§ 1187 — Bonds of the authority

New York § 1187

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8: Buffalo Sewer Authority
• Art. 5: Public Utility Authorities

Text

§ 1187. Bonds of the authority. 1. The authority shall have power and\nis hereby authorized from time to time to issue its negotiable bonds in\nconformity with applicable provisions of the uniform commercial code for\nany of its corporate purposes. The total amount of bonds issued and\noutstanding at any one time shall not exceed in the aggregate the sum of\nfive hundred million dollars, excluding bonds or notes for the payment\nor redemption of which there has been set aside and held in trust either\nmoneys, or direct and general obligations of, or obligations guaranteed\nby, the United States of America, or obligations secured by such\nobligations, or any combination thereof, which are or will be sufficient\nto pay when due the principal or applicable redemption price and all\naccrued interest thereon and, if such bonds or notes are to be redeemed,\nfor which notice of redemption has been given or satisfactory provision\nhas been made for the giving of such notice. The authority shall have\npower from time to time, whenever it deems refunding expedient, to\nrefund any bonds by the issuance of new bonds, whether the bonds to be\nrefunded have or have not matured or are then subject to redemption, and\nmay issue bonds partly to refund bonds then outstanding and partly for\nany of its corporate purposes.\n 2. The bonds shall be authorized by resolution of the board and shall\nbear such date or dates, mature at such time or times not exceeding\nforty years from their respective dates, bear interest at such rate or\nrates per annum payable at such time or times, be in such denominations,\nbe in such form, either coupon or registered, 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 of\nredemption, with or without premium, as such resolution or resolutions\nmay provide. The bonds may be sold at public or private sale for such\nprice or prices as the authority shall determine, provided that bonds,\nexclusive of notes, shall not be sold at private sale unless the board\nof the authority makes a written determination, setting forth the reason\ntherefore, that a private sale is in the best interest of the authority\nand such determination, private sale and the terms thereof have been\napproved in writing by (a) the state comptroller, where such sale is not\nto the state comptroller, or (b) the state director of the budget, where\nsuch sale is to the state comptroller. The foregoing provisions shall be\napplicable to bonds issued by the authority notwithstanding the\nprovisions of any other general, special or local law to the contrary.\n 3. Any resolution or resolutions authorizing any bonds may contain\nprovisions, which shall be a part of the contract with the holders of\nthe bonds, as to\n (a) pledging all or any part of the gross or net revenues of the\nauthority to secure the payment of the bonds;\n (b) the rates, rentals and other charges to be imposed and the amounts\nto be raised in each year by such rates, rentals and charges and the use\nand disposition thereof and of any other revenues;\n (c) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) limitations on the right of the authority to restrict and regulate\nthe use of its facilities;\n (e) limitations on the purpose to which the proceeds of sale of any\nissue of bonds then or thereafter to be issued may be applied;\n (f) limitations on the issuance of additional bonds;\n (g) the time when the project shall be deemed to be completed, or the\nmethod of determining such time, and the time when the certificate\nprovided for in section fourteen hundred four of this chapter shall be\nfiled;\n (h) 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 (i) the refunding of outstanding or other bonds;\n (j) the creation of special funds into which any earnings or revenues\nof the authority may be deposited;\n (k) 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 ninety-two 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 (l) 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. Neither the members of the board nor any person executing the bonds\nshall be liable personally on the bonds by reason of the issuance\nthereof.\n 5. The authority shall have power out of any funds available therefor\nto purchase any bonds issued by it at a price not more than the\nprincipal amount thereof and the accrued interest. All bonds so\npurchased shall be cancelled.\n 6. 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