2040-G - Bonds and notes.

§  2040-g.  Bonds and notes. 1. (a) The authority shall have 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  amount as, in the opinion of the  authority, shall  be  necessary  for  any  of  its  corporate  purposes,  including incidental expenses in connection therewith;    (b)  Except  as  may otherwise be expressly provided by the authority,  every issue of its bonds or notes shall be general  obligations  of  the  authority  payable  out  of any moneys of the authority, subject only to  any agreements with the holders of particular bonds  or  notes  pledging  any particular moneys;    2.  The  bonds  and  notes  shall  be  authorized by resolution of the  governing body, shall bear such date or dates, shall mature at such time  or times, shall bear  interest  at  such  rate  or  rates,  be  in  such  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 as such resolution or resolutions may provide.  The  notes  and  bonds of the authority may be sold by the authority at private sale  subject to the approval of the comptroller of the state of New  York  or  at  a  public  sale  at  such  price  or  prices  as the authority shall  determine. The authority may pay all expenses, premiums and  commissions  which  it  may  deem  necessary  or  advantageous in connection with the  issuance and sale thereof.    3. Any resolution or resolutions authorizing any bonds or notes or any  issue thereof may contain provisions, which  shall  be  a  part  of  the  contract with the holders thereof, as to:    (a)  pledging all or any part of the moneys or revenues derived by the  authority from the ownership or operation of, or otherwise in connection  with, any project or projects or any part or parts thereof to secure the  payment of the bonds or notes or of any issue thereof, subject  to  such  agreements with bondholders or noteholders as may then exist;    (b)  the  amount,  use and disposition of the rates, rentals, fees and  other charges to be fixed and collected by the authority;    (c) the setting aside of reserves and the creation  of  sinking  funds  and the regulation and disposition thereof;    (d) limitations on the right of the authority to restrict and regulate  the  use  of the properties in connection with which such bonds or notes  are issued;    (e) limitations on the purpose to which the proceeds of sale of  bonds  or notes may be applied;    (f)  limitations  on  the  issuance  of additional bonds or notes, the  terms upon which additional bonds or notes may be  issued  and  secured;  the refunding of outstanding or other bonds or notes;    (g)  the  procedure,  if  any, by which the terms of any contract with  bondholders or noteholders 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;    (h) the creation of special funds into which any moneys or revenues of  the authority may be deposited;    (i)  the  terms  and  provisions  of  any  mortgage  or  trust deed or  indenture securing the bonds or notes or under which the bonds or  notes  may be issued;    (j)  vesting  in  a trustee or trustees such property, rights, powers,  and duties in trust as the authority may determine which may include any  or all of the rights, powers and duties of the trustee appointed by  the  bondholders  or  noteholders  pursuant  to  this  title, and limiting or  abrogating the right of the bondholders  or  noteholders  to  appoint  atrustee  under  this  title or limiting the rights, powers and duties of  such trustee;    (k)  defining  the  acts  or omissions to act which shall constitute a  default  in  the  obligations  and  duties  of  the  authority  to   the  bondholders  or noteholders and providing the rights and remedies of the  bondholders or noteholders in the event of such default, including as  a  matter  of  right the appointment of a receiver, provided, however, that  such rights and remedies shall not be inconsistent with the general laws  of this state and other provisions of this title;    (l) limitations on the power of the authority  to  sell  or  otherwise  dispose of its properties;    (m)  limitations on the amount of money derived from the properties to  be expended for operating,  administrative  or  other  expenses  of  the  authority;    (n)  the  protection and enforcement of the rights and remedies of the  bondholders or noteholders;    (o) the obligations of the authority in relation to the  construction,  maintenance,  operation,  repairs and insurance of the properties of the  authority, the safeguarding  and  application  of  all  moneys  and  the  requirements for the supervision and approval of consulting engineers in  connection   with   construction,  maintenance  and  operation  of  such  properties;    (p) the payment of the proceeds of bonds and notes  and  other  moneys  and  revenues of the authority to a trustee or other depositary, and for  the method of disbursement thereof with such safeguards and restrictions  as the authority may determine;    (q) any other matters, of like or different character which in any way  affect the security of protection of the bonds and notes.    4. In addition to the powers herein conferred upon  the  authority  to  secure its bonds and notes, the authority shall have power in connection  with  the  issuance  of bonds and notes to enter into such agreements as  the authority may deem necessary, convenient or desirable concerning the  use or disposition of its moneys or property including the mortgaging of  any such property and the entrusting, pledging or creation of any  other  security  interest  in  any such moneys or property and the doing of any  act (including refraining from doing any act) which the authority  would  have  the  right  to do in the absence of such agreements. The authority  shall have power to enter into amendments of any such agreements  within  the  powers  granted  to the authority by this title and to perform such  agreements. The provisions of any such agreements may be made a part  of  the contract with the holders of the bonds and notes of the authority.    5. It is the intention of the legislature that any pledge, mortgage or  security  instrument  made  by  the authority shall be valid and binding  from the time when the pledge, mortgage or security instrument is  made;  that  the  moneys  or  property  so pledged, mortgaged, or entrusted and  thereafter received by the authority shall immediately be subject to the  lien of  such  pledge,  mortgage  or  security  instrument  without  any  physical  delivery  thereof  or  further  act; and that the lien of such  pledge, mortgage or security instrument shall be valid  and  binding  as  against  all  parties  having  claims  of  any kind in tort, contract or  otherwise against the authority, irrespective of  whether  such  parties  have  notice  thereof. Neither the resolution nor any mortgage, security  instrument or other instrument by which a pledge, mortgage lien or other  security is created need be recorded or filed and  the  authority  shall  not  be  required  to  comply  with any of the provisions of the uniform  commercial code.    6. The authority shall have power and is hereby authorized, from  time  to time, to issue its bonds or notes for the purpose of refunding any ofits  bonds  or  notes  then  outstanding.  The  principal amount of such  refunding bonds or notes shall not exceed an amount  sufficient  to  pay  the  sum  of  (i)  the  principal  amount  of  the  bonds or notes to be  refunded,  outstanding as of the date of issue of the refunding bonds or  notes, (ii) the aggregate amount of unmatured interest  payable  on  the  bonds  or notes to be refunded to and including either the date or dates  such bonds or notes mature or, if such bonds or notes are to  be  called  for  redemption  prior to such maturity date or dates, the date or dates  fixed for such redemption in the resolution authorizing  such  refunding  bonds  or notes, (iii) redemption premiums, if any, payable on the bonds  or notes to be refunded as of the date or dates  fixed  for  redemption,  and  (iv) costs and expenses incidental to the issuance of the refunding  bonds or notes. The proceeds of any such bonds or notes issued  for  the  purpose  of  so refunding outstanding bonds or notes shall be applied to  the payment of  such  outstanding  bonds  or  notes  on  the  respective  maturity  dates  thereof  or upon the date fixed for redemption. Pending  such application, the proceeds of any  such  bonds  or  notes  shall  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 obligations which mature 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 or may be pledged  to the payment of the principal of and interest on any  bonds  or  notes  issued  to refund any outstanding bonds or notes. After the terms of the  escrow have been fully satisfied and carried out, any  balance  of  such  proceeds  and  interest,  if  any, earned or realized on the investments  thereof may be returned to the authority 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 this title in the same manner and to the  same extent as any other bonds or notes issued pursuant to this title.    7. Neither the directors of the authority nor any person executing the  bonds or notes shall be liable personally on the bonds or  notes  or  be  subject  to  any  personal  liability or accountability by reason of the  issuance thereof.    8. The authority, subject  to  such  agreements  with  bondholders  or  noteholders  as  may  then  exist,  shall  have  power  out of any funds  available therefor to purchase bonds or notes of  the  authority,  which  shall  thereupon be cancelled, at a price not exceeding (a) if the bonds  or notes are then redeemable, the redemption price then applicable  plus  accrued  interest  to  the  next interest payment thereon, or (b) if the  bonds or notes are not then redeemable, the redemption price  applicable  on  the  first  date  after  such purchase upon which the bonds or notes  become subject to redemption plus accrued interest to such date.