§ 1196-F — Bonds and notes of an authority

New York § 1196-F

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8-A: New York State Local Water and Sewer Authority Act
• Art. 5: Public Utility Authorities

Text

§ 1196-f. Bonds and notes of an authority. 1. An authority shall have\nthe power 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. An\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 an authority may\nbe general obligations secured by the faith and credit of the authority\nor may be special obligations payable solely out of particular revenues\nor other moneys of the authority as may be designated in the proceedings\nof the authority under which the bonds shall be authorized to be issued,\nsubject to any agreements with the holders of outstanding bonds pledging\nparticular revenues or moneys.\n 2. An authority is authorized to obtain from any department or agency\nof the United States of America or nongovernmental insurer any insurance\nor guaranty, to the extent now or hereafter available, as to, or for the\npayment or repayment of interest or principal, or both, or any part\nthereof, on any bonds or notes issued by the authority and to enter into\nany agreement or contract with respect to any such insurance or\nguaranty, except to the extent that the same would in any way impair or\ninterfere with the ability of the authority to perform and fulfill the\nterms of any agreement made with the holders of the bonds or notes of an\nauthority.\n 3. Bonds shall be authorized by resolution of an authority, be in such\ndenominations and bear such date or dates, mature at such time or times,\nexcept that bonds and any renewal thereof shall mature within forty\nyears of the date of their original issuance and notes and any renewal\nthereof shall mature within five years of the date of their original\nissuance. Such bonds shall be subject to such terms of redemption, bear\ninterest at such rate or rates 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, upon the approval of the state\ncomptroller, at private sale for such price or prices as an authority\nshall determine, provided that no issue of bonds may be sold at private\nsale unless the terms of such sale shall have been approved by writing\nby (a) the comptroller, where such sale is not to the comptroller, or\n(b) the director of the division of the budget, where such sale is to\nthe comptroller.\n 4. Any resolution or resolutions authorizing bonds or any issue of\nbonds by an 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 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) 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 (e) 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 (f) 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 (g) the creation of special funds into which any revenues or other\nmoneys may be deposited;\n (h) the terms and provisions of any trust deed or indenture securing\nthe bonds under which the bonds may be issued;\n (i) 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 ninety-six-g of this\ntitle 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 (j) 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 (k) limitations on the power of the authority to sell or otherwise\ndispose of any system or any part thereof or other property;\n (l) limitations on the amount of revenues and other moneys to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (m) 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 (n) 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 an authority to\nsecure its bonds, an 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 the\nmortgaging of any property and the entrusting, pledging or creation of\nany other security interest in any such revenues, moneys or property and\nthe doing of any act, including refraining from doing any act, which an\nauthority would have the right to do in the absence of such agreements.\nAn 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 an 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 an 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 the purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 8. Neither the directors of an authority nor any person executing\nbonds shall be liable personally thereon or be subject to any personal\nliability or accountability solely by reason of the issuance thereof.\n 9. An 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 (i) if the bonds are then redeemable, the\nredemption price then applicable, plus accrued interest to the next\ninterest payment date, (ii) if the bonds are not then redeemable, the\nredemption price applicable on the first date after such purchase upon\nwhich the bonds become subject to redemption plus accrued interest to\nthe next interest payment date.\n 10. An 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 therefore 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 a bond resolution of the authority may contain. Such notes may\nbe sold at public sale or, upon the approval of the state comptroller,\nat private sale. Such notes shall be as fully negotiable as the bonds of\nthe authority.\n