§ 1149-G — Bonds of the authority

New York § 1149-G

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 6-E: Seneca County Water and Sewer Authority
• Art. 5: Public Utility Authorities

Text

§ 1149-g. 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 the applicable provisions of the uniform commercial\ncode in such principal amounts as it may determine to be necessary to\npay the cost of any water project or projects or for any other corporate\npurposes, including incidental expenses in connection therewith.\n The authority shall have power from time to time to refund any bonds\nby the issuance of new bonds whether the bonds to be refunded have or\nhave not matured, and may issue bonds partly to refund bonds then\noutstanding and partly for any other corporate purpose.\n Bonds issued by the authority shall be special obligations payable\nsolely out of particular revenues or other moneys of the authority as\nmay be designated in the proceedings of the authority under which the\nbonds shall be authorized to be issued, subject to any agreements with\nthe holders of outstanding bonds pledging particular revenues or moneys.\n 2. The authority is authorized to obtain from any department or agency\nof the United States of America of the state or nongovernmental insurer\nor financial institution any insurance, guaranty, or other credit\nenhancement arrangement, to the extent now or hereafter available, as\nto, or for the payment or repayment of interest or principal, or both,\nor any part thereof, on any bonds or notes issued by the authority and\nto enter into any agreement or contract with respect to such insurance,\nguaranty or credit enhancement arrangement, except to the extent that\nthe same would in any way impair or interfere with the ability of the\nauthority to perform and fulfill the terms of any agreement made with\nthe holder of the bonds or notes 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\nrenewals thereof shall mature within forty years from the date their\noriginal issuance and notes and any renewals thereof shall mature within\nfive years from the date of their original issuance. Such bonds shall be\nsubject to such terms of redemption, bear interest at such rate or\nrates, which may vary from time to time, as may be necessary to effect\nthe sale thereof and shall be payable at such times, be in such form,\ncarry such registration privileges, be executed in such manner, be\npayable in such medium of payment at such place or places, and be\nsubject to such terms and conditions as such resolution may provide.\n Bonds may be sold at public sale or at private sale for such price or\nprices as the authority shall determine, provided that no issue of bonds\nmay be sold by the authority at private sale unless such sale and the\nterms thereof have been approved in writing by the comptroller, where\nsuch sale is not to the comptroller, or by the state director of the\nbudget, where such sale is to be to the comptroller.\n 4. Any resolution or resolutions authorizing bonds or any issue of\nbonds by the authority may contain provisions which may be part of the\ncontract with the holders of the bonds thereby authorized as to:\n (a) pledging all or part of its revenues, together with any other\nmoneys, or property of the authority, to secure the payment of the\nbonds, including but not limited to any contracts, earnings or proceeds\nof any grant to the authority received from any private or public\nsource, subject to such agreements with bondholders as may then exist;\n (b) the rates, rentals, fees and other charges to be fixed and\ncollected by the authority and the amounts to be raised in each year\nthereby, and the use and disposition of 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 purpose to which the proceeds from the sale of\nbonds may be applied;\n (e) limitations on the right of the authority to restrict and regulate\nthe use of any water project or part thereof in connection with which\nbonds are 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, including the proportion of\nbondholders which must consent thereto, and the manner in which such\nconsent may be given;\n (h) the creation of special funds into which any revenues or other\nmoneys may 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\nany or all of the rights, powers and duties of the trustee appointed by\nthe bondholders pursuant to applicable sections of this title and\nlimiting 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 water facility or any part thereof or other property;\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 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 its 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, 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 (q) any other matters of like or different character which in any way\naffect 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\nremarketing agreements or other similar agreements for the bonds, the\nmortgaging of any property and the entrusting, pledging or creation of\nany other security interest in any such revenues, moneys, or property\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.\n The authority shall have power to enter into amendments of any such\nagreements within the powers granted to the authority by this title and\nto perform such agreements. The provisions of any such agreements may be\nmade a part of the contract with the holders 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 of the authority are of such form and\ncharacter as to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds are hereby made negotiable instruments within\nthe meaning of and for all purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 8. Neither the members nor the officers of the authority nor any\nperson executing bonds shall be liable personally thereon or be subject\nto any personal liability or accountability by reason of the issuance\nthereof.\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 in lieu of redemption, at a price not\nexceeding:\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 10. The authority shall have power and is hereby authorized to issue\nnegotiable bond anticipation notes in conformity with applicable\nprovisions of the uniform commercial code and may renew the same from\ntime to time but the maximum maturity of any such note, including\nrenewals thereof, shall not exceed five years from the date of issue of\nsuch original note.\n Such notes shall be paid from any moneys of the authority available\ntherefor and not otherwise pledged or from the proceeds of sale of the\nbonds of the authority in anticipation of which they were issued. The\nnotes shall be issued in the same manner as bonds and such notes and the\nresolution or resolutions authorizing the same may contain any\nprovisions, conditions or limitations which the bonds or bond resolution\nof the authority may contain. Such notes may be sold at public sale or,\nupon the approval of the comptroller of the terms thereof, at private\nsale. Such notes shall be as fully negotiable as the bonds of the\nauthority.\n