1771 - Bonds of the authority.
§ 1771. Bonds of the authority. 1. The authority shall have the power, and is hereby authorized, from time to time, to issue its negotiable bonds in conformity with applicable provisions of the uniform commercial code for any corporate purpose, including the payment of any outstanding notes of the authority, but the aggregate principal amount of bonds and notes issued by the authority shall not exceed five million dollars outstanding at any one time. The authority shall have the power, from time to time 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 may issue bonds partly to refund bonds outstanding and partly for any other corporate purpose or purposes. In computing the total amount of bonds which may at any one time be outstanding the amount of the outstanding bonds to be refunded from the proceeds of the sale of the new bonds or by exchange for said bonds shall be excluded. Except as may otherwise be expressly provided by the authority, each issue of bonds shall be general obligations, payable out of any moneys, or revenues of the authority, subject only to any agreements with the holders of particular bonds pledging particular moneys or revenues. 2. Each issue of bonds shall be authorized by resolution or resolutions of the authority and shall bear the date or dates, mature at the time or times, not exceeding thirty years from their respective dates, bear interest at the rate or rates, be in the denominations, be in the form, either coupon or registered, carry the registration privileges, be executed in the manner, be payable in the medium of payment, at the place or places, and be subject to the terms of redemption, as the resolution or resolutions shall provide. The bonds of the authority may be sold at public or private sale for such price or prices as the authority shall determine. When such bonds are sold at public sale, the notice of sale shall be published in accordance with the provisions of paragraph two of section 58.00 of the local finance law. 3. The resolution or resolutions authorizing bonds or an issuance of bonds may contain provisions which shall be a part of the contract with the holders of the bonds thereby authorized as to: (a) The pledging of all or any part of the fees, charges, gifts, grants, revenues or other moneys received or to be received by the authority to secure the payment of the bonds; (b) The fees, revenues and other charges to be fixed, the amounts to be raised in each year thereby and the use and disposition of the fees, charges, gifts, grants, revenues, or other moneys received or to be received from any source; (c) The setting aside of reserves or sinking funds and the regulation and dispositions thereof; (d) Limitations on the purpose to which the proceeds of sale of an issue of bonds then or thereafter to be issued may be applied, and on the pledging of such proceeds to secure the payment of the bonds or of an issue of bonds; (e) Limitations on the issuance of additional bonds, on the terms upon which additional bonds may be issued and secured, and on the refunding of outstanding or other bonds; (f) The procedure, if any, by which the terms of a contract with bondholders may be amended or abrogated, the amount of bonds, the holders of which consent thereto, and the manner in which the consent may be given; (g) Limitations on the amount of moneys to be expended by the authority for management, administrative or other expenses of the authority;(h) 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 pursuant to section seventeen hundred seventy-two hereof, and limiting or abrogating the right of the bondholders to appoint a trustee under said section or limiting the rights, powers and duties of the trustees; and (i) Any other matters of like or different character which in any way affect the security or protection of the bonds. 4. It is the intention hereof that any pledge made by the authority shall be valid and binding from the time when said pledge is made; that the revenues or other moneys so pledged and thereafter received by the authority shall immediately be subject to the lien of the pledge without physical delivery thereof or further act; and that the lien of the pledge 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 the parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded. 5. Neither the members of the authority nor a person executing bonds shall be liable personally on the bonds or be subject to personal liability or accountability by any reason of the issuance thereof. 6. For the purpose of refunding or reducing its debt the authority shall have power, out of any funds available therefor, to purchase any of its bonds (a) if the bonds are then redeemable, at a price not exceeding the redemption price then applicable plus accrued interest to the next interest payment date thereon, or (b) if the bonds are not then redeemable, at such price and on such terms and conditions as the authority may determine, plus accrued interest to the date of purchase. The bonds so purchased shall be canceled. 7. In the discretion of the authority, the bonds may be secured by a trust indenture by and between the authority and a corporate trustee, which may be a trust company or bank having the powers of a trust company in the state. The trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the construction, maintenance, operation, repair and insurance of a project or projects, and the custody, safeguarding and application of all moneys, and may provide that a project or projects shall be constructed and paid for under the supervision and approval of consulting engineers. Notwithstanding the provisions of section seventeen hundred sixty-nine hereof, the authority may provide by trust indenture for the payment of the proceeds of the bonds and the revenues of the project or projects to the trustee or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. The expenses incurred in carrying out the trust indenture may be treated as a part of the cost of maintenance, operation and repairs of the project or projects. If the bonds shall be secured by a trust indenture, the bondholders shall have no authority to appoint a separate trustee to represent them, and the trustee under the trust indenture shall have and possess all the powers which are conferred by section seventeen hundred seventy-two hereof upon a trustee appointed by the bondholders. 8. Notwithstanding any other provisions of this title, the resolution or resolutions authorizing bonds or notes of the authority may contain a covenant by authority that it will at all times maintain rates, fees and other charges sufficient to pay, the cost of operation and maintenance of the project or projects, the principal of, and interest on anyobligations issued pursuant to the resolution or resolutions as the same severally become due and payable, and to maintain the reserves or other funds required by the terms of the resolution or resolutions.