N.Y. Public Housing Law § 49: Authority obligations as legal investments and legal security for deposits by public officers

§ 49. Authority obligations as legal investments and legal security

for deposits by public officers. The state, its subdivisions,

municipalities, and all other public bodies, and all public officers,

all banks, bankers, trust companies, savings banks and institutions,

building and loan associations, saving and loan associations, investment

companies and other persons carrying on a banking business, all

insurance companies, insurance associations and other persons carrying

on an insurance business, and all executors, administrators, guardians,

trustees and other fiduciaries may legally invest funds belonging to

them or within their control in: (a) any bonds, notes and other

obligations of an authority when they are (1) secured by a pledge of the

revenues of a project, and additionally secured by a pledge of periodic

subsidies or of annual contributions to be paid to an authority by a

government, or (2) secured by a first mortgage lien not exceeding

sixty-six and two-thirds per centum of the value of the property covered

thereby, or (3) secured by an agreement between the authority and a

government pursuant to which the authority agrees to borrow from the

government, and the government agrees to lend to the authority prior to

the maturity of such bonds, notes or other obligations of the authority,

monies in an amount which (together with any other monies irrevocably

committed to the payment of principal of or interest on such bonds,

notes or other obligations) will be sufficient to pay the principal of

such bonds, notes or other obligations 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 bonds, notes or other obligations at their maturity, or

(4) guaranteed by a municipality as to principal and interest; (b) any

notes issued pursuant to and in conformity with the provisions of

subdivision two of section forty-one of this chapter under a contract

with the state containing a covenant for the payment of periodic

subsidies as provided in subdivision (b) of section seventy-six-a of

this chapter; or (c) any bonds, notes and other obligations issued by

any public housing authority or agency in the United States or in the

commonwealth of Puerto Rico when such bonds, notes or other obligations

are secured by a pledge of the revenues of the housing project or

projects for which the bonds, notes or other obligations are issued, and

additionally secured by a pledge of annual contributions to be paid by

the United States government or any agency thereof. Such bonds, notes

and other obligations issued by an authority pursuant to this chapter

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.