§ 1020-K — Bonds of the authority

* § 1020-k. Bonds of the authority. 1. The authority shall have power\nand is hereby authorized from time to time to issue its negotiable bonds\nin conformity with applicable provisions of the uniform commercial code\nfor any purpose authorized by this title, including without limitation\n(a) to acquire any real or personal property or facilities deemed\nnecessary by the authority, (b) to pay interest on bonds or notes of the\nauthority, (c) to establish reserves to secure such bonds and notes, (d)\nto establish or maintain such other funds or accounts for such purpose\nor purposes as the authority may deem necessary or desirable, and (e) to\npay all other expenses of the authority incident to the issuance of such\nbonds or notes.\n 2. 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, or any trustee therefor, pledging any particular moneys or\nrevenues.\n 3. 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\ncorporate purpose of the authority. Refunding bonds may be exchanged for\nthe bonds to be refunded, with such cash adjustments as may be agreed,\nor may be sold with the proceeds applied to the purchase, payment or\nprovision for payment of the bonds to be refunded.\n 4. Bonds may be issued, payable in annual installments or as term\nbonds or both. Bonds shall be authorized by resolution of the board of\nthe authority and shall bear such date or dates, mature at such time or\ntimes, not exceeding fifty years from their respective dates, bear\ninterest at such rate or rates, be in such denominations, be in such\nform, either coupon or registered, carry such registration privileges,\nbe executed in such manner, be payable in lawful money of the United\nStates of America or by check at such place or places, and be subject to\nsuch terms of redemption, as such resolution or resolutions may provide.\nIn the event that term bonds are issued, the resolution authorizing the\nsame may make such provisions for the establishment and maintenance of\nsinking funds for the payment thereof as the authority may deem\nnecessary or appropriate. Bonds or notes may be sold at public or\nprivate sale at such price or prices as the authority shall determine\nbut shall not be sold by the authority at private sale unless such sale\nand terms thereof have been approved in writing by the state\ncomptroller. Pending preparation of definitive bonds or notes, the\nauthority may issue bonds or notes in temporary form which shall be\nexchanged for bonds or notes in definitive form when available.\n 5. Any resolution or resolutions authorizing any bonds or any issue of\nbonds may (a) delegate to an officer or officers of the authority the\npower to approve the issuance of bonds from time to time and to fix the\ndetails of any such bonds or issues of bonds by an appropriate\ncertificate of such authorized officer or officers and (b) contain\nprovisions, which shall be a part of the contract with the holders of\nthe bonds to be authorized as to: (i) pledging or creating a lien on all\nor any part of the moneys, revenues or properties of the authority to\nsecure the payment of the bonds or of any particular issue of bonds or\nany portion of any issue of bonds, subject to such agreements with\nbondholders as may then exist;\n (ii) the rates, 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 (iii) the setting aside of reserves or sinking funds, and the\nregulation and disposition thereof;\n (iv) limitations on the right of the authority to restrict and\nregulate the use of any of its property;\n (v) limitations on the purpose to which the proceeds of sale of any\nissue of bonds then or thereafter to be issued may be applied;\n (vi) limitations on the issuance of additional bonds, the terms upon\nwhich additional bonds may be issued and secured, and the refunding of\noutstanding bonds;\n (vii) the procedure, if any, by which the terms of any contract with\nbondholders may be amended, the amount or percentage of outstanding\nbonds the holders of which must consent thereto, and the manner in which\nsuch consent may be given;\n (viii) 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 or of a trustee acting\non their behalf in the event of a default; and\n (ix) any other matters of like or different character, which in any\nway may affect the security and protection of the bonds and the rights\nof the holders thereof.\n 6. 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 electricity shall contain rates, fees or\ncharges sufficient to pay, the costs of operation and maintenance of the\nfacilities owned or operated by the authority, payments in lieu of\ntaxes, renewals, replacements and capital additions, the principal of\nand interest on any obligations issued pursuant to such resolution as\nthe same severally become due and payable, and to establish or maintain\nany reserves or other funds or accounts required or established by or\npursuant to the terms of such resolution or resolutions.\n 7. It is the intention of the legislature that any pledge of moneys,\nrevenues or property or of a revenue producing contract or contracts\nmade by the authority shall be valid and binding from the time when the\npledge is made; that the moneys, revenues or proceeds so pledged and\nthereafter received by the authority shall immediately be subject to the\nlien of such pledge without any physical delivery thereof or further\nact; and that the lien of any such pledge shall be valid and binding as\nagainst all parties having claims of any kind in tort, contract or\notherwise against the authority irrespective of whether such parties\nhave notice thereof. Neither the resolution nor any other instrument by\nwhich a pledge or lien is created pursuant to this subdivision need be\nrecorded in order to perfect such pledge or lien.\n 8. Neither the trustees 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 9. The authority shall have power out of any funds available therefor\nto purchase bonds or notes at such price or prices as it deems\nadvisable. The authority may hold, pledge, cancel or resell such bonds,\nsubject to agreements with bondholders.\n 10. All bonds, notes and other obligations issued by the authority\nunder the provisions of this title are hereby declared to have all the\nqualities and incidents of negotiable instruments under the applicable\nlaws of the state.\n * NB There are 2 § 1020-k's\n