§ 1199-II*2 — Bonds of the authority

New York § 1199-II*2

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 8-E*: Orange County Water Authority
• Art. 5: Public Utility Authorities

Text

* § 1199-ii. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds in\nconformance with the applicable provisions of the uniform commercial\ncode in such principal amounts as it may determine to be necessary to\npay the cost of any project or for any other corporate purpose,\nincluding incidental expenses in connection therewith. The authority\nshall have power from time to time to refund any bonds by the issuance\nof new bonds, whether the bonds to be refunded have or have not matured,\nand may issue bonds partly to refund bonds then outstanding and partly\nfor any other corporate purpose. Bonds issued by the authority shall be\nspecial obligations payable solely out of particular revenues or other\nmoneys as may be designated in the proceedings of the authority under\nwhich the bonds shall be authorized to be issued, subject only to any\nagreements with the holders of outstanding bonds pledging any particular\nrevenues, earnings or moneys.\n 2. The authority is authorized to obtain from any insurer or financial\ninstitution any insurance, guaranty or other credit support device, to\nthe extent now or hereafter available, as to, or for the payment or\nrepayment of interest or principal, or both, or any part thereof, on any\nbonds issued by the authority and to enter into any agreement or\ncontract with respect to any such insurance, guaranty or other credit\nsupport device, except to the extent that the same would in any way\nimpair or interfere with the ability of the authority to perform and\nfulfill the terms of any agreement made with the holders of outstanding\nbonds of the authority.\n 3. Bonds shall be authorized by resolution of the authority, be in\nsuch denominations, bear such date or dates and mature at such time or\ntimes as such resolution may provide, except that bonds and any renewals\nthereof shall mature within forty years of the date of their original\nissuance and notes and any renewal thereof shall mature within five\nyears of the date of their original issuance. Such bonds shall be\nsubject to such terms of redemption, bear interest at such rate or rates\nper annum, which may vary from time to time, as may be necessary to\neffect the sale thereof and shall be payable at such time, be in such\nform, carry such registration privileges, be executed in such manner,\nshall be subject to tender to the authority, with or without extinction\nor cancellation, 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. Bonds may be sold at public or private sale for such price\nor prices as the authority shall determine, provided that no issue of\nbonds of the authority, other than obligations designated as notes, may\nbe sold by the authority at private sale unless such sale and the terms\nthereof have been approved in writing by the comptroller, where such\nsale is not to be to such comptroller, or by the state director of the\nbudget, where such sale is to be to the comptroller.\n 4. Any resolution or resolutions authorizing bonds or any issue of\nbonds may contain provisions which may be a part of the contract with\nthe 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 holders of bonds or notes as then\nmay 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) the rates, fees and other charges to be fixed and collected by the\nauthority and the amount to be raised in each year thereby, and the use\nand disposition of revenues;\n (e) limitations on the right of the authority to restrict and regulate\nthe use of the project or part hereof in connection with which bonds are\nissued;\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 moneys\nmay 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 any\nor all of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to section eleven hundred ninety-nine-jj 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 (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 project or any part thereof;\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 may in any\nway affect 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, convenient or desirable concerning the use or\ndisposition of its revenues or other moneys or property, including the\nmortgaging of any of its properties and the entrusting, pledging or\ncreation of any other security interest in any such revenues, moneys or\nproperties and the doing of any act (including refraining from doing any\nact) which the authority would have 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 such pledge is made or other security interest\nattaches without any physical delivery of the collateral or further act,\nand the lien of any such pledge, or other security interest shall be\nvalid, binding and perfected against all parties having claims of any\nkind in tort, contract or otherwise against the authority irrespective\nof whether or not such parties have notice thereof. No instrument by\nwhich such a pledge or security interest is created nor any financing\nstatement need be recorded or filed.\n 7. Whether or not the bonds are of such form and character as to be\nnegotiable instruments under the terms of the uniform commercial code,\nthe bonds are hereby made negotiable instruments within the meaning of\nand for all the purposes of the uniform commercial code, subject only to\nthe provisions of the bonds for registration.\n 8. Neither the members of the authority nor any person executing bonds\nshall be liable personally thereon or be subject to any personal\nliability or accountability by 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, which shall thereupon be cancelled at a\nprice not exceeding (i) if the bonds are then redeemable, the redemption\nprice then applicable plus accrued interest to the next interest payment\ndate, or (ii) if the bonds are not redeemable then redemption price\napplicable on the first date after such purchase upon which the bonds\nbecome subject to redemption, plus accrued interest to interest payment\ndate.\n * NB There are 2 § 1199-ii's\n