§ 2711 — Bonds of the authority

New York § 2711

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 29: Development Authority of the North Country Act
• Art. 8: Miscellaneous Authorities

Text

§ 2711. Bonds of the authority. 1. (a) The authority shall have power\nand is hereby authorized from time to time to issue its bonds in such\nprincipal amount as, in the opinion of the authority, shall be necessary\nto provide sufficient funds for achieving its corporate purposes,\nincluding the construction, acquisition, reconstruction, rehabilitation,\nimprovement or refinancing of projects and subject to the provision of\nthis title, any project as defined in title one of article eighteen-A of\nthe general municipal law, the payment of interest on bonds of the\nauthority, establishment of reserves to secure such bonds, and all other\nexpenditures of the authority incident to and necessary or convenient to\ncarry out its corporate purposes and powers. In addition, the authority\nmay, in anticipation of the issuance of bonds or the receipt of\nappropriations, grants, reimbursements, revenues or other funds, issue\nnotes the principal of or interest on which or both shall be payable out\nof the proceeds of bonds of the authority or appropriations, grants,\nreimbursements, revenues or other funds of the authority. The authority\nmay also enter into bank loan agreements, lines of credit and other\nsecurity agreements and obtain for or on its behalf letters of credit in\neach case for securing its bonds or to provide direct payment of any\ncosts which the authority is authorized to pay.\n (b) The authority shall have power, from time to time, to issue\nrenewal notes, to issue bonds or other obligations to pay notes and\nwhenever it deems refunding expedient, to refund any bonds by the\nissuance of new bonds, whether the bonds to be refunded have or have not\nmatured, and to issue bonds partly to refund bonds then outstanding and\npartly for any other purpose. The refunding bonds shall be sold and the\nproceeds applied to the purchase, redemption or payment of the bonds,\nincluding any interest thereon, to be refunded.\n 2. Except as may otherwise be expressly provided by the authority,\nevery issue of its bonds shall be general obligations of the authority\npayable out of any moneys, assets or revenues of the authority, subject\nas to priority only to any agreements with the holders of particular\nbonds theretofore or thereafter made pledging, assigning or creating a\nlien upon any particular moneys, assets or revenues. The authority may\nprovide by agreement with the holders of its bonds that such bonds shall\nbe payable solely from and secured by particular revenues and property\nof the authority.\n 3. The bonds shall be authorized by a resolution or resolutions of the\nauthority adopted as provided by this title; provided, however, that any\nsuch resolution authorizing the issuance of bonds may delegate to one or\nmore members or to an officer of the authority the power to issue such\nbonds from time to time and to fix the details of any such issue of\nbonds by an appropriate certificate of such member, members or officer.\n 4. The bonds of the authority shall bear such date or dates, mature at\nsuch time or times, bear interest at such rate or rates (simple or\ncompounded), if any, be of such denominations, be in such form, be\nexecuted in such manner, be payable in such medium of payment, at such\nplace or places within or without the state, and be subject to such\nterms of redemption prior to maturity, as may be provided by such\nresolution or resolutions or such certificate with respect to such\nbonds, as the case may be; provided, however, that no bond or other\nobligations shall mature more than forty years after the date of issue\nthereof and no notes or renewal thereof shall mature more than five\nyears after the date of issue of the original notes.\n 5. The bonds of the authority may be sold by the authority at such\nprice or prices, at public or private sale, provided that no issue of\nbonds may be sold at private sale unless the terms of such sale shall\nhave been approved in writing by (i) the state comptroller, where such\nsale is not to such comptroller, or (ii) the director of the state\ndivision of the budget, where such sale is to such comptroller, in such\nmanner and from time to time as may be determined by the authority, and\nthe authority may pay all expenses, premiums and commissions which it\nmay deem necessary or advantageous in connection with the issuance and\nsale thereof.\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 all the purposes of the uniform commercial code, subject only to\nthe provisions of the bonds for registration.\n 7. Any resolution or resolutions authorizing any bonds or any issue\nthereof or any trust indenture or indentures relating to such bonds may\ncontain provisions, which shall be a part of the contract with the\nholders thereof, as to:\n (a) pledging, assigning or creating a lien on all or any part of the\nrates, rentals, fees and charges made or received by the authority, and\nall or any part of the moneys received or to be received as repayment of\nloans, to secure the payment of the bonds or of any issue thereof,\nsubject to such agreement with the holders of the authority's bonds as\nmay then exist;\n (b) pledging, assigning or creating a lien on all or any part of the\nassets of the authority, including mortgages and obligations securing\nthe same, to secure the payment of the bonds, subject to such agreements\nwith the holders of the authority's bonds as may then exist;\n (c) the establishment and maintenance of reserves or sinking funds and\nthe regulation and disposition thereof;\n (d) limitations on the purpose to which the proceeds of sale of any\nissue of bonds then or thereafter to be issued may be applied and\npledging such proceeds to secure the payment of the bonds or of any\nissue thereof;\n (e) limitations on the issuance of additional bonds, the terms upon\nwhich additional bonds may be issued and secured and the refunding of\noutstanding bonds;\n (f) the procedure, if any, by which the terms of any contract with the\nholders of bonds 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 (g) limitations on the amount of moneys to be expended by the\nauthority for operating, administrative or other expenses of the\nauthority;\n (h) the creation of special funds into which any moneys of the\nauthority may be deposited;\n (i) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the authority may determine, which may include any or\nall of the rights, powers and duties of the trustee appointed by the\nholders of bonds pursuant to this title, and limiting or abrogating the\nright of the holders of bonds to appoint a trustee pursuant to this\ntitle or limiting the rights, powers and duties of such trustee;\n (j) defining the acts or omissions to act which shall constitute a\ndefault in the obligations and duties of the authority and providing for\nthe rights and remedies of the holders of bonds in the event of such\ndefault, providing, however, that such rights and remedies shall not be\ninconsistent with the general laws of this state and other provisions of\nthis title; and\n (k) any other matters, of like or different character, which in any\nway affect the security or protection of the bonds and the rights of the\nholders thereof.\n 8. Any pledge or assignment made or lien created by the authority\nshall be valid and binding from the time when the pledge or assignment\nis made or the lien is created; the moneys or property so pledged,\nassigned or encumbered by the authority shall immediately be subject to\nsuch pledge, assignment or lien without any physical delivery thereof or\nfurther act; and such pledge, assignment or lien shall be valid and\nbinding as against all parties having claims of any kind in tort,\ncontract or otherwise against the authority, irrespective of whether\nsuch parties have notice thereof. Neither the resolution nor any other\ninstrument by which a pledge, assignment or lien is made or created need\nbe recorded or filed.\n 9. Neither the members of the authority nor any person executing the\nbonds shall be liable personally on the bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\n 10. The authority, subject to such agreements with the holders of the\nauthority's bonds as may then exist, shall have power out of any funds\navailable therefor to purchase bonds of the authority.\n 11. The state shall not be liable on bonds of the authority and such\nbonds shall not be a debt of the state, and such bonds shall contain on\nthe face thereof a statement to such effect.\n