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This entry was published on 2014-09-22
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SECTION 46
Notes and bonds of the agency
Private Housing Finance (PVH) CHAPTER 44-B, ARTICLE 3
§ 46. Notes and bonds of the agency. 1. (a) Subject to the provisions
of section forty-seven of this article, the agency shall have 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 amount as, in the opinion of the agency, shall be
necessary to provide sufficient funds for achieving its corporate
purposes, including the making or financing the making of mortgage
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 deem 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;

2. a. The notes and bonds, except as provided in paragraph (c) of
subdivision four of this section, 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,
issued for achieving its corporate purposes other than the making or
financing the making of mortgage loans, not exceeding the term of any
applicable lease or sublease, and in the case of any such note, or any
renewals thereof, issued for the purpose of making or financing the
making of mortgage loans, not exceeding the term for the repayment of
the mortgage loan or the federally guaranteed securities acquired to
finance such mortgage loan, and in the case of any such bond not
exceeding fifty years from the date of issue, as such resolution or
resolutions may provide.

b. In no event, however, shall any such note mature, in the case of a
note or any renewals thereof, issued for the purpose of achieving its
corporate purposes other than the making or financing the making of
mortgage loans, later than eight years from the date of issue of such
original note, and, in the case of a note or any renewals thereof,
issued for the purpose of making or financing the making of mortgage
loans, later than ten years from the date of issue of such original
note, unless in each year at least that amount of principal is required
to be paid as would be required if (i) the principal of and interest on
any such note were payable in such manner that the total annual charges
required for the payment of principal and interest were approximately
equal and constant for the period of such lease, sublease or mortgage,
as the case may be, and (ii) at the expiration of the term of such
lease, sublease or mortgage, the total of such required payments were
sufficient to pay the full principal amount of such note; provided
however, that such manner of payment of principal shall be required only
from the date of the issuance of such note or from the commencement of
the lease or sublease term in the case of a lease or sublease and from
the occupancy date in the case of a mortgage whichever later occurs.
Such payment of principal may be made either to the holder of such note
or into a sinking fund. Notwithstanding the foregoing, no such note
shall be issued pursuant to this paragraph b unless the state director
of the budget has approved the issuance of any such note in writing
prior to such issuance.

c. The notes and bonds shall bear interest at such rate or 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. Except as provided in paragraph (d) of subdivision four of this
section, 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 monies received in payment of
mortgage loans or the federally guaranteed securities acquired to
finance such mortgage loans and interest thereon, and other monies
received or to be received, to secure the payment of the notes or bonds
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 of the agency, including
mortgages or the federally guaranteed securities acquired to finance
such mortgage loans and obligations securing the same, to secure the
payment of the notes or bonds or of any issue of notes or bonds, subject
to such agreements with noteholders or bondholders as may then exist;

(c) the use and disposition of the gross income from mortgages owned
or financed by the agency and payment of principal of mortgages owned by
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 such property, rights, powers and
duties in trust as the agency may determine, which may include any or
all of the rights, powers and duties of the trustee appointed by the
bondholders pursuant to this article, and limiting or abrogating the
right of the bondholders to appoint a trustee under this article or
limiting the rights, powers and duties of such trustee;

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

4. (a) Subject to the provisions of subdivisions three and four of
section forty-seven of this article and notwithstanding anything to the
contrary hereinabove provided in this section, the agency shall have
power and is hereby authorized from time to time to issue negotiable
bonds and notes in such principal amount, as, in the opinion of the
agency, shall be necessary to provide sufficient funds for the making of
equity loans, the payment of interest on bonds and notes issued to
provide funds for the making of such equity loans, the establishment of
reserves to secure such bonds and notes, and all other expenditures of
the agency incident to and necessary or convenient for the making of
such equity loans;

(b) The provisions of paragraphs (b), (c) and (d) of subdivision one
of this section shall apply to equity notes and bonds issued by the
agency for the making of equity loans.

(c) The provisions of subdivision two of this section shall apply to
equity notes and bonds issued by the agency for the making of equity
loans except that any such equity notes, or any renewals thereof, and
any such equity bond shall mature at such time or times as the
resolution of the members shall provide, but in no event at a time
subsequent to six months after the latest maturity date of the last
maturing equity loan made from the proceeds of such equity notes or
bonds.

(d) Any resolution or resolutions authorizing any equity notes or
equity bonds or any issue thereof for the making of equity loans may
contain any of the provisions set forth in subdivision three of this
section, which shall be a part of the contract with the holders thereof,
except that no such resolution or resolutions shall pledge any fees or
charges collected by the agency pursuant to subdivision eleven of
section forty-four, income from mortgages owned by the agency, or any
payments of principal of mortgages owned by the agency.

5. It is the intention hereof that any pledge made by the agency shall
be valid and binding from the time when the pledge is made; that the
monies or property so pledged and thereafter received by the agency
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,
irrespective of whether such parties have notice thereof. Neither the
resolution nor any other instrument by which a pledge is created need be
recorded.

6. 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.

7. The agency, subject to such agreements with noteholders or
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.

8. 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.