Creates a veteran's home and land ownership loan program to provide loans to veterans to purchase homes or unimproved land suitable for building; such loans to be secured by a second mortgage.

---

S2506-2011 Actions

• Jun 21, 2012: COMMITTED TO RULES
• May 30, 2012: ADVANCED TO THIRD READING
• May 23, 2012: 2ND REPORT CAL.
• May 22, 2012: 1ST REPORT CAL.894
• Jan 4, 2012: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS
• Jan 24, 2011: REFERRED TO VETERANS, HOMELAND SECURITY AND MILITARY AFFAIRS

S2506-2011 Meetings

Veterans, Homeland Security and Military Affairs: May 22, 2012

S2506-2011 Calendars

Floor Calendar: May 23, 2012 , Floor Calendar: May 30, 2012 , Floor Calendar: May 31, 2012 , Floor Calendar: Jun 4, 2012 , Floor Calendar: Jun 5, 2012 , Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012 , Floor Calendar: Jun 12, 2012 , Floor Calendar: Jun 13, 2012 , Floor Calendar: Jun 14, 2012 , Floor Calendar: Jun 18, 2012 , Floor Calendar: Jun 19, 2012 , Floor Calendar: Jun 20, 2012 , Floor Calendar: Jun 21, 2012

S2506-2011 Votes

S2506-2011 Memo

BILL NUMBER:S2506

TITLE OF BILL:
An act
to amend the private housing finance law, in relation to creating a
veteran's home and land ownership loan program

PURPOSE OR GENERAL IDEA OF BILL:
To authorize the New York State Housing Finance Agency to provide down
payment assistance or rehabilitation loans to veterans, as well as
loans for the purchase of unimproved property for building a home.

SUMMARY OF SPECIFIC PROVISIONS:
This bill adds a new Article XIX-A to the Private Housing Finance Law
to create a Home and Land Ownership Loan Fund within the New York
State Housing Finance Agency. The agency would be authorized to enter
into contracts with eligible veterans to provide loans to assist in
the purchase or the purchase and rehabilitation of a dwelling of up
to four residential units, provided such persons or family resides in
one of the units. The bill defines "eligible person" as a veteran to
their surviving unmarried spouse, and contains a definition of a
veteran for the purpose of the Article. Any such loans could not
exceed 20 percent of the cost of acquiring the dwelling or 20 percent
of the value of such dwelling after rehabilitation, or $40,000 in the
case of the unimproved Real Property. The value of the dwelling unit
would be determined from the appraisal required by the lending
institution granting the first mortgage loan such dwelling. If no
such appraisal has been made at the time a loan application is
submitted, the agency shall cause appraisal to be made. Any loan
would have to be secured by a second mortgage on the dwelling. If the
recipient of such loan assigns or conveys his interest in the
dwelling or ceases to occupy the dwelling
, the unpaid principal balance of the mortgage, together with interest
thereon, would become due and payable. If the recipient is unable to
repay the loan, the agency would have the authority to adjust the
interest rate, terms, and conditions of the loan to facilitate
repayment. The repayment of any loan made pursuant to this would be
subject to an interest rate to be determined in accordance with terms
and conditions as the agency may establish. In no case could the term
of the first mortgage obtained for the purpose of purchasing the
dwelling, except in the case of a graduated payment mortgage loan
where no such loan could exceed a term of 30 years. The bill also
authorizes the agency to issue bonds and notes to carry out the
provisions of that act, however, they could not be issued in excess
of an aggregate amount of $20 million. The maximum maturity of the
bonds could not exceed 30 years, while the maximum maturity of the
notes or any renewals thereof could not exceed seven years from the
date of the original issue. The bonds and notes could be sold at
public or private sale, except that with regard to the latter, such
sale would
have to be approved by the comptroller or the state Director of th e
Budget, depending on whom the sale is made.

EFFECTS of THE PRESENT LAW WHICH THIS BILL WOULD ALTER:
The bill adds a new XIX-A to the private Housing Finance Law.


JUSTIFICATION:
On account of escalating housing prices, veterans, and their families
are encountering difficulties in obtaining the necessary funds to
purchase a home, even though they are for a mortgage. This situation
occurs because they cannot accumulate enough cash to pay for the
difference between the purchase price of the home and the amount of
the mortgage funding. In addition, many veterans are precluded from
entering the housing market because they cannot gain access to enough
cash to afford the down payment on a home. This bill would provide
such veterans with the necessary funds to finance the down payment,
finance the added cash needed to purchase a home, provide needed
rehabilitation funds for repairing distressed (and generally
inexpensive) housing stock, or purchasing land upon which to build a
new home. Each of these approaches will significantly improve a
veterans' transition to civilian life and would provide a benefit
both to communities across the state and provide a real and tangible
measure of appreciation for the veterans to whom we all owe so much.

PRIOR LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
Minimal to the state.

EFFECTIVE DATE:
This act shall take effect on the one
hundred eightieth day after it shall have become a law,
with provisions.

S2506-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    2506

                         2011-2012 Regular Sessions

                              I N  SENATE

                              January 24, 2011
                                 ___________

  Introduced  by Sen. McDONALD -- read twice and ordered printed, and when
    printed to be committed to the Committee on Veterans, Homeland Securi-
    ty and Military Affairs

  AN ACT to amend the private housing finance law, in relation to creating
    a veteran's home and land ownership loan program

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1. The private housing finance law is amended by adding a new
  article 19-A to read as follows:

                                ARTICLE XIX-A
                   VETERAN'S HOME AND LAND OWNERSHIP LOAN
  SECTION 1115. LEGISLATIVE PURPOSE.
          1115-A. DEFINITIONS.
          1115-B. CREATION OF THE "VETERAN'S HOME AND LAND OWNERSHIP
                    LOAN FUND".
          1115-C. PURPOSE AND TERMS OF LOAN.
          1115-D. LOAN REPAYMENT.
          1115-E. ISSUANCE OF BONDS.
          1115-F. ADOPTION OF REGULATIONS.
    S 1115. LEGISLATIVE PURPOSE. IT IS HEREBY FOUND AND DECLARED THAT MANY
  NEW YORK RESIDENTS HAVE SERVED OUR NATION HONORABLY IN THE ARMED  FORCES
  OF  THE  UNITED  STATES,  AND THAT MANY SUCH NEW YORKERS HAVE SACRIFICED
  CONSIDERABLY DURING THEIR SERVICE. IT IS IN THE PUBLIC INTEREST BOTH  TO
  DEMONSTRATE  OUR APPRECIATION FOR THAT SERVICE BY PROVIDING STATE FINAN-
  CIAL ASSISTANCE TO SUCH VETERANS; IN ORDER TO ENCOURAGE  HOME  OWNERSHIP
  AND  THE  REHABILITATION OF DETERIORATING HOUSING, STABILIZE COMMUNITIES
  AND IMPROVE THE LOCAL TAX BASE.
    S 1115-A. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
  TERMS SHALL HAVE THE FOLLOWING MEANINGS:

    1. "PERSON" MEANS AN HONORABLY DISCHARGED VETERAN OF THE ARMED  FORCES
  OF THE UNITED STATES, OR THEIR SURVIVING UNMARRIED SPOUSE.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD01501-01-1

 S. 2506                             2

    2.  "VETERAN" MEANS A PERSON WHO SERVED IN THE ACTIVE MILITARY, NAVAL,
  OR AIR SERVICE DURING TIME OF WAR AS DEFINED BELOW, OR WHO WAS A RECIPI-
  ENT OF THE ARMED FORCES EXPEDITIONARY MEDAL, NAVY  EXPEDITIONARY  MEDAL,
  MARINE CORPS EXPEDITIONARY MEDAL, OR GLOBAL WAR ON TERRORISM EXPEDITION-
  ARY  MEDAL, AND WHO WAS DISCHARGED OR RELEASED THEREFROM UNDER HONORABLE
  CONDITIONS.
    3. "SERVICE DURING TIME OF WAR" MEANS:

    (A) THE INDIVIDUAL IN QUESTION WAS A RECIPIENT  OF  THE  ARMED  FORCES
  EXPEDITIONARY  MEDAL,  THE  NAVY EXPEDITIONARY MEDAL OR THE MARINE CORPS
  EXPEDITIONARY MEDAL FOR PARTICIPATION IN OPERATIONS IN LEBANON FROM JUNE
  FIRST, NINETEEN HUNDRED EIGHTY-THREE TO DECEMBER FIRST, NINETEEN HUNDRED
  EIGHTY-SEVEN, IN GRENADA FROM  OCTOBER  TWENTY-THIRD,  NINETEEN  HUNDRED
  EIGHTY-THREE TO NOVEMBER TWENTY-FIRST, NINETEEN HUNDRED EIGHTY-THREE, OR
  IN PANAMA FROM DECEMBER TWENTIETH, NINETEEN HUNDRED EIGHTY-NINE TO JANU-
  ARY THIRTY-FIRST, NINETEEN HUNDRED NINETY, OR;
    (B)  THE  INDIVIDUAL  SERVED ON ACTIVE DUTY FOR NINETY DAYS OR MORE IN
  THE ARMED FORCES OF THE UNITED STATES DURING ANY ONE  OF  THE  FOLLOWING
  WARS OR HOSTILITIES:

    (I)  IN  WORLD  WAR  I  FROM  THE SIXTH DAY OF APRIL, NINETEEN HUNDRED
  SEVENTEEN TO THE ELEVENTH DAY OF NOVEMBER,  NINETEEN  HUNDRED  EIGHTEEN,
  INCLUSIVE;
    (II)  IN  WORLD  WAR  II  FROM  THE  SEVENTH DAY OF DECEMBER, NINETEEN
  HUNDRED FORTY-ONE TO THE THIRTY-FIRST DAY OF DECEMBER, NINETEEN  HUNDRED
  FORTY-SIX, INCLUSIVE;
    (III)  IN  THE KOREAN HOSTILITIES FROM THE TWENTY-SEVENTH DAY OF JUNE,
  NINETEEN HUNDRED FIFTY TO THE  THIRTY-FIRST  DAY  OF  JANUARY,  NINETEEN
  HUNDRED FIFTY-FIVE, INCLUSIVE;
    (IV)  IN  THE VIETNAM CONFLICT FROM THE TWENTY-SECOND DAY OF DECEMBER,
  NINETEEN HUNDRED SIXTY-ONE TO THE SEVENTH DAY OF MAY,  NINETEEN  HUNDRED
  SEVENTY-FIVE; OR
    (V)  IN THE PERSIAN GULF CONFLICT FROM THE SECOND DAY OF AUGUST, NINE-
  TEEN HUNDRED NINETY TO THE END OF SUCH CONFLICT.
    4. "AGENCY" MEANS THE NEW YORK STATE HOUSING FINANCE AGENCY CREATED BY
  SECTION FORTY-THREE OF THIS CHAPTER.
    S 1115-B. CREATION OF THE "VETERAN'S  HOME  AND  LAND  OWNERSHIP  LOAN
  FUND".  THERE IS HEREBY ESTABLISHED A "VETERAN'S HOME AND LAND OWNERSHIP
  LOAN  FUND".  SUCH  FUND  SHALL BE USED TO MAKE LOANS AUTHORIZED BY THIS
  ARTICLE AND FOR EXPENSES INCURRED BY THE AGENCY IN THE IMPLEMENTATION OF
  THE PROGRAM ESTABLISHED BY THIS ARTICLE.
    S 1115-C. PURPOSE AND TERMS OF LOAN. 1. THE AGENCY, ACTING  ON  BEHALF
  OF THE STATE MAY IN ITS DISCRETION, ENTER INTO A CONTRACT WITH AN ELIGI-
  BLE  PERSON TO PROVIDE A LOAN TO ASSIST IN THE PURCHASE OF A DWELLING OR
  THE PURCHASE AND REHABILITATION OF A  DWELLING  CONTAINING  UP  TO  FOUR
  RESIDENTIAL  UNITS, PROVIDED SUCH PERSON SHALL RESIDE IN AT LEAST ONE OF
  SUCH UNITS. SUCH LOAN MAY ALSO BE MADE FOR THE  PURCHASE  OF  UNIMPROVED
  REAL PROPERTY WHEN SUCH PROPERTY SHALL BE USED FOR THE CONSTRUCTION OF A
  NEW DWELLING.
    2.  SUCH  LOAN  SHALL  NOT  EXCEED TWENTY PERCENT OF THE VALUE FOR THE
  PURCHASE OF A HOME, OR FORTY THOUSAND DOLLARS FOR THE PURCHASE OF  UNIM-
  PROVED REAL PROPERTY. SUCH VALUE SHALL BE DETERMINED FROM THE APPRAISAL,
  IF  ANY, REQUIRED BY THE LENDING INSTITUTION GRANTING THE FIRST MORTGAGE
  LOAN ON SUCH DWELLING, AND IF NO SUCH APPRAISAL HAS  BEEN  MADE  AT  THE
  TIME  THAT A CONTRACT FOR LOAN IS ENTERED INTO PURSUANT TO THIS ARTICLE,
  THE AGENCY SHALL CAUSE SUCH APPRAISAL TO BE MADE.
    S 1115-D. LOAN REPAYMENT. 1. ANY LOAN CONTRACTED FOR PURSUANT TO  THIS
  ARTICLE  SHALL  BE SECURED BY A SECOND MORTGAGE ON THE DWELLING OR UNIM-

 S. 2506                             3

  PROVED REAL PROPERTY PURCHASED BY THE RECIPIENT  OF  SUCH  LOAN  IF  THE
  RECIPIENT  OF  SUCH  LOAN ASSIGNS, TRANSFERS OR OTHERWISE CONVEYS HIS OR
  HER INTEREST IN SUCH DWELLING OR CEASES TO  OCCUPY  SUCH  DWELLING,  THE
  UNPAID PRINCIPAL BALANCE OF SAID SECOND MORTGAGE, TOGETHER WITH INTEREST
  THEREON,  SHALL  BECOME DUE AND PAYABLE. IF THE RECIPIENT OF ANY LOAN IS
  UNABLE TO REPAY THE LOAN, THE AGENCY, AT ITS DISCRETION, MAY ADJUST  THE
  INTEREST RATE, TERMS AND CONDITIONS OF THE LOAN TO FACILITATE REPAYMENT.
    2.  REPAYMENT  OF  ANY  LOAN  PROVIDED IN ACCORDANCE WITH THIS ARTICLE
  SHALL BE SUBJECT TO AN INTEREST RATE TO BE DETERMINED IN ACCORDANCE WITH
  TERMS AND CONDITIONS AS THE AGENCY MAY ESTABLISH. IN NO CASE  SHALL  THE
  TERM  EXCEED  THE TERM OF THE FIRST MORTGAGE OBTAINED FOR THE PURPOSE OF
  PURCHASING SUCH DWELLING EXCEPT, IN THE  CASE  OF  A  GRADUATED  PAYMENT
  MORTGAGE  LOAN,  THE  TERM OF THE LOAN MADE PURSUANT TO THIS ARTICLE MAY
  EXCEED THE EXPECTED TERM OF SUCH MORTGAGE LOAN PROVIDED. THE TERM OF THE
  LOAN MADE PURSUANT TO THIS ARTICLE DOES NOT EXCEED THE LESSER OF:

    (A) THE TERM INDICATED BY THE LIMITED  AMORTIZATION  SCHEDULE  OF  THE
  GRADUATED PAYMENT MORTGAGE LOAN; OR
    (B)  THIRTY  YEARS. PAYMENTS BY HOMEOWNERS SHALL BE PAID TO THE AGENCY
  AND DEPOSITED IN THE VETERAN'S HOME AND LAND OWNERSHIP LOAN FUND.
    S 1115-E. ISSUANCE OF BONDS. 1. THE AGENCY SHALL HAVE THE POWER AND IS
  HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE ITS  NEGOTIABLE  BONDS  AND
  NOTES IN CONFORMITY WITH APPLICABLE PROVISIONS OF THE UNIFORM COMMERCIAL
  CODE  IN  SUCH  PRINCIPAL  AMOUNTS  AS, IN THE DISCRETION OF THE AGENCY,
  SHALL BE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE, BUT NOT IN
  EXCESS OF AN AGGREGATE AMOUNT OF TWENTY MILLION DOLLARS.
    2. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED BY  THE  AGENCY,  ALL
  BONDS  AND  NOTES  ISSUED  SHALL BE PAYABLE OUT OF ANY MONEYS, ASSETS OR
  REVENUES OF THE STATE, SUBJECT ONLY TO ANY AGREEMENT WITH BONDHOLDERS OR
  NOTEHOLDERS PLEDGING ANY PARTICULAR MONEYS, ASSETS OR REVENUES.
    3. BONDS AND NOTES SHALL BE AUTHORIZED BY A RESOLUTION OR  RESOLUTIONS
  OF THE AGENCY ADOPTED IN THE MANNER PROVIDED BY LAW.
    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  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 SHALL NOT EXCEED THIRTY
  YEARS FROM THE DATE THEREOF AND THE MAXIMUM MATURITY  OF  NOTES  OR  ANY
  RENEWALS  THEREOF  SHALL  NOT  EXCEED  SEVEN  YEARS FROM THE DATE OF THE
  ORIGINAL ISSUE OF SUCH NOTES.
    5. ANY SUCH BONDS OR NOTES 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 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. NO BONDS OR NOTES MAY  BE
  SOLD  AT  PRIVATE  SALE,  HOWEVER, UNLESS SUCH SALE AND THE TERM THEREOF
  HAVE BEEN APPROVED IN WRITING BY:

    (A) THE COMPTROLLER, IF SUCH SALE IS NOT TO THE COMPTROLLER; OR
    (B) THE STATE DIRECTOR OF THE BUDGET, IF SUCH SALE  IS  TO  THE  COMP-
  TROLLER.
    6.  THE  AGENCY IS AUTHORIZED TO PROVIDE FOR THE ISSUANCE OF ITS BONDS
  OR NOTES FOR THE PURPOSE OF REFUNDING  ANY  SUCH  BONDS  OR  NOTES  THEN
  OUTSTANDING,  INCLUDING  THE  PAYMENT OF ANY REDEMPTION PREMIUMS THEREON

 S. 2506                             4

  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 REFUND-
  ING  OUTSTANDING  BONDS  OR  NOTES  SHALL  BE  FORTHWITH  APPLIED TO THE
  PURCHASE OR RETIREMENT OF SUCH OUTSTANDING BONDS OR NOTES OR THE REDEMP-
  TION OF SUCH OUTSTANDING BONDS OR NOTES  ON  THE  REDEMPTION  DATE  NEXT
  SUCCEEDING  THE  DATE  OF  DELIVERY OF SUCH REFUNDING BONDS OR NOTES AND
  MAY, PENDING SUCH APPLICATION, BE PLACED IN ESCROW TO BE APPLIED TO SUCH
  PURCHASE OR RETIREMENT OR REDEMPTION ON SUCH  DATE.  ANY  SUCH  ESCROWED
  PROCEEDS, PENDING SUCH USE, MAY BE INVESTED AND REINVESTED ONLY IN OBLI-
  GATIONS  OF  OR  GUARANTEED BY THE STATE OR THE UNITED STATES OF AMERICA
  AND EITHER:

    (A) THE YIELD FROM WHICH DOES NOT EXCEED THE AVERAGE NET INTEREST COST
  PER ANNUM, EXPRESSED AS A PERCENTAGE, ON SUCH REFUNDING  BONDS  BY  MORE
  THAN ONE-HALF OF ONE PERCENT; OR
    (B) THE INCOME FROM WHICH IS EXEMPT FROM FEDERAL TAXATION, 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  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 OR REDEMPTION,
  AS THE CASE MAY BE. AFTER THE TERMS OF THE ESCROW HAVE BEEN FULLY SATIS-
  FIED 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 LAW IN
  THE SAME MANNER AND TO THE SAME EXTENT  AS  ANY  OTHER  BONDS  OR  NOTES
  ISSUED PURSUANT TO LAW.
    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  COMMER-
  CIAL  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  REGIS-
  TRATION.
    8. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS OR NOTES PURSU-
  ANT  TO  THE PROVISIONS OF THIS ARTICLE 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 RESOL-
  UTION  OR RESOLUTIONS, ON ALL OR ANY PART OF ANY MONEYS HELD IN TRUST OR
  OTHERWISE BY OTHERS FOR THE PAYMENT OF SUCH BONDS OR NOTES;
    (B) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS AND THE  REGULATION
  OR DISPOSITION THEREOF;
    (C)  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;
    (D)  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;
    (E) 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;

 S. 2506                             5

    (F)  PROVIDING  FOR THE RIGHTS AND REMEDIES OF THE HOLDERS OF BONDS OR
  NOTES IN THE EVENT OF DEFAULT, PROVIDED, HOWEVER, THAT SUCH  RIGHTS  AND
  REMEDIES  SHALL NOT BE INCONSISTENT WITH THE GENERAL LAWS OF THIS STATE;
  AND
    (G) 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.
    S 1115-F. ADOPTION OF REGULATIONS. THE AGENCY SHALL ADOPT  REGULATIONS
  PROVIDING FOR QUALIFICATIONS OF ELIGIBLE PERSONS, REQUIREMENTS AND LIMI-
  TATIONS  AS TO ADJUSTMENTS OF TERMS AND CONDITIONS OF REPAYMENT, FUNDING
  PRIORITIES AND ANY ADDITIONAL REQUIREMENTS  AS  IT  DEEMS  NECESSARY  TO
  CARRY OUT THE PURPOSES OF THIS ARTICLE.
    S 2. This act shall take effect on the one hundred eightieth day after
  it shall have become a law; provided, however, that effective immediate-
  ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
  necessary for the implementation of this act on its effective  date  are
  authorized  and  directed  to  be  made  and completed on or before such
  effective date.