New York Laws
Article 15-A - Municipal Urban Renewal Agencies, Organization and Powers
559 - Bonds of an Agency.

(b) An agency shall have power, from time to time, 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.
2. Except as may otherwise be expressly provided by the agency, every
issue of its notes and bonds shall be general obligations of the agency
payable out of any revenues or moneys of the agency, subject only to any
agreements with the holders of particular notes or bonds pledging any
particular receipts or revenues, provided, however, that the payment of
such bonds and notes, both as to principal and interest, may be further
secured by a pledge of any loan, grant, or contribution from the federal
government or other source, in aid of any urban renewal program or part
thereof, or by a mortgage of any such urban renewal program, or part
thereof, title to which is in the agency, or that payment of such bonds
and notes, both as to principal and interest, or only as to interest,
may be guaranteed by the municipality.
3. Bonds and notes of an agency shall be authorized by its resolution,
shall bear such date or dates, mature at such time or times, in the case
of any such note, or any renewals thereof, not exceeding seven years
from the date of issue of such original note, and in the case of any
such bond not exceeding fifty years from the date of issue, as such
resolution or resolutions shall provide. The notes and bonds shall bear
interest at such rate or rates, be in such denomination or
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 with or without premium, and be secured in such manner, as
such resolution or resolutions may provide. The bonds and notes may be
sold by the agency at public or private sale, at such price or prices as
the agency may determine.
4. Bonds and notes of an agency are hereby made securities in which
all public officers and bodies of this state and all municipalities and
municipal subdivisions, all insurance companies and associations and
other persons carrying on an insurance business, all banks, bankers,
trust companies, savings banks and savings associations, including
saving and loan associations, building and loan associations, investment
companies and other persons carrying on a banking business, all
administrators, guardians, executors, trustees and other fiduciaries,
and all other persons whatsoever who are now or may hereafter be
authorized to invest in bonds or other obligations of the state, may
properly and legally invest funds, including capital, in their control
or belonging to them, provided that such bonds and notes (1) are secured
by an agreement between the agency and the federal government in which
the agency agrees to borrow from the federal government and the federal
government agrees to lend to the agency, prior to the maturity of such
bonds or notes, monies in an amount which (together with any other
monies irrevocably committed to the payment of principal and interest on
such bonds or notes) will suffice to pay the principal on such bonds or
notes with interest to maturity thereon, which monies under the terms of
said agreement are required to be used for the purpose of paying the

principal of and the interest on such bonds or notes at their maturity,
or (2) are guaranteed by the municipality as to principal and interest.
Such bonds and notes are also hereby made securities which may be
deposited with and shall be received by all public officers and bodies
of this state and all municipalities, governments, and public
corporations of this state, for any purpose for which the deposit of
bonds or other obligations of this state is now or may be hereafter
authorized or required.
5. In case any of the members or officers of an agency whose
signatures appear on the bonds or coupons shall cease to be such members
or officers before the delivery of such bonds, such signatures shall,
nevertheless, be valid and sufficient for all purposes, the same as if
they had remained in office until such delivery.
6. In connection with the issuance of bonds or the incurring of an
obligation and to secure the payment of such bonds or other obligations,
an agency, in addition to its other powers, may:
(a) pledge, covenant to pledge, or covenant against pledging, all or
any part of the rents, fees, revenues, subsidies, grants or
contributions to which its right then exists or may thereafter come into
existence; covenant against permitting or suffering any lien thereon; it
is the intention hereof that any pledge of revenues or other monies made
by an agency shall be valid and binding from the time when the pledge
has been made, that revenues or other monies so pledged and thereafter
received by an 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;
(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 use of any or all of its properties, real or
personal;
(e) 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 monies
held for the payment of the principal of and interest on its bonds; and
(4) any monies held for any reserves or contingencies; and covenant as
to the use and disposal of the monies held in such funds.
(f) covenant as to any other matters of like or different character,
which in any way affect the security or the protection of the bonds.
7. Neither the members of an agency nor any person executing the notes
or bonds of an agency shall be liable personally on such notes or bonds
or be subject to any personal liability or accountability by reason of
the issuance thereof.