 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.
(k) Covenant as to the use of any or all  of  its  property,  real  or
personal.
(l)  Create or authorize the creation of special funds segregating (a)
the proceeds of any loans or grant; (b)  all  of  the  rents,  fees  and
revenues of any project or projects; (c) any monies 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;  (d)  any  monies  held  for  the  payment of the principal and
interest on its bonds or the sums due  under  its  leases  and/or  as  a
reserve  for  such  payments;  and  (e)  any  monies  held for any other
reserves or contingencies; and covenant as to the use  and  disposal  of
the monies held in such funds.
(m)  Redeem  the bonds, and covenant for their redemption, and provide
the terms and conditions thereof.
(n) Covenant against extending the time for the payment of  its  bonds
or interest thereon.
(o)  Prescribe  the  procedure,  if  any,  by  which  the terms of any
contract with bond holders 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.
(p)  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.
(q) Vest in an obligee, in the event of a default by an authority, the
right  to  cure any such default and to advance any monies necessary for
such purpose, and covenant that the monies so advanced be an  additional
obligation  of  such authority with such interest, security and priority
as may be provided in any trust indenture, mortgage, lease or contract.
(r) 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.
(s)  Covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition, or obligation.
(t) 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 monies collected in accordance with the agreement
of such obligee with the authority.
(u) 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  and  duties  of  such  trustee  or trustees, limit the
liabilities thereof, 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.
(v) Vest in a government or in a trustee the right, upon any happening
of an event of default, to foreclose the  mortgage  securing  any  bonds
held  by  such  government,  through judicial proceedings or through the
exercise of a power of sale without judicial proceedings.
(w) Vest in a trustee or trustees or in other obligees the right, upon
the happening of an event of default, to foreclose any mortgage  through
judicial proceedings.
(x) Vest in an obligee, including a government, the right to foreclose
any  such  mortgage  as  to  all  or  such part or parts of the property
covered  thereby  as  such  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.
(y) Make covenants other than,  and  in  addition  to,  the  covenants
herein expressly authorized, of like or different character; and 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.
(z) Make such 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

in  the  absolute discretion of an authority tend to make the bonds more
marketable; notwithstanding that such covenants, acts or things may  not
be enumerated herein.
7.  In  addition  to  powers  conferred  upon  an  authority  by other
provisions of this act, an authority is empowered  to  borrow  money  or
accept  grants from the federal government for or in aid of any project,
to take over any land acquired by the federal government or any  housing
plan  of  the  federal  government,  to  take  over, manage or lease any
housing undertaking of the federal government, and  to  these  ends,  to
enter  into such contracts, mortgages, trust indentures, leases or other
agreements as the federal government may require,  including  agreements
that  the  federal  government  shall  have  the  right to supervise and
approve the construction, maintenance and operation of any project.   It
is  the purpose and intent of this subdivision to authorize an authority
to do any and all things necessary or desirable to secure the  financial
aid  and  co-operation  of  the  federal  government in the undertaking,
construction, maintenance, lease, operation or assistance of any project
by the authority, or in connection with any housing plan or  undertaking
of the federal government.
* NB  The  text  of  Article  5 of the former State Housing Law (cited
herein as the "Municipal Housing  Authorities  Law"),  as  such  article
existed  immediately  prior  to  its  repeal  pursuant to section 227 of
Chapter 808 of the Laws of 1939, is provided here for ease of  reference
and  historical purposes as such text continues to be applicable for the
New York City Housing Authority pursuant to the  provisions  of  section
401 of the current Public Housing Law.