senate Bill S2506

Creates a veteran's home and land ownership loan program

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 24 / Jan / 2011
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 04 / Jan / 2012
    • REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
  • 22 / May / 2012
    • 1ST REPORT CAL.894
  • 23 / May / 2012
    • 2ND REPORT CAL.
  • 30 / May / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • COMMITTED TO RULES

Summary

Creates a veteran's home and land ownership loan program to provide loans to veterans to purchase homes or unimproved land suitable for building; such loans to be secured by a second mortgage.

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Bill Details

See Assembly Version of this Bill:
A1303
Versions:
S2506
Legislative Cycle:
2011-2012
Current Committee:
Senate Rules
Law Section:
Private Housing Finance Law
Laws Affected:
Add Art 19-A ยงยง1115 - 1115-f, Priv Hous Fin L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S5131, A4081
2007-2008: A6026

Sponsor Memo

BILL NUMBER:S2506

TITLE OF BILL:
An act
to amend the private housing finance law, in relation to creating a
veteran's home and land ownership loan program

PURPOSE OR GENERAL IDEA OF BILL:
To authorize the New York State Housing Finance Agency to provide down
payment assistance or rehabilitation loans to veterans, as well as
loans for the purchase of unimproved property for building a home.

SUMMARY OF SPECIFIC PROVISIONS:
This bill adds a new Article XIX-A to the Private Housing Finance Law
to create a Home and Land Ownership Loan Fund within the New York
State Housing Finance Agency. The agency would be authorized to enter
into contracts with eligible veterans to provide loans to assist in
the purchase or the purchase and rehabilitation of a dwelling of up
to four residential units, provided such persons or family resides in
one of the units. The bill defines "eligible person" as a veteran to
their surviving unmarried spouse, and contains a definition of a
veteran for the purpose of the Article. Any such loans could not
exceed 20 percent of the cost of acquiring the dwelling or 20 percent
of the value of such dwelling after rehabilitation, or $40,000 in the
case of the unimproved Real Property. The value of the dwelling unit
would be determined from the appraisal required by the lending
institution granting the first mortgage loan such dwelling. If no
such appraisal has been made at the time a loan application is
submitted, the agency shall cause appraisal to be made. Any loan
would have to be secured by a second mortgage on the dwelling. If the
recipient of such loan assigns or conveys his interest in the
dwelling or ceases to occupy the dwelling
, the unpaid principal balance of the mortgage, together with interest
thereon, would become due and payable. If the recipient is unable to
repay the loan, the agency would have the authority to adjust the
interest rate, terms, and conditions of the loan to facilitate
repayment. The repayment of any loan made pursuant to this would be
subject to an interest rate to be determined in accordance with terms
and conditions as the agency may establish. In no case could the term
of the first mortgage obtained for the purpose of purchasing the
dwelling, except in the case of a graduated payment mortgage loan
where no such loan could exceed a term of 30 years. The bill also
authorizes the agency to issue bonds and notes to carry out the
provisions of that act, however, they could not be issued in excess
of an aggregate amount of $20 million. The maximum maturity of the
bonds could not exceed 30 years, while the maximum maturity of the
notes or any renewals thereof could not exceed seven years from the
date of the original issue. The bonds and notes could be sold at
public or private sale, except that with regard to the latter, such
sale would
have to be approved by the comptroller or the state Director of th e
Budget, depending on whom the sale is made.

EFFECTS of THE PRESENT LAW WHICH THIS BILL WOULD ALTER:
The bill adds a new XIX-A to the private Housing Finance Law.


JUSTIFICATION:
On account of escalating housing prices, veterans, and their families
are encountering difficulties in obtaining the necessary funds to
purchase a home, even though they are for a mortgage. This situation
occurs because they cannot accumulate enough cash to pay for the
difference between the purchase price of the home and the amount of
the mortgage funding. In addition, many veterans are precluded from
entering the housing market because they cannot gain access to enough
cash to afford the down payment on a home. This bill would provide
such veterans with the necessary funds to finance the down payment,
finance the added cash needed to purchase a home, provide needed
rehabilitation funds for repairing distressed (and generally
inexpensive) housing stock, or purchasing land upon which to build a
new home. Each of these approaches will significantly improve a
veterans' transition to civilian life and would provide a benefit
both to communities across the state and provide a real and tangible
measure of appreciation for the veterans to whom we all owe so much.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal to the state.

EFFECTIVE DATE:
This act shall take effect on the one
hundred eightieth day after it shall have become a law,
with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2506

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 24, 2011
                               ___________

Introduced  by Sen. McDONALD -- read twice and ordered printed, and when
  printed to be committed to the Committee on Veterans, Homeland Securi-
  ty and Military Affairs

AN ACT to amend the private housing finance law, in relation to creating
  a veteran's home and land ownership loan program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The private housing finance law is amended by adding a new
article 19-A to read as follows:
                              ARTICLE XIX-A
                 VETERAN'S HOME AND LAND OWNERSHIP LOAN
SECTION 1115. LEGISLATIVE PURPOSE.
        1115-A. DEFINITIONS.
        1115-B. CREATION OF THE "VETERAN'S HOME AND LAND OWNERSHIP
                  LOAN FUND".
        1115-C. PURPOSE AND TERMS OF LOAN.
        1115-D. LOAN REPAYMENT.
        1115-E. ISSUANCE OF BONDS.
        1115-F. ADOPTION OF REGULATIONS.
  S 1115. LEGISLATIVE PURPOSE. IT IS HEREBY FOUND AND DECLARED THAT MANY
NEW YORK RESIDENTS HAVE SERVED OUR NATION HONORABLY IN THE ARMED  FORCES
OF  THE  UNITED  STATES,  AND THAT MANY SUCH NEW YORKERS HAVE SACRIFICED
CONSIDERABLY DURING THEIR SERVICE. IT IS IN THE PUBLIC INTEREST BOTH  TO
DEMONSTRATE  OUR APPRECIATION FOR THAT SERVICE BY PROVIDING STATE FINAN-
CIAL ASSISTANCE TO SUCH VETERANS; IN ORDER TO ENCOURAGE  HOME  OWNERSHIP
AND  THE  REHABILITATION OF DETERIORATING HOUSING, STABILIZE COMMUNITIES
AND IMPROVE THE LOCAL TAX BASE.
  S 1115-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "PERSON" MEANS AN HONORABLY DISCHARGED VETERAN OF THE ARMED  FORCES
OF THE UNITED STATES, OR THEIR SURVIVING UNMARRIED SPOUSE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01501-01-1

S. 2506                             2

  2.  "VETERAN" MEANS A PERSON WHO SERVED IN THE ACTIVE MILITARY, NAVAL,
OR AIR SERVICE DURING TIME OF WAR AS DEFINED BELOW, OR WHO WAS A RECIPI-
ENT OF THE ARMED FORCES EXPEDITIONARY MEDAL, NAVY  EXPEDITIONARY  MEDAL,
MARINE CORPS EXPEDITIONARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITION-
ARY  MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM UNDER HONORABLE
CONDITIONS.
  3. "SERVICE DURING TIME OF WAR" MEANS:
  (A) THE INDIVIDUAL IN QUESTION WAS A RECIPIENT  OF  THE  ARMED  FORCES
EXPEDITIONARY  MEDAL,  THE  NAVY EXPEDITIONARY MEDAL OR THE MARINE CORPS
EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
EIGHTY-SEVEN, IN GRENADA FROM  OCTOBER  TWENTY-THIRD,  NINETEEN  HUNDRED
EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY, OR;
  (B)  THE  INDIVIDUAL  SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN
THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE  OF  THE  FOLLOWING
WARS OR HOSTILITIES:
  (I)  IN  WORLD  WAR  I  FROM  THE SIXTH DAY OF APRIL, NINETEEN HUNDRED
SEVENTEEN TO THE ELEVENTH DAY OF NOVEMBER,  NINETEEN  HUNDRED  EIGHTEEN,
INCLUSIVE;
  (II)  IN  WORLD  WAR  II  FROM  THE  SEVENTH DAY OF DECEMBER, NINETEEN
HUNDRED FORTY-ONE TO THE THIRTY-FIRST DAY OF DECEMBER, NINETEEN  HUNDRED
FORTY-SIX, INCLUSIVE;
  (III)  IN  THE KOREAN HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE,
NINETEEN HUNDRED FIFTY TO THE  THIRTY-FIRST  DAY  OF  JANUARY,  NINETEEN
HUNDRED FIFTY-FIVE, INCLUSIVE;
  (IV)  IN  THE VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER,
NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY,  NINETEEN  HUNDRED
SEVENTY-FIVE; OR
  (V)  IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST, NINE-
TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
  4. "AGENCY" MEANS THE NEW YORK STATE HOUSING FINANCE AGENCY CREATED BY
SECTION FORTY-THREE OF THIS CHAPTER.
  S 1115-B. CREATION OF THE "VETERAN'S  HOME  AND  LAND  OWNERSHIP  LOAN
FUND".  THERE IS HEREBY ESTABLISHED A "VETERAN'S HOME AND LAND OWNERSHIP
LOAN  FUND".  SUCH  FUND  SHALL BE USED TO MAKE LOANS AUTHORIZED BY THIS
ARTICLE AND FOR EXPENSES INCURRED BY THE AGENCY IN THE IMPLEMENTATION OF
THE PROGRAM ESTABLISHED BY THIS ARTICLE.
  S 1115-C. PURPOSE AND TERMS OF LOAN. 1. THE AGENCY, ACTING  ON  BEHALF
OF THE STATE MAY IN ITS DISCRETION, ENTER INTO A CONTRACT WITH AN ELIGI-
BLE  PERSON TO PROVIDE A LOAN TO ASSIST IN THE PURCHASE OF A DWELLING OR
THE PURCHASE AND REHABILITATION OF A  DWELLING  CONTAINING  UP  TO  FOUR
RESIDENTIAL  UNITS, PROVIDED SUCH PERSON SHALL RESIDE IN AT LEAST ONE OF
SUCH UNITS. SUCH LOAN MAY ALSO BE MADE FOR THE  PURCHASE  OF  UNIMPROVED
REAL PROPERTY WHEN SUCH PROPERTY SHALL BE USED FOR THE CONSTRUCTION OF A
NEW DWELLING.
  2.  SUCH  LOAN  SHALL  NOT  EXCEED TWENTY PERCENT OF THE VALUE FOR THE
PURCHASE OF A HOME, OR FORTY THOUSAND DOLLARS FOR THE PURCHASE OF  UNIM-
PROVED REAL PROPERTY. SUCH VALUE SHALL BE DETERMINED FROM THE APPRAISAL,
IF  ANY, REQUIRED BY THE LENDING INSTITUTION GRANTING THE FIRST MORTGAGE
LOAN ON SUCH DWELLING, AND IF NO SUCH APPRAISAL HAS  BEEN  MADE  AT  THE
TIME  THAT A CONTRACT FOR LOAN IS ENTERED INTO PURSUANT TO THIS ARTICLE,
THE AGENCY SHALL CAUSE SUCH APPRAISAL TO BE MADE.
  S 1115-D. LOAN REPAYMENT. 1. ANY LOAN CONTRACTED FOR PURSUANT TO  THIS
ARTICLE  SHALL  BE SECURED BY A SECOND MORTGAGE ON THE DWELLING OR UNIM-

S. 2506                             3

PROVED REAL PROPERTY PURCHASED BY THE RECIPIENT  OF  SUCH  LOAN  IF  THE
RECIPIENT  OF  SUCH  LOAN ASSIGNS, TRANSFERS OR OTHERWISE CONVEYS HIS OR
HER INTEREST IN SUCH DWELLING OR CEASES TO  OCCUPY  SUCH  DWELLING,  THE
UNPAID PRINCIPAL BALANCE OF SAID SECOND MORTGAGE, TOGETHER WITH INTEREST
THEREON,  SHALL  BECOME DUE AND PAYABLE. IF THE RECIPIENT OF ANY LOAN IS
UNABLE TO REPAY THE LOAN, THE AGENCY, AT ITS DISCRETION, MAY ADJUST  THE
INTEREST RATE, TERMS AND CONDITIONS OF THE LOAN TO FACILITATE REPAYMENT.
  2.  REPAYMENT  OF  ANY  LOAN  PROVIDED IN ACCORDANCE WITH THIS ARTICLE
SHALL BE SUBJECT TO AN INTEREST RATE TO BE DETERMINED IN ACCORDANCE WITH
TERMS AND CONDITIONS AS THE AGENCY MAY ESTABLISH. IN NO CASE  SHALL  THE
TERM  EXCEED  THE TERM OF THE FIRST MORTGAGE OBTAINED FOR THE PURPOSE OF
PURCHASING SUCH DWELLING EXCEPT, IN THE  CASE  OF  A  GRADUATED  PAYMENT
MORTGAGE  LOAN,  THE  TERM OF THE LOAN MADE PURSUANT TO THIS ARTICLE MAY
EXCEED THE EXPECTED TERM OF SUCH MORTGAGE LOAN PROVIDED. THE TERM OF THE
LOAN MADE PURSUANT TO THIS ARTICLE DOES NOT EXCEED THE LESSER OF:
  (A) THE TERM INDICATED BY THE LIMITED  AMORTIZATION  SCHEDULE  OF  THE
GRADUATED PAYMENT MORTGAGE LOAN; OR
  (B)  THIRTY  YEARS. PAYMENTS BY HOMEOWNERS SHALL BE PAID TO THE AGENCY
AND DEPOSITED IN THE VETERAN'S HOME AND LAND OWNERSHIP LOAN FUND.
  S 1115-E. ISSUANCE OF BONDS. 1. 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 DISCRETION OF THE AGENCY,
SHALL BE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE, BUT NOT IN
EXCESS OF AN AGGREGATE AMOUNT OF TWENTY MILLION DOLLARS.
  2. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY  THE  AGENCY,  ALL
BONDS  AND  NOTES  ISSUED  SHALL BE PAYABLE OUT OF ANY MONEYS, ASSETS OR
REVENUES OF THE STATE, SUBJECT ONLY TO ANY AGREEMENT WITH BONDHOLDERS OR
NOTEHOLDERS PLEDGING ANY PARTICULAR MONEYS, ASSETS OR REVENUES.
  3. BONDS AND NOTES SHALL BE AUTHORIZED BY A RESOLUTION OR  RESOLUTIONS
OF THE AGENCY ADOPTED IN THE MANNER PROVIDED BY LAW.
  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  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 SHALL NOT EXCEED THIRTY
YEARS FROM THE DATE THEREOF AND THE MAXIMUM MATURITY  OF  NOTES  OR  ANY
RENEWALS  THEREOF  SHALL  NOT  EXCEED  SEVEN  YEARS FROM THE DATE OF THE
ORIGINAL ISSUE OF SUCH NOTES.
  5. ANY SUCH BONDS OR NOTES MAY BE SOLD AT SUCH  PRICE  OR  PRICES,  AT
PUBLIC  OR  PRIVATE SALE, IN SUCH MANNER AND FROM TIME TO TIME 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. NO BONDS OR NOTES MAY  BE
SOLD  AT  PRIVATE  SALE,  HOWEVER, UNLESS SUCH SALE AND THE TERM THEREOF
HAVE BEEN APPROVED IN WRITING BY:
  (A) THE COMPTROLLER, IF SUCH SALE IS NOT TO THE COMPTROLLER; OR
  (B) THE STATE DIRECTOR OF THE BUDGET, IF SUCH SALE  IS  TO  THE  COMP-
TROLLER.
  6.  THE  AGENCY IS AUTHORIZED TO PROVIDE FOR THE ISSUANCE OF ITS BONDS
OR NOTES FOR THE PURPOSE OF REFUNDING  ANY  SUCH  BONDS  OR  NOTES  THEN
OUTSTANDING,  INCLUDING  THE  PAYMENT OF ANY REDEMPTION PREMIUMS THEREON

S. 2506                             4

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 REFUND-
ING  OUTSTANDING  BONDS  OR  NOTES  SHALL  BE  FORTHWITH  APPLIED TO THE
PURCHASE OR RETIREMENT OF SUCH OUTSTANDING BONDS OR NOTES OR THE REDEMP-
TION OF SUCH OUTSTANDING BONDS OR NOTES  ON  THE  REDEMPTION  DATE  NEXT
SUCCEEDING  THE  DATE  OF  DELIVERY OF SUCH REFUNDING BONDS OR NOTES AND
MAY, PENDING SUCH APPLICATION, BE PLACED IN ESCROW TO BE APPLIED TO SUCH
PURCHASE OR RETIREMENT OR REDEMPTION ON SUCH  DATE.  ANY  SUCH  ESCROWED
PROCEEDS, PENDING SUCH USE, MAY BE INVESTED AND REINVESTED ONLY IN OBLI-
GATIONS  OF  OR  GUARANTEED BY THE STATE OR THE UNITED STATES OF AMERICA
AND EITHER:
  (A) THE YIELD FROM WHICH DOES NOT EXCEED THE AVERAGE NET INTEREST COST
PER ANNUM, EXPRESSED AS A PERCENTAGE, ON SUCH REFUNDING  BONDS  BY  MORE
THAN ONE-HALF OF ONE PERCENT; OR
  (B) THE INCOME FROM WHICH IS EXEMPT FROM FEDERAL TAXATION, 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  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 OR REDEMPTION,
AS THE CASE MAY BE. AFTER THE TERMS OF THE ESCROW HAVE BEEN FULLY SATIS-
FIED 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 LAW IN
THE SAME MANNER AND TO THE SAME EXTENT  AS  ANY  OTHER  BONDS  OR  NOTES
ISSUED PURSUANT TO LAW.
  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  COMMER-
CIAL  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  REGIS-
TRATION.
  8. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS OR NOTES PURSU-
ANT  TO  THE PROVISIONS OF THIS ARTICLE 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 RESOL-
UTION  OR RESOLUTIONS, ON ALL OR ANY PART OF ANY MONEYS HELD IN TRUST OR
OTHERWISE BY OTHERS FOR THE PAYMENT OF SUCH BONDS OR NOTES;
  (B) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE  REGULATION
OR DISPOSITION THEREOF;
  (C)  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;
  (D)  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;
  (E) 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;

S. 2506                             5

  (F)  PROVIDING  FOR THE RIGHTS AND REMEDIES OF THE HOLDERS OF BONDS OR
NOTES IN THE EVENT OF DEFAULT, PROVIDED, HOWEVER, THAT SUCH  RIGHTS  AND
REMEDIES  SHALL NOT BE INCONSISTENT WITH THE GENERAL LAWS OF THIS STATE;
AND
  (G) 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.
  S 1115-F. ADOPTION OF REGULATIONS. THE AGENCY SHALL ADOPT  REGULATIONS
PROVIDING FOR QUALIFICATIONS OF ELIGIBLE PERSONS, REQUIREMENTS AND LIMI-
TATIONS  AS TO ADJUSTMENTS OF TERMS AND CONDITIONS OF REPAYMENT, FUNDING
PRIORITIES AND ANY ADDITIONAL REQUIREMENTS  AS  IT  DEEMS  NECESSARY  TO
CARRY OUT THE PURPOSES OF THIS ARTICLE.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its effective  date  are
authorized  and  directed  to  be  made  and completed on or before such
effective date.

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