§ 1805 — Issuance of bonds and notes by the authority

§ 1805. Issuance of bonds and notes by the authority. 1. Subject to\nthe limitations of other provisions of this title, the authority shall\nhave the power and is hereby authorized to borrow money and to issue its\nnegotiable bonds and notes in conformity with applicable provisions of\nthe uniform commercial code in such principal amounts as, in the opinion\nof the authority, shall be necessary to provide sufficient funds for\nachieving its corporate purposes, including the making of loans, the\nissuing of loan guarantees, the payment of interest on bonds and notes\nof the authority, the establishment of reserves to secure such bonds and\nnotes, and all other expenditures of the authority incident to and\nnecessary or convenient to carry out its corporate purposes and powers.\n 2. Bonds and notes shall be authorized by resolution of the authority,\nand shall be dated and shall mature as such resolution or resolutions\nmay provide, except that no note or any renewal thereof shall mature\nmore than seven years after the date of issue of the original note and\nno bond shall mature more than thirty years from the date of its issue.\nBonds and notes shall bear interest at such rate or rates, be in such\ndenominations, be in such form, either coupon or registered, carry such\nregistration privileges, be executed in such manner, be payable in such\nmedium of payment, at such place or places, and be subject to such terms\nof redemption as such resolution or resolutions may provide.\n 3. Special purpose bonds and notes may be sold by the authority at\npublic or private sale in such manner and on such terms and at such\nprice or prices as the authority, with the approval of the comptroller,\nshall determine. If special purpose bonds are sold by the authority at\npublic sale, such sale shall take place not less than six nor more than\nforty days after a notice of such sale has been published at least once\nin a newspaper published in Albany and in a financial newspaper\npublished and circulating in New York city, which shall state the terms\nof sale as determined by the authority. Pollution control bonds and\nnotes of the authority may be sold by the authority, at public or\nprivate sale, in such manner and on such terms and at such price or\nprices as the authority shall determine but shall not be sold by the\nauthority at private sale unless such sale and the terms thereof have\nbeen approved in writing by the comptroller where such sale is not to\nthe comptroller, or by the director of the budget where such sale is to\nthe comptroller.\n 4. In the discretion of the authority any bonds or issue of bonds or\nnotes or issue of notes may be secured under resolutions of the\nauthority or by a trust indenture by and between the authority and a\ncorporate trustee which may be any trust company or bank having the\npowers of a trust company in the state or by a secured loan agreement or\nother instrument. The authority, in connection with any bonds or issue\nof bonds or notes or issue of notes and for the security or protection\nthereof and as a part of the contract with the holders thereof, by means\nof any such resolution, trust indenture, loan agreement or other\ninstrument may (a) make and enter into any and all such covenants and\nagreements with the holders of such bonds or notes as the authority may\ndetermine to be necessary or desirable, including without limitation of\nthe foregoing, covenants, provisions, limitations and agreements as to\nthe application, use and disposition of the proceeds of any bonds or\nnotes or of sale or other disposition of any mortgage or other property\nor of any other receipts, moneys or assets of the authority, or in which\nit has an interest, the exercise by the authority of its powers under\nthis title with respect to loans and the revenues and receipts to be\nderived by the authority from such loans, the assignment of any right,\ntitle and interest in any mortgage in which the authority has an\ninterest, the terms and amount of other bonds or notes to be issued by\nthe authority, and the vesting in a trustee or trustees of funds or\nother property, rights, powers and duties in trust which may include any\nand all of the rights, powers and duties of a trustee appointed pursuant\nto section eighteen hundred eighteen of this title and limiting or\nabrogating the right of the bondholders or noteholders to appoint a\ntrustee under said section or limiting the rights, duties and powers of\nsuch trustee, (b) pledge or assign any moneys, mortgages, loan\nagreements, leases or agreements as to the use of projects or other\nassets of the authority either presently in hand or to be received in\nthe future, or both, and any right, title and interest in any mortgage\nor evidence of indebtedness secured thereby or other assets or property,\nand (c) provide for any other matters of like or different character\nwhich in any way affect the security or protection of the bonds or\nnotes, provided, however, that the principal of bonds and notes shall\nnot be declared due and payable prior to maturity under or pursuant to\nany such resolution, trust indenture, loan agreement or other instrument\nby any trustee or agent for the bondholders or noteholders, unless the\ntrustee or agent shall first give notice in writing to the governor, to\nthe authority, to the comptroller and to the attorney general of the\nstate, and if when any such notice is given the legislature shall be in\nsession, the trustee or agent shall not declare the principal of bonds\nor notes due and payable before the legislature adjourns sine die, or if\nthe legislature be not then in session, the trustee or agent shall not\ndeclare the principal of such bonds and notes due and payable until the\nadjournment sine die of the next regular session of the legislature. If\nat such session the legislature shall take any action as a result of\nwhich the past due principal and interest on such bonds and notes, with\ninterest, together with the fees, counsel fees and expenses of the\ntrustee or agent, and all costs and disbursements allowed by a court of\ncompetent jurisdiction shall be paid within sixty days of adjournment\nsine die, default in the payment thereof shall thereby be cured.\n 5. It is the intention of the legislature that any pledge made in\nrespect of such bonds or notes shall be valid and binding from the time\nwhen the pledge is made; that the money or property so pledged and\nthereafter received by the authority shall immediately be subject to the\nlien of such pledge without any physical delivery thereof or further\nact; and that the lien of any such pledge shall be valid and binding as\nagainst all parties having claims of any kind in tort, contract or\notherwise against the authority irrespective of whether such parties\nhave notice thereof. Neither the resolution, trust indenture nor any\nother instrument by which a pledge is created need be recorded.\n 6. Neither the members of the authority nor any person executing the\nbonds or notes shall be liable personally on the bonds or notes or be\nsubject to any personal liability or accountability by reason of the\nissuance thereof.\n 7. Subject to such agreements with bondholders or noteholders as may\nthen exist, the authority shall have power to purchase special purpose\nbonds or notes of the authority out of any special purpose funds\navailable therefor and to purchase pollution control bonds or notes of\nthe authority out of any pollution control funds available therefor, at\na price not exceeding (a) if the bonds or notes are then redeemable, the\nredemption price then applicable plus accrued interest to the next\ninterest payment due thereon, or (b) if the bonds or notes are not then\nredeemable, the redemption price applicable on the first date after such\npurchase upon which the bonds or notes become subject to redemption plus\naccrued interest to said date. Bonds and notes so purchased shall\nthereupon be cancelled.\n 8. The state does hereby pledge to and agree with the holders of any\nbonds or notes issued under this title and with any federal agency which\nloans or contributes funds in respect of an assisted project, that the\nstate will not limit or alter the rights and powers vested in the\nauthority by this title to fulfill the terms of any contract made by the\nauthority with such holders or federal agency, or in any way impair the\nrights and remedies of such holders until such bonds and notes, together\nwith the interest thereon, with interest on any unpaid installments of\ninterest, and all costs and expenses in connection with any action or\nproceeding by or on behalf of such holders, are fully met and\ndischarged. The authority is authorized to include this pledge and\nagreement of the state, insofar as it refers to holders of any bonds or\nnotes of the authority, in any contract with such holders and insofar as\nit relates to a federal agency, in any contract with such agency.\n