§ 1045-O — Bonds of the authority

New York § 1045-O

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 2-A: New York City Municipal Water Finance Authority
• Art. 5: Public Utility Authorities

Text

§ 1045-o. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds, in\nconformity with applicable provisions of the uniform commercial code, in\nsuch principal amounts as it may determine to be necessary to pay the\ncost of any water project or water projects, or for any other corporate\npurposes, including incidental expenses in connection therewith. The\nauthority shall have power from time to time to refund any bonds by the\nissuance of new bonds whether the bonds to be refunded have or have not\nmatured, and may issue bonds partly to refund bonds then outstanding and\npartly for any other corporate purpose. Bonds issued by the authority\nshall be special obligations payable solely out of particular revenues\nor other moneys of the authority as may be designated in the proceedings\nof the authority under which the bonds shall be authorized to be issued,\nsubject to any agreements entered into between the authority and the\ncity, and the authority, the water board and the city, and subject to\nany agreements with the holders of outstanding bonds pledging any\nparticular revenues or moneys.\n 2. The authority is authorized to obtain from any department or agency\nof the United States of America or non-governmental insurer any\ninsurance or guaranty, to the extent now or hereafter available, as to,\nor for the payment or repayment of interest or principal, or both, or\nany part thereof, on any bonds or notes issued by the authority, or on\nany municipal obligations of governmental units purchased or held by the\nauthority; and to enter into any agreement or contract with respect to\nany such insurance or guaranty, except to the extent that the same would\nin any way impair or interfere with the ability of the authority to\nperform and fulfill the terms of any agreement made with the holders of\nthe bonds or notes of the authority.\n * 3. Bonds shall be authorized by resolution of the authority, be in\nsuch denominations and bear such date or dates, mature at such time or\ntimes, except that bonds and any renewal thereof shall mature within\nforty years of the date of their original issuance and notes and any\nrenewal thereof shall mature within five years of the date of their\noriginal issuance. Such bonds shall be subject to such terms of\nredemption, bear interest at such rate or rates payable at such times,\nbe in such form, carry such registration privileges, be executed in such\nmanner, be payable in such medium of payment at such place or places,\nand be subject to such terms and conditions as such resolution may\nprovide. Bonds may be sold at public or private sale for such price or\nprices as the authority shall determine, provided that no issue of bonds\nmay be sold at private sale unless the terms of such sale shall have\nbeen approved in writing by (i) the comptroller, where such sale is not\nto such comptroller, or (ii) the director of management and budget,\nwhere such sale is to such comptroller.\n * NB There are 2 sub 3's\n * 3. Whenever the authority shall determine that the issuance of its\nbonds is appropriate, the mayor and the comptroller shall make a joint\nrecommendation as to the arrangements necessary for the issuance and\nsale of such bonds including the underwriting of such bonds through\nnegotiated agreement or public letting or the private sale of such bonds\nand such recommendation shall include compensation for services rendered\nas they deem appropriate. The mayor and the comptroller shall recommend\nto the authority the price or prices, interest rate or rates, maturities\nand other terms and conditions for the issuance of the bonds, except\nthat bonds and any renewal thereof shall mature within forty years of\nthe date of their original issuance and notes and any renewal thereof\nshall mature within five years of the date of their original issuance.\nFollowing such recommendation, bonds shall be authorized by resolution\nof the authority which shall set forth the arrangements for the issuance\nof the bonds, the price or prices, the interest rate or rates,\nmaturities, terms of redemption, form and other terms of the bonds. Such\nresolution and the minutes of the authority related thereto shall be\ntransmitted to the mayor and the comptroller for their approval or\ndisapproval thereof. Approval of such resolution shall be indicated by\nthe execution of the resolution by the mayor and the comptroller\nwhereupon such resolution shall come into full force and effect in\naccordance with its terms.\n * NB There are 2 sub 3's\n 4. Any resolution or resolutions authorizing bonds or any issue of\nbonds may contain provisions which may be a part of the contract with\nthe holders of the bonds thereby authorized as to:\n (a) pledging all or part of its revenues, together with any other\nmoneys, securities, contracts or property, to secure the payment of the\nbonds, subject to such agreements with bondholders as may then exist;\n (b) the setting aside of reserves and the creation of sinking funds\nand the regulation and disposition thereof;\n (c) limitations on the purpose to which the proceeds from the sale of\nbonds may be applied;\n (d) limitations on the right of the authority to restrict and regulate\nthe use of any project or part thereof in connection with which bonds\nare issued;\n (e) limitations on the issuance of additional bonds, the terms upon\nwhich additional bonds may be issued and secured and the refunding of\noutstanding or other bonds;\n (f) the procedure, if any, by which the terms of any contract with\nbondholders may be amended or abrogated, including the proportion of\nbondholders which must consent thereto and the manner in which such\nconsent may be given;\n (g) the creation of special funds into which any revenues or other\nmoneys may be deposited;\n (h) the terms and provisions of any trust, deed or indenture securing\nthe bonds under which the bonds may be issued;\n (i) vesting in a trustee or trustees such properties, rights, powers\nand duties in trust as the authority may determine, which may include\nany or all of the rights, powers and duties of the trustee appointed by\nthe bondholders pursuant to section one thousand forty-five-p of this\ntitle and limiting or abrogating the rights of the bondholders to\nappoint a trustee under such section or limiting the rights, duties and\npowers of such trustee;\n (j) defining the acts or omissions to act which may constitute a\ndefault in the obligations and duties of the authority to the\nbondholders and providing for the rights and remedies of the bondholders\nin the event of such default, including as a matter of right the\nappointment of a receiver, provided, however, that such rights and\nremedies shall not be inconsistent with the general laws of the state\nand other provisions of this title;\n (k) limitations on the amount of revenues and other moneys to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (l) the payment of the proceeds of bonds, revenues and other moneys to\na trustee or other depository, and for the method of disbursement\nthereof with such safeguards and restrictions as the authority may\ndetermine; and\n (m) any other matters of like or different character which in any way\naffect the security or protection of the bonds or the rights and\nremedies of bondholders.\n 5. In addition to the powers herein conferred upon the authority to\nsecure its bonds, the authority shall have power in connection with the\nissuance of bonds to enter into such agreements as the authority may\ndeem necessary, consistent or desirable concerning the use or\ndisposition of its revenues or other moneys or property, including the\nmortgaging of any property and the entrusting, pledging or creation of\nany other security interest in any such revenues, moneys or property and\nthe doing of any act, including refraining from doing any act, which the\nauthority would have the right to do in the absence of such agreements.\nThe authority shall have power to enter into amendments of any such\nagreements within the powers granted to the authority by this title and\nto perform such agreements. The provisions of any such agreements may be\nmade a part of the contract with the holders of bonds of the authority.\n 6. Any provision of the uniform commercial code to the contrary\nnotwithstanding, any pledge of or other security interest in revenues,\nmoneys, accounts, contract rights, general intangibles or other personal\nproperty made or created by the authority shall be valid, binding and\nperfected from the time when such pledge is made or other security\ninterest attaches without any physical delivery of the collateral or\nfurther act, and the lien of any such pledge or other security interest\nshall be valid, binding and perfected against all parties having claims\nof any kind in tort, contract or otherwise against the authority\nirrespective of whether or not such parties have notice thereof. No\ninstrument by which such a pledge or security interest is created nor\nany financing statement need be recorded or filed.\n 7. Whether or not the bonds of the authority are of such form and\ncharacter as to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds are hereby made negotiable instruments within\nthe meaning of and for all the purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 8. Neither the directors of the authority nor any person executing\nbonds shall be liable personally thereon or be subject to any personal\nliability or accountability solely by reason of the issuance thereof.\n 9. The authority, subject to such agreements with bondholders as then\nmay exist, shall have power out of any moneys available therefor to\npurchase bonds of the authority, which shall thereupon be cancelled, at\na price not exceeding (i) if the bonds are then redeemable, the\nredemption price then applicable, plus accrued interest to the next\ninterest payment date, or (ii) if the bonds are not then redeemable, the\nredemption price applicable on the first date after such purchase upon\nwhich the bonds become subject to redemption, plus accrued interest to\nthe next interest payment date.\n