2023 New York Laws › EDN - Education › Title 1 - General Provisions › Article 10 - New York City Educational Construction Fund › 461 - Notes and Bonds of the Fund.

§ 461. Notes  and  bonds of the fund. 1. (a) Subject to the provisions
of section four hundred sixty-two of this chapter, the fund  shall  have
the  power  and  is  hereby  authorized  from  time to time to issue its
negotiable bonds and notes in such principal amount as, in  the  opinion
of  the fund, shall be necessary, after taking into account other monies
which may be available for the purpose, to provide sufficient funds  for
achieving   its   corporate   purposes,   including   the  construction,
acquisition, reconstruction, rehabilitation or improvement of the school
portion of combined occupancy structures pursuant to this  article,  the
payment  of  interest  on  bonds and notes of the fund, establishment of
reserves to secure such bonds and notes, and all other  expenditures  of
the  fund  incident  to  and  necessary  or  convenient to carry out its
corporate purposes and powers;
(b) The fund 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  fund,  every
issue  of  its  notes  or bonds shall be general obligations of the fund
payable out of any revenues or monies of the fund, subject only  to  any
agreements  with  the  holders of particular notes or bonds pledging any
particular receipts or revenues;
(d) Whether or not the notes or bonds are of such form  and  character
as to be negotiable instruments under the provisions of article eight of
the  uniform commercial code, the notes or bonds shall be and hereby are
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 or bonds for registration.
2. The notes and bonds of the fund shall be authorized  by  resolution
of the trustees, 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,
not exceeding five years, from the date of issue of such original  note,
and in the case of any such bond not exceeding forty years from the date
of  issue,  as such resolution or resolutions may provide. 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  fund  may be sold by the fund, at public or private
sale, at such price or prices as the fund shall determine. No  notes  or
bonds  of  the  fund  may  be sold by the fund at private sale, however,
unless such sale and the terms thereof have been approved in writing  by
the city comptroller.
3. 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 fund, and all or any part of (i) the rentals or other payments to
be  received  by the fund with respect to the school portion of combined
occupancy structures financed with the proceeds of such bonds and notes,
and (ii) the rentals or other payments to be received by the  fund  with
respect  to  the non-school portion of combined occupancy structures and
(iii) any other monies, assets or accounts received or to be received by
the fund or pledged or assigned to the fund to  secure  the  payment  of

such  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 fund to secure the
payment of such 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  of  the  fund  in
connection  with  combined occupancy structures financed or constructed,
acquired, reconstructed, rehabilitated or  improved  by  it  or  on  its
behalf;
(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 fund for
operating, administrative or other expenses of the fund;
(i) vesting in a trustee or trustees such property, rights, powers and
duties  in trust as the fund 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. It is the intention hereof that any pledge made by the  fund  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 fund  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  fund,  irrespective  of
whether such parties have notice thereof. Neither the resolution nor any
other instrument by which a pledge is created need be recorded.
5. Neither the trustees of the fund 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.
6.   The   fund,  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 fund, 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.
7. Neither the state nor the city of New York shall be liable  on  the
notes  or bonds of the fund and such notes and bonds shall not be a debt
of the city or the state, and such notes and bonds shall contain on  the
face thereof a statement to such effect.