§ 1682 — Bonds of the authority

New York § 1682

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Dormitory Authority
• Art. 8: Miscellaneous Authorities

Text

§ 1682. Bonds of the authority. 1. The authority shall have power as\nhereby authorized from time to time to issue negotiable bonds in\nconformity with applicable provisions of the uniform commercial code.\nThe authority shall have power from time to time to refund any bonds 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. In computing the total\namount of bonds of the authority which may at any time be outstanding\nthe amount of the outstanding bonds to be refunded from the proceeds of\nthe sale of new bonds or by exchange for new bonds shall be excluded.\nExcept as may otherwise be expressly provided by the authority, every\nissue of the bonds shall be general obligations payable out of any\nmoneys or revenues of the authority, subject only to any agreements with\nthe holders of particular bonds pledging any particular moneys or\nrevenues.\n 2. Such bonds shall be authorized by resolution of the board, be in\nsuch denominations and shall bear such date or dates, mature at such\ntime or times not exceeding forty years from their respective dates,\nbear interest at such rate or rates payable at such times, be in such\nform, either coupon or registered, carry such registration privileges,\nbe executed in such manner, be payable in such medium of payment at such\nplace or places, and be subject to such terms of redemption as such\nresolution or resolutions may provide. Such bonds may be sold at public\nor private sale for such price or prices as the authority shall\ndetermine.\n 3. Such bonds may be issued for any corporate purposes of the\nauthority.\n 4. Any resolution or resolutions authorizing any bonds may contain\nprovisions which may be a part of the contract with the holders of the\nbonds, as to\n (a) pledging all or any part of the moneys or property of the\nauthority to secure the payment of its bonds, including, but not limited\nto, the revenues of designated dormitories, the proceeds of any grant in\naid of the authority received from any private or public source, any\nfederally guaranteed security and moneys received therefrom whether such\nsecurity is initially acquired by the authority or an educational\ninstitution, any moneys received under the terms of any lease, loan or\nother agreement executed pursuant to section sixteen hundred\nseventy-eight, section sixteen hundred eighty or sixteen hundred\neighty-a of this chapter or any other revenues, state aid, local\nassistance payments, user charges or surcharges made available in\naccordance with law for such purpose;\n (b) the setting aside of reserves or sinking funds and the regulation\nor disposition thereof;\n (c) the purpose and limitations thereon to which the proceeds of sale\nof any issue of bonds then or thereafter to be issued may be applied,\nincluding as authorized purposes, all costs and expenses necessary or\nincidental to the issuance of bonds, to the acquisition of or commitment\nto acquire any federally guaranteed security and to the issuance and\nobtaining of any federally insured mortgage note;\n (d) 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 (e) 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 (f) the creation of special funds into which any moneys of the\nauthority may be deposited;\n (g) 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 trustee appointed by the\nbondholders pursuant to section sixteen hundred eighty-six of this\nchapter, and limiting or abrogating the right of the bondholders to\nappoint a trustee under such section or limiting the rights, duties and\npowers of such trustee;\n (h) defining the acts or omissions to act which shall 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, providing, that such rights and remedies\nshall not be inconsistent with the general laws of this state and other\nprovisions of this title;\n (i) any other matters, of like or different character, which in any\nway affect the security and protection of the bonds.\n 4-a. Any pledge of or other security interest in moneys, earnings,\nincome, revenues, accounts, contract rights, general intangibles or\nother personal property made or created by the authority shall be valid,\nbinding and perfected from the time when such pledge or other security\ninterest attaches, without any physical delivery of the collateral or\nfurther act. The lien of any such pledge or other security interest\nshall be valid, binding and perfected as against all parties having\nclaims of 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 other security interest is created\nnor any financing statement need be recorded or filed. This subdivision\nshall apply notwithstanding the provisions of the uniform commercial\ncode. Any moneys, earnings, income, revenues, accounts, contract rights,\ngeneral intangibles or other personal property held or received by the\nauthority or on behalf of the authority by any lender, servicer,\ntrustee, custodian, collection agent or institution of higher education,\npursuant to any resolution, trust agreement or other agreement\nauthorized by, or entered into in connection with, the program\nestablished pursuant to section sixteen hundred seventy nine-c of this\ntitle and pledged by the authority pursuant to a resolution, trust\nagreement or such other agreement for the benefit of bondholders shall\nconstitute moneys, earnings, income, revenues, accounts, contract\nrights, general intangibles or other personal property pledged by the\nauthority for all purposes of this subdivision.\n 4-b. Any resolution authorizing the issuance of bonds for the purpose\nof providing facilities for the city university pursuant to a lease,\nsublease or other agreement entered into by the city university\nconstruction fund and the dormitory authority on or after July first,\nnineteen hundred eighty-five, refunding any such bonds, or establishing\nor funding reserves for such bonds shall state the principal amount of\nbonds being issued in connection with senior college facilities and the\nprincipal amount of bonds being issued in connection with community\ncollege facilities. The proceeds of such bonds to be applied to the\npayment of the costs of providing senior college facilities shall be\nheld separate and apart from the proceeds of such bonds to be applied to\nthe payment of the costs of providing community college facilities. The\nproceeds to be applied to the payment of the costs of providing senior\ncollege facilities shall not be applied to the payment of the costs of\nproviding community college facilities and the proceeds to be applied to\nthe payment of the costs of providing community college facilities shall\nnot be applied to the payment of the costs of providing senior college\nfacilities.\n 5. Neither the members of the board nor any person executing such\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 any bonds issued by it at a price not exceeding the\nredemption price thereof. All bonds so purchased shall be cancelled.\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 or bank having the powers of a trust\ncompany in the state of New York. Such trust indenture may contain such\nprovisions for protecting and enforcing the rights and remedies of the\nbondholders as may be reasonable and proper and not in violation of law,\nincluding covenants setting forth the duties of the authority in\nrelation to the construction, maintenance, operation, repair and\ninsurance of the dormitories or of any dormitory, and the custody,\nsafeguarding and application of all moneys, and may provide that any\ndormitory shall be constructed and paid for under the supervision and\napproval of consulting engineers. The authority may provide by such\ntrust indenture for the payment of the proceeds of the bonds and the\nrevenues of any dormitory or moneys received under the terms of any\nlease or loan executed pursuant to section sixteen hundred eighty of\nthis chapter, as the case may be, to the trustee of such trust indenture\nor other depository, and for the method of disbursement thereof, with\nsuch safeguards and restrictions as it may determine. Notwithstanding\nthe provisions of section sixteen hundred eighty-six of this chapter, if\nthe bonds shall be secured by trust indenture the bondholders shall have\nno authority to appoint a separate trustee to represent them.\n