§ 2050-HH — Bonds of the authority

§ 2050-hh. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds in such\nprincipal amounts as it may determine to be necessary to pay the cost of\nany project or for any other corporate purpose, including the\nestablishments of reserves to secure the bonds, the payment of principal\nof, premium, if any, and interest on the bonds and the payment of\nincidental expenses in connection therewith. The authority shall have\npower and is hereby authorized to enter into such agreements and perform\nsuch acts as may be required under any applicable federal legislation to\nsecure a federal guarantee of any bonds. The aggregate principal amount\nof such bonds, notes or other obligations shall not exceed fifty million\ndollars ($50,000,000), excluding bonds, notes or other obligations\nissued to refund or otherwise repay bonds, notes or other obligations\ntheretofore issued for such purposes; provided, however, that upon any\nsuch refunding or repayment the total aggregate principal amount of\noutstanding bonds, notes or other obligations may be greater than fifty\nmillion dollars ($50,000,000) only if the present value of the aggregate\ndebt service of the refunding or repayment bonds, notes or other\nobligations to be issued shall not exceed the present value of the\naggregate debt service of the bonds, notes or other obligations so to be\nrefunded or repaid. For purposes hereof, the present values of the\naggregate debt service of the refunding or repayment bonds, notes or\nother obligations and of the aggregate debt service of the bonds, notes\nor other obligations so refunded or repaid, shall be calculated by\nutilizing the effective interest rate of the refunding or repayment\nbonds, notes or other obligations, which shall be that rate arrived at\nby doubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding or\nrepayment bonds, notes or other obligations from the payment dates\nthereof to the date of issue of the refunding or repayment bonds, notes\nor other obligations and to the price bid including estimated accrued\ninterest or proceeds received by the authority including estimated\naccrued interest from the sale thereof. The authority 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. The authority shall have power\nfrom time to time to refund any bonds by the issuance of new bonds\nwhether the bonds to be refunded have or have not matured, and may issue\nbonds partly to refund bonds then outstanding and partly for any other\ncorporate purpose. Bonds issued by the authority may be general\nobligations secured by the faith and credit of the authority or may be\nspecial obligations payable solely out of particular revenues or other\nmoneys as may be designated in the proceedings of the authority under\nwhich the bonds shall be authorized to be issued, subject to any\nagreements with the holders of outstanding bonds pledging any particular\nproperty, revenues or moneys. The authority may also enter into bank\nloan agreements, lines of credit and other security agreements and\nobtain for or on its behalf letters of credit in each case for securing\nits bonds or to provide direct payment of any costs which the authority\nis authorized to pay.\n 2. Bonds shall be authorized by resolution of the authority, be in\nsuch denominations and bear such date or dates and mature at such time\nor times, as such resolution may provide, provided that bonds and\nrenewals thereof shall mature within thirty years from the date of\noriginal issuance of any such bonds. Obligations with a maturity of five\nyears or less from the date of their original issuance may be designated\nas notes.\n Bonds and notes shall be subject to such terms of redemption, bear\ninterest at such rate or rates, be 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 and conditions as such\nresolution may provide.\n Notwithstanding any other provision of law, the bonds of the authority\nissued pursuant to this section shall be sold to the bidder offering the\nlowest true interest cost, taking into consideration any premium or\ndiscount not less than four nor more than fifteen days, Sundays\nexcepted, after a notice of such sale has been published at least once\nin a newspaper of general circulation in the area served by the\nauthority, which shall state the terms of the sale. The terms of the\nsale may not change unless notice of such change is published in such\nnewspaper at least one day prior to the date of the sale as set forth in\nthe original notice of sale. Advertisements shall contain a provision to\nthe effect that the authority, in its discretion, may reject any or all\nbids made in pursuance of such advertisements, and in the event of such\nrejection, the authority is authorized to negotiate a private or public\nsale or readvertise for bids in the form and manner above described as\nmany times as, in its judgment, may be necessary to effect a\nsatisfactory sale.\n Notwithstanding the provisions of the preceding paragraph, whenever in\nthe judgment of the authority the interests of the authority will be\nserved thereby, the members of the authority, on the written\nrecommendation of the executive director, may authorize the sale of such\nbonds at private or public sale on a negotiated basis or on either a\ncompetitive or negotiated basis. The authority shall set guidelines\ngoverning the terms and conditions of any such private or public sales.\n The private or public bond sale guidelines set by the authority shall\ninclude, but not be limited to a requirement that where the interests of\nthe state will be served by a private or public sale of bonds, the\nauthority shall select underwriters for private or public bond sales\nconducted pursuant to a request for proposal process undertaken at least\nonce annually and consideration of proposals from qualified underwriters\ntaking into account, among other things, qualifications of underwriters\nas to experience, their ability to structure and sell authority bond\nissues, anticipated costs to the authority, the prior experience of the\nauthority with the firm, if any, the capitalization of such firms,\nparticipation of qualified minority and women-owned business enterprise\nfirms in such private or public sales of bonds of the authority and the\nexperience and ability of firms under consideration to work with\nminority and women-owned business enterprises so as to promote and\nassist participation by such enterprises.\n The authority shall have the power from time to time to amend such\nprivate bond sale guidelines in accordance with the provisions of this\nsubdivision.\n No private or public bond sale on a negotiated basis shall be\nconducted by the authority without prior approval of the comptroller.\n The authority shall annually prepare and approve a bond sale report\nwhich shall include the private or public bond sale guidelines as\nspecified in this subdivision, amendments to such guidelines since the\nlast private or public bond sale report, an explanation of the bond sale\nguidelines and amendments, and the results of any sale of bonds\nconducted during the fiscal year. Such bond sale report may be a part of\nany other annual report that the authority is required to make.\n The authority shall annually submit its bond sale report to the\ncomptroller and copies thereof to the senate finance committee and the\nassembly ways and means committee.\n The authority shall make available to the public copies of its bond\nsale report upon reasonable request therefor.\n Nothing contained in this subdivision shall be deemed to alter, affect\nthe validity of, modify the terms of or impair any contract or agreement\nmade or entered into in violation of, or without compliance with, the\nprovisions of this subdivision.\n 3. Any resolution or resolutions authorizing bonds or any issue of\nbonds may contain provisions which may 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, other moneys or property\nof the authority to secure the payment of the bonds, or of any costs of\nissuance thereof, including but not limited to any contracts, earnings\nor proceeds of any grant to the authority received from any private or\npublic source subject to such agreements as they may exist;\n (b) the setting aside of reserves and the creation of sinking funds\nand the regulation and disposition thereof;\n (c) limitations on the purpose to which the proceeds from the sale of\nbonds may be applied;\n (d) the rates, rents, fees and other charges to be fixed and collected\nby the authority and the amount to be raised in each year thereby and\nthe use and disposition of revenues;\n (e) limitations on the right of the authority to restrict and regulate\nthe use of the project or part thereof in connection with which bonds\nare issued;\n (f) limitations on the issuance of additional bonds, the terms upon\nwhich additional bonds may be issued and secured and the refunding of\noutstanding or other bonds;\n (g) the procedure, if any, by which the terms of any contracts with\nbondholders may be amended or abrogated, the amount of bonds, the\nholders of which must consent thereto, and the manner in which such\nconsent may be given;\n (h) the creation of special funds into which any revenues or moneys\nmay be deposited;\n (i) the terms and provisions of any trust, mortgage, deed or indenture\nsecuring the bonds under which the bonds may be issued;\n (j) 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 trustees appointed by the\nbondholders pursuant to section twenty-seven hundred fifty-eight of this\ntitle and limiting or abrogating the rights of the bondholders to\nappoint a trustee under such section or limiting the rights, duties and\npowers of such trustee;\n (k) defining the acts or omissions to act which may 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, provided, however, that such rights and\nremedies shall not be inconsistent with the general laws of the state\nand other provisions of this title;\n (l) limitations on the power of the authority to sell or otherwise\ndispose of any project or any part thereof;\n (m) limitations on the amount of revenues and other moneys to be\nexpended for operating, administrative or other expenses of the\nauthority;\n (n) the payment of the proceeds of bonds, revenues and other moneys to\na trustee or other depository, and for the method of disbursement\nthereof with such safeguards and restrictions as the authority may\ndetermine; and\n (o) any other matters of like or different character which in any way\naffect the security or protection of the bonds or the rights and\nremedies of bondholders.\n 4. In addition to the powers herein conferred upon the authority to\nsecure its bonds, the authority shall have power in connection with the\nissuance of bonds to enter into such agreements as the authority may\ndeem necessary, convenient or desirable concerning the use or\ndisposition of its revenues or other moneys or property, including the\nmortgaging of any property and the entrusting, pledging or creation of\nany other security interest in any such revenues, moneys or property and\nthe doing of any act, including refraining from doing any act which the\nauthority would have the right to do in the absence of such agreements.\nThe authority shall have power to enter into amendments of any such\nagreements within the powers granted to the authority by this title and\nto perform such agreements. The provisions of any such agreements may be\nmade a part of the contract with the holders of bonds of the authority.\n 5. Any provisions 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 authority 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 authority\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 are of such form and character as to be\nnegotiable instruments under the terms of the uniform commercial code,\nthe bonds are hereby made negotiable instruments within the meaning of\nand for the purposes of the uniform commercial code, subject only to the\nprovisions of the bonds for registration.\n 7. Neither the members of the authority nor any person executing bonds\nshall be liable personally thereon or be subject to any personal\nliability or accountability by reason of the issuance thereof.\n 8. The authority, subject to such agreements with bondholders as then\nmay exist, shall have power, out of any moneys available therefor, to\npurchase bonds of the authority, which shall thereupon be cancelled, at\na price not exceeding (i) if the bonds are then redeemable, the\nredemption price then applicable, plus accrued interest to the next\ninterest payment date or, (ii) if the bonds are not then redeemable, the\nredemption price applicable on the first date after such purchase upon\nwhich the bonds become subject to redemption plus accrued interest to\nthe next interest payment date.\n