§ 1232-G — Bonds of the authority

New York § 1232-G

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 10-D: Nassau County Sewer and Storm Water Finance Authority
• Art. 5: Public Utility Authorities

Text

§ 1232-g. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds in such\nprincipal amounts, not to exceed three hundred fifty million dollars\n($350,000,000), as it may determine to be necessary to pay the cost of\nany project or for any other of its corporate purposes, including the\nestablishment of reserves to secure the bonds, the payment of principal\nof, premium, if any, and interest on the bonds and the payment of\nincidental expenses in connection therewith. The aggregate principal\namount of such bonds, notes or other obligations shall exclude bonds,\nnotes or other obligations issued to refund or otherwise repay bonds,\nnotes or other obligations theretofore issued for such purpose. The\nauthority shall have power from time to time to refund any bond,\nincluding bonds of the county issued to pay the cost of any project, 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 of the authority. Bonds\nissued by the authority may be general obligations secured by the faith\nand credit of the authority or may be special obligations payable solely\nout of 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 priority only to any agreements with the\nholders of outstanding bonds pledging any particular property, revenues,\nearnings or moneys. The authority may also enter into loan agreements,\nlines of credit and other security agreements and obtain for or on its\nbehalf letters of credit, insurance, guarantees or other credit\nenhancements to the extent available, in each case for securing its\nbonds or to provide direct payment of any costs that the authority is\nauthorized to pay.\n 2. 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 from the date of original\nissuance of any such bonds or within the applicable period of probable\nusefulness of the object or purpose financed as set forth in the local\nfinance law assuming such provision was applicable, whichever is less.\nBonds 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. Bonds may be sold at public or private sale for such price\nor prices as the authority shall determine, provided that no bonds of\nthe authority, other than obligations designated as notes, shall be sold\nby the authority at private sale unless such sale and the terms thereof\nhave been approved in writing by the comptroller, or by the state\ndirector of the budget, where such sale is to be to the comptroller. The\nauthority may pay all expenses, premiums and commissions which it may\ndeem necessary or advantageous in connection with the issuance and sale\nof bonds.\n 3. The authority shall have the power and is hereby authorized to\nassume any bonds of the county issued and sold to the New York state\nenvironmental facilities corporation and in connection therewith to\nissue its bonds to the New York state environmental facilities\ncorporation in substitution therefor.\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 any part of the revenues of the authority,\ntogether with any other moneys or property of the authority to secure\nthe payment of the bonds or any costs of the issuance thereof, including\nbut not limited to any contracts, earnings or proceeds of any grant to\nthe authority received from any private or public source, subject to\nsuch 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 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, 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 moneys\nmay be deposited;\n (h) the terms and provisions of any trust, deed, mortgage or indenture\nsecuring the 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 twelve hundred thirty-two-h 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; notwithstanding any provision to the\ncontrary, nothing contained in this title shall be deemed to restrict\nthe right of the state or county of Nassau to amend, modify or otherwise\nalter laws, ordinances, resolutions or agreements imposing or relating\nto taxes or fees or appropriations relating thereto. The authority shall\nnot include in any resolution or contract or agreement with the holder\nof its bonds any provision which provides that a default shall occur as\na result of the state or county exercising its right to amend, modify or\notherwise alter laws, ordinances, resolutions or agreements imposing or\nrelating to taxes or fees or appropriations relating thereto;\n (k) limitations on the power of the authority to sell or otherwise\ndispose of any project or any part thereof or other property;\n (l) limitations on the amount of revenues and other moneys to be\nexpended for administrative or other expenses of the authority;\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 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 conferred by this section upon the\nauthority to secure its bonds, the authority shall have power in\nconnection with the issuance of bonds to adopt resolutions and enter\ninto such trust indentures, agreements or other instruments as the\nauthority may deem necessary, convenient or desirable concerning the use\nor disposition of its revenues or other moneys or property, including\nthe mortgaging 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 the right to do in the absence of\nsuch agreements. The authority shall have power to enter into amendments\nof any such agreements within the powers granted to the authority by\nthis title 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. Notwithstanding any provision of the uniform commercial code to the\ncontrary, any pledge of or other security interest in revenues, moneys,\naccounts, 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 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 the power, out of any moneys available therefor,\nto purchase bonds of the authority, which shall thereupon be cancelled.\n 10. The authority shall have the power and is hereby authorized to\nissue negotiable notes only for the purpose of paying the cost of any\nproject or for any other of its corporate purposes in conformity with\napplicable provisions of the uniform commercial code and may renew the\nsame from time to time but the maximum maturity of any such note,\nincluding renewals thereof, shall not exceed five years from the date of\nissuance of such original note.\n