§ 1290 — Notes and bonds of the corporation

New York § 1290

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 12: New York State Environmental Facilities Corporation
• Art. 5: Public Utility Authorities

Text

§ 1290. Notes and bonds of the corporation. 1. (a) The corporation\nshall have power and is hereby authorized from time to time to issue its\nnegotiable or non-negotiable bonds and notes in conformity with\napplicable provisions of the uniform commercial code in such principal\namount, as, in the opinion of the corporation, shall be necessary to\nprovide sufficient funds for achieving its purposes, including the\nacquisition and construction, operation and maintenance of sewage\ntreatment works, sewage collecting systems, solid waste disposal\nfacilities, storm water collecting systems, water management facilities,\nair pollution control facilities, the removal, disposal and remediation\nof petroleum storage tanks and the remediation of the sites thereof and\nany other project or projects authorized pursuant to the provisions of\nthis title, and paying the cost thereof; the making of loans to persons\nand, for purposes of sections twelve hundred eighty-five-j, twelve\nhundred eighty-five-m and twelve hundred eighty-five-o of this title\nonly, to any municipality or recipient for such purposes; the making of\nloans, providing of financing or extension of credit to or on behalf of\nbeginning farmers for purposes of section twelve hundred eighty-five-r\nof this title only; the financing of the design, acquisition,\nconstruction, improvement and installation of all or any portion of\nRiverbank Park, provided however, that any such bonds or notes issued to\nfinance Riverbank Park shall only be issued in such principal amount as\nshall be necessary to provide sufficient funds for the repayment of\namounts disbursed pursuant to appropriations or reappropriations under\nchapter fifty-four of the laws of nineteen hundred ninety-one including\nany subsequent reappropriation of the unexpended balance of such\nappropriations or reappropriations for the purpose of Riverbank Park,\nplus an amount sufficient to fund any debt service reserve fund\nestablished by the corporation for the purpose of Riverbank Park and to\nprovide for the payment of fees and other charges and expenses of the\ncorporation in connection with such bonds and notes, which principal\namount shall constitute the statutory ceiling on the amount of bonds and\nnotes that can be issued for such purpose; the financing of all or any\nportion of any state park infrastructure project or reimbursement of the\nstate for expenditures relating thereto, plus an amount to provide for\nthe payment of fees and other charges and expenses of the corporation in\nconnection with such bonds and notes; the provision of funds to the\nstate for any amounts contributed or to be contributed to the water\npollution control revolving fund, the pipeline for jobs fund or the\ndrinking water revolving fund provided, however, that any such bonds or\nnotes issued to provide funds to the water pollution control revolving\nfund, the pipeline for jobs fund or the drinking water revolving fund\nshall only be issued in such principal amount as shall be necessary to\nprovide sufficient funds for the repayment of amounts disbursed pursuant\nto any appropriation or reappropriation enacted for the pipeline for\njobs fund or for the payment of the state match for federal\ncapitalization grants for the water pollution control revolving fund or\nthe drinking water revolving fund, plus an amount sufficient to fund any\ndebt service reserve fund and to provide for fees, charges and other\ncosts of issuance, which principal amount shall constitute the statutory\nceiling on the amount of bonds and notes that can be issued for such\npurpose; the financing of any environmental infrastructure projects\nauthorized by section twelve hundred eighty-five-p of this title; the\npurchase of municipal bonds and notes, and bonds and notes of a state\nagency, the payment of the cost of any project, the payment of interest\non bonds and notes of the corporation, the establishment of reserves to\nsecure such bonds and notes; the provision of working capital and all\nother expenditures of the corporation incident to and necessary or\nconvenient to carry out its purposes and powers;\n (b) The corporation shall have power, from time to time, to issue\nrenewal notes, to issue bonds to pay notes and whenever it deems\nrefunding expedient, to refund any bonds by the issuance of new bonds,\nwhether the bonds to be refunded have or have not matured, and to issue\nbonds partly to refund bonds then outstanding, and partly for any other\npurpose. The refunding bonds shall be sold and the proceeds applied to\nthe purchase, redemption or payment of the bonds to be refunded.\nNotwithstanding any statutory ceiling on outstanding bonds, any\nrefunding bonds shall be sold in the amount required to pay or redeem\noutstanding bonds, to fund any reserve, escrow or payment fund, and to\nprovide for the payment of all fees and other charges and expenses,\nincluding costs of issuance, incurred in connection with the issuance of\nsuch refunding bonds, provided that the present value of the aggregate\ndebt service on the refunding bonds does not exceed the present value of\nthe aggregate debt service on the bonds refunded thereby.\n (c) Except as may otherwise be expressly provided by the corporation,\nevery issue of its notes or bonds shall be (i) general obligations of\nthe corporation payable out of any revenues or monies of the\ncorporation, subject only to any agreements with the holders of\nparticular notes or bonds pledging any particular receipts or revenues,\n(ii) special obligations of the corporation payable solely from the\nrevenues, service charges, rentals, proceeds or other payments to be\nreceived on account of the mortgage, loan or other agreements and\npayments, reserve and insurance funds or accounts issuance of special\nobligations, and fees, charges or other monies to be received by the\ncorporation in respect to loans pursuant to section twelve hundred\neighty-five-b or twelve hundred eighty-five-j of this title, or from\namounts received by the corporation pursuant to any contract, lease,\neasement, license or other instrument entered into by the corporation\npursuant to sections twelve hundred eighty-five-k and twelve hundred\neighty-five-l of this title or, (iii) special obligations of the\ncorporation payable solely from amounts received pursuant to an\nagreement with the commissioner of environmental conservation pursuant\nto subdivision twelve of section twelve hundred eighty-five-j of this\ntitle, and may, but need not, be secured by mortgages, assignments or\npledges of such revenues, service charges, rentals, proceeds, other\npayments, funds and accounts, fees, charges and other monies, and by\nmortgages or assignments thereof in respect to projects, and may include\npooled financings subject only to any agreements with the holders of\nparticular special obligation notes or bonds issued to finance the cost\nof, or loans for, a project or projects; no general obligations of the\ncorporation shall be issued to finance the cost of, or loans for, a\nproject or projects authorized to be constructed pursuant to section\ntwelve hundred eighty-five-b or twelve hundred eighty-five-j of this\ntitle or to finance (A) the contribution of the state to the water\npollution control revolving fund, (B) the design, acquisition,\nconstruction, improvement and installation of all or any portion of\nRiverbank Park or (C) state park infrastructure projects and no funds,\nmonies, revenues or other assets of the corporation shall be used for\nloans authorized pursuant to section twelve hundred eighty-five-b or\ntwelve hundred eighty-five-j of this title, except as may be available\nwith respect to a project and a contract with a person as aforesaid, or\nfor the payment to the state for amounts contributed by the state to the\nwater pollution control revolving fund, to finance the design,\nacquisition, construction, improvement and installation of all or any\nportion of Riverbank Park or state park infrastructure projects. Nor\nshall any special obligation authorized pursuant hereto be payable from\nor secured by any debt service reserve fund created pursuant to section\ntwelve hundred ninety-one of this title, and the state shall not be\nentitled to require the redemption of such special obligations pursuant\nto section twelve hundred ninety-three of this title; and such special\nobligation and the security therefor shall not be subject to the\nprovisions of section twelve hundred ninety-four of this title but the\nremedies of the holders thereof shall be set forth in the terms of such\nspecial obligations and the instruments constituting such security; the\nmaking of loans, providing of financial or extension of credit to or on\nbehalf of beginning farmers for purposes of section twelve hundred\neighty-five-r of this title only;\n (d) Any bonds or notes issued for the purpose of financing amounts\ndeposited or to be deposited by the state in the water pollution control\nrevolving fund may be issued in an aggregate principal amount sufficient\nto finance the amount to be paid or reimbursed to the state plus an\namount sufficient to fund any debt service reserve fund established by\nthe corporation and to provide for the payment of fees and other charges\nand expenses of the corporation in connection with such bonds and notes.\n (e) Notwithstanding any other law to the contrary, the corporation\nshall not issue any notes or bonds on behalf of any state department or\nagency to fund the removal, disposal and remediation of petroleum\nstorage tanks and the remediation of the sites thereof or on behalf of\nthe office of mental health to finance the pilgrim state sewage\ntreatment project, after the thirty-first day of March, nineteen hundred\nninety-six. This limitation shall not apply to bonds and notes issued to\nrefund bonds issued for such purposes.\n 2. The notes and bonds shall be authorized by resolution of the\ndirectors of the corporation, shall bear such date or dates, and shall\nmature at such time or times, in the case of any such note or any\nrenewals thereof not exceeding twelve years from the date of issue of\nsuch original note, and in the case of any such bond not exceeding forty\nyears from the date of issue, as such resolution or resolutions may\nprovide; provided, however, that the final maturity of any bond issued\nfor the purpose of financing any amounts deposited or to be deposited by\nthe state in the water pollution control revolving fund shall not exceed\nthirty years from the date of issue of such bond. The notes and bonds\nshall bear interest at such rate or rates which may vary from time to\ntime, be in such denominations, be in such form, either coupon or\nregistered, carry such registration privileges, be executed in such\nmanner, be payable in such medium of payment, at such place or places\nand be subject to such terms of redemption as such resolution or\nresolutions may provide. The notes and bonds of the corporation may be\nsold by the corporation, at public or private sale, at such price or\nprices as the corporation shall determine. No notes or bonds of the\ncorporation may be sold by the corporation at private sale, however,\nunless such sale and the terms thereof have been approved in writing by\n(a) the comptroller, where such sale is not to the comptroller, or (b)\nthe director of the budget, where such sale is to the comptroller.\n 3. Any resolution or resolutions authorizing any notes or bonds or any\nissue thereof may contain provisions, which shall be a part of the\ncontract with the holders thereof, as to:\n (a) pledging all or any part of the rentals, rates, charges and other\nfees made or received by the corporation and other monies received or to\nbe received from the ownership or operation or otherwise in connection\nwith any project or projects and all or any part of the monies received\nin payment of principal or interest on bonds or notes of any state\nagency and municipal bonds or notes acquired by the corporation, to\nsecure the payment of the notes or bonds or of any issue thereof,\nsubject to such agreements with bondholders or noteholders as may then\nexist;\n (b) pledging all or any part of the assets of the corporation\nincluding municipal bonds and notes acquired by the corporation in the\nissuance of general obligations, and in the issuance of special\nobligations, notes or other evidences of indebtedness of any person\nacquired by the corporation, and assigning and pledging any mortgages or\nother security interests acquired by the corporation or any interests of\nthe corporation in properties or revenues or other sums payable to the\ncorporation and any reserve and insurance funds or accounts or other\nfunds and accounts established in connection with the issuance of\nspecial obligations to secure the payment of the notes or bonds or of\nany issue of notes or bonds of general obligations or special\nobligations, as the case may be, subject to such agreements with\nnoteholders or bondholders as may then exist;\n (c) the use and disposition of rentals, rates, charges and other fees\nmade or received by the corporation;\n (d) the setting aside of reserves or sinking funds and the regulation\nand disposition thereof from the ownership or operation or otherwise in\nconnection with any project or projects and of the gross income from\nmunicipal bonds and notes and bonds and notes of any state agency owned\nby the corporation;\n (e) limitations on the purpose to which the proceeds of sale of notes\nor bonds may be applied and pledging such proceeds to secure the payment\nof the notes or bonds or of any issue thereof;\n (f) limitations on the issuance of additional notes or bonds; the\nterms upon which additional notes or bonds may be issued and secured;\nthe refunding of outstanding or other notes or bonds;\n (g) the procedure, if any, by which the terms of any contract with\nnoteholders or bondholders may be amended or abrogated, the amount of\nnotes or bonds the holders of which must consent thereto, and the manner\nin which such consent may be given;\n (h) limitations on the amount of monies to be expended by the\ncorporation for operating, administrative or other expenses of the\ncorporation;\n (i) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the corporation may determine, which may include any\nor all of the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to this title, and limiting or abrogating the right\nof the bondholders to appoint a trustee under this article or limiting\nthe rights, powers and duties of such trustee;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the notes or bonds.\n 4. In addition to the powers herein conferred upon the corporation to\nsecure its notes and bonds, the corporation shall have power in\nconnection with the issuance of notes and bonds to enter into such\nagreements as the corporation may deem necessary, convenient or\ndesirable concerning the use or disposition of its monies or property\nincluding the mortgaging of any such property and the entrusting,\npledging or creation of any other security interest in any such monies\nor property and the doing of any act (including refraining from doing\nany act) which the corporation would have the right to do in the absence\nof such agreements. The corporation shall have power to enter into\namendments of any such agreements within the powers granted to the\ncorporation by this title and to perform such agreements. The provisions\nof any such agreements may be made a part of the contract with the\nholders of the notes and bonds of the corporation.\n 5. It is the intention hereof that any pledge, mortgage or security\ninstrument made by the corporation shall be valid and binding from the\ntime when the pledge, mortgage or security instrument is made; that the\nmonies or property so pledged, mortgaged and entrusted and thereafter\nreceived by the corporation shall immediately be subject to the lien of\nsuch pledge, mortgage or security instrument without any physical\ndelivery thereof or further act; and that the lien of any such pledge,\nmortgage or security instrument shall be valid and binding as against\nall parties having claims of any kind in tort, contract or otherwise\nagainst the corporation, irrespective of whether such parties have\nnotice thereof. Neither the resolution nor any mortgage, security\ninstrument or other instrument by which a pledge, mortgage lien or other\nsecurity is created need be recorded or filed and the corporation shall\nnot be required to comply with any of the provisions of the uniform\ncommercial code.\n 6. Neither the directors of the corporation nor any person executing\nthe notes or bonds shall be liable personally on the notes or bonds or\nbe subject to any personal liability or accountability by reason of the\nissuance thereof.\n 7. The corporation, subject to such agreements with noteholders or\nbondholders as may then exist, shall have power out of any funds\navailable therefor to purchase notes or bonds of the corporation, which\nshall thereupon be cancelled, at a price not exceeding (a) if the notes\nor bonds are then redeemable, the redemption price then applicable plus\naccrued interest to the next interest payment thereon, or (b) if the\nnotes or bonds are not then redeemable, the redemption price applicable\non the first date after such purchase upon which the notes or bonds\nbecome subject to redemption plus accrued interest to such date.\n 8. Neither the state nor any municipality shall be liable on notes or\nbonds issued as general obligations of the corporation and such notes\nand bonds shall not be a debt of the state or any municipality, and such\nnotes and bonds shall contain on the face thereof a statement to such\neffect. The state shall not be liable on notes or bonds issued as\nspecial obligations of the corporation, and such notes and bonds shall\nnot be a debt of the state and shall be payable solely from the\nrevenues, service charges, rentals, proceeds or other payments to be\nderived from the extension of credit or the loan for the project for\nwhich such notes and bonds were issued, and such notes and bonds shall\ncontain on the face thereof a statement to such effect.\n