2023 New York Laws › GMU - General Municipal › Article 15-A - Municipal Urban Renewal Agencies, Organization and Powers › 559 - Bonds of an Agency.

§  559.  Bonds of an agency.  1. (a) An 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.
(b) An agency shall have power, from time to time, 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.
2. Except as may otherwise be expressly provided by the agency,  every
issue  of its notes and bonds shall be general obligations of the agency
payable out of any revenues or moneys of the agency, subject only to any
agreements with the holders of particular notes or  bonds  pledging  any
particular  receipts or revenues, provided, however, that the payment of
such bonds and notes, both as to principal and interest, may be  further
secured by a pledge of any loan, grant, or contribution from the federal
government  or other source, in aid of any urban renewal program or part
thereof, or by a mortgage of any such urban  renewal  program,  or  part
thereof,  title to which is in the agency, or that payment of such bonds
and notes, both as to principal and interest, or only  as  to  interest,
may be guaranteed by the municipality.
3. Bonds and notes of an agency shall be authorized by its resolution,
shall bear such date or dates, mature at such time or times, in the case
of  any  such  note,  or any renewals thereof, not exceeding seven years
from the date of issue of such original note, and in  the  case  of  any
such  bond  not  exceeding  fifty  years from the date of issue, as such
resolution or resolutions shall provide. The notes and bonds shall  bear
interest   at   such   rate   or  rates,  be  in  such  denomination  or
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 with or without premium, and be secured in such manner, as
such  resolution  or resolutions may provide. The bonds and notes may be
sold by the agency at public or private sale, at such price or prices as
the agency may determine.
4. Bonds and notes of an agency are hereby made  securities  in  which
all  public officers and bodies of this state and all municipalities and
municipal subdivisions, all insurance  companies  and  associations  and
other  persons  carrying  on  an insurance business, all banks, bankers,
trust companies,  savings  banks  and  savings  associations,  including
saving and loan associations, building and loan associations, investment
companies  and  other  persons  carrying  on  a  banking  business,  all
administrators, guardians, executors, trustees  and  other  fiduciaries,
and  all  other  persons  whatsoever  who  are  now  or may hereafter be
authorized to invest in bonds or other obligations  of  the  state,  may
properly  and  legally invest funds, including capital, in their control
or belonging to them, provided that such bonds and notes (1) are secured
by an agreement between the agency and the federal government  in  which
the  agency agrees to borrow from the federal government and the federal
government agrees to lend to the agency, prior to the maturity  of  such
bonds  or  notes,  monies  in  an  amount which (together with any other
monies irrevocably committed to the payment of principal and interest on
such bonds or notes) will suffice to pay the principal on such bonds  or
notes with interest to maturity thereon, which monies under the terms of
said  agreement  are  required  to be used for the purpose of paying the

principal of and the interest on such bonds or notes at their  maturity,
or  (2) are guaranteed by the municipality as to principal and interest.
Such bonds and notes are  also  hereby  made  securities  which  may  be
deposited  with  and shall be received by all public officers and bodies
of  this  state  and  all  municipalities,   governments,   and   public
corporations  of  this  state,  for any purpose for which the deposit of
bonds or other obligations of this state is  now  or  may  be  hereafter
authorized or required.
5.  In  case  any  of  the  members  or  officers  of  an agency whose
signatures appear on the bonds or coupons shall cease to be such members
or officers before the delivery of such bonds,  such  signatures  shall,
nevertheless,  be  valid and sufficient for all purposes, the same as if
they had remained in office until such delivery.
6. In connection with the issuance of bonds or  the  incurring  of  an
obligation and to secure the payment of such bonds or other obligations,
an agency, in addition to its other powers, may:
(a)  pledge,  covenant to pledge, or covenant against pledging, all or
any  part  of  the  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 monies made
by  an  agency  shall be valid and binding from the time when the pledge
has been made, that revenues or other monies so pledged  and  thereafter
received  by  an 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;
(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 use of any or all of its properties, real or
personal;
(e) 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  monies
held  for the payment of the principal of and interest on its bonds; and
(4) any monies held for any reserves or contingencies; and  covenant  as
to the use and disposal of the monies held in such funds.
(f)  covenant  as to any other matters of like or different character,
which in any way affect the security or the protection of the bonds.
7. Neither the members of an agency nor any person executing the notes
or bonds of an agency shall be liable personally on such notes or  bonds
or  be  subject to any personal liability or accountability by reason of
the issuance thereof.