N.Y. Public Housing Law Section 49
Authority obligations as legal investments and legal security for deposits by public officers

The state, its subdivisions, municipalities, and all other public bodies, and all public officers, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, saving and loan associations, investment companies and other persons carrying on a banking business, all insurance companies, insurance associations and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees and other fiduciaries may legally invest funds belonging to them or within their control in:

(a)

any bonds, notes and other obligations of an authority when they are (1) secured by a pledge of the revenues of a project, and additionally secured by a pledge of periodic subsidies or of annual contributions to be paid to an authority by a government, or

(2)

secured by a first mortgage lien not exceeding sixty-six and two-thirds per centum of the value of the property covered thereby, or

(3)

secured by an agreement between the authority and a government pursuant to which the authority agrees to borrow from the government, and the government agrees to lend to the authority prior to the maturity of such bonds, notes or other obligations of the authority, monies in an amount which (together with any other monies irrevocably committed to the payment of principal of or interest on such bonds, notes or other obligations) will be sufficient to pay the principal of such bonds, notes or other obligations with interest thereon to maturity, which monies under the terms of such agreement are required to be used by the authority for the purpose of paying the principal of and interest on such bonds, notes or other obligations at their maturity, or

(4)

guaranteed by a municipality as to principal and interest;

(b)

any notes issued pursuant to and in conformity with the provisions of subdivision two of § 41 (Power to issue authority bonds)section forty-one of this chapter under a contract with the state containing a covenant for the payment of periodic subsidies as provided in subdivision (b) of § 76-A (Private financing)section seventy-six-a of this chapter; or

(c)

any bonds, notes and other obligations issued by any public housing authority or agency in the United States or in the commonwealth of Puerto Rico when such bonds, notes or other obligations are secured by a pledge of the revenues of the housing project or projects for which the bonds, notes or other obligations are issued, and additionally secured by a pledge of annual contributions to be paid by the United States government or any agency thereof. Such bonds, notes and other obligations issued by an authority pursuant to this chapter 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.

Source: Section 49 — Authority obligations as legal investments and legal security for deposits by public officers, https://www.­nysenate.­gov/legislation/laws/PBG/49 (updated Sep. 22, 2014; accessed Nov. 29, 2025).

30
Organization of authorities 31
Scope of authority’s jurisdiction 32
Officers and employees 33
Transfer of officers and employees 34
Vacancies and removals 35
Non-liability of authority members 36
Disqualification of members and employees of authorities 37
Powers of authority 38
An authority shall file with the commissioner a copy of each proposed project embodying the plans, layout, estimated costs and proposed m... 39
Projects financed solely by authorities 40
Aid from and cooperation with federal government 41
Power to issue authority bonds 42
Provisions of authority bonds 44
Signature on authority bonds 45
Repurchase of authority bonds 46
Suit on authority bonds 47
Bond covenants of an authority 48
Guaranteed indebtedness of an authority 49
Authority obligations as legal investments and legal security for deposits by public officers 50
Foreclosure and other remedies against an authority 51
Liability of state or municipality 52
Tax exemptions of an authority 53
Depositories of authority funds 54
Filing by authority of by-laws, rules and regulations 55
Projects undertaken by municipalities 55–A
Facilities incidental or appurtenant to a project 56
Authorities created prior to the enactment of this chapter 57
Dissolution of authorities 58
Sale or lease of municipal projects by authorities 58–A
Sale of dwelling units by authorities 58–B
Sale or lease of project in connection with federal program of assistance for low income housing 59
Disposal of records 60
Reproduction of records 61
Tenant meetings in common areas
Green check means up to date. Up to date

Verified:
Nov. 29, 2025

Last modified:
Sep. 22, 2014

§ 49. Auth. obligations as legal investments & legal security for deposits by public officers's source at nysenate​.gov

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