§ 1080 — Bonds

New York § 1080

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Suffolk County Water Authority
• Art. 5: Public Utility Authorities

Text

§ 1080. Bonds. 1. The authority shall have power and is hereby\nauthorized from time to time to issue its negotiable bonds in conformity\nwith applicable provisions of the uniform commercial code. Such bonds\nshall be authorized by resolution of the authority and shall bear such\ndate or dates, mature at such time or times in not exceeding forty years\nfrom their respective date or dates, subject to such option or options\nof redemption, as may be provided in the resolution authorizing such\nbonds, at par or at a price not exceeding one hundred five per centum of\ntheir face value, together with accrued interest, bear interest at such\nrate or rates that the cost to maturity of the money for any issue of\nsuch bonds shall not exceed six per centum per annum, payable annually\nor semi-annually, be in such denominations, and in such form, either\ncoupon or registered, and be executed in such manner, and be payable in\nsuch medium of payment, at such place or places, and be subject to such\nterms and conditions as such resolution or resolutions may provide.\n 2. All bonds of the authority shall be sold at public sale upon sealed\nbids to the bidder who shall offer the lowest interest cost to the\nauthority to be determined by the authority. The notice of sale shall be\npublished at least once not less than ten nor more than forty days\nbefore the date of sale in a newspaper designated by the authority and\nshall call for the receipt of sealed bids and shall fix the date, time\nand place of sale.\n 3. Notwithstanding the foregoing provisions requiring public sale, any\nbonds of the authority may be sold by the authority within two years of\nthe effective date of this title at private sale at such price or prices\nas the authority shall determine not exceeding the interest cost herein\nprovided, and the authority also may sell at private sale for such price\nor prices as the authority shall determine not exceeding the interest\ncost herein provided, any bonds authorized for the purpose of paying the\ncost of acquiring by condemnation a privately owned public water supply\nand distribution system provided such bonds are sold within one year of\nthe date of completion of such condemnation and the proceedings for such\ncondemnation were commenced prior to or not more than two years from the\neffective date of this title.\n 4. Any bonds of the authority, whether sold at public or private sale,\nshall be sold for a price not less than ninety-six per centum of the par\nvalue thereof, plus accrued interest provided always that the interest\ncost to maturity of the money for any issue of such bonds shall not\nexceed six per centum per annum. Such bonds may be issued for any\ncorporate purpose of the authority.\n 5. Any resolution or resolutions authorizing any bonds may contain\nprovisions, which shall be a part of the contract with the holders of\nthe bonds, as to (a) pledging the revenue or water rents charged by the\nauthority to secure the payment of the bonds;\n (b) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (c) limitations on the right of the authority to restrict and regulate\nthe use of water and to alter or reduce rates or charges for the use of\nwater;\n (d) limitations on the issuance of additional bonds;\n (e) the application of funds and the safeguarding of funds on hand or\non deposit, including the requiring of the giving of security for\ndeposit of such funds by depository banks or trust companies. Unless\notherwise provided in said resolution, all deposits of funds of the\nauthority shall be secured in the manner provided by law for securing\ndeposits of county moneys. All banks and trust companies are authorized\nto give such security for such deposits;\n (f) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the authority to the\nbondholders and providing the rights and remedies of the bondholders in\nthe event of such default, including as a matter of right the\nappointment of a receiver; provided, however, that such rights and\nremedies shall be not inconsistent with the general laws of this state.\n 6. 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 of its\ncorporate purposes. Refunding bonds may be delivered by the authority to\nthe purchasers thereof at any time prior to the date of maturity or\nredemption date of the bonds proposed to be refunded, if the authority\nshall determine that such action shall be financially sound and\nadvantageous to the authority. The rate or rates of interest of the\nrefunding bonds shall not be limited by the rate or rates of interest\nborne by any of the bonds to be refunded by such bonds, but all of the\nprovisions of this section with reference to the sale of bonds of the\nauthority, and the interest cost of the money raised by the sale\nthereof, shall apply to such refunding bonds.\n 7. Except as may be otherwise expressly provided by the authority,\nevery issue of bonds by the authority shall be general obligations\npayable out of any moneys, earnings or revenues of the authority,\nsubject only to any agreements with the holders of particular bonds\npledging any particular moneys, earnings or revenues.\n 8. Neither the members of the authority nor any person executing the\nbonds shall be personally liable on the bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\nThe authority shall have power, out of any funds available therefor, to\npurchase (as distinguished from the power of redemption hereinabove\nprovided) any bonds issued by it at a price of not more than the\nprincipal amount thereof or the redemption price at which the bonds may\nbe redeemed at the next ensuing redemption date and accrued interest.\nAll bonds so purchased shall be cancelled.\n 9. 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