§ 1115-N — Bonds of the authority

New York § 1115-N

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 6: Albany Municipal Water Finance Authority
• Art. 5: Public Utility Authorities

Text

§ 1115-n. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds in\nconformance 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 project or projects, or for any other corporate purpose,\nincluding incidental expenses in connection therewith. The authority\nshall have power from time to time to refund any bonds by the issuance\nof new bonds whether the bonds to be refunded have or have not matured,\nand may issue bonds partly to refund bonds then outstanding and partly\nfor any other corporate purpose. Bonds issued by the authority shall be\nspecial obligations payable solely out of particular revenues or other\nmoneys as may be designated in the proceedings of the authority under\nwhich the bonds shall be authorized to be issued, subject to any\nagreements entered into between the authority and the city, and the\nauthority, the water board and the city, and subject to any agreements\nwith the holders of outstanding bonds pledging any particular revenues\nor moneys.\n 2. The authority is authorized to obtain from any department or agency\nof the United States of America or the state or any non-governmental\ninsurer or financial institution any insurance, guaranty or other credit\nsupport device, to the extent now or hereafter available, as to, or for\nthe payment or repayment of interest or principal, or both, or any part\nthereof, on any bonds issued by the authority and to enter into any\nagreement or contract with respect to any such insurance or guaranty,\nexcept to the extent that the same would in any way impair or interfere\nwith the ability of the authority to perform and fulfill the terms of\nany agreement made with the holders of bonds or notes of the authority\nas may then exist.\n 3. Bonds shall be authorized by resolution of the authority, be in\nsuch denominations, bear such date or dates and mature at such time or\ntimes as such resolution may provide, except that bonds and any renewals\nthereof shall mature within forty years of the date of their original\nissuance and notes and any renewal thereof shall mature within five\nyears of the date of their original issuance. Such bonds shall be\nsubject to such terms of redemption, bear interest at such rate or rates\npayable at such times, be in such form, carry such registration\nprivileges, be executed in such manner, be payable in such medium of\npayment at such place or places, and be subject to such terms and\nconditions as such resolution may provide. Bonds may be sold at public\nor private sale for such price or prices as the authority shall\ndetermine provided that no issue of bonds may be sold by the authority\nat private sale unless such sale and the terms thereof have been\napproved in writing by (i) the comptroller, where such sale is not to\nsuch comptroller, or (ii) by the state director of the budget, where\nsuch sale is to be to the comptroller.\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 holders of bonds or notes of the\nauthority 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 the 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 moneys\nmay be deposited;\n (h) the terms and provisions of any trust, deed, mortgage or indenture\nsecuring the 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 any\nor all of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to section one thousand one hundred fifteen-o of\nthis title 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 may in any\nway affect 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, convenient 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 properties\nand the doing of any act (including refraining from doing any act) which\nthe authority would have the right to do in the absence of such\nagreements. The authority shall have power to enter into amendments of\nany such agreements within the powers granted to the authority by this\ntitle and to perform such agreements. The provisions of any such\nagreements may be made a part of the contract with the holders of bonds\nof 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 are of such form and character as to be\nnegotiable instruments under the terms of the uniform commercial code,\nthe bonds are hereby made negotiable instruments within the meaning of\nand for all the purposes of the uniform commercial code, subject only to\nthe provisions of the bonds for registration.\n 8. Neither the members of the authority nor any person executing bonds\nshall be liable personally thereon or be subject to any personal\nliability or accountability 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 a\nprice not exceeding (i) if the bonds are then redeemable, the redemption\nprice then applicable plus accrued interest to the next interest payment\ndate, or (ii) if the bonds are not redeemable then redemption price\napplicable on the first date after such purchase upon which the bonds\nbecome subject to redemption, plus accrued interest to interest payment\ndate.\n