N.Y. Urban development research corporation act 173/68 § 15: Security for bonds or notes; construction and acquisition of projects

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

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

by 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 that 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 subsibidiary 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.