New York Laws
Article 3 - Municipal Housing Authorities
47 - Bond Covenants of an Authority.

(b) Mortgage, covenant to mortgage or covenant against mortgaging, all
or any part of its property, real or personal, then owned or thereafter
acquired; covenant against permitting or suffering any lien thereon;
(c) Covenant with respect to limitations on its right to sell, lease,
or otherwise dispose of any project or part thereof;
(d) Covenant as to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition of
the proceeds thereof; provide for the replacement of lost, destroyed or
mutilated bonds;
(e) Covenant as to what other, or additional debts may be incurred by
it;
(f) Covenant that the authority warrants the title to the premises;
(g) Covenant as to the rents and fees to be charged, the amount to be
raised each year or other period of time by rents, fees and other
revenues, and as to the use and disposition to be made thereof;
(h) Covenant as to the use of any or all of its property, real or
personal;
(i) Create or authorize the creation of special funds segregating (1)
the proceeds of any loans, grants, subsidies or contributions; (2) all
the rents, fees and revenues of any project or projects; (3) any moneys
held for the payment of the costs of operation and maintenance of
projects, or as a reserve for the meeting of contingencies in the
operation and maintenance thereof; (4) any moneys held for the payment
of the principal of and interest on its bonds or the sums due under its
leases or as a reserve for such payments; and (5) any moneys held for
any other reserves or contingencies; and covenant as to the use and
disposal of the moneys held in such funds;
(j) Redeem the bonds and covenant for their redemption, and provide
the terms and conditions thereof;
(k) Covenant against extending the time for the payment of its bonds
or interest thereon;
(l) Prescribe the procedure, if any, by which the terms of any
contract with bondholders may be amended or abrogated, the amount of
bonds the holders of which must consent thereto, and the manner in which
such consent may be given;
(m) Covenant as to the maintenance of its property, the replacement
thereof, the insurance to be carried thereon, and the use and
disposition of insurance moneys;
(n) Vest in an obligee, in the event of a default by an authority, the
right to cure any such default and to advance any moneys necessary for
such purpose, and covenant that the money so advanced be an additional
obligation of such authority with such interest, security and priority

as may be provided in any resolutions, trust indenture, mortgage, lease
or contract;
(o) Covenant and prescribe as to the events of default and terms and
conditions upon which any or all of its bonds shall become or may be
declared due before maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived;
(p) Covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition or obligation;
(q) Covenant to surrender possession of a project or projects or parts
thereof upon the happening of an event of default; and vest in an
obligee the right, upon such default, without judicial proceedings, to
take possession and use, operate, manage, and control such projects or
any part thereof, and to collect and receive rents, fees and revenues
arising therefrom in the same manner as such authority itself might do,
and to dispose of the moneys collected in accordance with the agreement
of such obligee with the authority;
(r) Vest in a trustee or trustees the right to enforce any covenant to
secure, or pay the bonds, or otherwise relating to such bonds; provide
for the powers, duties and limitations of liabilities of such trustee or
trustees, and provide the terms and conditions upon which the trustee or
trustees, or the holders of bonds, or any proportion of them, may
enforce any such covenant;
(s) Vest in a government, in a trustee or in other obligee the right,
upon any happening of an event of default, to foreclose through judicial
proceedings or through the exercise of a power of sale without judicial
proceedings, any mortgage as to all or such part or parts of the
property covered thereby as such government, trustee or other obligee
shall elect; the institution, prosecution and conclusion of any such
foreclosure proceedings or the sale of any such parts of the mortgaged
property shall not affect in any manner or to any extent the lien of the
mortgage on the parts of the mortgaged property not included in such
proceedings or not sold as aforesaid;
(t) Make such other covenants and do any and all such acts and things
as may be necessary or convenient or desirable in order to secure its
bonds or make them more marketable, notwithstanding that such covenants,
acts or things may not be enumerated herein; execute all instruments
necessary or convenient in the exercise of the powers herein granted, or
in the performance of its covenants or duties, which may contain such
covenants and provisions, in addition to those above specified, as the
government or any purchaser of the bonds of an authority may require.
2. In case of conflict between this section and article nine of the
uniform commercial code, this section shall control.