N.Y. Public Housing Law § 47: Bond covenants of an authority

§ 47. Bond covenants of an authority. 1. In connection with the

issuance of bonds or the incurring of an obligation, and to secure the

payment of such bonds or obligations, an authority, in addition to its

other powers, may: (a) Pledge, covenant to pledge, or covenant against

pledging, all or any part of its 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

moneys made by the authority shall be valid and binding from the time

when the pledge is made, that revenues or other moneys so pledged and

thereafter received by an authority 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 authority, 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 bonds to be issued and as to the issuance of

such bonds in escrow or otherwise, and as to the use and disposition of

the proceeds thereof; provide for the replacement of lost, destroyed or

mutilated bonds;

(e) Covenant as to what other, or additional debts may be incurred by

it;

(f) Covenant that the authority warrants the title to the premises;

(g) Covenant as to the rents and fees to be charged, the amount to be

raised each year or other period of time by rents, fees and other

revenues, and as to the use and disposition to be made thereof;

(h) Covenant as to the use of any or all of its property, real or

personal;

(i) 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 moneys

held for the payment of the costs of operation and maintenance of

projects, or as a reserve for the meeting of contingencies in the

operation and maintenance thereof; (4) any moneys held for the payment

of the principal of and interest on its bonds or the sums due under its

leases or as a reserve for such payments; and (5) any moneys held for

any other reserves or contingencies; and covenant as to the use and

disposal of the moneys held in such funds;

(j) Redeem the bonds and covenant for their redemption, and provide

the terms and conditions thereof;

(k) Covenant against extending the time for the payment of its bonds

or interest thereon;

(l) Prescribe the procedure, if any, by which the terms of any

contract with bondholders may be amended or abrogated, the amount of

bonds the holders of which must consent thereto, and the manner in which

such consent may be given;

(m) Covenant as to the maintenance of its property, the replacement

thereof, the insurance to be carried thereon, and the use and

disposition of insurance moneys;

(n) Vest in an obligee, in the event of a default by an authority, the

right to cure any such default and to advance any moneys necessary for

such purpose, and covenant that the money so advanced be an additional

obligation of such authority with such interest, security and priority

as may be provided in any resolutions, trust indenture, mortgage, lease

or contract;

(o) Covenant and prescribe as to the events of default and terms and

conditions upon which any or all of its bonds shall become or may be

declared due before maturity, and as to the terms and conditions upon

which such declaration and its consequences may be waived;

(p) Covenant as to the rights, liabilities, powers and duties arising

upon the breach by it of any covenant, condition or obligation;

(q) Covenant to surrender possession of a project or projects or parts

thereof upon the happening of an event of default; and vest in an

obligee the right, upon such default, without judicial proceedings, to

take possession and use, operate, manage, and control such projects or

any part thereof, and to collect and receive rents, fees and revenues

arising therefrom in the same manner as such authority itself might do,

and to dispose of the moneys collected in accordance with the agreement

of such obligee with the authority;

(r) Vest in a trustee or trustees the right to enforce any covenant to

secure, or pay the bonds, or otherwise relating to such bonds; provide

for the powers, duties and limitations of liabilities of such trustee or

trustees, and provide the terms and conditions upon which the trustee or

trustees, or the holders of bonds, or any proportion of them, may

enforce any such covenant;

(s) Vest in a government, in a trustee or in other obligee the right,

upon any happening of an event of default, to foreclose through judicial

proceedings or through the exercise of a power of sale without judicial

proceedings, any mortgage as to all or such part or parts of the

property covered thereby as such government, trustee or other obligee

shall elect; the institution, prosecution and conclusion of any such

foreclosure proceedings or the sale of any such parts of the mortgaged

property shall not affect in any manner or to any extent the lien of the

mortgage on the parts of the mortgaged property not included in such

proceedings or not sold as aforesaid;

(t) Make such other covenants and do any and all such acts and things

as may be necessary or convenient or desirable in order to secure its

bonds or make them more marketable, notwithstanding that such covenants,

acts or things may not be enumerated herein; execute all instruments

necessary or convenient in the exercise of the powers herein granted, or

in the performance of its covenants or duties, which may contain such

covenants and provisions, in addition to those above specified, as the

government or any purchaser of the bonds of an authority may require.

2. In case of conflict between this section and article nine of the

uniform commercial code, this section shall control.