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This entry was published on 2014-09-22
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SECTION 1611
Borrowing and issuance of bonds
Not-for-Profit Corporation (NPC) CHAPTER 35, ARTICLE 16
§ 1611. Borrowing and issuance of bonds.

(a) A land bank shall have power to issue bonds for any of its
corporate purposes, the principal and interest of which are payable from
its revenues generally. Any of such bonds may be secured by a pledge of
any revenues, including grants or contributions from the state of New
York, the federal government, or any agency, and instrumentality
thereof, or by a mortgage of any property of the land bank.

(b) The bonds issued by a land bank are hereby declared to have all
the qualities of negotiable instruments under New York state law.

(c) The bonds of a land bank created under the provisions of this
article and the income therefrom shall at all times be free from
taxation for the state of New York or local purposes under any provision
of New York law.

(d) Bonds issued by the land bank shall be authorized by resolution of
the board and shall be limited obligations of the land bank; the
principal and interest, costs of issuance, and other costs incidental
thereto shall be payable solely from the income and revenue derived from
the sale, lease, or other disposition of the assets of the land bank. In
the discretion of the land bank, the bonds may be additionally secured
by mortgage or other security device covering all or part of the project
from which the revenues so pledged may be derived. Any refunding bonds
issued shall be payable from any source described above or from the
investment of any of the proceeds of the refunding bonds and shall not
constitute an indebtedness or pledge of the general credit of any
foreclosing governmental unit or municipality within the meaning of any
constitutional or statutory limitation of indebtedness and shall contain
a recital to that effect. Bonds of the land bank shall be issued in such
form, shall be in such denominations, shall bear interest, shall mature
in such manner, and be executed by one or more members of the board as
provided in the resolution authorizing the issuance thereof. Such bonds
may be subject to redemption at the option of and in the manner
determined by the board in the resolution authorizing the issuance
thereof.

(e) Bonds issued by the land bank shall be issued, sold, and delivered
in accordance with the terms and provisions of a resolution adopted by
the board. The board may sell such bonds in such manner, either at
public or at private sale, and for such price as it may determine to be
in the best interests of the land bank. The resolution issuing bonds
shall be published in a newspaper of general circulation within the
jurisdiction of the land bank and posted prominently and continuously on
the homepage of any website maintained by the land bank.

(f) Neither the members of a land bank nor any person executing the
bonds shall be liable personally on any such bonds by reason of the
issuance thereof. Such bonds or other obligations of a land bank shall
not be a debt of any municipality or of the state of New York, and shall
so state on their face, nor shall any municipality or the state of New
York nor any revenues or any property of any municipality or of the
state of New York be liable therefor.