New York Laws
Title 2 - General Provisions Relating to Municipal Assistance Corporations
3012 - Issuance of Notes and Bonds of a Municipal Assistance Corporation.

(b) A municipal assistance corporation shall have the power, from time
to time, to issue (i) notes to renew notes and (ii) bonds to pay notes,
including the interest thereon 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 of its other
corporate purposes. The refunding bonds may be exchanged for the bonds
to be refunded or sold and the proceeds applied to the purchase,
redemption or payment of such bonds.
(c) Except as may otherwise be expressly provided by a municipal
assistance corporation, every issue of its notes and bonds shall be
general obligations of the municipal assistance corporation payable out
of any revenues of such corporation, subject only to any agreements with
the holders of particular notes or bonds pledging any particular
revenues.
(d) Such notes and bonds shall be authorized by resolution of a
municipal assistance corporation, shall bear such date and shall mature
at such time or times as such resolution may provide. The bonds may be
issued as serial bonds or as term bonds or as a combination thereof.
The notes and bonds shall bear interest at such rate or rates, be in
such denominations and 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 may provide.
(e) The notes or bonds of the municipal assistance corporation may be
exchanged for obligations of the municipality being assisted or 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 such 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. Subsequent to July first, nineteen hundred seventy-five, no
notes or bonds of a municipal assistance corporation may be sold at
private sale 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.
2. Any resolution 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 revenues to secure the payment of
the notes or bonds or of any issue thereof, subject to such agreements
with noteholders or bondholders as may then exist;
(b) pledging all or any part of the assets of the corporation to
secure the payment of the notes or bonds or of any issue of notes or
bonds, subject to such agreements with noteholders or bondholders as may
then exist;
(c) the setting aside of reserves or sinking funds and the regulation
and disposition thereof;
(d) limitations on the purposes 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 of any issue thereof;
(e) limitations on the issuance of additional notes or bonds; the
terms upon which additional notes or bonds may be issued and secured;
and the refunding of outstanding or other notes or bonds;
(f) 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;
(g) 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 title or limiting the
rights, powers and duties of such trustee;
(h) the acts or omissions to act which shall constitute a default in
the obligations and duties of the corporation to the holders of the
notes or bonds and providing for the rights and remedies of the holders
of the notes or bonds in event of such default, including the right to
appointment of a receiver; providing, however, that such rights and
remedies shall not be inconsistent with the laws of the state and the
other provisions of this article; and
(i) any other matters of like or different character, which in any way
affect the security or protection of the holders of the notes or bonds.
3. Any pledge made by a municipal assistance corporation shall be
valid and binding from the time when the pledge is made. The revenues or
property so pledged and thereafter received by the municipal assistance
corporation shall immediately be subject to the lien of such pledge
without any physical delivery thereof or further act, and 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 municipal
assistance corporation, irrespective of whether such parties have notice
thereof. Neither the resolution nor any other instrument by which a
pledge is created need be recorded or filed to protect such pledge
except in the principal office of the municipal assistance corporation.
4. Neither the directors of a municipal assistance corporation nor any
other person executing the notes or bonds of such corporation shall be
subject to any personal liability or accountability by reason of the
issuance thereof.
5. A municipal assistance 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 such
corporation, which shall thereupon be cancelled.
6. Anything in this article ten to the contrary notwithstanding, any
agreement or agreements with the holders of notes or bonds issued by any
municipal assistance corporation created by or pursuant to any title of
this article shall contain a clause stating in substance that any
provision in this article or in any such agreement or agreements which
relate to taxes imposed under article twelve or sections eleven hundred
seven or eleven hundred eight of the tax law of the state or to the
funds created by sections ninety-two-b, ninety-two-d or ninety-two-e of

the state finance law shall be deemed executory only to the extent of
the moneys available to the state in such funds from time to time and no
liability on account thereof shall be incurred by the state beyond the
moneys available in such funds.
7. In the discretion of the directors of a corporation the notes or
bonds may be secured by a trust indenture by and between such
corporation and a trustee, which may be any trust company or bank having
the powers of a trust company in the state. Such trust indenture may
contain such provisions for protecting and enforcing the rights and
remedies of the noteholders or bondholders as may be reasonable and
proper and not in violation of law, including covenants setting forth
the duties of the corporation in relation to the exercise of its
corporate powers and the custody, may provide by such trust indenture
for the payment of the proceeds of the notes or bonds and the revenues
to the trustee under such trust indenture or other depository, and for
the method of disbursement thereof, with such safeguards and
restrictions as it may determine. All expenses incurred in carrying out
such trust indenture may be treated as a part of the operating expenses
of the corporation. If the notes or bonds shall be secured by a trust
indenture, the noteholders or bondholders shall have no authority to
appoint a separate trustee to represent them.
8. Whether or not the notes and bonds are of such form and character
as to be negotiable instruments under the terms of the uniform
commercial code, the notes and bonds 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 notes and
bonds for registration.