§ 2511 — Security for bonds or notes

* § 2511. Security for bonds or notes. 1. The principal of and\ninterest on any bonds or notes issued by the authority may be secured by\na pledge of any revenues and receipts of the authority and may be\nsecured by a lease or other instrument covering all or any part of a\nsports facility, including any additions, improvements, extensions to or\nenlargements of any sports facilities thereafter made.\n 2. Bonds or notes issued for a sports facility may also be secured by\nan assignment of any lease of such sports facility and by an assignment\nof the revenues and receipts derived by the authority from any such\nlease.\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 provision 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 for the time and manner of and the requisites\nfor disbursements to be made for the cost of a sports facility, and for\nall certificates and approvals of construction and disbursements as the\nauthority shall deem necessary.\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; the earnings, revenues or other moneys so pledged and thereafter\nreceived by the authority shall immediately be subject to the lien of\nsuch pledge without any physical delivery thereof or further act, and\nthe lien of any such pledge shall be valid and binding as against all\nparties having claims of any kind in tort, contract or otherwise against\nthe authority irrespective of whether such parties have notice thereof.\nNeither the resolution nor any other instrument by which a pledge is\ncreated 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 any sports facility 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 any such sports facility to the trustee under such trust indenture or\nother depository, 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 any such sports facility.\nIf the bonds shall be secured by a trust indenture the bondholders shall\nhave no authority to appoint a separate trustee to represent them.\n * NB (Discontinued-Board of Directors never appointed)\n