1. The Laws of New York
  2. Unconsolidated Laws
  3. NYS Project Finance Agency Act7/75


Section 5 Powers of the agency

NYS Project Finance Agency Act7/75 (NYP)

  Except as otherwise limited by this act and subject to the provisions of any contract with noteholders or bondholders, the agency shall have power:

  1. To sue and be sued;

  2. To have a seal and alter the same at pleasure;

  3. To make and execute contracts and all other instruments necessary or convenient for the exercise of its powers and functions under this act;

  4. To make and alter by-laws for its organization and internal management;

  5. To acquire, hold and dispose of real or personal property (whether tangible or intangible) for its corporate purposes;

  6. To appoint officers, agents and employees, prescribe their duties and qualifications and fix their compensation;

  7. To borrow money and issue negotiable or non-negotiable notes, bonds or other obligations and to provide for the rights of the holders thereof, and as security for the payment of the principal of and interest on any notes or bonds so issued and any agreements made in connection therewith, to assign or pledge any or all existing and future assets or revenues owned by or assigned or pledged to the agency and the receipts to be derived therefrom;

  8. To accept appropriations made to it by the state and to apply the proceeds of such appropriations, together with the proceeds of borrowings by the agency and any other funds available to it, for the purposes set forth in this act, and from time to time to enter into a repayment agreement with the state in respect of such appropriations on such terms and conditions as the director of the budget determines are appropriate for the repayment of any and all outstanding sums then owed in such respect by the agency and each such agreement shall supersede all prior such agreements, provided that such repayment agreements shall require payments thereunder in any fiscal year of the agency only to the extent that the agency's revenues and receipts from operations (excluding borrowings, proceeds of sales of assets and appropriations) during its preceding fiscal year shall exceed the aggregate amount payable by the agency during such preceding year for expenses (including reasonable reserves for contingencies) and debt service (without regard to any refunding of debt) plus the amount of any eligible purchases and eligible loans made during either such year out of any balance of such revenues and receipts from operations;

  9. To invest any funds held in reserve or sinking funds, or any funds not required for immediate use or disbursement, at the discretion of the agency, in obligations of the state or federal government, obligations the principal and interest of which are guaranteed by the state or federal government, or obligations of agencies of the federal government, or special time deposits in, or certificates of deposit issued by, a bank or trust company authorized to do business in this state and secured by a pledge of obligations of the United States of America or obligations of the state or obligations the principal and interest of which are guaranteed by the state or federal government or obligations of agencies of the federal government, provided that any such investment is one which may from time to time be legally purchased by savings banks of the state as investments of funds belonging to them or in their control;

  10. To make eligible purchases at such purchase price as the commissioner shall approve (including a purchase price at a premium over the par value of the corporation first mortgage to be purchased) which shall be determined on the basis that such purchase price is to be amortized over the remaining term of the corporation first mortgage at the corporation's estimated average cost of borrowing (as determined by the commissioner in accordance with any accepted method) utilizing the annual payments of principal and interest called for by such mortgage, and otherwise on such terms and conditions, not inconsistent with this act, as are satisfactory to the agency; provided that no eligible purchase shall be made by the agency unless, except as otherwise permitted by contract with bondholders or noteholders, the commissioner finds that

  (a) the mortgage purchased is (or in the case of a purchase not involving the use of funds acquired through the issuance of bonds or notes of the agency, can reasonably be anticipated to become) a valid first mortgage lien on a corporation project free and clear of all other liens and encumbrances which would materially affect the value or usefulness of the property secured thereby (or that arrangements satisfactory to the commissioner for the discharge of such liens and encumbrances have been made) and that such first mortgage has been executed and recorded in accordance with the requirements of existing laws; and

  (b) the estimated net revenues of such corporation project, after provision has been made to cover all probable costs of operation and maintenance, of fixed charges and operating reserves and depreciation reserves, if any, including any subsidy payments attributable to such corporation project, shall be sufficient to pay the estimated principal of and interest on all bonds or notes of the agency issued or to be issued which are allocated or re-allocated by the commissioner to the financing of the purchase of such mortgage (after giving effect to such estimated net revenues related to mortgages purchased or acquired as security for eligible loans made with state appropriations or other available funds which are concurrently allocated or re-allocated to such financing) and any fees and charges of the agency applicable to such eligible purchase.

  Subject to the provisions of any contract of the agency or the corporation with their respective noteholders or bondholders, (i) the corporation shall have authority to make an additional mortgage loan, pursuant to the private housing finance law and the New York state urban development corporation act, for any corporation project the corporation first mortgage on which has been purchased by the agency, such loan to be made on an additional mortgage junior and subordinate only to the mortgage that was purchased by the agency but otherwise equivalent to a corporation first mortgage, (ii) the agency shall have authority to make an eligible purchase, pursuant to this act, of such additional mortgage notwithstanding that it is not a corporation first mortgage, at any time at or after the making of the first advance on such additional mortgage by the corporation, with the purchase price (including any applicable premium) to be payable at such times and in such amounts as shall be agreed by the agency and the corporation, and (iii) upon such a purchase by the agency such additional mortgage may be consolidated with the corporation first mortgage previously purchased by the agency;

  11. To make eligible loans on such terms and conditions, not inconsistent with this act, as are satisfactory to the agency; provided that no eligible loan shall be made by the agency unless, except as otherwise permitted by contract with bondholders or noteholders, the commissioner finds that

  (a) the mortgage securing the eligible loan is (or in the case of a loan not involving the use of funds acquired through the issuance of bonds or notes of the agency, can reasonably be anticipated to become) a valid first mortgage lien on a corporation project free and clear of all other liens and encumbrances which would materially affect the value or usefulness of the property secured thereby (or that arrangements satisfactory to the commissioner for the discharge of such liens and encumbrances have been made) and that such first mortgage has been executed and recorded in accordance with the requirements of existing laws; and

  (b) the estimated net revenues of such corporation project, after provision has been made to cover all probable costs of operation and maintenance, of fixed charges and operating reserves and depreciation reserves, if any, including any subsidy payments attributable to such corporation project, shall be sufficient to pay the estimated principal of and interest on all bonds or notes of the agency issued or to be issued which are allocated or re-allocated by the commissioner to the financing of such eligible loan (after giving effect to such estimated net revenues related to mortgages purchased or acquired as security for eligible loans made with state appropriations or other available funds which are concurrently allocated or re-allocated to such financing) and any fees and charges of the agency applicable to such eligible loan;

  12. To use and apply all monies received by the agency on account of the corporation first mortgages purchased by the agency or on account of the corporation first mortgages and other assets or revenues assigned or pledged to it as security for eligible loans:

  (a) In the case of such corporation first mortgages and other assets or revenues assigned or pledged by the agency as security for outstanding bonds of the agency, to meet payments of principal and interest on such outstanding bonds and any fees and charges of the agency related to the respective corporation first mortgages, and any excess shall be applied in accordance with paragraph (d) of this subdivision;

  (b) In the case of such corporation first mortgages and other assets or revenues assigned or pledged by the agency as security for outstanding notes of the agency, to meet payments of principal and interest on such outstanding notes (including the redemption of any note payment certificates delivered pursuant to subdivision three of section seven of this act) and any fees and charges of the agency related to the respective corporation first mortgages, and any excess shall be applied in accordance with paragraph (d) of this subdivision;

  (c) In the case of any such corporation first mortgages and other assets or revenues assigned or pledged by the agency as security for its guaranty of obligations of the corporation, pursuant to subdivision twenty-one of this section, to be applied in accordance with the provisions of such guaranty, and any excess shall be applied in accordance with paragraph (d) of this subdivision; and

  (d) In the case of any such corporation first mortgages and other assets or revenues not assigned or pledged by the agency as security, and in the case of excess amounts to be applied in accordance with this paragraph as provided above, first, to meet payments of principal and interest on any outstanding bonds or notes of the agency (including the redemption of any note payment certificates delivered pursuant to subdivision three of section seven of this act) and the fees and charges of the agency, irrespective of the corporation project or projects from which such monies are derived, and, second, any balance shall be applied as follows: (i) in the case of any such monies received on account of such corporation first mortgages and other assets or revenues that had been assigned or pledged to the agency as security for eligible loans, to pay over such balance to the corporation in accordance with the terms and conditions of such eligible loans; and (ii) in the case of any such monies received on account of such corporation first mortgages that had been purchased by the agency, to make further eligible purchases or eligible loans to the extent deemed appropriate by the commissioner, to pay any remaining balance to the corporation in reduction of the agency's obligations for repayment of appropriations theretofore transferred by the state to the corporation pursuant to a chapter of the laws of nineteen hundred seventy-five, and, in the event of payment in full by the agency of such obligations, to apply any remaining balance as the members of the agency, in their discretion, with the approval of the commissioner, shall determine to be in the best interests of the agency and the corporation and their respective bondholders and noteholders.

  13. To sell, at public or private sale, any obligations, property or rights representing, embodying or securing an eligible loan made by the agency or acquired in an eligible purchase;

  14. In connection with the making of eligible purchases, eligible loans and commitments therefor, to make and collect such fees and charges, including but not limited to reimbursements of all costs of financing by the agency, service charges and insurance premiums, as the agency shall determine to be reasonable;

  15. To consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, or any other term, of any eligible loan, eligible loan commitment, eligible purchase, eligible purchase commitment, contract or agreement of any kind to which the agency is a party;

  16. To exercise exclusively all rights of the mortgagee under any corporation first mortgage purchased by the agency or assigned to secure any eligible loan, to foreclose on any property subject to such mortgage or commence any action to protect or enforce any right conferred upon it by any law, mortgage, contract or other agreement, and to bid for and purchase such property at any foreclosure or at any other sale, or acquire or take possession of any such property; and in such event the agency may complete, administer, pay the principal of and interest on any obligations incurred in connection with such property, dispose of, and otherwise deal with, such property, in such manner as may be necessary or desirable to protect the interests of the agency therein;

  17. To procure insurance against any loss in connection with its property and other assets (including mortgages and mortgage loans) in such amounts, and from such insurers, as it deems desirable;

  18. To accept any gifts or grants or loans of funds or property or financial or other aid in any form, including but not limited to mortgage insurance, from the federal government or any agency or instrumentality thereof or from the state or from any other source and to comply, subject to the provisions of this act, with the terms and conditions thereof;

  19. To engage the services of private consultants on a contract basis for rendering professional and technical assistance and advice;

  20. To enter into a contract with the New York state housing finance agency to market and service any agency bonds and notes approved by the agency and to contract with the New York state housing finance agency to render such other services as the agency may request, including but not limited to the use of the premises, personnel and personal property of the New York state housing finance agency, and to provide for reimbursement to the New York state housing finance agency from the agency for any expenses necessarily incurred by the New York state housing finance agency in carrying out the terms of any such contract. Any such contract shall be subject to the separate approval of the director of the budget;

  21. To guarantee obligations of the corporation and to assign or pledge as security for any such guaranty any or all of the obligations, property or rights representing, embodying or securing an eligible loan made by the agency or acquired in an eligible purchase;

  22. To do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given and granted in this act.