N.Y. Arts and Cultural Affairs Law § 20.19: Security for bonds or notes

§ 20.19. Security for bonds or notes. 1. The principal of and interest

on any bonds or notes issued by a trust may be secured by a pledge of

any revenues and receipts of the trust, including without limitation the

receipt of sums as tax-equivalency payments or loan repayments, and may

be secured by a lease, loan agreement, mortgage, pledge, security

interest or other instrument covering all or any part of a combined-use

facility or cultural facility as authorized by this article, including

any additions, improvements, extensions to or enlargements of such a

facility thereafter made. Bonds or notes issued for a combined-use

facility or cultural facility as authorized by this article may also be

secured by an assignment of any lease of such combined-use facility or

cultural facility as authorized by this article and by an assignment of

the revenues and receipts of a trust from any such lease and by the

assignment of any loan agreement with a participating cultural

institution and by an assignment of the revenues and receipts of a trust

from any such loan agreement and by the assignment of any mortgage,

pledge, security interest or other instrument covering a combine-use

facility or cultural facility.

2. A trust may provide in any proceedings under which bonds or notes

may be authorized for the time and manner of and the requisites for

disbursements for the cost of a combined-use facility or cultural

facility authorized by this article, and for all certificates and

approvals of construction and disbursements as the trust shall deem

necessary.

3. Any pledge by a trust of, or security interest granted in,

earnings, revenues or other monies, including tax-equivalency payments,

accounts, contract rights, general intangibles or other personal

property shall be valid and binding from the time when the pledge is

made; the earnings, revenues or other monies so pledged and thereafter

received by the trust shall immediately be subject to the lien of such

pledge or other security interest, without any physical delivery of the

collateral thereof or further act, and the lien of any such pledge or

other security interest shall be valid and binding as against all

parties having claims of any kind in tort, contract or otherwise against

the trust irrespective of whether such parties have notice thereof. No

resolution or any other instrument by which a pledge or other security

interest is created need be recorded, and no notice thereof need be

filed in any public office.

4. In the discretion of a trust, the bonds may be secured by a trust

indenture, which may contain any lawful provisions for protecting and

enforcing the rights and remedies of the bondholders, by and between the

trust and a corporate trustee, as distinguished from a member of the

board of trustees of a trust, which may be any trust company or bank

having the powers of a trust company in the state. A trust may provide

by such trust indenture for the payment of the proceeds of the bonds and

the revenues of a combined-use facility or cultural facility authorized

by this article to the trustee under such trust indenture or other

depository, and for the method of disbursement thereof, with such

safeguards and restrictions as it may determine. If the bonds shall be

secured by a trust indenture the bondholders shall have no authority to

appoint a separate trustee to represent them.