§ 1156 — Bonds of the authority

New York § 1156

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 7: Onondaga County Water Authority
• Art. 5: Public Utility Authorities

Text

§ 1156. 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 contract, earnings or revenues. 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, be in such denominations, be in such form either coupon or\nregistered, carry such registration privileges, be executed in such\nmanner, be payable in lawful money of the United States of America, at\nsuch place or places and be subject to such terms of redemption, as such\nresolution or resolutions may provide.\n Bonds of the authority shall be sold at public sale upon sealed bids\nto the bidder who shall offer the lowest interest cost to the authority\nto be determined by the authority. The notice of sale shall be published\nat least once, not less than ten nor more than forty days before the\ndate of sale, in a financial newspaper published and circulated in the\ncity of New York and designated by the authority. The notice shall call\nfor the receipt of sealed bids and shall fix the date, time and place of\nsale. Bonds may also be sold at private sale. Such bonds, whether\npublicly or privately sold, shall be sold for a price not less than\nninety-six per centum of the par value thereof, plus accrued interest,\nprovided always that the interest cost to maturity of the moneys\nrealized from the sale of such bonds shall not exceed six per centum per\nannum. The terms of private sale shall be approved by the comptroller,\nor by the division of the budget when the sale is to the comptroller.\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 in 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 mortgage or trust deed or\nindenture securing the bonds or under which 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 forty-three hereof, and\nlimiting or abrogating the right of the bondholders to appoint a trustee\nunder such section or limiting the rights, duties and powers of such\ntrustee;\n (k) 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\nand other provisions of this title;\n (l) limitations on the power of the authority to sell or otherwise\ndispose of its properties;\n (m) any other matters, of like or different character which in any way\naffect the security or protection of the bonds;\n (n) limitations on the amount of moneys derived from the properties to\nbe expended for operating, administrative or other expenses of the\nauthority;\n (o) the protection and enforcement of the rights and remedies of the\nbondholders;\n (p) the obligations of the authority in relation to the construction,\nmaintenance, operation, repairs and insurance of the 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 (q) the payment of the proceeds of bonds and revenues of the\nproperties to a trustee or other depositary, and for the method of\ndisbursement thereof with such safeguards and restrictions as the\nauthority may determine.\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 or other obligations shall be liable personally on the bonds or\nother obligations or be subject to any personal liability or\naccountability 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 or which may be assumed by such\nauthority at a price of not more than the principal amount thereof and\naccrued interest, and all such bonds shall be 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 and/or other charges sufficient to pay, and that any\ncontracts entered into by the authority for the sale or distribution of\nwater shall contain rates, fees, rentals or other charges sufficient to\npay, the cost of operation and maintenance of the properties, the\nprincipal of and interest on any obligation issued pursuant to such\nresolution or resolutions as the same severally become due and payable,\nand to maintain any reserves or other funds required by the terms of\nsuch resolution or resolutions.\n