§ 1048-O — Bonds of the authority

New York § 1048-O

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

Text

§ 1048-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. Whenever the authority shall determine that the issuance of its\nbonds is appropriate, the comptroller shall make a recommendation as to\nthe arrangements necessary for the issuance and sale of such bonds\nincluding the underwriting of such bonds through negotiated agreement or\npublic letting or the private sale of such bonds and such recommendation\nshall include compensation for services rendered as he deems\nappropriate. The comptroller shall recommend to the authority the price\nor prices, interest rate or rates, maturities and other terms and\nconditions for the issuance of the bonds, except that bonds and any\nrenewal thereof shall mature within forty years of the date of their\noriginal issuance and notes and any renewal thereof shall mature within\nfive years of the date of their original issuance. Following such\nrecommendation, bonds shall be authorized by bond resolution of the\nauthority which shall set forth the arrangements for the issuance of the\nbonds, the price or prices, the interest rate or rates, maturities,\nterms of redemption, form and other terms of the bonds. Such bond\nresolution and the minutes of the authority related thereto shall be\ntransmitted to the comptroller for his approval or disapproval thereof.\nApproval of such bond resolution shall be indicated by the execution of\nthe bond resolution by the comptroller whereupon such bond resolution\nshall come into full force and effect in accordance with its terms.\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-eight-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