New York Laws
Title 18 - State of New York Municipal Bond Bank Agency Act
2437-A - Tax Lien Collateralized Securities.

(2) Except as may otherwise be expressly provided by the agency, all
tax lien collateralized securities issued by the agency or its tax lien
entity shall be special limited obligations of the agency or its tax
lien entity payable only upon the redemption of the tax liens purchased
or the liquidation of the related real estate parcels and other
collateral or credit enhancement agreements pledged to secure such
obligations, subject to any agreements pledging any particular moneys,
assets or revenues, all as may be designated in the proceedings of the
agency under which said tax lien collateralized securities shall be
authorized to be issued.
(3) Tax lien collateralized securities shall be authorized by a
resolution or resolutions of the agency adopted as provided by this
title; provided, however, that any such resolution authorizing the
issuance of such securities may delegate to an officer of the agency the
power to issue such securities from time to time and to fix the details
of any such issues of tax lien collateralized securities by an
appropriate certificate of such authorized officer.
(4) Tax lien collateralized securities shall bear such date or dates,
shall mature at such time or times, shall bear interest at such rate or
rates, shall be of such denominations, shall be in such form, carry such
registration privileges, be executed in such manner, be payable in
lawful money of the United States of America at such place or places
within or without the state, be subject to such terms of redemption
prior to maturity and have such other terms as may be provided by such
resolution or resolutions or such certificate with respect to such
securities, as the case may be.
(5) Any tax lien collateralized security of the agency or its tax lien
entity may be sold at public or private sale and from time to time upon
such terms and at such prices as may be determined by the agency, and
the agency may pay all expenses, premiums and commissions which it may
deem necessary or advantageous in connection with the issuance and sale
thereof.
(6) Whether or not tax lien collateralized securities are of such form
and character as to be negotiable instruments under the terms of the
uniform commercial code, tax lien collateralized securities are hereby
made negotiable instruments within the meaning of and for all the
purposes of the uniform commercial code, subject only to the provisions
of the tax lien collateralized securities for registration.
(7) Any resolution or resolutions authorizing any tax lien
collateralized securities of the agency or of its tax lien entity may
contain provisions which may be a part of the contract with the holders
of securities, as to: (i) pledging or creating a lien, to the extent

provided by such resolution or resolutions, on all or any part of any
moneys or assets of the agency and its tax lien entity or of any moneys
held in trust or otherwise by others for the payment of such securities;
(ii) otherwise providing for the custody, collection, securing,
investment and payment of any moneys of the agency; (iii) the setting
aside of reserves or sinking funds and the regulation or disposition
thereof; (iv) limitations on the purpose to which the proceeds of sale
of any issue of securities then or thereafter to be issued may be
applied; (v) limitations on the issuance of additional securities, the
terms upon which additional securities may be issued and secured, and
upon the refunding of outstanding or other securities; (vi) the
procedure, if any, by which the terms of any contract with the holders
of such securities may be amended or abrogated, the amount of such
securities the holders of which must consent thereto and the manner in
which such consent may be given; (vii) the creation of special funds
into which any moneys of the agency may be deposited; (viii) vesting in
a trustee or trustees such properties, rights, powers and duties in
trust as the agency may determine; (ix) defining the acts or omissions
to act which shall constitute a default in the obligations and duties of
the agency and providing for the rights and remedies of the holders of
such securities in the event of such default, providing, however, that
such rights and remedies shall not be inconsistent with the general laws
of this state and other provisions of this title; and (x) any other
matters of like or different character, which in any way affect the
security and protection of the tax lien collateralized securities and
the rights of the holders thereof.
(8) Any resolution or resolutions or trust indenture or indentures
under which tax lien collateralized securities of the agency or its tax
lien entity 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 agency may determine.
(9) It is the intention of the legislature that any pledge of tax
liens, earnings, revenues, other moneys or assets made by the agency or
its tax lien entity shall be valid and binding from the time when the
pledge is made; that the tax liens, earnings, revenues, other moneys or
assets so pledged and thereafter received by the agency or its tax lien
entity shall immediately be subject to the lien of such pledge without
any physical delivery thereof or further act, and that the lien of any
such pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract or otherwise against the agency or
its tax lien entity irrespective of whether such parties have notice
thereof. Neither the resolution nor any other instrument by which a
pledge is created need be recorded.
(10) Neither the members of the agency nor any person executing the
tax lien collateralized securities shall be liable personally on the tax
lien collateralized securities or be subject to any personal liability
or accountability by reason of the issuance thereof.