§ 1230-M — Bonds of the authority

New York § 1230-M

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 10-B: Niagara Falls Public Water Authority
• Art. 5: Public Utility Authorities

Text

§ 1230-m. 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 applicable provisions of the uniform commercial code in\nsuch principal amounts as it may determine to be necessary to pay the\ncost of any project or projects, or for any other corporate purpose,\nincluding reasonable and incidental expenses in connection therewith.\nThe authority shall have power from time to time to refund any bonds by\nthe issuance of new bonds whether the bonds to be refunded have or have\nnot matured, and may issue bonds partly to refund bonds then outstanding\nand partly for any other corporate purpose. Bonds issued by the\nauthority may be general obligation bonds secured by the faith and\ncredit of the authority or may be special obligations payable solely out\nof particular revenues or other moneys as may be designated in the\nproceedings of the authority under which the bonds shall be authorized\nto be issued, subject to any agreements entered into between the\nauthority and the city, and the authority, the water board and the city,\nand subject to any agreements with the holders of outstanding bonds\npledging any particular property, revenues or moneys.\n 2. The authority is authorized to obtain from any department or agency\nof the United States or the state or any non-governmental insurer or\nfinancial institution, any insurance, guaranty or other credit support\ndevice, 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 issued by the authority and to enter into any\nagreement or contract with respect to any such insurance or guaranty,\nexcept to the extent that the same would in any way impair or interfere\nwith the ability of the authority to perform and fulfill the terms of\nany agreement made with the holders of bonds or notes of the authority\nas may then exist.\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\npayable at such times, be in such form, 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 and\nconditions as such resolution may provide. Bonds may be sold at public\nor private sale for such price or prices as the authority shall\ndetermine provided that no issue of bonds may be sold by the authority\nat private sale unless such sale and the terms thereof have been\napproved in writing by (a) the comptroller, where such sale is not to\nsuch comptroller, or (b) by the state director of the budget, where such\nsale is to be to the comptroller. The authority may pay all expenses,\npremiums and commissions which it may deem necessary or advantageous in\nconnection with the issuance and sale of bonds or authority obligations.\n 4. The authority may also enter into loan agreements, lines of credit\nand other security agreements and obtain for or on its behalf letters of\ncredit, insurance, guarantees or other credit enhancements to the extent\nnow or hereafter available, in each case for securing its bonds or to\nprovide direct payment of any costs which the authority is authorized to\npay.\n 5. 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 the revenues, other monies or property of\nthe authority to secure the payment of the bonds, or any costs of\nissuance thereof, including, but not limited to, any contracts, earnings\nor proceeds of any grant to the authority received from any private or\npublic source subject to such agreements with bondholders as may then\nexist;\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 the 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 secured and the refunding of\noutstanding or other bonds;\n (f) 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 (g) the creation of special funds into which any revenues or monies\nmay be deposited;\n (h) the terms and provisions of any trust, mortgage, deed or indenture\nsecuring the bonds under which the bond 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 any\nor all of the rights, powers and duties of the trustees appointed by the\nbondholders to appoint a trustee pursuant to this title or limiting or\nabrogating the rights of the bondholders to appoint a trustee, or\nlimiting the rights, duties and powers 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 project or any part thereof;\n (l) limitations on the amount of revenues and other monies to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (m) the payment of the proceeds of bonds, revenues and other monies 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 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 such trust\nindentures, agreements or other instruments as the authority may deem\nnecessary, convenient or desirable concerning the use or disposition of\nits revenues or other monies or property, including the mortgaging of\nany property and the entrusting, pledging or creation of any other\nsecurity interest in any such revenues, monies or property and the doing\nof any act, including refraining from doing any act which the authority\nwould have the right to do in the absence of such resolutions, trust\nindentures, agreements or other instruments. The authority shall have\npower to enter into amendments of any such resolutions, trust\nindentures, agreements or other instruments. The provisions of any such\nresolutions, trust indentures, agreements or other instruments may be\nmade a part of the 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,\nmonies, accounts, contract rights, general intangibles or other personal\nproperty made or created by the authority or the water board, pursuant\nto this title, shall be valid, binding and perfected against all\npersons, 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 or the\nwater board, irrespective of whether such parties have notice thereof.\nNo instrument 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 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 9. Neither the members of the authority nor any person executing its\nbonds shall be liable personally on its bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\n 10. Subject to such agreements with bondholders as may then exist, the\nauthority shall have power out of any funds available therefor to\npurchase bonds of the authority, which shall thereupon be cancelled, at\na price not exceeding (a) if the bonds are then redeemable, the\nredemption price then applicable plus accrued interest to the next\ninterest payment date, or (b) 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. Bonds so purchased shall thereupon be\ncancelled.\n