§ 1621-I — Bonds of the authority

New York § 1621-I

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 21: Middletown Parking Authority
• Art. 7: Parking Authorities

Text

* § 1621-i. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue its negotiable\nbonds for any of its corporate purposes and to pay such expenses, costs\nand payments as may be deemed by the board necessary or desirable to or\nin connection with the acquisition, construction, reconstruction,\nimproving, equipping and furnishing of any project and the financing\nthereof, including surveys, planning, provisions for capitalized\ninterest, reserve funds and appropriate feasibility studies, and for the\nplacing of the project or projects in operation. The aggregate principal\namount of such bonds outstanding at any one time shall not exceed\ntwenty-five percent of the bonded indebtedness limitation from time to\ntime imposed by section 104.00 of the local finance law. The authority\nshall have power from time to time and whenever it deems refunding\nexpedient, to refund any bonds by the issuance of new bonds, whether the\nbonds to be refunded have or have not matured and may issue bonds partly\nto refund bonds then outstanding and partly for any other purpose\ndescribed in this subdivision. The refunding bonds may be exchanged for\nthe bonds to be refunded with such cash adjustments as may be agreed, or\nmay be sold and the proceeds applied to the purchase, payment or\nredemption of the bonds to be refunded. Except as may otherwise be\nexpressly provided by the authority, the bonds of every issue shall be\ngeneral obligations of the authority payable out of any moneys or\nrevenues of the authority, subject only to any agreements with the\nholders of particular bonds pledging any particular moneys or revenues.\nWhether or not the bonds are of such form and character as to be\nnegotiable instruments under article eight of the uniform commercial\ncode, the bonds shall be, and are hereby made, negotiable instruments\nwithin the meaning of and for all the purposes of the uniform commercial\ncode, subject only to the provisions of the bonds for registration.\n 2. The bonds shall be authorized by resolution of the board and shall\nbear such date or dates, mature at such time or times, not exceeding\nthirty years from their respective dates, bear interest at such rate or\nrates, payable annually or semi-annually, be in such denominations, be\nin such form, either coupon or registered, carry such registration\nprivileges, be executed in such manner, be payable in lawful money of\nthe United States of America at such place or places, and be subject to\nsuch terms of redemption, as such resolution or resolutions may provide.\nThe bonds may be sold at public or private sale for such price or prices\nas the authority shall determine; provided, however, that any private\nsale shall be subject to the approval of the state comptroller where\nsuch sale is not to the comptroller, or the director of the budget where\nsuch sale is to the comptroller.\n 3. Any resolution or resolutions authorizing any bonds or any issue of\nbonds may contain provisions, which shall 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 a project or projects\nand revenues and income of the authority to secure the payment of the\nbonds, subject to such agreements with bondholders as may then exist;\n (b) the rentals, fees and other charges to be charged, and the amounts\nto be raised in each year thereby, and the use and disposition of the\nrevenues;\n (c) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) limitations on the right of the authority to restrict and regulate\nthe use of a project;\n (e) limitations on the purpose to which the proceeds of sale of any\nissue of bonds then or thereafter to be issued may be applied and\npledging such proceeds to secure the payment of the bonds or of any\nissue of the bonds;\n (f) limitations on the issuance of additional bonds; the terms upon\nwhich additional bonds may be issued and secured; 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, the amount of bonds the holders\nof which must consent thereto, and the manner in which such consent may\nbe given;\n (h) limitations on the amount of moneys derived from a project to be\nexpended for operating, administrative or other expenses of the\nauthority;\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, the rights, powers and duties of the trustee appointed by the\nbondholders pursuant to section sixteen hundred twenty-one-p of this\ntitle, and limiting or abrogating the right of the bondholders to\nappoint a trustee under said section or limiting the rights, duties and\npowers of such trustee;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the bonds.\n 4. Notwithstanding any other provision of law, it is the intention\nhereof that any pledge of revenues or other moneys made by the authority\nshall be valid and binding from the time when the pledge is made; that\nthe revenues or other moneys so pledged and thereafter received by the\nauthority shall immediately be subject to the lien of such pledge\nwithout any physical delivery thereof or further act; and that the lien\nof any such pledge shall be valid and binding as against all parties\nhaving claims of any kind in tort, contract or otherwise against the\nauthority irrespective of whether such parties have notice thereof.\nNeither the resolution nor any other instrument by which a pledge is\ncreated need be recorded or filed in order to protect the security\ninterest granted.\n 5. Neither the members of the authority nor any person executing the\nbonds shall be liable personally on the bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\n 6. The authority shall have power out of any funds available therefor\nto purchase bonds upon such terms and conditions as the authority may\ndetermine. The authority may hold, cancel or resell such bonds, subject\nto and in accordance with agreements with bondholders.\n 7. In the discretion of the authority, the bonds may be secured by a\ntrust indenture by and between the authority and a corporate trustee,\nwhich may be any trust company, bank or national banking association\nhaving the powers of a trust company in the state of New York. Such\ntrust indenture may contain such provisions for protecting and enforcing\nthe rights and remedies of the bondholders as may be reasonable and\nproper and not in violation of law, including covenants setting forth\nthe duties of the authority in relation to the construction,\nmaintenance, operation, repair and insurance of the project or projects,\nand the custody, safeguarding and application of all moneys, and may\nprovide that the project or projects shall be constructed and paid for\nunder the supervision and approval of consulting engineers. The\nauthority may provide by such trust indenture for the payment of the\nproceeds of the bonds and the revenues of the project or projects or\nother revenues of the authority to the trustee under such trust\nindenture or other depository, and for the method of disbursement\nthereof, with such safeguards and restrictions as it may determine. All\nexpenses incurred in carrying out such trust indenture may be treated as\na part of the cost of maintenance, operation, and repairs of the project\nor projects. If the bonds shall be secured by a trust indenture, the\nbondholders shall have no authority to appoint a separate trustee to\nrepresent them, and the trustee under such trust indenture shall have\nand possess all of the powers which are conferred by section sixteen\nhundred twenty-one-p of this title upon a trustee appointed by\nbondholders.\n * NB Repealed per § 1621-r (see chapter 597 of 2023 § 2 for specifics)\n