§ 2469 — Security for bonds or notes; construction and acquisition of sports facilities

* § 2469. Security for bonds or notes; construction and acquisition of\nsports facilities. 1. The principal of and interest on any bonds or\nnotes issued by the authority may be secured by a pledge of any revenues\nand receipts of the authority and may be secured by a lease or other\ninstrument covering all or any part of a sports facility, including any\nadditions, improvements, extensions to or enlargements of any sports\nfacilities thereafter made.\n 2. Bonds or notes issued for the acquisition, construction,\nreconstruction, construction of additions to, rehabilitation, or\nimprovement of a sports facility may also be secured by an assignment of\nany lease of such sports facility and by an assignment of the revenues\nand receipts derived by the authority from any such lease.\n 3. Each pledge, agreement, mortgage or other instrument made for the\nbenefit or security of any of the bonds or notes of the authority shall\ncontinue effective until the principal of and interest on the bonds or\nnotes for the benefit of which the same were made shall have been fully\npaid, or until provisions shall have been made for such payment in the\nmanner provided in the resolution or resolutions under which the same\nmay be authorized.\n 4. The authority may provide in any proceedings under which bonds or\nnotes may be authorized that any sports facility or part thereof may be\nconstructed, reconstructed, rehabilitated or improved by the authority,\nor any participating municipality, and may also provide in such\nproceedings for the time and manner of and requisites for disbursements\nto be made for the cost of such construction, and for all such\ncertificates and approvals of construction and disbursements as the\nauthority shall deem necessary and provide for in such proceedings.\n 5. Any pledge of earnings, revenues or other moneys made by the\nauthority shall be valid and binding from the time when the pledge is\nmade; that the earnings, revenues or other moneys 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 nor any other instrument by\nwhich a pledge is created need be recorded.\n 6. 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 acquisition, construction, reconstruction, construction\nof additions to, improvement and maintenance and operation, repair and\ninsurance of the sports facilities, and the custody, safeguarding and\napplication of all moneys. The authority may provide by such trust\nindenture for the payment of the proceeds of the bonds and the revenues\nof the project to the trustee under such trust indenture or other\ndepository, and for the method of disbursement thereof, with such\nsafeguards and restrictions as it may determine. All expenses incurred\nin carrying out such trust indenture may be treated as a part of the\ncost of maintenance, operation and repairs of the project. If the bonds\nshall be secured by a trust indenture the bondholders shall have no\nauthority to appoint a separate trustee to represent them.\n * NB (Disbanded March, 1980)\n