§ 1207 — Notes and equipment trusts

§ 1207. Notes and equipment trusts. 1. The authority may issue notes\nin conformity with applicable provisions of the uniform commercial code\nin anticipation of the receipt of revenues provided that the aggregate\nprincipal amount of such revenue anticipation notes outstanding at any\ntime shall not exceed ten per cent of the average annual revenues of the\nauthority. All such revenue anticipation notes shall mature within two\nyears of the date of issue and an installment or installments of not\nless than fifty per cent of the principal amount of such notes shall\nmature in the first fiscal year succeeding the fiscal year in which such\nnotes are issued. Such notes may be sold at public or private sale and\nthe city shall have power to purchase the same from any revenues or\nfunds of the city other than moneys derived from borrowings.\n 2. The authority shall have power to purchase pursuant to conditional\nsales agreements or equipment trust agreements, to lease and otherwise\nto acquire subject to a lien for the purchase price, such equipment as\nit deems desirable including cars and rolling stock, electric and other\nmotive power vehicles, automobiles, buses, and other motor vehicles,\nprovided, however, that the amount of liabilities which the authority\nmay incur under this subdivision shall be governed by the limitations\ncontained in paragraph b of subdivision one of section eighteen hundred\nthree of this law and shall in no event exceed such sum of five million\ndollars in any one fiscal year without the approval of the mayor.\nPayment for such equipment, or rentals therefor, may be made in\ninstallments to a trustee in trust to secure payment of equipment trust\ncertificates, and provision may be made that title to such equipment\nshall not vest in the authority until the equipment trust certificates\nare paid, or that such equipment shall be subject to a lien to secure\nequipment trust certificates. Any such agreements, leases and equipment\ntrust certificates shall contain such covenants, conditions and\nprovisions as it deems necessary or desirable to insure payment of the\nequipment trust certificates.\n 3. The authority may also issue its promissory notes from time to time\nin conformity with applicable provisions of the uniform commercial code\nfor the purpose of raising working capital to pay its expenses of\noperation. Such promissory notes shall be general obligations of the\nauthority, may be secured or unsecured as the authority shall determine,\nsubject to the prior rights, if any, of the holders of other obligations\nof the authority, shall mature not later than five years from the date\nof issue and shall at no time be outstanding in an unpaid principal\namount in excess of two hundred million dollars. Such promissory notes\nmay be sold at public or private sale.\n