§ 1010 — Bonds of the authority

New York § 1010

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 1: Power Authority of the State of New York
• Art. 5: Public Utility Authorities

Text

§ 1010. Bonds of the authority. 1. The authority shall have power and\nis hereby authorized from time to time to issue its negotiable bonds in\nconformity with applicable provisions of the uniform commercial code for\nthe purpose of financing any project authorized by this title, including\nthe acquisition of any real or personal property or facilities deemed\nnecessary by the authority.\n 2. In anticipation of the sale of such bonds the authority may issue\nnegotiable bond anticipation notes in conformity with applicable\nprovisions of the uniform commercial code and may renew the same from\ntime to time but the maximum maturity of any such note, including\nrenewals thereof, shall not exceed five years from the date of issue of\nsuch original notes. Such notes shall be paid from any moneys of the\nauthority available therefor and not otherwise pledged, or from the\nproceeds of sale of the bonds of the authority in anticipation of which\nthey were issued. Such notes shall not be issued in an amount in excess\nof the amount of bonds which the authority is authorized to issue, less\nthe amount of any bonds or other notes theretofore issued and\noutstanding. The notes shall be issued in the same manner as the bonds.\nSuch notes and the resolution or resolutions authorizing the same may\ncontain any provisions, conditions or limitations which a bond\nresolution of the authority may contain.\n 3. Except as may be otherwise expressly provided by the authority, the\nbonds and notes of every issue shall be general obligations of the\nauthority payable out of any moneys or revenues of the authority,\nsubject only to any agreements with the holders of particular bonds or\nnotes pledging any particular moneys or revenues.\n 4. The authority shall have power from time to time, whenever it deems\nrefunding expedient, to refund any bonds by the issuance of new bonds,\nwhether the bonds to be refunded have or have not matured, and may issue\nbonds partly to refund bonds then outstanding and partly for any other\npurpose hereinbefore described. Refunding bonds may be exchanged for the\nbonds to be refunded, with such cash adjustments as may be agreed, or\nmay be sold with the proceeds applied to the purchase or payment of the\nbonds to be refunded.\n 5. The bonds may be issued payable in annual installments or may be\nissued as term bonds or the authority, in its discretion, may issue\nbonds of both types. The bonds shall be authorized by resolution of the\ntrustees of the authority and shall bear such date or dates, mature at\nsuch time or times, not exceeding fifty years from their respective\ndates, bear interest at such rate or rates, payable annually or\nsemi-annually, be in such denominations, be in such form, either coupon\nor registered, carry such registration privileges, be executed in such\nmanner, be payable in lawful money of the United States of America at\nsuch place or places, and be subject to such terms of redemption, as\nsuch resolution or resolutions may provide. In the event that term\nbonds are issued, the resolution authorizing the same may make such\nprovisions for the establishment and management of adequate sinking\nfunds for the payment thereof, as the authority may deem necessary. The\nbonds or notes may be sold at public or private sale for such price or\nprices as the authority shall determine. Pending preparation of the\ndefinite bonds, the authority may issue interim receipts which shall be\nexchanged for such bonds.\n 6. Any resolution or resolutions authorizing any bonds or any issue of\nbonds may contain provisions, which shall be a part of the contract with\nthe holders of the bonds to be authorized as to\n (a) pledging all or any part of the revenues of the project or any\nrevenue producing contract or contracts made by the authority with any\nindividual, partnership, corporation or association to secure the\npayment of the bonds or of any particular issue of bonds, subject to\nsuch agreements with bondholders as may then exist;\n (b) the rentals, fees and other charges to be charged, and the amounts\nto be raised in each year thereby, and the use and disposition of the\nrevenues;\n (c) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) limitations on the right of the authority to restrict and regulate\nthe use of any project;\n (e) limitations on the purpose to which the proceeds of sale of any\nissue of bonds then or thereafter to be issued may be applied and\npledging such proceeds to secure the payment of the bonds or of any\nissue of the bonds;\n (f) limitations on the issuance of additional bonds; the terms upon\nwhich additional bonds may be issued and secured; the refunding of\noutstanding bonds;\n (g) the procedure, if any, by which the terms of any contract with\nbondholders may be amended or abrogated, the amount of bonds the holders\nof which must consent thereto, and the manner in which such consent may\nbe given;\n (h) limitations on the amount of moneys derived from a project to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (i) defining the acts or omissions to act which shall constitute a\ndefault in the duties of the authority to holders of its obligations and\nproviding the rights and remedies of such holders in the event of a\ndefault.\n 7. Notwithstanding any other provisions of this title, any such\nresolution or resolutions shall contain a covenant by the authority that\nit will at all times maintain rates, fees or charges sufficient to pay,\nand that any contracts entered into by the authority for the sale,\ntransmission or distribution of power shall contain rates, fees or\ncharges sufficient to pay the costs of operation and maintenance of the\nproject, the principal of and interest on any obligations issued\npursuant to such resolution as the same severally become due and\npayable, and to maintain any reserves required by the terms of such\nresolution or resolutions.\n 8. It is the intention hereof that any pledge of revenues or other\nmoneys or of a revenue producing contract or contracts made by the\nauthority shall be valid and binding from the time when the pledge is\nmade; that the revenues or other moneys or proceeds of any contract or\ncontracts so pledged and thereafter received by the authority shall\nimmediately be subject to the lien of such pledge without any physical\ndelivery thereof or further act; and that the lien of any such pledge\nshall be valid and binding as against all parties having claims of any\nkind in tort, contract or otherwise against the authority irrespective\nof whether such parties have notice thereof. Neither the resolution nor\nany other instrument by which a pledge is created need be recorded.\n 9. Neither the members of the authority nor any person executing the\nbonds or notes shall be liable personally on the bonds or notes or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n 10. The authority shall have power out of any funds available therefor\nto purchase bonds or notes. The authority may hold, pledge, cancel or\nresell such bonds, subject to and in accordance with agreements with\nbondholders.\n 11. Any bonds or notes issued by the authority are hereby made\nsecurities in which all public officers and bodies of this state and all\nmunicipalities and municipal subdivisions, all insurance companies and\nassociations and other persons carrying on an insurance business, all\nbanks, bankers, trust companies, savings banks and savings associations,\nincluding savings and loan associations, building and loan associations,\ninvestment companies and other persons carrying on a banking business,\nand all other persons whatsoever, except as hereinafter provided, who\nare now or may hereafter be authorized to invest in bonds or other\nobligations of the state, may properly and legally invest funds\nincluding capital in their control or belonging to them; provided that,\nnotwithstanding the provisions of any other general or special law to\nthe contrary, such bonds and notes shall not be eligible for the\ninvestment of funds, including capital, of trusts, estates or\nguardianships under the control of individual administrators, guardians,\nexecutors, trustees and other individual fiduciaries except when any\nsuch individual fiduciary shall be acting in such capacity with one or\nmore corporate co-fiduciaries. The bonds and notes are also hereby made\nsecurities which may be deposited with and shall be received by all\npublic officers and bodies of this state and all municipalities and\nmunicipal subdivisions for any purpose for which the deposit of bonds or\nother obligations of this state is now or may hereafter be authorized.\n