2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 18 - State of New York Municipal Bond Bank Agency Act › 2437-A - Tax Lien Collateralized Securities.

§  2437-a.  Tax  lien collateralized securities. (1) The agency or its
tax lien entity shall have the power and is hereby authorized from  time
to  time  to  issue  its  tax  lien  collateralized  securities  in such
principal amounts as, in the opinion of the agency, shall  be  necessary
to  provide  sufficient  funds  for  the  purchase  of tax liens, or the
refunding of outstanding securities  of  the  agency  or  its  tax  lien
entity, establishment of reserves to secure such tax lien collateralized
securities, 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 twenty-four hundred  thirty-four  of  this
title  and  all  other expenditures of the agency or its tax lien entity
incident to and necessary or convenient to the purchase of municipal tax
liens.
(2) Except as may otherwise be expressly provided by the  agency,  all
tax  lien collateralized securities issued by the agency or its tax lien
entity shall be special limited obligations of the  agency  or  its  tax
lien  entity payable only upon the redemption of the tax liens purchased
or the  liquidation  of  the  related  real  estate  parcels  and  other
collateral  or  credit  enhancement  agreements  pledged  to secure such
obligations, subject to any agreements pledging any  particular  moneys,
assets  or  revenues, all as may be designated in the proceedings of the
agency under which said tax  lien  collateralized  securities  shall  be
authorized to be issued.
(3)  Tax  lien  collateralized  securities  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 such securities may delegate to an officer of the agency the
power to issue such securities from time to time and to fix the  details
of  any  such  issues  of  tax  lien  collateralized  securities  by  an
appropriate certificate of such authorized officer.
(4) Tax lien collateralized securities 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
securities, as the case may be.
(5) Any tax lien collateralized security of the agency or its tax lien
entity  may 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.
(6) Whether or not tax lien collateralized securities are of such form
and  character  as  to  be negotiable instruments under the terms of the
uniform commercial code, tax lien collateralized securities  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 tax lien collateralized securities for registration.
(7)   Any   resolution   or   resolutions  authorizing  any  tax  lien
collateralized securities of the agency or of its tax  lien  entity  may
contain  provisions which may be a part of the contract with the holders
of securities, as to: (i) pledging or creating a  lien,  to  the  extent

provided  by  such  resolution or resolutions, on all or any part of any
moneys or assets of the agency and its tax lien entity or of any  moneys
held in trust or otherwise by others for the payment of such securities;
(ii)   otherwise   providing  for  the  custody,  collection,  securing,
investment and payment of any moneys of the agency;  (iii)  the  setting
aside  of  reserves  or  sinking funds and the regulation or disposition
thereof; (iv) limitations on the purpose to which the proceeds  of  sale
of  any  issue  of  securities  then  or  thereafter to be issued may be
applied; (v) limitations on the issuance of additional  securities,  the
terms  upon  which  additional securities may be issued and secured, and
upon  the  refunding  of  outstanding  or  other  securities;  (vi)  the
procedure,  if  any, by which the terms of any contract with the holders
of such securities may be amended  or  abrogated,  the  amount  of  such
securities  the  holders of which must consent thereto and the manner in
which such consent may be given; (vii) the  creation  of  special  funds
into  which any moneys of the agency may be deposited; (viii) vesting in
a trustee or trustees such properties,  rights,  powers  and  duties  in
trust  as  the agency may determine; (ix) 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
such  securities  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  (x)  any  other
matters  of  like  or  different  character, which in any way affect the
security and protection of the tax lien  collateralized  securities  and
the rights of the holders thereof.
(8)  Any  resolution  or  resolutions or trust indenture or indentures
under which tax lien collateralized securities of the agency or its  tax
lien  entity  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.
(9)  It  is  the  intention  of the legislature that any pledge of tax
liens, earnings, revenues, other moneys or assets made by the agency  or
its  tax  lien  entity shall be valid and binding from the time when the
pledge is made; that the tax liens, earnings, revenues, other moneys  or
assets  so pledged and thereafter received by the agency or its tax lien
entity 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 or
its tax lien entity irrespective of whether  such  parties  have  notice
thereof.    Neither  the  resolution nor any other instrument by which a
pledge is created need be recorded.
(10) Neither the members of the agency nor any  person  executing  the
tax lien collateralized securities shall be liable personally on the tax
lien  collateralized  securities or be subject to any personal liability
or accountability by reason of the issuance thereof.