§ 1860 — Bonds and notes

§ 1860. Bonds and notes. 1. The authority shall have the power and is\nhereby authorized to issue at one time or in series from time to time\nits negotiable bonds and notes in conformity with applicable provisions\nof the uniform commercial code in such principal amounts as, in the\nopinion of the authority, shall be necessary to provide sufficient\nmoneys for achieving the authority's corporate purposes, including the\nestablishment of reserves to secure the bonds and notes and the payment\nof interest on bonds and notes.\n 2. The authority shall have power from time to time to renew bonds or\nnotes or to issue renewal bonds or notes for such purpose, to issue\nbonds or notes to pay bonds or notes, and, whenever it deems refunding\nexpedient, to refund any bond or note by the issuance of new bonds or\nnotes, whether the bonds or notes to be refunded have or have not\nmatured, and may issue bonds or notes partly to refund bonds or notes\nthen outstanding and partly for any other corporate purpose of the\nauthority. Bonds or notes issued for refunding purposes shall be sold\nand the proceeds applied to the purchase, redemption or payment of the\nbonds or notes to be refunded.\n 3. Except as may otherwise be expressly provided by the authority,\nevery issue of bonds or notes shall be general obligations payable out\nof any moneys or revenues of the authority, subject only to any\nagreements with the holders of bonds or notes pledging any receipts or\nrevenues.\n 4. The bonds and notes shall be authorized by resolution of the\nauthority, shall bear such date or dates and mature at such time or\ntimes as such resolution shall provide, except that notes and any\nrenewals thereof shall mature within five years from their respective\ndates of issuance or renewal, as the case may be, and bonds shall mature\nwithin forty years from their respective dates of issuance or renewal,\nas the case may be. The bonds and notes shall bear interest at such rate\nor rates, be in such denomination, be in such form, either coupon or\nregistered, 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.\n 5. Bonds and notes shall be sold by the authority, at public or\nprivate sale, at such price or prices as the authority may determine.\nBonds and notes of the authority shall not be sold by the authority at\nprivate sale unless such sale and the terms thereof have been approved\nin writing by the comptroller, where such sale is not to the\ncomptroller, or by the director of the budget, where such sale is to the\ncomptroller.\n 6. In the discretion of the authority any bonds or issue of bonds or\nnotes or issue of notes may be secured by such resolution or by a trust\nindenture by and between the authority and a corporate trustee which may\nbe any trust company or bank having the powers of a trust company in the\nstate or by a secured loan agreement or other instrument. Such\nresolution, trust indenture, loan agreement or other instrument may\ncontain any usual or customary provisions, covenants or limitations for\nbonds or notes of similar nature which shall be a part of the contract\nwith the holders thereof, including such provisions for protecting and\nenforcing the rights and remedies of bondholders and noteholders as may\nbe reasonable and proper and not in violation of law.\n 7. 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 part of the fees, charges, gifts, grants, rents,\nrevenues or other moneys received or to be received and leases or\nagreements to secure the payment of the notes or bonds or of any issue\nthereof subject to such agreements with bondholders as may then exist;\n (b) the rates of the fees or charges to be established, and the\namounts to be raised in each year thereby and the use and disposition of\nthe fees, charges, gifts, grants, rents, revenues or other moneys\nreceived or to be received;\n (c) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) limitations on the purpose to which the proceeds of sale of any\nissue of notes or bonds then or thereafter to be issued may be applied\nand pledging such proceeds to secure the payment of the notes or bonds\nor of any issue thereof;\n (e) 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 (f) the procedure, if any, by which the terms of any contract with\nbondholders or noteholders 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 (g) any other matters, of like or different character, which in any\nway affect the security or protection of the notes or bonds.\n 8. It is the intention hereof that any pledge made by the authority\nshall be valid and binding from the time when the pledge is made, that\nthe moneys so pledged and thereafter received by the authority shall\nimmediately be subject to the lien of such pledge without any physical\ndelivery thereof or further act, and that the lien of any such pledge\nshall be valid and binding as against all parties having claims of any\nkind in tort, contract or otherwise against the authority irrespective\nof whether such parties have notice thereof. Neither the resolution nor\nany other instrument by which a pledge is created need be recorded.\n 9. 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 10. Subject to such agreements with bondholders or noteholders as may\nthen exist, the authority shall have power out of any funds available\ntherefor to purchase bonds or notes at a price not exceeding (a) if the\nnotes or bonds are then redeemable, the redemption price then applicable\nplus accrued interest to the next interest payment date thereon, or (b)\nif the 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 said date.\nBonds and notes so purchased shall thereupon be cancelled.\n 11. The state does hereby pledge to and agree with the holders of any\nbonds or notes that the state will not limit or alter the rights and\npowers vested in the authority by this title to fulfill the terms of any\ncontract made by the authority with such holders, or in any way impair\nthe rights and remedies of such holders until such bonds and notes,\ntogether with the interest thereon, with interest on any unpaid\ninstallments of interest, and all costs and expenses in connection with\nany action or proceeding by or on behalf of such holders, are fully met\nand discharged. The authority is authorized to include this pledge and\nagreement of the state, insofar as it refers to holders of any bonds or\nnotes, in any contract with such holders.\n