N.Y. Public Housing Law § 41: Power to issue authority bonds

§ 41. Power to issue authority bonds. 1. An authority may from time

to time for any of the purposes of this chapter borrow money and issue

bonds in conformity with applicable provisions of the uniform commercial

code in such amounts and upon such terms as it may deem advisable. Bonds

for state projects and for projects, other than federal projects,

financed without a loan from a government may be issued for periods not

exceeding fifty years and for a period not exceeding the probable life

of the project which said period shall be calculated from the date of

the bonds. Bonds for projects financed with the aid of municipal loans

may be issued for periods not exceeding the probable life of the

project. Bonds for federal projects may be issued for a period not

exceeding sixty years. An authority shall also have power to issue

refunding bonds for the purpose of paying or retiring bonds previously

issued by it but no such refunding bonds shall mature later than the

expiration of the maximum period permitted by this subdivision at the

time of the issuance of the bonds to be refunded for the project for

which such bonds were issued. Such period shall be construed to

commence from the date of issuance of the bonds to be refunded.

2. An authority is authorized to issue, whenever it may deem it

necessary so to do, notes in conformity with applicable provisions of

the uniform commercial code without limitation as to the rate or rates

of interest in anticipation of the sale of bonds of which a government

shall have agreed to purchase at least eighty per centum or which shall

have been authorized at the time such notes are issued or in

anticipation of a loan which a government shall have agreed to make to

the authority. Such notes shall mature within a period not to exceed one

year from the date of their issue but may be made subject to the right

of earlier payment. The proceeds of the sale of such notes shall be used

only for the purposes for which may be used the proceeds of the sale of

bonds or of the loan in anticipation of which the notes were issued. Any

such notes may be renewed or may be refunded through the sale of similar

notes but no such renewal or refunding notes shall be issued after the

sale of bonds. Such notes, renewal notes or refunding notes shall, with

the interest thereon, if any, be paid from funds made available by a

government pursuant to agreement for the purchase of bonds or the making

of a loan, or from the proceeds of the sale of the bonds in anticipation

of the sale of which the notes were issued or, in the event of the sale

of the project with respect to which such notes were issued, from the

purchase price paid to the authority by the purchaser of such project.

Such notes, renewal notes or refunding notes shall mature within a

period not to exceed one year beyond the maturity date of the last

maturing notes outstanding on the date when the authority or, in the

case of state projects, the commissioner, makes the determination that

the project has been completed and that the project cost has been

finally determined, which determination shall be conclusive in any suit,

action or proceeding upon such notes, renewal notes or refunding notes.

The total amount of such notes or renewals thereof issued and

outstanding shall at no time exceed the total amount of bonds of which a

government shall have agreed to purchase at least eighty per centum or

which shall have been authorized to be issued or the total amount of the

loan which a government shall have agreed to make to the authority. The

foregoing limitations upon the time of payment of notes shall not at any

time apply to notes or other obligations which may be issued by an

authority to a government in anticipation of the sale of bonds of which

such government shall have agreed to purchase at least eighty per centum

or in anticipation of a loan which such government shall have agreed to

make to the authority. Except as in this section expressly provided, an

authority shall, in addition to its other powers, have the same powers

in connection with the issuance and securing the payments of its notes

as it has in connection with the issuance and securing payment of its

bonds.

2-a. In connection with a federal project, an authority may,

notwithstanding anything to the contrary contained in subdivision two of

this setcion, issue notes or renewal or refunding notes in conformity

with applicable provisions of the uniform commercial code after the sale

of bonds for such project and without regard to the limitations as to

time of issuance or payment set forth in such subdivision, provided: (a)

the total amount of such notes or renewal or refunding notes issued and

outstanding shall at no time exceed the difference between the estimated

project cost if issued prior to the date of physical completion of the

project or the project cost if issued thereafter and the principal

amount of the bonds theretofore issued for such project; and (b) such

notes or renewal or refunding notes are secured by an agreement between

the authority and the federal government or any agency on

instrumentality thereof pursuant to which the authority agrees to borrow

from such government or agency or instrumentality thereof, and such

government or agency or instrumentality thereof agrees to lend to the

authority at or prior to the maturity of such notes, monies in an amount

which (together with any other monies irrevocably committed to the

payment of principal of or interest on such notes) will be sufficient to

pay the principal of such notes with interest thereon to maturity, which

monies under the terms of such agreement are required to be used by the

authority for the purpose of paying the principal of and interest on

such notes at their maturity. Every note issued in connection with a

federal project which is not refunded and any renewals thereof and every

refunding note and any renewals thereof shall, with the interest

thereon, if any, be paid either from funds made available by the federal

government or agency or instrumentality thereof pursuant to an agreement

for the purchase of bonds or the making of a loan or the payment of

annual contributions, or from the proceeds of the sale of the bonds in

anticipation of the sale of which the notes were issued.

3. The authority may issue its interim certificates, or other

temporary obligations, in conformity with applicable provisions of the

uniform commercial code, to the purchaser of bonds pending the

authorization, preparation, execution or delivery of definitive bonds.

Such interim certificates, or other temporary obligations, shall be in

such form, contain such terms, conditions and provisions, bear such date

or dates, and evidence such agreements relating to their discharge or

payment or the delivery of definitive bonds as the authority may by

resolution determine.

4. Notwithstanding anything to the contrary contained in subdivision

two of this section respecting limitations upon the time of payment of

notes, renewal notes or refunding notes, such notes may be issued during

the period that negotiations for the sale of a project pursuant to the

provisions of the public housing law or the private housing finance law

are pending, but such notes shall not be renewed or refunded beyond the

maturity date of the last maturing notes outstanding on the date of

transfer of title to such project by the authority to the purchaser.

Negotiations for the sale of a project shall be deemed to be pending if

the authority shall have adopted a resolution determining that the

negotiations for the sale of such project are pending. If the

negotiations for such sale are thereafter abandoned, such notes, renewal

notes or refunding notes shall mature within a period not to exceed one

year beyond the maturity date of the last maturing notes outstanding on

the date determined by resolution adopted by the authority as the date

when negotiations for the sale of the project were abandoned, or within

a period not to exceed one year beyond the maturity date of the last

maturing notes outstanding on the date when the determination is made

pursuant to subdivision two of this section that the project has been

completed and that the project cost has been finally determined,

whichever period is longer.