2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 18 - State of New York Municipal Bond Bank Agency Act › 2437 - Bonds and Notes of the Agency.

§  2437. Bonds and notes of the agency.  (1) Subject to the provisions
of section two thousand four hundred thirty-eight  of  this  title,  the
agency  shall  have the 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 amounts as,
in the opinion of the agency, shall be necessary to  provide  sufficient
funds  for  achieving  the  corporate  purposes  thereof,  including the
purchase of municipal bonds, the providing of certain amounts to special
program municipalities from the proceeds of special program  bonds,  the
providing  of  certain  amounts to special school purpose municipalities
from the proceeds of special school  purpose  bonds,  the  providing  of
certain  amounts  to  a special school deficit program district from the
proceeds of  special  school  deficit  program  bonds,  the  payment  of
interest  on bonds and notes of the agency, establishment of reserves to
secure such bonds and notes, payment of letter of credit, bond insurance
and  other  credit  and  liquidity  support  facility  fees,   premiums,
reimbursements  and  expenses,  fees and expenses of trustees and paying
agents and other financing costs including any accrued costs payable  to
the  New  York  state  housing  finance  agency pursuant to any contract
entered into under subdivision  twelve  of  section  two  thousand  four
hundred  thirty-four  of  this  title  and all other expenditures of the
agency incident  to  and  necessary  or  convenient  to  carry  out  its
corporate  purposes  and  powers,  except  the operating expenses of the
agency.
(2) Except as may otherwise be expressly provided by the  agency,  all
bonds and notes issued by the agency shall be general obligations of the
agency,  secured  by  the full faith and credit of the agency and may be
payable out of any moneys, assets, or revenues of  the  agency,  subject
only  to  any  agreements  with  holders  of  particular  bonds or notes
pledging any particular moneys,  assets  or  revenues,  all  as  may  be
designated  in  the  proceedings  of the agency under which the bonds or
notes shall be authorized to be issued.
(3) Bonds and notes shall be authorized by a resolution or resolutions
of the agency adopted as provided by this title; provided, however, that
any such resolution authorizing the  issuance  of  bonds  or  notes  may
delegate  to  an  officer of the agency the power to issue such bonds or
notes from time to time and to fix the details of  any  such  issues  of
bonds or notes by an appropriate certificate of such authorized officer.
(4) Such bonds or notes shall bear such date or dates, shall mature at
such  time or times, shall bear interest at such rate or rates, shall be
of such denominations, shall be in such form,  carry  such  registration
privileges,  be  executed  in such manner, be payable in lawful money of
the United States of America at such place or places within  or  without
the  state, be subject to such terms of redemption prior to maturity and
have such  other  terms  as  may  be  provided  by  such  resolution  or
resolutions  or such certificate with respect to such bonds or notes, as
the case may be; provided, however, that the maximum maturity  of  bonds
other  than  special  program  bonds,  special  school  purpose bonds or
special school deficit program bonds shall not exceed forty  years  from
the  date  thereof,  the maximum maturity of special program bonds shall
not exceed thirty years, the maximum maturity of special school  purpose
bonds  shall  not  exceed  twenty years, the maximum maturity of special
school deficit program bonds shall not exceed ten years and the  maximum
maturity  of  notes  or any renewals thereof shall not exceed five years
from the date of the original issue of such notes.
(5) Any bonds or notes of the agency other than special program bonds,
special school purpose bonds,  special  school  deficit  program  bonds,
recovery  act  bonds or public safety communications bonds shall be sold

at public sale and from time to time upon such terms and at such  prices
as may be determined by the agency, and the agency may pay all expenses,
premiums  and commissions which it may deem necessary or advantageous in
connection  with  the  issuance  and  sale  thereof. Any special program
bonds, special school purpose  bonds,  special  school  deficit  program
bonds, recovery act bonds or public safety communications bonds shall be
sold at public or private sale and from time to time upon such terms and
at  such  prices  as may be determined by the agency, and the agency may
pay all expenses, premiums and commissions which it may  deem  necessary
or  advantageous  in  connection  with  the  issuance  and  sale thereof
provided, however, that special program  bonds  relating  to  a  special
program  agreement entered for the purpose described in paragraph (b) of
subdivision one of section twenty-four  hundred  thirty-five-a  of  this
title  shall  be sold on or before June thirtieth, two thousand one.  No
special program bonds, special  school  purpose  bonds,  special  school
deficit   program  bonds,  or  recovery  act  bonds,  or  public  safety
communications 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.
(6)  The agency is authorized to provide for the issuance of its bonds
or notes for the purpose of refunding any bonds or notes of  the  agency
then  outstanding,  including  the  payment  of  any redemption premiums
thereon and any interest accrued or to accrue  to  the  redemption  date
next  succeeding  the date of delivery of such refunding bonds or notes.
The proceeds of any such bonds or notes issued for  the  purpose  of  so
refunding  outstanding  bonds  or  notes,  may, in the discretion of the
agency, be applied to the purchase or retirement  at  maturity  of  such
outstanding  bonds  or notes or the redemption of such outstanding bonds
or notes on the redemption date next succeeding the date of delivery  of
such  refunding  bonds or notes, or both such purposes, and may, pending
such application, be placed in escrow to be applied to such purchase  or
retirement  at  maturity or redemption on such date as may be determined
by the agency. Any such escrowed proceeds,  pending  such  use,  may  be
invested  and reinvested in obligations of or guaranteed by the state or
the United States of America, or in  certificates  of  deposit  or  time
deposits  secured in such manner as the agency shall determine, maturing
at such time or times as shall  be  appropriate  to  assure  the  prompt
payment,  as  to  principal, interest and redemption premium, if any, on
the outstanding bonds or notes to be so refunded by purchase, retirement
at maturity or redemption, as the case may be. The interest, income  and
profits,  if  any, earned or realized on any such investment may also be
applied to the payment of the  outstanding  bonds  or  notes  to  be  so
refunded  by purchase, retirement at maturity or redemption, as the case
may be.  After the terms of the escrow have  been  fully  satisfied  and
carried  out,  any balance of such proceeds and interest, if any, earned
or realized on the investments thereof may be returned to the agency for
use by it in any lawful manner. All such bonds or notes shall be  issued
and  secured and shall be subject to the provisions of this title in the
same manner and  to  the  same  extent  as  any  other  bonds  or  notes
authorized pursuant to this title.
(7)  Whether or not the bonds and notes are of such form and character
as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
commercial  code,  the  bonds  and  notes  are  hereby  made  negotiable
instruments within the meaning of  and  for  all  the  purposes  of  the
uniform commercial code, subject only to the provisions of the bonds and
notes for registration.
(8)  Subject  only  to  the  provisions  of sections two thousand four
hundred thirty-eight and two thousand four hundred thirty-nine  of  this
title,  any  resolution or resolutions authorizing any bonds or notes of
the agency may contain provisions which may be a part  of  the  contract
with the holders of such bonds or notes, as to: (a) pledging or creating
a lien, to the extent provided by such resolution or resolutions, on all
or  any part of any monies or assets of the agency or of any moneys held
in trust or otherwise by others for the payment of such bonds or  notes;
(b)   otherwise   providing   for  the  custody,  collection,  securing,
investment and payment of any moneys of  the  agency;  (c)  the  setting
aside  of  reserves  or  sinking funds and the regulation or disposition
thereof; (d) limitations on the purpose to which the proceeds of sale of
any issue of such bonds or notes then or thereafter to be issued may  be
applied;  (e)  limitations on the issuance of additional bonds or notes,
the terms upon which  additional  bonds  or  notes  may  be  issued  and
secured,  and upon the refunding of outstanding or other bonds or notes;
(f) the procedure, if any, by which the terms of any contract  with  the
holders  of  bonds  or  notes may be amended or abrogated, the amount of
bonds or notes the holders of which must consent thereto and the  manner
in  which  such  consent may be given; (g) the creation of special funds
into which any moneys of the agency may be deposited; (h) vesting  in  a
trustee  or trustees such properties, 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  pursuant  to  section  two
thousand  four  hundred  forty of this title, and limiting or abrogating
the right of the holders of bonds or notes to appoint  a  trustee  under
such  section or limiting the rights, duties and powers of such trustee;
(i) defining the acts or omissions  to  act  which  shall  constitute  a
default  in  the  obligations and duties of the agency and providing for
the rights and remedies of the holders of bonds or notes in the event of
such default, providing, however, that such rights  and  remedies  shall
not  be  inconsistent  with  the  general  laws  of this state and other
provisions of this title; and (j) any other matters of like or different
character, which in any way affect the security and  protection  of  the
bonds or notes and the rights of the holders thereof.
(9)  Any  resolution  or  resolutions or trust indenture or indentures
under which bonds or notes of the agency are authorized to be issued may
contain provisions for vesting in a trustee or trustees such properties,
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  holders  of  any issue of notes or bonds pursuant to
section two thousand four hundred forty of this title,  in  which  event
the   provisions  of  said  section  two  thousand  four  hundred  forty
authorizing the appointment of a trustee by such  holders  of  bonds  or
notes shall not apply.
(10)  It  is  the  intention  of  the  legislature  that any pledge of
earnings, revenues, other moneys or assets made by the agency  shall  be
valid  and  binding  from  the  time  when  the pledge is made; that the
earnings, revenues, other moneys or assets  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.
(11) Neither the members of the agency nor any  person  executing  the
bonds  or  other  obligations shall be liable personally on the bonds or

other  obligations  or  be  subject  to  any   personal   liability   or
accountability by reason of the issuance thereof.