§ 1098 — Bonds of the authority

§ 1098. 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 a lien or\npledge covering all or part of its contracts, earnings or revenues\nexcept that no resolution or other action of the authority providing for\nthe issuance of bonds may be adopted or otherwise made effective without\nthe prior approval of the Monroe county legislature. The powers\nconferred by this section on such Monroe county legislature shall be\nexercised with due regard for the rights of the holders of bonds of the\nauthority at any time outstanding, and nothing in, or done pursuant to,\nthis section shall in any way limit, restrict or alter the obligation or\npowers of the authority or any member, director, officer or\nrepresentative of the authority to carry out and perform in every detail\neach and every covenant, agreement or contract at any time made or\nentered into by or on behalf of the authority with respect to its bonds\nor for the benefit, protection, or security of the holders thereof. The\nauthority shall have power from time to time whenever it deems refunding\nexpedient, to refund any bonds by the issuance of new bonds whether the\nbonds to be refunded have or have not matured, and may issue bonds\npartly to refund bonds then outstanding and partly for any of its\ncorporate purposes. Except as may be otherwise expressly provided by the\nauthority, every issue of bonds by the authority shall be general\nobligations payable out of any moneys, earnings or revenues of the\nauthority, subject only to any agreements with the holders of particular\nbonds pledging any particular moneys, earnings 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\nrates per annum not exceeding six per centum per annum payable at such\ntimes within the limitations as to interest cost hereinafter provided,\nbe in such denominations, be in such form either coupon or registered,\ncarry such registration privileges, be executed in such manner, be\npayable in lawful money of the United States of America, at such place\nor places and be subject to such terms of redemption, at par or at a\nprice not exceeding one hundred five per centum of their face value, as\nsuch resolution or resolutions may provide.\n All bonds of the authority may be sold at public or private sale. Such\nbonds shall be sold for a price not less than ninety-six per centum of\nthe par value thereof, plus accrued interest, provided always that the\ninterest cost to maturity of the monies realized from the sale of such\nbonds shall not exceed six per centum per annum.\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 on the purposes to which and the manner in which the\nproceeds of sale of any issue of bonds may be applied;\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 trust deed or indenture securing\nthe bonds or under which bonds may be issued;\n (j) 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 not be inconsistent with the general laws of this state;\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 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 (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 and accrued interest, and all such bonds shall\nbe cancelled.\n 7. In the discretion of the authority, the bonds may be secured by a\ntrust indenture by and between the authority and a corporate trustee,\nwhich may be any trust company or bank having the powers of a trust\ncompany in the state of New York. Such trust indenture may contain such\nprovisions for protecting and enforcing the rights and remedies of the\nbondholders as may be reasonable and proper and not in violation of law,\nincluding covenants setting forth the duties of the authority in\nrelation to the construction, maintenance, operation, repair and\ninsurance of the properties, and the custody, safeguarding and\napplication of all moneys, and may provide that the properties shall be\nconstructed and paid for under the supervision and approval of\nconsulting engineers. The authority may provide by such trust indenture\nfor the payment of the proceeds of the bonds and the revenues of the\nproperties to the trustee under such trust indenture or other\ndepository, and for the method of disbursement thereof, with such\nsafeguards and restrictions as it may determine. All expenses incurred\nin carrying out such trust indenture may be treated as a part of the\ncost of maintenance, operation and repairs of the properties. If the\nbonds shall be secured by a trust indenture the bondholders shall have\nno authority to appoint a separate trustee to represent them.\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 or other charges sufficient to pay, and that any contracts\nentered into by the authority for the sale or distribution of water\nshall contain rates, fees, rentals or other charges sufficient to pay,\nthe cost of operation and maintenance of the properties, the principal\nof and interest on any obligation issued pursuant to such resolution or\nresolutions as the same severally become due and payable, and to\nmaintain any reserves or other funds required by the terms of such\nresolution or resolutions.\n