§ 970-o. Tax increment bonds. (a) For the purpose of carrying out or
administering a redevelopment plan adopted by the legislative body, a
municipality is hereby authorized, without limiting its authority under
other provisions of law, to issue by resolution of its legislative body
tax increment bonds or tax increment bond anticipation notes of the
municipality which are payable from and secured by real property taxes,
in whole or in part, allocated to and paid pursuant to the provisions of
section nine hundred seventy-p of this article. The pledge of such real
property taxes allocated and paid shall constitute a first lien on the
revenues derived therefrom and tax increment bonds or tax increment bond
anticipation notes, the repayment of which is secured by such revenues
shall not be subordinate to any other indebtedness of the municipality
with respect to the pledge of such revenues. The municipality shall have
the power to issue renewal notes, to issue bonds to pay notes 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 other purposes.

(b) In contracting indebtedness pursuant to subdivision (a) of this
section a municipality shall not pledge its faith and credit or the
faith and credit of the state to the payment of the principal thereof
and the interest thereon. Indebtedness contracted pursuant to this
subdivision shall not be indebtedness of any school district that has
allocated taxes pursuant to section nine hundred seventy-p of this
article.

(c) Bonds and notes issued pursuant to this section shall bear such
date or dates and mature at such time or times, in the case of any note
or any renewals thereof not to exceed five years from the date of issue
of such original note, and in the case of any bond not exceeding the
probable useful life of the object or purpose for which such bond is
issued, as the bond or note resolution or resolutions may provide. The
notes and bonds shall bear interest at such rates per annum payable at
such times, be in such denominations, be in such form either coupon or
registered, 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 and be subject to such terms of redemption, as the
bond or note resolution or resolutions may provide. The notes and bonds
may be sold at public or private sale at such price or prices as the
municipality shall determine. No notes or bonds may be sold at private
sale unless such sale and the terms thereof have been approved in
writing by the state comptroller provided, however, that if such notes
or bonds are sold at private sale to the state comptroller, the sale and
terms thereof shall first be approved in writing by the state director
of the budget.

(d) Any resolution or resolutions authorizing any tax increment bonds
or tax increment notes or any issue thereof may contain provisions,
which shall be a part of the contract with the holders thereof, as to:

(i) pledging all or a part of the taxes allocated pursuant to section
nine hundred seventy-p of this article or the proceeds from the sale of
property acquired with the proceeds of such notes or bonds to secure the
payment of such notes or bonds or of any issue thereof, subject to such
agreements with bondholders or noteholders as may exist;

(ii) the setting aside of reserve or sinking funds and the regulation
and disposition thereof;

(iii) limitations on the purpose to which the proceeds of the sale of
notes or bonds may be applied and pledging such proceeds to secure the
payment of the notes or bonds or any issue thereof;

(iv) 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;

(v) vesting in a trustee or trustees such property, rights, powers and
duties in trust as the municipality shall determine.

(e) A bond resolution or bond anticipation note resolution shall be
authorized for each redevelopment plan adopted by the legislative body
which provides for the financing of redevelopment projects from the
proceeds of such notes and bonds.

(f) Neither the expenditure of money for an object or purpose for
which it is proposed to issue obligations nor a bond resolution or bond
anticipation note resolution authorized by this section shall be subject
to a permissive referendum.

(g) The amount of any indebtedness contracted under this section shall
be excluded in ascertaining the power of the municipality to contract
indebtedness within the provisions of the state constitution or the
local finance law relating thereto.

(h) The proceeds from the sale of real property acquired with the
proceeds from the sale of bonds or notes issued pursuant to this section
shall be used solely for the purposes of repayment of principal on such
notes or bonds.

(i) The municipality may contract indebtedness pursuant to this
section for the following objects or purposes:

(i) acquisition of land;

(ii) demolition and removal of buildings, structures and improvements
and site preparation;

(iii) installation, construction or reconstruction of streets,
walkways, docks, drainage, parking facilities, flood control facilities,
water and sewer systems and other public utilities, parks and
playgrounds;

(iv) other public improvements or services integral to the
redevelopment plan authorized by or for which a period of probable
usefulness has been established by section 11.00 of the local finance
law. Objects and purposes referred to in this subdivision shall be
deemed to have the period of probable usefulness as provided for such
objects and purposes by such section.