§ 1174-H — Bonds of the authority

New York § 1174-H

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 7-A: Water Authority of Southeastern Nassau County
• Art. 5: Public Utility Authorities

Text

§ 1174-h. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds, in\nconformity 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 water project or projects or for any other corporate\npurposes, including incidental expenses in connection therewith. The\nauthority shall have power from time to time to refund any bonds by the\nissuance of new bonds whether the bonds to be refunded have or have not\nmatured, and may issue bonds partly to refund bonds then outstanding and\npartly for any other corporate purpose. Bonds issued by the authority\nmay be general obligations secured by the faith and credit of the\nauthority or may be special obligations payable solely out of particular\nrevenues or other moneys of the authority as may be designated in the\nproceedings of the authority under which the bonds shall be authorized\nto be issued, subject to any agreements with the holders of outstanding\nbonds pledging particular revenues or moneys.\n 2. The authority is authorized to obtain from any department or agency\nof the United States of America or nongovernmental insurer any insurance\nor guaranty, or any other credit enhancement arrangement with any bank\nor other financial institution to the extent now or hereafter available,\nas to, or for the payment or repayment of interest or principal, or\nboth, or any part thereof, on any bonds issued by the authority and to\nenter into any agreement or contract with respect to any such insurance\nor guaranty, except to the extent that the same would in any way impair\nor interfere with the ability of the authority to perform and fulfill\nthe terms of any agreement made with the holders of the bonds of the\nauthority.\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\nrenewal thereof shall mature within forty years of the date of their\noriginal issuance and notes and any renewal thereof shall mature within\nfive years of 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.\nBonds 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 at private sale unless the terms of such sale shall have\nbeen approved in writing by:\n (a) the comptroller, where such sale is not to the comptroller, or\n (b) the director of the division of the budget of the state, where\nsuch sale is 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, securities, contracts or property, to secure the payment of the\nbonds, subject to 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 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 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 the refunding of outstanding or\nother 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 or indenture securing\nthe 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 section eleven hundred seventy-four-i 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 (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 (1) limitations on the power of the authority to sell or otherwise\ndispose of any system 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 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 (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, consistent 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. 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 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 of the board of directors nor the officers of\nthe authority nor any person executing bonds shall be liable personally\nthereon or be subject to any personal liability or accountability solely\nby 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 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. Such notes shall be paid from any moneys of the\nauthority available therefor and not otherwise pledged or from the\nproceeds of sale of the bonds of the authority in anticipation of which\nthey were issued. The notes shall be issued in the same manner as the\nbonds and such notes and the resolution or resolutions authorizing the\nsame may contain any provisions, conditions or limitations which the\nbonds or bond resolution of the authority may contain. Such notes may be\nsold at public sale or, upon the approval of the comptroller of the\nterms thereof, at private sale. Such notes shall be as fully negotiable\nas the bonds of the authority.\n