§ 2046-G — Bonds and notes

New York § 2046-G

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 13-C: Town of Islip Resource Recovery Agency
• Art. 8: Miscellaneous Authorities

Text

§ 2046-g. Bonds and notes. 1. The agency shall have the power and is\nhereby authorized from time to time to issue bonds and notes, in\nconformity with applicable provisions of the uniform commercial code, in\nsuch principal amounts as it may determine to be necessary to pay the\ncost of any project or for any other corporate purpose, including\nincidental expenses in connection therewith provided such bonds and\nnotes shall in no event exceed fifty million dollars in outstanding\nindebtedness at any time, except as any such higher amount has been\napproved in advance of issuance by the qualified voters of the town of\nIslip at a public referendum conducted pursuant to the rules and\nregulations of the state board of elections. The agency shall have power\nand is hereby authorized to enter into such agreements and perform such\nacts as may be required under any applicable federal legislation to\nsecure a federal guarantee of any bonds or notes. The agency shall have\npower from time to time to refund any bonds or notes by the issuance of\nnew bonds or notes whether the bonds or notes to be refunded have or\nhave not matured, and may issue bonds or notes partly to refund bonds or\nnotes then outstanding and partly for any other corporate purpose. Bonds\nor notes issued by the agency may be general obligations secured by the\nfaith and credit of the agency or may be special obligations payable\nsolely out of particular revenues or other moneys as may be designated\nin the proceedings of the agency under which the bonds or notes shall be\nauthorized to be issued and subject to any agreements with the holders\nof outstanding bonds and notes pledging any particular revenues or\nmoneys.\n 2. The bonds and notes shall be authorized by resolution of the\ngoverning body, shall bear such date or dates, shall mature at such time\nor times, 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, provided\nthat no note or any renewal thereof shall mature more than five years\nafter the date of issue of the original note and provided that no bond\nshall mature more than forty years after the date of the original\nissuance. The bonds and notes of the agency may be sold by the agency at\npublic or private sale at such price or prices as the agency shall\ndetermine, provided that the terms of any private sale of bonds shall be\napproved in writing by the state comptroller where such sale is not to\nthe state comptroller, or by the director of the division of the budget\nwhere such sale is to the state comptroller. The agency may pay all\nexpenses, premiums and commissions which it may deem necessary or\nadvantageous in connection with the issuance and sale thereof.\n 3. Any resolution or resolutions authorizing any bonds or notes 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 any part of the moneys or revenues derived by the\nagency from the ownership or operation of, or otherwise in connection\nwith, any project or projects or any part or parts thereof to secure the\npayment of the bonds or notes or of any issue thereof, subject to such\nagreements with bondholders or noteholders as may then exist;\n (b) the amount, use and disposition of the rates, rentals, fees and\nother charges to be fixed and collected by the agency;\n (c) the setting aside of reserves and the creation of sinking funds\nand the regulation and disposition thereof;\n (d) limitations on the right of the agency to restrict and regulate\nthe use of the properties in connection with which such bonds or notes\nare issued;\n (e) limitations on the purpose to which the proceeds of sale of bonds\nor notes may be applied;\n (f) limitations on the issuance of additional bonds or notes, the\nterms upon which additional bonds or notes may be issued and secured and\nthe refunding of outstanding or other bonds or notes;\n (g) the procedure, if any, by which the terms of any contract with\nbondholders or noteholders may be amended or abrogated, the amount of\nbonds or notes the holders of which must consent thereto, and the manner\nin which such consent may be given;\n (h) the creation of special funds into which any moneys or revenues of\nthe agency may be deposited;\n (i) the terms and provisions of any mortgage or trust deed or\nindenture securing the bonds or notes or under which the bonds or notes\nmay be issued;\n (j) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the agency may determine which may include any or all\nof the rights, powers and duties of the trustee appointed by the\nbondholders or noteholders pursuant to this title, and limiting or\nabrogating the right of the bondholders or noteholders to appoint a\ntrustee under this title or limiting the rights, powers and duties of\nsuch trustee;\n (k) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the agency to the bondholders\nor noteholders and providing the rights and remedies of the bondholders\nor noteholders in the event of such default, including as a matter of\nright the appointment of a receiver, provided, however, that such rights\nand remedies shall not be inconsistent with the general laws of the\nstate and other provisions of this title;\n (l) limitations on the power of the agency to sell or otherwise\ndispose of its properties;\n (m) limitations on the amount of money derived from the properties to\nbe expended for operating, administrative or other expenses of the\nagency;\n (n) the protection and enforcement of the rights and remedies of the\nbondholders or noteholders;\n (o) the obligations of the agency in relation to the construction,\nmaintenance, operation, repairs and insurance of the properties of the\nagency, the safeguarding and application of all moneys and the\nrequirements for the supervision and approval of consulting engineers in\nconnection with construction, maintenance and operation of such\nproperties;\n (p) the payment of the proceeds of bonds and notes and other moneys\nand revenues of the agency to a trustee or other depositary, and for the\nmethod of disbursement thereof with such safeguards and restrictions as\nthe agency may determine;\n (q) any other matters, of like or different character which in any way\naffect the security or protection of the bonds and notes.\n 4. In addition to the powers herein conferred upon the agency to\nsecure its bonds and notes, the agency shall have power in connection\nwith the issuance of bonds and notes to enter into such agreements as\nthe agency may deem necessary, convenient or desirable concerning the\nuse or disposition of its moneys or property including the mortgaging of\nonly such property and the entrusting, pledging or creation of any other\nsecurity interest in any such moneys or property and the doing of any\nact, including refraining from doing any act, which the agency would\nhave the right to do in the absence of such agreements. The agency shall\nhave power to enter into amendments of any such agreements within the\npowers granted to the agency by this title and to perform such\nagreements. The provisions of any such agreements may be made a part of\nthe contract with the holders of the bonds and notes of the agency.\n 5. Any provision of the uniform commercial code to the contrary\nnotwithstanding, any pledge of or other security interest in revenues,\nmoneys, accounts, contract rights, general intangibles or other personal\nproperty made or created by the agency 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 agency\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 6. Whether or not the bonds or notes are of such form and character as\nto be negotiable instruments under the terms of the uniform commercial\ncode, the bonds and notes 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 and notes for registration.\n 7. Neither the directors of the agency 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 8. The agency, subject to such agreements with bondholders or\nnoteholders as may then exist, shall have power out of any funds\navailable therefor to purchase bonds or notes of the agency, which shall\nthereupon be cancelled, at a price not exceeding (a) if the bonds or\nnotes are then redeemable, the redemption price then applicable plus\naccrued interest to the next interest payment thereon, or (b) if the\nbonds or notes are not then redeemable, the redemption price applicable\non the first date after such purchase upon which the bonds or notes\nbecome subject to redemption plus accrued interest to such date.\n