§ 1335 — Notes and bonds of the authority

§ 1335. Notes and bonds of the authority. 1. (a) The authority shall\nhave power and is hereby authorized from time to time to borrow money\nand issue its negotiable bonds and notes in such principal amount, as,\nin the opinion of the authority, shall be necessary to provide\nsufficient funds for achieving its purposes, including the acquisition,\nestablishment, construction, effectuation, operation, maintenance,\nrenovation, improvement, extension or repair of any transportation\nfacility, the payment of interest on bonds and notes of the authority,\nestablishment of reserves to secure such bonds and notes, the provision\nof working capital and all other expenditures of the authority and its\nsubsidiary corporations incident to and necessary or convenient to carry\nout their purposes and powers;\n (b) The authority 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\npurposes. The refunding bonds shall be sold and the proceeds applied to\nthe purchase, redemption or payment of the bonds to be refunded;\n (c) Except as may otherwise be expressly provided by the authority,\nevery issue of its notes or bonds shall be general obligations of the\nauthority payable out of any revenues or moneys of the authority,\nsubject only to any agreements with the holders of particular notes or\nbonds pledging any particular receipts or revenues;\n (d) Whether or not the notes or bonds are of such form and character\nas to be negotiable instruments under article eight of the uniform\ncommercial code, the notes or bonds shall be and hereby are made\nnegotiable instruments within the meaning of and for all the purposes of\narticle eight of the uniform commercial code, subject only to the\nprovisions of the notes or bonds for registration.\n 2. The notes and bonds shall be authorized by resolution approved by\nnot less than a majority of the whole number of members of the authority\nthen in office, shall bear such date or dates, and shall mature at such\ntime or times, as specified therein and in the case of any such bond not\nexceeding fifty years from the date of issue, as such resolution or\nresolutions may provide. The notes and bonds shall bear interest at such\nrate or rates, be in such denominations, be in such form, either coupon\nor registered, 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 authority may be\nsold by the authority, at public or private sale, at such price or\nprices as the authority shall determine. No notes or bonds of the\nauthority may be sold by the authority at private sale, however, unless\nsuch sale and the terms thereof have been approved in writing by (a) the\ncomptroller, where such sale is not to the comptroller, or (b) the\ndirector 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 fares, tolls, rentals, rates,\ncharges and other fees made or received by the authority or any of its\nsubsidiary corporations, and other moneys received or to be received, 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 authority or of any\nof its subsidiary corporations to secure the payment of the notes or\nbonds or of any issue of notes or bonds, subject to such agreements with\nnoteholders or bondholders as may then exist;\n (c) the use, and disposition of fares, tolls, rentals, rates, charges\nand other fees made or received by the authority or any of its\nsubsidiary corporations;\n (d) the setting aside of reserves or sinking funds and the regulation\nand disposition thereof;\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 moneys to be expended by the\nauthority or any of its subsidiary corporations for operating,\nadministrative or other expenses of the authority or any of its\nsubsidiary corporations;\n (i) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the authority may determine, which may include any or\nall 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 authority to\nsecure its notes and bonds, the authority shall have power in connection\nwith the issuance of notes and bonds to enter into such agreements as\nthe authority may deem necessary, convenient or desirable concerning the\nuse or disposition of its moneys or property or the moneys or property\nof any of its subsidiary corporations, including the mortgaging of any\nsuch property and the entrusting, pledging or creation of any other\nsecurity interest in any such moneys or property and the doing of any\nact (including refraining from doing any act) which the authority would\nhave the right to do in the absence of such agreements. The authority\nshall have power to enter into amendments of any such agreements within\nthe powers granted to the authority by this title and to perform such\nagreements. The provisions of any such agreements may be made a part of\nthe contract with the holders of the notes and bonds of the authority.\n 5. It is the intention hereof that any pledge, mortgage or security\ninstrument made by the authority shall be valid and binding from the\ntime when the pledge, mortgage or security instrument is made; that the\nmoneys or property so pledged, mortgaged and entrusted and thereafter\nreceived by the authority 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 authority, irrespective of whether such parties have notice\nthereof. Neither the resolution nor any mortgage, security instrument or\nother instrument by which a pledge, mortgage lien or other security is\ncreated need be recorded or filed and the authority shall not be\nrequired to comply with any of the provisions of the uniform commercial\ncode.\n 6. Neither the members of the authority nor any person executing the\nnotes or bonds shall be liable personally on the notes or bonds or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n 7. The authority, 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 authority, 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 date thereon, or (b) if\nthe notes or bonds are not then redeemable, the redemption price\napplicable on the first date after such purchase upon which the notes or\nbonds become subject to redemption plus accrued interest to such date.\n 8. The state shall not be liable on notes or bonds of the authority\nand such notes and bonds shall not be a debt of the state, and such\nnotes and bonds shall contain on the face thereof a statement to such\neffect.\n