§ 1199-GGGG*2 — Bonds of the authority

New York § 1199-GGGG*2

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8-G*: Livingston County Water and Sewer Authority
• Art. 5: Public Utility Authorities

Text

* § 1199-gggg. Bonds of the authority. 1. The authority shall have\nthe power and is hereby authorized from time to time to issue bonds,\nnotes or other obligations to pay the cost of any project or for any\nother corporate purpose, including the establishment of reserves to\nsecure the bonds, the payment of principal of, premium, if any, and\ninterest on the bonds and the payment of incidental expenses in\nconnection therewith. The aggregate principal amount of such bonds,\nnotes or other obligations shall not exceed seventy million dollars\n($70,000,000), excluding bonds, notes or other obligations issued to\nrefund or otherwise repay bonds, notes or other obligations theretofore\nissued for such purposes provided, however, that upon any such refunding\nor repayment the total aggregate principal amount of outstanding bonds,\nnotes or other obligations may be greater than seventy million dollars\n($70,000,000) only if the present value of the aggregate debt service of\nthe refunding or repayment bonds, notes or other obligations to be\nissued shall not exceed the present value of the aggregate debt service\nof the bonds, notes or other obligations so to be refunded or repaid.\nFor purposes hereof, the present values of the aggregate debt service of\nthe refunding or repayment bonds, notes or other obligations and of the\naggregate debt service of the bonds, notes or other obligations and of\nthe aggregate debt service of the bonds, notes or other obligations so\nrefunded or repaid, shall be calculated by utilizing the effective\ninterest rate of the refunding or repayment bonds, notes or other\nobligations, which shall be that rate arrived at by doubling the\nsemi-annual interest rate (compounded semi-annually) necessary to\ndiscount the debt service payments on the refunding or repayment bonds,\nnotes or other obligations from the payment dates thereof to the date of\nissue of the refunding or repayment bonds, notes or other obligations\nand to the price bid including estimated accrued interest or proceeds\nreceived by the authority including estimated accrued interest from the\nsale thereof. The authority shall have the power and is hereby\nauthorized to enter into such agreements and perform such acts as may be\nrequired under any applicable federal legislation to secure a federal\nguarantee of any bonds.\n 2. The authority shall have power from time to time to renew bonds or\nto issue renewal bonds for such purpose, to issue bonds to pay bonds,\nand, whenever it deems refunding expedient, to refund any bond 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 of the authority. Bonds (other\nthan notes or other evidence of indebtedness) issued for refunding\npurposes, which have a final maturity date longer than the maturity of\nthe bonds being refunded, shall be approved by a resolution of the board\nof supervisors adopted by a majority vote and approved by the county\ntreasurer. Bonds issued for refunding purposes shall be sold and the\nproceeds applied to the purchase, redemption or payment of the bonds or\nnotes to be refunded.\n 3. Bonds issued by the authority may be general obligations secured by\nthe faith and credit of the authority or may be special obligations\npayable solely out of particular revenues or other moneys as may be\ndesignated in the proceedings of the authority under which the bonds\nshall be authorized to be issued, subject as to priority only to any\nagreements with the holders of outstanding bonds pledging any particular\nproperty, revenues or moneys. The authority may also enter into loan\nagreements, lines of credit and other security agreements and obtain for\nor on its behalf letters of credit, insurance, guarantees or other\ncredit enhancements to the extent not or hereafter available, in each\ncase for securing its bonds or to provided direct payment of any costs\nwhich the authority is authorized to pay.\n 4. Bonds shall be authorized by resolution of the authority, be in\nsuch denominations and bear such date or dates and mature at such time\nor times, as such resolution may provide, provided that bonds and\nrenewals thereof shall mature within forty years from the date of\noriginal issuance of any such bonds.\n Bonds shall be subject to such terms of redemption, bear interest at\nsuch rate or rates, be payable at such times, be in such form, either\ncoupon or registered, carry such registration privileges, be executed in\nsuch manner, be payable in such medium of payment at such place or\nplaces, and be subject to such terms and conditions as such resolution\nmay provide. Notwithstanding any other provision of law, the bonds of\nthe authority issued pursuant to this section shall be sold to the\nbidder offering the lowest true interest cost, taking into consideration\nany premium or discount not less than four nor more than fifteen days,\nSundays excepted, after a notice of such sale has been published at\nleast once in a newspaper of general circulation in the area served by\nthe authority, which shall state the terms of the sale. The terms of the\nsale may not change unless notice of such change is published in such\nnewspaper at least one day prior to the date of the sale as set forth in\nthe original notice of sale. Advertisements shall contain a provision to\nthe effect that the authority, in its discretion, may reject any or all\nbids made in pursuance of such advertisements, and in the event of such\nrejection, the authority is authorized to negotiate a private or public\nsale or readvertise for bids in the form and manner above described as\nmany times as, in its judgment, may be necessary to effect satisfactory\nsale.\n Notwithstanding the provisions of the preceding paragraph, whenever in\nthe judgment of the authority the interests of the authority will be\nserved thereby, the members of the authority, on the written\nrecommendation of the chairperson, may authorize the sale of such bonds\nat private or public sale on a negotiated basis or on either a\ncompetitive or negotiated basis. The authority shall set guidelines\ngoverning the terms and conditions of any such private or public sales.\nThe private or public bond sale guidelines set by the authority shall\ninclude, but not be limited to, a requirement that where the interests\nof the authority will be served by a private or public sale of bonds,\nthe authority shall select underwriters for each private or public bond\nsale conducted pursuant to a request for proposal process and\nconsideration of proposals from qualified underwriters taking into\naccount, among other things, qualifications of underwriters as to\nexperience, their ability to structure and sell authority bond issues,\nanticipated costs to the authority, the prior experience of the\nauthority with the firm, if any, the capitalization of such firms,\nparticipation of qualified minority and women-owned business enterprise\nfirms in such private or public sales of bonds of the authority and the\nexperience and ability of firms under consideration to work with\nminority and women-owned business enterprises so as to promote and\nassist participation by such enterprises.\n The authority shall have the power from time to time to amend such\nprivate bond sale guidelines in accordance with the provisions of this\nsubdivision.\n No private or public bond sale on a negotiated basis shall be\nconducted by the authority without prior approval of the state\ncomptroller. The authority shall annually prepare and approve a bond\nsale report which shall include the private or public bond sale\nguidelines as specified in this subdivision, amendments to such\nguidelines since the last private or public bond sale report, an\nexplanation of the bond sale guidelines and amendments, and the results\nof any sale of bonds conducted during the fiscal year. Such bond sale\nreport may be a part of any other annual report that the authority is\nrequired to make.\n The authority shall annually submit its bond sale report to the state\ncomptroller and copies thereof to the senate finance committee and the\nassembly ways and means committee.\n The authority shall make available to the public copies of its bond\nsale report upon reasonable request thereof.\n Nothing contained in this subdivision shall be deemed to alter, affect\nthe validity of, modify the terms of or impair any contract or agreement\nmade or entered into in violation of, or without compliance with, the\nprovisions of this subdivision.\n 5. 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 bonds\nor any costs of issuance thereof, including but not limited to any\ncontracts, earnings or proceeds of any grant to the authority received\nfrom any private or public source, subject to such agreements with\nbondholders 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 section eleven hundred ninety-nine-hhhh of\nthis title or limiting the rights, duties and powers 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 (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 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 (o) 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 6. 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 adopt resolutions and enter into trust indentures,\nagreements, or other instruments as the authority may deem necessary,\nconvenient or desirable concerning the use or disposition of its\nrevenues or other moneys or property, including the mortgaging of any\nproperty and the entrusting, pledging or creation of any other security\ninterest in any such revenues, moneys, or property and the doing of any\nact, including refraining from doing any act, which the authority would\nhave the right to do in the absence of such agreements. The authority\nshall have power to enter into amendments of any such agreements within\nthe powers granted to the authority by this title and to perform such\nagreements. The provisions of any such agreements may be made a part of\nthe contract with the holders of bonds of the authority.\n 7. 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 8. 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 9. 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 10. 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. Bonds so purchased shall thereupon be cancelled.\n 11. 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 * NB There are 2 § 1199-gggg's\n