New York Laws
Title 12 - New York State Environmental Facilities Corporation
1290 - Notes and Bonds of the Corporation.

(b) The corporation shall have power, from time to time, to issue
renewal notes, to issue bonds to pay notes and whenever it deems
refunding expedient, to refund any bonds by the issuance of new bonds,
whether the bonds to be refunded have or have not matured, and to issue
bonds partly to refund bonds then outstanding, and partly for any other
purpose. The refunding bonds shall be sold and the proceeds applied to
the purchase, redemption or payment of the bonds to be refunded.
Notwithstanding any statutory ceiling on outstanding bonds, any
refunding bonds shall be sold in the amount required to pay or redeem
outstanding bonds, to fund any reserve, escrow or payment fund, and to
provide for the payment of all fees and other charges and expenses,
including costs of issuance, incurred in connection with the issuance of
such refunding bonds, provided that the present value of the aggregate
debt service on the refunding bonds does not exceed the present value of
the aggregate debt service on the bonds refunded thereby.
(c) Except as may otherwise be expressly provided by the corporation,
every issue of its notes or bonds shall be (i) general obligations of
the corporation payable out of any revenues or monies of the
corporation, subject only to any agreements with the holders of
particular notes or bonds pledging any particular receipts or revenues,
(ii) special obligations of the corporation payable solely from the
revenues, service charges, rentals, proceeds or other payments to be
received on account of the mortgage, loan or other agreements and
payments, reserve and insurance funds or accounts issuance of special
obligations, and fees, charges or other monies to be received by the
corporation in respect to loans pursuant to section twelve hundred
eighty-five-b or twelve hundred eighty-five-j of this title, or from
amounts received by the corporation pursuant to any contract, lease,
easement, license or other instrument entered into by the corporation
pursuant to sections twelve hundred eighty-five-k and twelve hundred
eighty-five-l of this title or, (iii) special obligations of the
corporation payable solely from amounts received pursuant to an
agreement with the commissioner of environmental conservation pursuant
to subdivision twelve of section twelve hundred eighty-five-j of this
title, and may, but need not, be secured by mortgages, assignments or
pledges of such revenues, service charges, rentals, proceeds, other
payments, funds and accounts, fees, charges and other monies, and by
mortgages or assignments thereof in respect to projects, and may include
pooled financings subject only to any agreements with the holders of
particular special obligation notes or bonds issued to finance the cost
of, or loans for, a project or projects; no general obligations of the
corporation shall be issued to finance the cost of, or loans for, a
project or projects authorized to be constructed pursuant to section
twelve hundred eighty-five-b or twelve hundred eighty-five-j of this
title or to finance (A) the contribution of the state to the water
pollution control revolving fund, (B) the design, acquisition,
construction, improvement and installation of all or any portion of
Riverbank Park or (C) state park infrastructure projects and no funds,
monies, revenues or other assets of the corporation shall be used for
loans authorized pursuant to section twelve hundred eighty-five-b or
twelve hundred eighty-five-j of this title, except as may be available
with respect to a project and a contract with a person as aforesaid, or
for the payment to the state for amounts contributed by the state to the
water pollution control revolving fund, to finance the design,
acquisition, construction, improvement and installation of all or any
portion of Riverbank Park or state park infrastructure projects. Nor

shall any special obligation authorized pursuant hereto be payable from
or secured by any debt service reserve fund created pursuant to section
twelve hundred ninety-one of this title, and the state shall not be
entitled to require the redemption of such special obligations pursuant
to section twelve hundred ninety-three of this title; and such special
obligation and the security therefor shall not be subject to the
provisions of section twelve hundred ninety-four of this title but the
remedies of the holders thereof shall be set forth in the terms of such
special obligations and the instruments constituting such security; the
making of loans, providing of financial or extension of credit to or on
behalf of beginning farmers for purposes of section twelve hundred
eighty-five-r of this title only;
(d) Any bonds or notes issued for the purpose of financing amounts
deposited or to be deposited by the state in the water pollution control
revolving fund may be issued in an aggregate principal amount sufficient
to finance the amount to be paid or reimbursed to the state plus an
amount sufficient to fund any debt service reserve fund established by
the corporation and to provide for the payment of fees and other charges
and expenses of the corporation in connection with such bonds and notes.
(e) Notwithstanding any other law to the contrary, the corporation
shall not issue any notes or bonds on behalf of any state department or
agency to fund the removal, disposal and remediation of petroleum
storage tanks and the remediation of the sites thereof or on behalf of
the office of mental health to finance the pilgrim state sewage
treatment project, after the thirty-first day of March, nineteen hundred
ninety-six. This limitation shall not apply to bonds and notes issued to
refund bonds issued for such purposes.
2. The notes and bonds shall be authorized by resolution of the
directors of the corporation, shall bear such date or dates, and shall
mature at such time or times, in the case of any such note or any
renewals thereof not exceeding twelve years from the date of issue of
such original note, and in the case of any such bond not exceeding forty
years from the date of issue, as such resolution or resolutions may
provide; provided, however, that the final maturity of any bond issued
for the purpose of financing any amounts deposited or to be deposited by
the state in the water pollution control revolving fund shall not exceed
thirty years from the date of issue of such bond. The notes and bonds
shall bear interest at such rate or rates which may vary from time to
time, be in such denominations, be in such form, either coupon or
registered, carry such registration privileges, be executed in such
manner, be payable in such medium of payment, at such place or places
and be subject to such terms of redemption as such resolution or
resolutions may provide. The notes and bonds of the corporation may be
sold by the corporation, at public or private sale, at such price or
prices as the corporation shall determine. No notes or bonds of the
corporation may be sold by the corporation 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 director of the budget, where such sale is to the comptroller.
3. Any resolution or resolutions authorizing any notes or bonds or any
issue thereof may contain provisions, which shall be a part of the
contract with the holders thereof, as to:
(a) pledging all or any part of the rentals, rates, charges and other
fees made or received by the corporation and other monies received or to
be received from the ownership or operation or otherwise in connection
with any project or projects and all or any part of the monies received
in payment of principal or interest on bonds or notes of any state
agency and municipal bonds or notes acquired by the corporation, to

secure the payment of the notes or bonds or of any issue thereof,
subject to such agreements with bondholders or noteholders as may then
exist;
(b) pledging all or any part of the assets of the corporation
including municipal bonds and notes acquired by the corporation in the
issuance of general obligations, and in the issuance of special
obligations, notes or other evidences of indebtedness of any person
acquired by the corporation, and assigning and pledging any mortgages or
other security interests acquired by the corporation or any interests of
the corporation in properties or revenues or other sums payable to the
corporation and any reserve and insurance funds or accounts or other
funds and accounts established in connection with the issuance of
special obligations to secure the payment of the notes or bonds or of
any issue of notes or bonds of general obligations or special
obligations, as the case may be, subject to such agreements with
noteholders or bondholders as may then exist;
(c) the use and disposition of rentals, rates, charges and other fees
made or received by the corporation;
(d) the setting aside of reserves or sinking funds and the regulation
and disposition thereof from the ownership or operation or otherwise in
connection with any project or projects and of the gross income from
municipal bonds and notes and bonds and notes of any state agency owned
by the corporation;
(e) limitations on the purpose to which the proceeds of sale of notes
or bonds may be applied and pledging such proceeds to secure the payment
of the notes or bonds or of any issue thereof;
(f) limitations on the issuance of additional notes or bonds; the
terms upon which additional notes or bonds may be issued and secured;
the refunding of outstanding or other notes or bonds;
(g) the procedure, if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated, the amount of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;
(h) limitations on the amount of monies to be expended by the
corporation for operating, administrative or other expenses of the
corporation;
(i) vesting in a trustee or trustees such property, 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
bondholders pursuant to this title, and limiting or abrogating the right
of the bondholders to appoint a trustee under this article or limiting
the rights, powers and duties of such trustee;
(j) any other matters, of like or different character, which in any
way affect the security or protection of the notes or bonds.
4. In addition to the powers herein conferred upon the corporation to
secure its notes and bonds, the corporation shall have power in
connection with the issuance of notes and bonds to enter into such
agreements as the corporation may deem necessary, convenient or
desirable concerning the use or disposition of its monies or property
including the mortgaging of any such property and the entrusting,
pledging or creation of any other security interest in any such monies
or property and the doing of any act (including refraining from doing
any act) which the corporation would have the right to do in the absence
of such agreements. The corporation shall have power to enter into
amendments of any such agreements within the powers granted to the
corporation by this title and to perform such agreements. The provisions
of any such agreements may be made a part of the contract with the
holders of the notes and bonds of the corporation.

5. It is the intention hereof that any pledge, mortgage or security
instrument made by the corporation shall be valid and binding from the
time when the pledge, mortgage or security instrument is made; that the
monies or property so pledged, mortgaged and entrusted and thereafter
received by the corporation shall immediately be subject to the lien of
such pledge, mortgage or security instrument without any physical
delivery thereof or further act; and that the lien of any such pledge,
mortgage or security instrument 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 mortgage, security
instrument or other instrument by which a pledge, mortgage lien or other
security is created need be recorded or filed and the corporation shall
not be required to comply with any of the provisions of the uniform
commercial code.
6. Neither the directors of the corporation nor any person executing
the notes or bonds shall be liable personally on the notes or bonds or
be subject to any personal liability or accountability by reason of the
issuance thereof.
7. The corporation, subject to such agreements with noteholders or
bondholders as may then exist, shall have power out of any funds
available therefor to purchase notes or bonds of the corporation, which
shall thereupon be cancelled, at a price not exceeding (a) if the notes
or bonds are then redeemable, the redemption price then applicable plus
accrued interest to the next interest payment thereon, or (b) if the
notes or bonds are not then redeemable, the redemption price applicable
on the first date after such purchase upon which the notes or bonds
become subject to redemption plus accrued interest to such date.
8. Neither the state nor any municipality shall be liable on notes or
bonds issued as general obligations of the corporation and such notes
and bonds shall not be a debt of the state or any municipality, and such
notes and bonds shall contain on the face thereof a statement to such
effect. The state shall not be liable on notes or bonds issued as
special obligations of the corporation, and such notes and bonds shall
not be a debt of the state and shall be payable solely from the
revenues, service charges, rentals, proceeds or other payments to be
derived from the extension of credit or the loan for the project for
which such notes and bonds were issued, and such notes and bonds shall
contain on the face thereof a statement to such effect.