§ 1120-H — Bonds of the authority

New York § 1120-H

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 6-B: Clifton Park Water Authority
• Art. 5: Public Utility Authorities

Text

§ 1120-h. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds in such\nprincipal amounts as it may determine to be necessary to pay the cost of\nany project or for any other corporate purpose, including incidental\nexpenses in connection therewith. The authority shall have power and is\nhereby authorized to enter into such agreements and perform such acts as\nmay be required under any applicable federal legislation to secure a\nfederal guarantee of any bonds. The authority shall have power from time\nto time 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 other\ncorporate purpose. Bonds issued by the authority may be general\nobligations secured by the faith and credit of the authority or may 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 only to any\nagreements with the holders of outstanding bonds pledging any particular\nrevenues, earnings, or 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 nongovernmental\ninsurer or financial institution any insurance, guarantee or other\ncredit support device, to the extent now or hereafter available, as to,\nor for the payment or repayment of interest or principal or premium, or\nany of the foregoing, or any part thereof, on any bonds issued by the\nauthority and to enter into any agreement or contract with respect to\nany such insurance or guarantee, except to the extent that the same\nwould in any way impair or interfere with the ability of the authority\nto perform and fulfill the terms of any agreement made with the holders\nof outstanding bonds of the authority.\n 3. Bonds shall be authorized by resolution of the authority, and may\nbe in such denominations and bear such date or dates and mature at such\ntime or times as such resolution may provide, except that bonds and any\nrenewals thereof shall mature within forty years from the date of\noriginal issuance of any such bonds. Obligations with a maturity of five\nyears or less from the date of their original issuance may be designated\nas notes. Bonds shall be subject to such terms of redemption, bear\ninterest at such rate or rates per annum payable at such times, be in\nsuch form, carry such registration privileges, be executed in such\nmanner, be payable in such medium of payment at such place or places,\nand be subject to such terms and conditions as such resolution may\nprovide. Bonds may be sold at public or private sale for such price or\nprices as the authority shall determine, provided that no bonds of the\nauthority, other than obligations designated as notes, may be sold by\nthe authority at private sale unless such sale and the terms thereof\nhave been approved in writing by the comptroller, where such sale is not\nto be to such comptroller, or by the state director of the division of\nthe budget, where such sale is to be to the comptroller. The authority\nmay pay all expenses, premiums and commissions which it may deem\nnecessary or advantageous in connection with the issuance and sale of\nbonds.\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 any part of the authority, together with any other\nmoneys or property of the authority to secure the payment of the bonds,\nincluding, but not limited to, any contracts, earnings or proceeds of\nany grant to the authority received from any private or public source;\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) the rates, rents, fees and other charges to be fixed and collected\nby the authority and the amount to be raised in each year thereby, and\nthe use and disposition of revenues;\n (e) 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 (f) 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 (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 revenues or moneys\nmay be deposited;\n (i) the terms and provisions of any trust, deed, mortgage or indenture\nsecuring the bonds under which the 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 eleven hundred twenty-i of this title\nand limiting or abrogating the rights of the bondholders to appoint a\ntrustee under such section or limiting the rights, duties and powers of\nsuch trustee;\n (k) 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 (l) limitations on the power of the authority to sell or otherwise\ndispose of any project or any part thereof;\n (m) limitations on the amount of revenues and other moneys to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (n) 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 (o) 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 of its property and the entrusting, pledging or\ncreation of any other security interest in any such revenues, moneys or\nproperties and the doing of any act (including refraining from doing any\nact) which the authority would have the right to do in the absence of\nsuch agreements. The authority shall have the power to enter into\namendments of any such agreements within the powers granted to the\nauthority by this title and to perform such agreements. The provisions\nof any such agreements may be made a part of the contract with the\nholders 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 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 purposes of the uniform commercial code, subject only to the\nprovisions 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\na price not exceeding:\n (a) if the bonds are then redeemable, the redemption price then\napplicable, plus accrued interest to the next interest payment date;\n (b) if the bonds are not then redeemable, the redemption price then\napplicable on the first date after such purchase upon which the bonds\nbecome subject to redemption plus accrued interest to the next interest\npayment date.\n