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


Section 6 Bonds and notes of the agency

NYS Project Finance Agency Act7/75 (NYP)

  1. (a) The agency shall have power and is hereby authorized from time to time to issue its negotiable or non-negotiable bonds and notes in such principal amount as, in the opinion of the agency, shall be necessary to provide sufficient funds for achieving its corporate purposes, including the making of eligible purchases and eligible loans, the payment of interest on bonds and notes of the agency, establishment of reserves to secure such bonds and notes, and all other expenditures of the agency incident to and necessary or convenient to carry out its corporate purposes and powers;

  (b) The agency shall have power, from time to time, to issue renewal notes, to issue bonds to pay notes and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other purpose. The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded;

  (c) Except as may otherwise be expressly provided by the agency, every issue of its notes or bonds shall be general obligations of the agency payable out of any revenues or monies of the agency, subject only to any agreements with the holders of particular notes or bonds pledging any particular receipts or revenues or other property.

  2. The notes and bonds shall be authorized by resolution of the members, shall bear such date or dates, and shall mature at such time or times, in the case of any such note, or any renewals thereof, not exceeding ten years from the date of issue of such original note, and in the case of any such bond not exceeding fifty years from the date of issue, as such resolution or resolutions may provide. The notes and bonds shall bear interest at such rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption as such resolution or resolutions may provide. The notes and bonds of the agency may be sold by the agency, at public or private sale, at such price or prices as the agency shall determine. No notes or 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.

  3. Any resolution or resolutions authorizing any notes or bonds or any issue thereof may contain provisions, which shall be a part of the contract with the holders thereof, as to:

  (a) pledging all or any part of the fees and charges made or received by the agency, and all or any part of the payments to be received in respect of corporation first mortgages purchased by the agency or in respect of eligible loans, and any amounts realized on account of the corporation first mortgages and other assets or revenues pledged or assigned as security for such eligible loans, and other monies received or to be received, to secure the payment of bonds or notes or of any issue thereof, subject to such agreements with bondholders or noteholders as may then exist;

  (b) pledging all or any part of the assets or revenues of the agency, including mortgages and other obligations, owned by or pledged or assigned to the agency, to secure the payment of the bonds or notes, subject to such agreements with bondholders or noteholders as may then exist;

  (c) the use and disposition of payments received on account of mortgages and other obligations owned by or pledged or assigned to the agency;

  (d) the setting aside of reserves or sinking funds and the regulation and disposition thereof;

  (e) limitations on the purpose to which the proceeds of sale of notes or bonds may be applied and pledging such proceeds to secure the payment of the notes or bonds or of any issue thereof;

  (f) limitations on the issuance of additional notes or bonds; the terms upon which additional notes or bonds may be issued and secured; the refunding of outstanding or other notes or bonds;

  (g) the procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which must consent thereto, and the manner in which such consent may be given;

  (h) limitations on the amount of monies to be expended by the agency for operating, administrative or other expenses of the agency;

  (i) vesting in a trustee or trustees or an agent or agents, for bondholders or noteholders, such property, rights, powers and duties in trust or as security as the agency may determine, which may, but not by way of limitation, include any or all of the rights, powers and duties of the trustee which may be appointed by bondholders or noteholders pursuant to section thirteen of this act, and limiting or abrogating the applicability of section thirteen of this act to the affected bonds or notes, the holders thereof or any trustee or agent for such holders;

  (j) any other matters, of like or different character, which in any way affect the security or protection of the notes and bonds.

  4. It is the intention hereof that any pledge or assignment for security made by the agency shall be valid and binding from the time when the same is made; that the monies or property so pledged or assigned and then held or thereafter received by the agency shall immediately be subject to the lien or security interest of such pledge or assignment without any physical delivery thereof or further act; and that the lien or security interest of any such pledge or assignment 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 any such pledge or assignment is created need be recorded, and no filing with respect to such pledge or assignment need be made under the uniform commercial code.

  5. Neither the members of the agency nor any person executing the notes or bonds shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance thereof.

  6. The agency, subject to such agreements with noteholders and bondholders as may then exist, shall have power out of any funds available therefor to purchase notes or bonds of the agency, which shall thereupon be cancelled, at a price not exceeding (a) if the notes or bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date thereon, or (b) if the notes or bonds are not then redeemable, the redemption price applicable on the first date after such purchase upon which the notes or bonds become subject to redemption plus accrued interest to such date.

  7. The state shall not be liable on notes or bonds of the agency and such notes and bonds shall not be a debt of the state, and such notes and bonds shall contain on the face thereof a statement to such effect.