N.Y. Urban development research corporation act 173/68 § 14: Bonds and notes of the corporation

§ 14. Bonds and notes of the corporation. (1) Subject to the

provisions of subdivision (2) of section sixteen of this act, the

corporation shall have the power and is hereby authorized from time to

time to issue its negotiable bonds and notes in such principal amounts,

as, in the opinion of the corporation, shall be necessary to provide

sufficient funds for achieving any of its corporate purposes, including

the payment of interest on bonds and notes of the corporation,

establishment of reserves to secure such bonds and notes, and all other

expenditures of the corporation incident to and necessary or convenient

to carry out its corporate purposes and powers.

(2) All bonds and notes issued by the corporation shall be general

obligations of the corporation payable out of any revenues or monies of

the agency, subject only to any agreements with the holders of

particular notes or bonds pledging any particular revenues or receipts,

except as may otherwise be expressly provided by the corporation. Such

bonds and notes may be executed and delivered by the corporation at any

time and from time to time, may be in such form and denominations and of

such tenor and maturities, may be in bearer form or in registered form,

as to principal and interest or as to principal alone, all as the

corporation may determine.

(3) Bonds may be payable in such installments and at such time or

times as shall be determined by the corporation, not exceeding fifty

years from the date thereof.

(4) Notes, or any renewals thereof, may be payable in such

installments and at such time or times as shall be determined by the

corporation, not exceeding ten years from the date of the original issue

of such notes.

(5) Bonds and notes may be payable at such place or places whether

within or without the state, may bear interest at such rate or rates

payable at such time or times and at such place or places and evidenced

in such manner, and may contain such provisions not inconsistent

herewith, all as shall be provided in the proceedings of the corporation

under which the bonds or notes shall be authorized to be issued.

(6) If deemed advisable by the corporation, there may be retained in

the proceedings under which any bonds or notes of the corporation are

authorized to be issued an option to redeem all or any part thereof as

may be specified in such proceedings at such price or prices and after

such notice or notices and on such terms and conditions as may be set

forth in such proceedings, and as may be recited on the face of the

bonds or notes, but nothing herein contained shall be construed to

confer on the corporation any right or option to redeem any bonds or

notes except as may be provided in the proceedings under which they

shall be issued.

(7) Any bonds or notes of the corporation may be sold at such price or

prices, at public or private sale, in such manner and from time to time

as may be determined by the corporation, and the corporation may pay all

expenses, premiums and commissions which it may deem necessary or

advantageous in connection with the issuance and sale thereof. No bonds

or notes of the corporation may be sold at private sale, however, unless

such sale and the terms thereof have been approved in writing by (a) the

comptroller where such sale is not to the comptroller or (b) the state

director of the budget, where such sale is to the comptroller.

(8) Any moneys of the corporation, including proceeds from the sale or

any bonds or notes, and revenues, receipts and income from any of its

projects or mortgages, may be invested and reinvested in such

obligations, securities and other investments as shall be provided in

the resolution or resolutions under which such bonds or notes are

authorized.

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

issued shall contain provisions that

(a) title to any industrial project for the acquisition, construction,

reconstruction, rehabilitation or improvement of which bonds or notes

are authorized to be issued shall pass to the state upon retirement of

such indebtedness, and

(b) the state shall have the option to purchase, subject to the rights

of any lessee, mortgagee or beneficiary of any deed of trust, any

industrial project for the acquisition, construction, reconstruction,

rehabilitation or improvement of which bonds or notes are authorized to

be issued at any time for an amount equal to the indebtedness then

outstanding, together with the interest thereon, with interest on any

unpaid installments of interest. In the event of any such sale to the

state, the corporations shall either

(i) redeem the bonds or notes which were issued to acquire, construct,

reconstruct, rehabilitate or improve the industrial project so sold the

state, or

(ii) create a special reserve fund for the payment of the principal of

and interest on such bonds or notes and pay into such reserve fund the

receipts derived from such sale. The funds paid into such reserve fund

may be invested and reinvested in obligations of or guaranteed by the

United States of America, or in certificates of deposit or time deposits

secured in such manner as the corporation shall determine, maturing at

such time or times as shall be appropriate to assure the prompt payment

of the principal of and interest on such bonds or notes. Any moneys

received by the corporation from the sale of such project to the state

after the redemption of such bonds or notes or the creation of such

reserve fund may be used by the corporation in any lawful manner.

(10) Issuance by the corporation of one or more series of bonds or

notes for one or more purposes shall not preclude it from issuing other

bonds or notes in connection with the same project or any other project,

but the proceedings whereunder any subsequent bonds or notes may be

issued shall recognize and protect any prior pledge or mortgage made for

any prior issue of bonds or notes unless in the proceedings authorizing

such prior issue the right is reserved to issue subsequent bonds or

notes on a parity with such prior issue.

(11) The corporation is authorized to provide for the issuance of its

bonds or notes for the purpose of refunding any bonds or notes of the

corporation then outstanding, including the payment of any redemption

premium thereon and any interest accrued or to accrue to the earliest or

subsequent date of redemption, purchase or maturity of such bonds or

notes, and, if deemed advisable by the corporation, for the additional

purpose of paying all or any part of the cost of acquiring,

constructing, reconstructing, rehabilitating, or improving any project,

or the making of any mortgage loan on any project. The proceeds of any

such bonds or notes issued for the purpose of refunding outstanding

bonds or notes, may, in the discretion of the corporation, be applied to

the purchase or retirement at maturity or redemption of such outstanding

bonds or notes either on their earliest or any subsequent redemption

date, and may, pending such application, be placed in escrow to be

applied to such purchase or retirement at maturity or redemption on such

date as may be determined by the corporation. Any such escrowed

proceeds, pending such use, may be invested and reinvested in

obligations of or guaranteed by the United States of America, or in

certificates of deposit or time deposits secured in such manner as the

corporation shall determine, maturing at such time or times as shall be

appropriate to assure the prompt payment, as to principal, interest and

redemption premium, if any, on the outstanding bonds or notes to be so

refunded. The interest, income and profits, if any, earned or realized

on any such investment may also be applied to the payment of the

outstanding bonds or notes to be so refunded. After the terms of the

escrow have been fully satisfied and carried out, any balance of such

proceeds and interest, income and profits, if any, earned or realized on

the investments thereof may be returned to the corporation for use by it

in any lawful manner. The portion of the proceeds of any such bonds or

notes issued for the additional purpose of paying all or any part of the

cost of acquiring, constructing, reconstructing, rehabilitating, or

improving any project, or the making of any mortgage loan on any

project, may be invested and reinvested in obligations of or guaranteed

by the United States of America, maturing not later than the time or

times when such proceeds will be needed for the purpose of paying all or

any part of such cost or the making of any such mortgage loan. The

interest, income and profits, if any, earned or realized on such

investments may be applied to the payment of all or any part of such

cost or the making of any such mortgage loan or may be used by the

corporation in any lawful manner. All such bonds or notes shall be

issued and secured and shall be subject to the provisions of this act in

the same manner and to the same extent as any other bonds or notes

issued pursuant to this act.

(12) All bonds or notes authorized under this section and the interest

coupons applicable thereto are hereby made and shall be construed to be

negotiable instruments.