§ 1056 — Bonds of the authority

New York § 1056

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 3: Erie County Water Authority
• Art. 5: Public Utility Authorities

Text

§ 1056. Bonds of the authority. 1. The authority shall have the 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 of its corporate purposes, including incidental expenses in\nconnection therewith, and to secure the payment of the same by lien of\nthe pledge of the revenues. The authority shall have power from time to\ntime whenever it deems refunding expedient, 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 of its corporate purposes. Except as may be otherwise\nexpressly provided by the authority, every issue of bonds by the\nauthority shall be general obligations payable out of any moneys,\nearnings or revenues of the authority, subject only to any agreements\nwith the holders of particular bonds pledging any particular moneys,\nearnings or revenues.\n 2. The bonds shall be authorized by resolution of the authority and\nshall bear such date or dates, mature at such time or times not\nexceeding forty years from their respective dates, bear interest at such\nrate or rates per annum payable at such times, be in such denominations,\nbe in such form either coupon or registered, carry such registration\nprivileges, be executed in such manner, be payable in lawful money of\nthe United States of America, at such place or places and be subject to\nsuch terms of redemption, as such resolution or resolutions may provide.\nSuch bonds of the authority may be sold at public or private sale for\nsuch price or prices as the authority shall determine provided, however,\nthat any private sale shall be subject to the approval of the state\ncomptroller. The foregoing provisions shall be applicable to bonds\nissued by the authority notwithstanding the provisions of any other\ngeneral, special or local law to the contrary.\n 3. 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 thereby authorized, as to\n (a) pledging all or any part of the moneys, earnings, income and\nrevenues derived from all or any part of the properties of the authority\nto secure the payment of the bonds or of any issue of the bonds subject\nto such agreements with bondholders as may then exist;\n (b) the rates, rentals, fees and other charges to be fixed and\ncollected and the amounts to be raised in each year thereby, and the use\nand disposition of the earnings and other revenues;\n (c) the setting aside of reserves and the creation of sinking funds\nand the regulation and disposition thereof;\n (d) limitations on the right of the authority to restrict and regulate\nthe use of the properties in connection with which such bonds are\nissued;\n (e) limitations in the purposes to which the proceeds of sale of any\nissue of bonds may be applied and pledging such proceeds to secure the\npayment of the bonds or any issue 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 or other 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) the creation of special funds into which any earnings or revenues\nof the authority may be deposited;\n (i) the terms and provisions of any mortgage or trust deed or\nindenture securing the bonds or under which bonds may be issued;\n (j) vesting in a trustee or trustees such properties, rights, powers\nand duties in trust as the authority may determine which may include any\nor all of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to section one thousand sixty-six hereof, and\nlimiting or abrogating the right of the bondholders to appoint a trustee\nunder such section or limiting the rights, duties and powers of such\ntrustee;\n (k) limitations on the power of the authority to sell or otherwise\ndispose of its properties;\n (l) any other matters, of like or different character which in any way\naffect the security or protection of the bonds;\n (m) limitations on the amount of moneys derived from the properties to\nbe expended for operating, administrative or other expenses of the\nauthority;\n (n) the protection and enforcement of the rights and remedies of the\nbondholders;\n (o) the obligations of the authority in relation to the construction,\nmaintenance, operation, repairs and insurance of the properties, the\nsafeguarding and application of all moneys and as to the requirements\nfor the supervision and approval of consulting engineers in connection\nwith construction, reconstruction and operation;\n (p) the payment of the proceeds of bonds and revenues of the\nproperties to a trustee or other depositary, and for the method of\ndisbursement thereof with such safeguards and restrictions as the\nauthority may determine.\n 4. It is the intention of the legislature that any pledge of earnings,\nrevenues or other moneys made by the authority shall be valid and\nbinding from the time when the pledge is made; that the earnings,\nrevenues or other moneys so pledged and thereafter received by the\nauthority shall immediately be subject to the lien of such pledge\nwithout any physical delivery thereof or further act, and that the lien\nof any such pledge shall be valid and binding as against all parties\nhaving claims of any kind in tort, contract or otherwise against the\nauthority irrespective of whether such parties have notice thereof.\nNeither the resolution nor any other instrument by which a pledge is\ncreated need be recorded.\n 5. Neither the members of the authority nor any person executing the\nbonds shall be liable personally on the bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\n 6. The authority shall have power out of any funds available therefor\nto purchase bonds. The authority shall cancel such bonds, subject to and\nin accordance with agreements with bondholders.\n 7. In the discretion of the authority, the bonds may be secured by a\ntrust indenture (instead of a resolution) by and between the authority\nand a corporate trustee, which may be any trust company or bank having\nthe powers of a trust company in the state of New York. Such trust\nindenture may contain any of the provisions which a resolution\nauthorizing bonds may contain.\n Notwithstanding any other provisions of this title, any resolution or\nresolutions authorizing bonds or notes of the authority shall contain a\ncovenant by the authority that it will at all times maintain rates,\nfees, rentals and other charges sufficient to pay, and that any\ncontracts entered into by the authority for the sale or distribution of\nwater shall contain rates, fees, rentals or other charges sufficient to\npay, the cost of operation and maintenance of the properties, the\nprincipal of and interest on any obligations issued pursuant to such\nresolution or resolutions as the same severally become due and payable,\nand to maintain any reserves or other funds required by the terms of\nsuch resolution or resolutions.\n