N.Y. Not-for-Profit Corporation Law § 1611: Borrowing and issuance of bonds

§ 1611. Borrowing and issuance of bonds.

(a) A land bank shall have power to issue bonds for any of its

corporate purposes, the principal and interest of which are payable from

its revenues generally. Any of such bonds may be secured by a pledge of

any revenues, including grants or contributions from the state of New

York, the federal government, or any agency, and instrumentality

thereof, or by a mortgage of any property of the land bank.

(b) The bonds issued by a land bank are hereby declared to have all

the qualities of negotiable instruments under New York state law.

(c) The bonds of a land bank created under the provisions of this

article and the income therefrom shall at all times be free from

taxation for the state of New York or local purposes under any provision

of New York law.

(d) Bonds issued by the land bank shall be authorized by resolution of

the board and shall be limited obligations of the land bank; the

principal and interest, costs of issuance, and other costs incidental

thereto shall be payable solely from the income and revenue derived from

the sale, lease, or other disposition of the assets of the land bank. In

the discretion of the land bank, the bonds may be additionally secured

by mortgage or other security device covering all or part of the project

from which the revenues so pledged may be derived. Any refunding bonds

issued shall be payable from any source described above or from the

investment of any of the proceeds of the refunding bonds and shall not

constitute an indebtedness or pledge of the general credit of any

foreclosing governmental unit or municipality within the meaning of any

constitutional or statutory limitation of indebtedness and shall contain

a recital to that effect. Bonds of the land bank shall be issued in such

form, shall be in such denominations, shall bear interest, shall mature

in such manner, and be executed by one or more members of the board as

provided in the resolution authorizing the issuance thereof. Such bonds

may be subject to redemption at the option of and in the manner

determined by the board in the resolution authorizing the issuance

thereof.

(e) Bonds issued by the land bank shall be issued, sold, and delivered

in accordance with the terms and provisions of a resolution adopted by

the board. The board may sell such bonds in such manner, either at

public or at private sale, and for such price as it may determine to be

in the best interests of the land bank. The resolution issuing bonds

shall be published in a newspaper of general circulation within the

jurisdiction of the land bank and posted prominently and continuously on

the homepage of any website maintained by the land bank.

(f) Neither the members of a land bank nor any person executing the

bonds shall be liable personally on any such bonds by reason of the

issuance thereof. Such bonds or other obligations of a land bank shall

not be a debt of any municipality or of the state of New York, and shall

so state on their face, nor shall any municipality or the state of New

York nor any revenues or any property of any municipality or of the

state of New York be liable therefor.