§ 1500-I — Bonds or notes of the authority

New York § 1500-I

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 5: City of Buffalo Parking Authority
• Art. 7: Parking Authorities

Text

§ 1500-i. Bonds or notes of the authority. 1. The authority shall have\nthe power and is hereby authorized from time to time to issue bonds,\nnotes, or other obligations in conformity with applicable provisions of\nthe uniform commercial code to: (a) pay the cost of acquisition of\nproperty in any covered project; (b) pay the cost of reconstructing,\nmaintaining, improving or repairing any covered project; (c) pay such\nexpenses as may be deemed by the board necessary or desirable to the\nfinancing thereof and placing such covered project in operation; (d)\nestablish reserves to secure the bonds; and (e) pay the principal of,\npremium, if any, and interest on the bonds and the payment of incidental\nexpenses in connection therewith. The aggregate principal amount of such\nbonds, notes or other obligations shall not exceed sixty-five million\ndollars, excluding bonds, notes or other obligations issued to refund or\nrepay bonds, notes or other obligations therefore issued for such\npurposes; provided, however, that upon any such refunding or repayment\nthe total aggregate principal amount of outstanding bonds, notes or\nother obligations may be greater than sixty-five million dollars, only\nif the present value of the aggregate debt service of the refunding or\nrepayment of bonds, notes or other obligations to be issued shall not\nexceed the present value of the aggregate debt service of the bonds,\nnotes or other obligations so to be refunded or repaid. For the purpose\nof this section, the present value of the aggregate debt service of the\nrefunding or repayment bonds, notes or other obligations and the\naggregate debt service of the bonds, notes or other obligations refunded\nor repaid shall be calculated by utilizing the effective interest rate\nof the refunding or repayment of bonds, notes or other obligations,\nwhich shall be that rate arrived at by doubling the semi-annual interest\nrate (compounded semi-annually) necessary to discount the debt service\npayments on the refunding or repayment of bonds, notes or other\nobligations from payment of dates thereof to the date of issue of the\nrefunding or repayment of bonds, notes or other obligations and to the\nprice bid including estimated accrued interest from the sale thereof.\nThe authority shall have the power and is hereby authorized to enter\ninto such agreements and perform such acts as may be required under any\napplicable federal law, rule or regulation to secure a federal guarantee\nto any bonds. With respect to any proposed borrowing by the authority,\nthe authority shall notify the Buffalo fiscal stability authority of\neach proposed issue of bonds or notes to be issued to give the Buffalo\nfiscal stability authority an opportunity to review the terms of and\ncomment on the prudence of each proposed issue of bonds or notes to be\nissued by the parking authority for a period of no less than ten days\nprior to issuing such bonds or notes.\n 2. The authority shall have the power from time to time to renew bonds\nor to issue renewal bonds for such purpose, to issue bonds to pay bonds,\nand, whenever it deems refunding expedient, to refund any bond by the\nissuance of new bonds, whether the bonds to be refunded have or have not\nmatured, and may issue bonds, partly to refund bonds then outstanding\nand partly for any other purpose of the authority. Bonds issued for\nrefunding purposes shall be sold and the proceeds applied to the\npurchase, redemption or payment of the bonds or notes to be refunded.\n 3. Bonds issued by the authority may be general obligations secured by\nthe faith and credit of the authority or may be special obligations\npayable solely out of particular revenues or other monies as may be\ndesignated in the proceedings of the authority under which the bonds\nshall be authorized to be issued, subject as to priority only to any\nagreements with the holders of outstanding bonds pledging any particular\nproperty, revenues or monies. The authority may also enter into loan\nagreements, lines of credit and other security agreements and obtain for\nor on its behalf letters of credit, insurance, guarantees or other\ncredit enhancements to the extent now or hereafter available, in each\ncase for securing its bonds or to provide direct payment of any costs\nwhich the authority is authorized to pay.\n 4. (a) Bonds shall be authorized by resolution of the authority be in\nsuch denominations and bear such date or dates and mature at such time\nor times, as such resolution may provide, provided that bonds and\nrenewals thereof shall mature within thirty years from the date of\noriginal issuance of any such bonds.\n (b) Bonds shall be subject to such terms of redemption, bear interest\nat such 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. Notwithstanding any other provision of law, the bonds of\nthe authority issued pursuant to this section shall be sold to the\nbidder offering the lowest true interest cost, taking into consideration\nany premium or discount not less than four nor more than fifteen days,\nSunday excepted, after a notice of such sale has been published at least\nonce in a newspaper of general circulation in the area served by the\nauthority, which shall state the terms of the sale. The terms of the\nsale may not change unless notice of such change is published in such\nnewspaper at least one day prior to the date of the sale as set forth in\nthe original notice of sale. Advertisements shall contain a provision to\nthe effect that the authority, in its discretion, may reject any or all\nbids made pursuant to such advertisements, and in the event of such\nrejection, the authority is authorized to negotiate a private or public\nsale or readvertise for bids in the form and manner described above in\nthis paragraph as many times as, in its judgment, may be necessary to\neffect satisfactory sale.\n (c) Notwithstanding the provisions of paragraph (b) of this\nsubdivision, whenever in the judgment of the authority the interests of\nthe authority will be served thereby, the board, on the written\nrecommendation of the chairperson may authorize the sale of such bonds\nat private or public sale on a negotiated basis or on either a\ncompetitive or negotiated basis. The authority shall set guidelines\ngoverning the terms and conditions of any such private or public sales.\nThe private or public bond sale guidelines set by the authority shall\ninclude, but not be limited to, a requirement that where the interests\nof the authority will be served by a private or public sale of bonds,\nthe authority shall select underwriters taking into account, among other\nthings, qualifications of underwriters as to experience, their ability\nto structure and sell authority bond issues, anticipated costs to the\nauthority, the prior experience of the authority with the firm, if any,\nthe capitalization of such firms, participation of qualified minority\nand women-owned business enterprise firms in such private or public\nsales of bonds of the authority and the experience and ability of firms\nunder consideration to work with minority and women-owned business\nenterprises so as to promote and assist participation by such\nenterprises.\n (d) The authority shall have the power from time to time to amend such\nprivate bond sale guidelines in accordance with the provisions of this\nsubdivision.\n (e) No private or public bond sale on a negotiated basis shall be\nconducted by the authority without prior approval of the state\ncomptroller. The authority shall annually prepare and approve a bond\nsale report which shall include the private or public bond sale\nguidelines as specified in this subdivision, amendments to such\nguidelines since the last private or public bond sale report, an\nexplanation of the bond sale guidelines and amendments, and the results\nof any sale of bonds conducted during the fiscal year. Such bond sale\nreport may be a part of any other annual report that the authority is\nrequired to make.\n (f) The authority shall annually submit its bond sale report to the\nBuffalo fiscal stability authority and the state comptroller and copies\nthereof to the senate finance committee and the assembly ways and means\ncommittee.\n (g) The authority shall make available to the public copies of its\nbond sale report upon reasonable request thereof.\n (h) Nothing contained in this subdivision shall be deemed to alter,\naffect the validity of, modify the terms of, or impair any contract or\nagreement made or entered into in violation of, or without compliance\nwith, the provisions of this subdivision.\n 5. Any resolution or resolutions authorizing bonds or any issue of\nbonds by the authority may contain provisions which may be a part of the\ncontract with the holders of the bonds thereby authorized as to:\n (a) pledging all or part of the revenues, together with any other\nmonies or property of the authority to secure the payment of the bonds,\nor any costs of issuance thereof, including but not limited to, any\ncontracts, earnings or proceeds of any grant to the authority received\nfrom any private or public source subject to such agreements with\nbondholders 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) the rates, rents, fees and other charges to be fixed and collected\nby the authority and the amount to be raised in each year thereby and\nthe use and disposition of revenues;\n (e) limitations on the right of the authority to restrict and regulate\nthe use of the covered project or part thereof in connection with which\nbonds are issued;\n (f) 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 (g) 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 (h) the creation of special funds into which any revenues or monies\nmay be deposited;\n (i) the terms and provisions of any trust, mortgage, deed or indenture\nsecuring the bonds under which the bonds may be issued;\n (j) 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 pursuant to this title or limiting the rights, duties and\npowers of such trustee;\n (k) 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 appointment\nof a receiver, provided, however, that such rights and remedies shall\nnot be inconsistent with the laws of the state and other provisions of\nthis title;\n (l) limitations on the power of the authority to sell or otherwise\ndispose of any covered project or any part thereof or other property;\n (m) limitations on the amount of revenues and other monies to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (n) 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 (o) 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 the bondholders.\n 6. In addition to the powers conferred by this section upon the\nauthority to secure its bonds, the authority shall have the 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 monies or property, including\nthe mortgaging of any property and the entrusting, pledging or creation\nof any other security interest in any such revenues, monies or property\nand the doing of any act, including refraining from doing any act which\nthe authority would have the right to do in the absence of such\nresolutions, trust indentures, agreements or other instruments. The\nauthority shall have power to enter into amendments of any such\nresolutions, trust indentures, agreements or other instruments within\nthe powers granted to the authority by this title and to perform such\nresolutions, trust indentures, agreements or other instruments. The\nprovisions of any such resolutions, trust indentures, agreements or\nother instruments may be made a part of the contract with the holders of\nbonds 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 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 8. Whether or not the bonds of the authority are of such form and\ncharacter as to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds are hereby made negotiable instruments within\nthe meaning of and for all the purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 9. Neither the members nor the officers of the authority nor any\nperson executing its bonds shall be liable personally on its bonds or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n 10. Subject to such agreements with bondholders as may then exist, the\nauthority shall have the power to purchase the bonds of the authority,\nin lieu of redemption, out of any funds available therefor, at a price\nnot exceeding, if the bonds are then redeemable, the redemption price\nthen applicable plus accrued interest to the next interest payment date,\nor, if the bonds are not then redeemable, the redemption price\napplicable on the first date after such purchase upon which the bonds\nbecome subject to redemption plus accrued interest to the next interest\npayment date. Bonds so purchased shall there upon be canceled.\n 11. The authority shall have power and is hereby authorized to issue\nnegotiable bond anticipation notes in conformity with the applicable\nprovisions of the uniform commercial code and may renew the same from\ntime to time but the maximum maturity of any such note, including\nrenewals thereof, shall not exceed two years from the date of issue of\nsuch original note.\n