N.Y. General Municipal Law § 559: Bonds of an agency

§ 559. Bonds of an agency. 1. (a) An 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.

(b) An agency shall have power, from time to time, 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.

2. Except as may otherwise be expressly provided by the agency, every

issue of its notes and bonds shall be general obligations of the agency

payable out of any revenues or moneys of the agency, subject only to any

agreements with the holders of particular notes or bonds pledging any

particular receipts or revenues, provided, however, that the payment of

such bonds and notes, both as to principal and interest, may be further

secured by a pledge of any loan, grant, or contribution from the federal

government or other source, in aid of any urban renewal program or part

thereof, or by a mortgage of any such urban renewal program, or part

thereof, title to which is in the agency, or that payment of such bonds

and notes, both as to principal and interest, or only as to interest,

may be guaranteed by the municipality.

3. Bonds and notes of an agency shall be authorized by its resolution,

shall bear such date or dates, mature at such time or times, in the case

of any such note, or any renewals thereof, not exceeding seven 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 shall provide. The notes and bonds shall bear

interest at such rate or rates, be in such denomination or

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 with or without premium, and be secured in such manner, as

such resolution or resolutions may provide. The bonds and notes may be

sold by the agency at public or private sale, at such price or prices as

the agency may determine.

4. Bonds and notes of an agency are hereby made securities in which

all public officers and bodies of this state and all municipalities and

municipal subdivisions, all insurance companies and associations and

other persons carrying on an insurance business, all banks, bankers,

trust companies, savings banks and savings associations, including

saving and loan associations, building and loan associations, investment

companies and other persons carrying on a banking business, all

administrators, guardians, executors, trustees and other fiduciaries,

and all other persons whatsoever who are now or may hereafter be

authorized to invest in bonds or other obligations of the state, may

properly and legally invest funds, including capital, in their control

or belonging to them, provided that such bonds and notes (1) are secured

by an agreement between the agency and the federal government in which

the agency agrees to borrow from the federal government and the federal

government agrees to lend to the agency, prior to the maturity of such

bonds or notes, monies in an amount which (together with any other

monies irrevocably committed to the payment of principal and interest on

such bonds or notes) will suffice to pay the principal on such bonds or

notes with interest to maturity thereon, which monies under the terms of

said agreement are required to be used for the purpose of paying the

principal of and the interest on such bonds or notes at their maturity,

or (2) are guaranteed by the municipality as to principal and interest.

Such bonds and notes are also hereby made securities which may be

deposited with and shall be received by all public officers and bodies

of this state and all municipalities, governments, and public

corporations of this state, for any purpose for which the deposit of

bonds or other obligations of this state is now or may be hereafter

authorized or required.

5. In case any of the members or officers of an agency whose

signatures appear on the bonds or coupons shall cease to be such members

or officers before the delivery of such bonds, such signatures shall,

nevertheless, be valid and sufficient for all purposes, the same as if

they had remained in office until such delivery.

6. In connection with the issuance of bonds or the incurring of an

obligation and to secure the payment of such bonds or other obligations,

an agency, in addition to its other powers, may:

(a) pledge, covenant to pledge, or covenant against pledging, all or

any part of the rents, fees, revenues, subsidies, grants or

contributions to which its right then exists or may thereafter come into

existence; covenant against permitting or suffering any lien thereon; it

is the intention hereof that any pledge of revenues or other monies made

by an agency shall be valid and binding from the time when the pledge

has been made, that revenues or other monies so pledged and thereafter

received by an 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;

(b) mortgage, covenant to mortgage or covenant against mortgaging, all

or any part of its property, real or personal, then owned or thereafter

acquired; covenant against permitting or suffering any lien thereon;

(c) covenant with respect to limitations on its right to sell, lease

or otherwise dispose of any project or part thereof;

(d) covenant as to the use of any or all of its properties, real or

personal;

(e) create or authorize the creation of special funds segregating (1)

the proceeds of any loans, grants, subsidies or contributions; (2) all

the rents, fees and revenues of any project or projects; (3) any monies

held for the payment of the principal of and interest on its bonds; and

(4) any monies held for any reserves or contingencies; and covenant as

to the use and disposal of the monies held in such funds.

(f) covenant as to any other matters of like or different character,

which in any way affect the security or the protection of the bonds.

7. Neither the members of an agency nor any person executing the notes

or bonds of an agency shall be liable personally on such notes or bonds

or be subject to any personal liability or accountability by reason of

the issuance thereof.