N.Y. Urban Development Corporation Act 174/68 § 19: Security for bonds or notes; construction and acquisition of projects

§ 19. Security for bonds or notes; construction and acquisition of

projects. (1) The principal of and interest on any bonds or notes issued

by the corporation may be secured by a pledge of any revenues and

receipts of the corporation and may be secured by a mortgage or other

instrument covering all or any part of a project, including any

additions, improvements, extensions to or enlargements of any projects

thereafter made.

(2) Bonds or notes issued for the acquisition, construction,

reconstruction, rehabilitation, or improvement of a project may also be

secured by an assignment of any lease of or mortgage on such project and

by an assignment of the revenues and receipts derived by the corporation

from any such lease or mortgage.

(3) The resolution under which the bonds or notes are authorized to be

issued and any such mortgage, lease or other instrument may contain

agreements and provisions respecting the maintenance of the projects

covered thereby, the fixing and collection of rents or other revenues

therefrom, including monies received in repayment of mortgage loans, and

interest thereon, the creation and maintenance of special funds from

such rents or other revenues and the rights and remedies available in

the event of default, all as the corporation shall deem advisable.

(4) Each pledge, agreement, mortgage or other instrument made for the

benefit or security of any of the bonds or notes of the corporation

shall continue effective until the principal of and interest on the

bonds or notes for the benefit of which the same were made shall have

been fully paid, or until provision shall have been made for such

payment in the manner provided in the resolution or resolutions under

which the same may be authorized.

(5) The corporation may provide in any proceedings under which bonds

or notes may be authorized that any project or part thereof may be

constructed, reconstructed, rehabilitated or improved by the

corporation, any subsidiary, or any lessee or any designee of the

corporation, and may also provide in such proceedings for the time and

manner of and requisites for disbursements to be made for the cost of

such construction, and for all such certificates and approvals of

construction and disbursements as the corporation shall deem necessary

and provide for in such proceedings.

(6) Any resolution or resolutions or trust indenture or indentures

under which bonds or notes of the corporation are authorized to be

issued may contain provisions for vesting in a trustee or trustees such

properties, rights, powers and duties in trust as the corporation may

determine which may include any or all of the rights, powers and duties

of the trustee appointed by the holders of any issue of notes or bonds

pursuant to section twenty-seven of this act, in which event the

provisions of said section twenty-seven authorizing the appointment of a

trustee by such holders of bonds or notes shall not apply.

(7) It is the intention hereof that any pledge or assignment for

security made by the corporation shall be valid and binding from the

time when the same is made; that the monies or property so pledged or

assigned and then held or thereafter received by the corporation shall

immediately be subject to the lien or security interest of such pledge

or assignment without any physical delivery thereof or further act; and

that the lien or security interest of any such pledge or assignment

shall be valid and binding as against all parties having claims of any

kind in tort, contract or otherwise against the corporation,

irrespective of whether such parties have notice thereof. Neither the

resolution nor any other instrument by which any such pledge or

assignment is created need be recorded, and no filing with respect to

such pledge or assignment need be made under the uniform commercial

code.