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.