2023 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.