1805 - Issuance of bonds and notes by the authority.

§  1805.  Issuance  of bonds and notes by the authority. 1. Subject to  the limitations of other provisions of this title, the  authority  shall  have the power and is hereby authorized to borrow money and to issue its  negotiable  bonds  and notes in conformity with applicable provisions of  the uniform commercial code in such principal amounts as, in the opinion  of the authority, shall be necessary to  provide  sufficient  funds  for  achieving  its  corporate  purposes,  including the making of loans, the  issuing of loan guarantees, the payment of interest on bonds  and  notes  of the authority, the establishment of reserves to secure such bonds and  notes,  and  all  other  expenditures  of  the authority incident to and  necessary or convenient to carry out its corporate purposes and powers.    2. Bonds and notes shall be authorized by resolution of the authority,  and shall be dated and shall mature as such  resolution  or  resolutions  may  provide,  except  that  no note or any renewal thereof shall mature  more than seven years after the date of issue of the original  note  and  no  bond shall mature more than thirty years from the date of its issue.  Bonds and notes 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.    3.  Special  purpose  bonds  and notes may be sold by the authority at  public or private sale in such manner and on  such  terms  and  at  such  price  or prices as the authority, with the approval of the comptroller,  shall determine. If special purpose bonds are sold by the  authority  at  public  sale, such sale shall take place not less than six nor more than  forty days after a notice of such sale has been published at least  once  in  a  newspaper  published  in  Albany  and  in  a  financial newspaper  published and circulating in New York city, which shall state the  terms  of  sale  as  determined  by  the authority. Pollution control bonds and  notes of the authority may be  sold  by  the  authority,  at  public  or  private  sale,  in  such  manner  and on such terms and at such price or  prices as the authority shall determine but shall not  be  sold  by  the  authority  at  private  sale unless such sale and the terms thereof have  been approved in writing by the comptroller where such sale  is  not  to  the  comptroller, or by the director of the budget where such sale is to  the comptroller.    4. In the discretion of the authority any bonds or issue of  bonds  or  notes  or  issue  of  notes  may  be  secured  under  resolutions of the  authority or by a trust indenture by and between  the  authority  and  a  corporate  trustee  which  may  be  any trust company or bank having the  powers of a trust company in the state or by a secured loan agreement or  other instrument. The authority, in connection with any bonds  or  issue  of  bonds  or notes or issue of notes and for the security or protection  thereof and as a part of the contract with the holders thereof, by means  of any  such  resolution,  trust  indenture,  loan  agreement  or  other  instrument  may  (a)  make and enter into any and all such covenants and  agreements with the holders of such bonds or notes as the authority  may  determine  to be necessary or desirable, including without limitation of  the foregoing, covenants, provisions, limitations and agreements  as  to  the  application,  use  and  disposition of the proceeds of any bonds or  notes or of sale or other disposition of any mortgage or other  property  or of any other receipts, moneys or assets of the authority, or in which  it  has  an  interest, the exercise by the authority of its powers under  this title with respect to loans and the revenues  and  receipts  to  be  derived  by  the authority from such loans, the assignment of any right,  title and interest in  any  mortgage  in  which  the  authority  has  an  interest,  the  terms and amount of other bonds or notes to be issued bythe authority, and the vesting in a trustee  or  trustees  of  funds  or  other property, rights, powers and duties in trust which may include any  and all of the rights, powers and duties of a trustee appointed pursuant  to  section  eighteen  hundred  eighteen  of  this title and limiting or  abrogating the right of the bondholders  or  noteholders  to  appoint  a  trustee  under said section or limiting the rights, duties and powers of  such  trustee,  (b)  pledge  or  assign  any  moneys,  mortgages,   loan  agreements,  leases  or  agreements  as  to the use of projects or other  assets of the authority either presently in hand or to  be  received  in  the  future,  or both, and any right, title and interest in any mortgage  or evidence of indebtedness secured thereby or other assets or property,  and (c) provide for any other matters of  like  or  different  character  which  in  any  way  affect  the  security or protection of the bonds or  notes, provided, however, that the principal of bonds  and  notes  shall  not  be  declared due and payable prior to maturity under or pursuant to  any such resolution, trust indenture, loan agreement or other instrument  by any trustee or agent for the bondholders or noteholders,  unless  the  trustee  or agent shall first give notice in writing to the governor, to  the authority, to the comptroller and to the  attorney  general  of  the  state,  and if when any such notice is given the legislature shall be in  session, the trustee or agent shall not declare the principal  of  bonds  or notes due and payable before the legislature adjourns sine die, or if  the  legislature  be not then in session, the trustee or agent shall not  declare the principal of such bonds and notes due and payable until  the  adjournment  sine die of the next regular session of the legislature. If  at such session the legislature shall take any action  as  a  result  of  which  the past due principal and interest on such bonds and notes, with  interest, together with the fees,  counsel  fees  and  expenses  of  the  trustee  or agent, and all costs and disbursements allowed by a court of  competent jurisdiction shall be paid within sixty  days  of  adjournment  sine die, default in the payment thereof shall thereby be cured.    5.  It  is  the  intention  of the legislature that any pledge made in  respect of such bonds or notes shall be valid and binding from the  time  when  the  pledge  is  made;  that  the money or property so pledged and  thereafter received by the authority shall immediately be subject to the  lien of such pledge without any physical  delivery  thereof  or  further  act;  and that the lien of any such 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 such parties  have notice thereof. Neither the resolution,  trust  indenture  nor  any  other instrument by which a pledge is created need be recorded.    6.  Neither  the members 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.    7. Subject to such agreements with bondholders or noteholders  as  may  then  exist,  the authority shall have power to purchase special purpose  bonds or notes of  the  authority  out  of  any  special  purpose  funds  available  therefor  and to purchase pollution control bonds or notes of  the authority out of any pollution control funds available therefor,  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 due 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  said  date.  Bonds  and  notes so purchased shall  thereupon be cancelled.8. The state does hereby pledge to and agree with the holders  of  any  bonds or notes issued under this title and with any federal agency which  loans  or  contributes funds in respect of an assisted project, that the  state will not limit or alter  the  rights  and  powers  vested  in  the  authority by this title to fulfill the terms of any contract made by the  authority  with such holders or federal agency, or in any way impair the  rights and remedies of such holders until such bonds and notes, together  with the interest thereon, with interest on any unpaid  installments  of  interest,  and  all  costs and expenses in connection with any action or  proceeding  by  or  on  behalf  of  such  holders,  are  fully  met  and  discharged.  The  authority  is  authorized  to  include this pledge and  agreement of the state, insofar as it refers to holders of any bonds  or  notes of the authority, in any contract with such holders and insofar as  it relates to a federal agency, in any contract with such agency.