New York Laws
Title 18 - State of New York Municipal Bond Bank Agency Act
2437 - Bonds and Notes of the Agency.

(2) Except as may otherwise be expressly provided by the agency, all
bonds and notes issued by the agency shall be general obligations of the
agency, secured by the full faith and credit of the agency and may be
payable out of any moneys, assets, or revenues of the agency, subject
only to any agreements with holders of particular bonds or notes
pledging any particular moneys, assets or revenues, all as may be
designated in the proceedings of the agency under which the bonds or
notes shall be authorized to be issued.
(3) Bonds and notes 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 bonds or notes may
delegate to an officer of the agency the power to issue such bonds or
notes from time to time and to fix the details of any such issues of
bonds or notes by an appropriate certificate of such authorized officer.
(4) Such bonds or notes 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 bonds or notes, as
the case may be; provided, however, that the maximum maturity of bonds
other than special program bonds, special school purpose bonds or
special school deficit program bonds shall not exceed forty years from
the date thereof, the maximum maturity of special program bonds shall
not exceed thirty years, the maximum maturity of special school purpose
bonds shall not exceed twenty years, the maximum maturity of special
school deficit program bonds shall not exceed ten years and the maximum
maturity of notes or any renewals thereof shall not exceed five years
from the date of the original issue of such notes.
(5) Any bonds or notes of the agency other than special program bonds,
special school purpose bonds, special school deficit program bonds,
recovery act bonds or public safety communications bonds shall be sold

at public 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. Any special program
bonds, special school purpose bonds, special school deficit program
bonds, recovery act bonds or public safety communications bonds shall 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
provided, however, that special program bonds relating to a special
program agreement entered for the purpose described in paragraph (b) of
subdivision one of section twenty-four hundred thirty-five-a of this
title shall be sold on or before June thirtieth, two thousand one. No
special program bonds, special school purpose bonds, special school
deficit program bonds, or recovery act bonds, or public safety
communications bonds of the agency may be sold by the agency 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.
(6) The agency is authorized to provide for the issuance of its bonds
or notes for the purpose of refunding any bonds or notes of the agency
then outstanding, including the payment of any redemption premiums
thereon and any interest accrued or to accrue to the redemption date
next succeeding the date of delivery of such refunding bonds or notes.
The proceeds of any such bonds or notes issued for the purpose of so
refunding outstanding bonds or notes, may, in the discretion of the
agency, be applied to the purchase or retirement at maturity of such
outstanding bonds or notes or the redemption of such outstanding bonds
or notes on the redemption date next succeeding the date of delivery of
such refunding bonds or notes, or both such purposes, 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 agency. Any such escrowed proceeds, pending such use, may be
invested and reinvested in obligations of or guaranteed by the state or
the United States of America, or in certificates of deposit or time
deposits secured in such manner as the agency 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 by purchase, retirement
at maturity or redemption, as the case may be. 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 by purchase, retirement at maturity or redemption, as the case
may be. After the terms of the escrow have been fully satisfied and
carried out, any balance of such proceeds and interest, if any, earned
or realized on the investments thereof may be returned to the agency for
use by it in any lawful manner. All such bonds or notes shall be issued
and secured and shall be subject to the provisions of this title in the
same manner and to the same extent as any other bonds or notes
authorized pursuant to this title.
(7) Whether or not the bonds and notes are of such form and character
as to be negotiable instruments under the terms of the uniform
commercial code, the bonds and notes 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 bonds and
notes for registration.
(8) Subject only to the provisions of sections two thousand four
hundred thirty-eight and two thousand four hundred thirty-nine of this
title, any resolution or resolutions authorizing any bonds or notes of
the agency may contain provisions which may be a part of the contract
with the holders of such bonds or notes, as to: (a) pledging or creating
a lien, to the extent provided by such resolution or resolutions, on all
or any part of any monies or assets of the agency or of any moneys held
in trust or otherwise by others for the payment of such bonds or notes;
(b) otherwise providing for the custody, collection, securing,
investment and payment of any moneys of the agency; (c) the setting
aside of reserves or sinking funds and the regulation or disposition
thereof; (d) limitations on the purpose to which the proceeds of sale of
any issue of such bonds or notes then or thereafter to be issued may be
applied; (e) limitations on the issuance of additional bonds or notes,
the terms upon which additional bonds or notes may be issued and
secured, and upon the refunding of outstanding or other bonds or notes;
(f) the procedure, if any, by which the terms of any contract with the
holders of bonds or notes may be amended or abrogated, the amount of
bonds or notes the holders of which must consent thereto and the manner
in which such consent may be given; (g) the creation of special funds
into which any moneys of the agency may be deposited; (h) vesting in a
trustee or trustees such properties, rights, powers and duties in trust
as the agency may determine, which may include any or all of the rights,
powers and duties of the trustee appointed pursuant to section two
thousand four hundred forty of this title, and limiting or abrogating
the right of the holders of bonds or notes to appoint a trustee under
such section or limiting the rights, duties and powers of such trustee;
(i) 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 bonds or notes 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 (j) any other matters of like or different
character, which in any way affect the security and protection of the
bonds or notes and the rights of the holders thereof.
(9) Any resolution or resolutions or trust indenture or indentures
under which bonds or notes of the agency 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 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 two thousand four hundred forty of this title, in which event
the provisions of said section two thousand four hundred forty
authorizing the appointment of a trustee by such holders of bonds or
notes shall not apply.
(10) It is the intention of the legislature that any pledge of
earnings, revenues, other moneys or assets made by the agency shall be
valid and binding from the time when the pledge is made; that the
earnings, revenues, other moneys or assets so pledged and thereafter
received by the agency 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 irrespective of whether such parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is
created need be recorded.
(11) Neither the members of the agency nor any person executing the
bonds or other obligations shall be liable personally on the bonds or

other obligations or be subject to any personal liability or
accountability by reason of the issuance thereof.