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This entry was published on 2014-09-22
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SECTION 17
Bonds and notes of the corporation
Urban Development Corporation Act 174/68 (UDA) CHAPTER INTRO
§ 17. Bonds and notes of the corporation. (1) Subject to the
provisions of section eighteen of this act, the corporation 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
opinion of the corporation, shall be necessary to provide sufficient
funds for achieving any of its corporate purposes, including the payment
of interest on bonds and notes of the corporation, establishment of
reserves to secure such bonds and notes, and all other expenditures of
the corporation incident to and necessary or convenient to carry out its
corporate purposes and powers.

(2) All bonds and notes issued by the corporation may be secured by
the full faith and credit of the corporation or may be payable solely
out of the revenues and receipts derived from the lease, mortgage or
sale by the corporation of its projects or of any thereof, all as may be
designated in the proceedings of the corporation under which the bonds
or notes shall be authorized to be issued. Such bonds and notes may be
executed and delivered by the corporation at any time and from time to
time, may be in such form and denominations and of such tenor and
maturities, may be in bearer form or in registered form, as to principal
and interest or as to principal alone, all as the corporation may
determine.

(3) Bonds may be payable in such installments and at such time or
times not exceeding fifty years from the date thereof, as shall be
determined by the corporation.

(4) Notes, or any renewals thereof, may be payable in such
installments and at such time or times as shall be determined by the
corporation, not exceeding ten years from the date of the original issue
of such notes.

(5) Bonds and notes may be payable at such place or places whether
within or without the state, may bear interest at such rate or rates
payable at such time or times and at such place or places and evidenced
in such manner, and may contain such provisions not inconsistent
herewith, all as shall be provided in the proceedings of the corporation
under which the bonds or notes shall be authorized to be issued.

(6) If deemed advisable by the corporation, there may be retained in
the proceedings under which any bonds or notes of the corporation are
authorized to be issued an option to redeem all or any part thereof as
may be specified in such proceedings, at such price or prices and after
such notice or notices and on such terms and conditions as may be set
forth in such proceedings and as may be recited in the face of the bonds
or notes, but nothing herein contained shall be construed to confer on
the corporation any right or option to redeem any bonds or notes except
as may be provided in the proceedings under which they shall be issued.

(7) Any bonds or notes of the corporation 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 corporation, and the corporation 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 of the corporation may be sold 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 state
director of the budget, where such sale is to the comptroller.

(8) Any moneys of the corporation, including proceeds from the sale of
any bonds or notes, and revenues, reciepts and income from any of its
projects or mortgages, may be invested and reinvested in such
obligations, securities and other investments as shall be provided in
the resolution or resolutions under which such bonds or notes are
authorized.

(9) Issuance by the corporation of one or more series of bonds or
notes for one or more purposes shall not preclude it from issuing other
bonds or notes in connection with the same project or any other project,
but the proceedings whereunder any subsequent bonds or notes may be
issued shall recognize and protect any prior pledge or mortgage made for
any prior issue of bonds or notes unless in the proceedings authorizing
such prior issue the right is reserved to issue subsequent bonds or
notes on a parity with such prior issue.

(10) The corporation is authorized to provide for the issuance of its
bonds or notes for the purpose of refunding any bonds or notes of the
corporation then outstanding, including the payment of any redemption
premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds or
notes, and, if deemed advisable by the corporation, for the additional
purpose of paying all or any part of the cost of acquiring,
constructing, reconstructing, rehabilitating, or improving any project,
or the making of any mortgage loan on any project. The proceeds of any
such bonds or notes issued for the purpose of refunding outstanding
bonds or notes, may, in the discretion of the corporation, be applied to
the purchase or retirement at maturity or redemption of such outstanding
bonds or notes either on their earliest or any subsequent redemption
date, and may, pending such application, be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on such
date as may be determined by the corporation. Any such escrowed
proceeds, pending such use, may be invested and reinvested in
obligations of or guaranteed by the United States of America, or in
certificates of deposit or time deposits secured in such manner as the
corporation shall determine, 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. 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. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income and profits, if any, earned or realized on
the investments thereof may be returned to the corporation for use by it
in any lawful manner. The portion of the proceeds of any such bonds or
notes issued for the additional purpose of paying all or any part of the
cost of acquiring, constructing, reconstructing, rehabilitating, or
improving any project, or the making of any mortgage loan on any
project, may be invested and reinvested in obligations of or guaranteed
by the United States of America, maturing not later than the time or
times when such proceeds will be needed for the purpose of paying all or
any part of such cost, or the making of any such mortgage loan. The
interest, income and profits, if any, earned or realized on such
investments may be applied to the payment of all or any part of such
cost, or the making of any such mortgage loan, or may be used by the
corporation in any lawful manner. All such bonds or notes shall be
issued and secured and shall be subject to the provisions of this act in
the same manner and to the same extent as any other bonds or notes
issued pursuant to this act.