§ 2799-JJJ — Bonds of the authority

New York § 2799-JJJ

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 34: Syracuse Regional Airport Authority
• Art. 8: Miscellaneous Authorities

Text

§ 2799-jjj. Bonds of the authority. 1. The authority shall have the\npower and is hereby authorized from time to time to issue bonds, notes\nor other obligations to pay the cost of any project or for any other\ncorporate purpose, including the establishment of reserves to secure the\nbonds, the payment of principal of, premium, if any, and interest on the\nbonds and the payment of incidental expenses in connection therewith.\nThe aggregate principal amount of such bonds, notes or other obligations\nshall not exceed three hundred million dollars ($300,000,000), excluding\nbonds, notes or other obligations issued to refund or otherwise repay\nbonds, notes or other obligations theretofore issued for such purposes;\nprovided, however, that upon any such refunding or repayment the total\naggregate principal amount of outstanding bonds, notes or other\nobligations may be greater than three hundred million dollars\n($300,000,000) only if the present value of the aggregate debt service\nof their funding or repayment bonds, notes or other obligations to be\nissued shall not exceed the present value of the aggregate debt service\nof the bonds, notes or other obligations so to be refunded or repaid.\nFor purposes of this section, the present values of the aggregate debt\nservice of the refunding or repayment bonds, notes or other obligations\nand of the aggregate debt service of the bonds, notes or other\nobligations so refunded or repaid, shall be calculated by utilizing the\neffective interest rate of the refunding or repayment bonds, notes or\nother obligations, which shall be that rate arrived at by doubling the\nsemi-annual interest rate (compounded semi-annually) necessary to\ndiscount the debt service payments on the refunding or repayment bonds,\nnotes or other obligations from the payment dates thereof to the date of\nissue of the refunding or repayment bonds, notes or other obligations\nand to the price bid including estimated accrued interest or proceeds\nreceived by the authority including estimated accrued interest from the\nsale thereof. The authority shall have power and is hereby authorized to\nenter into such agreements and perform such acts as may be required\nunder any applicable federal legislation to secure a federal guarantee\nof any bonds.\n 2. The authority shall have power from time to time to renew bonds or\nto issue renewal bonds for such purpose, to issue bonds to pay bonds,\nand, whenever it deems refunding expedient, to refund any bond by the\nissuance of new bonds, whether the bonds to be refunded have or have not\nmatured, and may issue bonds partly to refund bonds then outstanding and\npartly for any other corporate purpose of the authority. Bonds (other\nthan notes or other evidence of indebtedness) issued for refunding\npurposes, which have a final maturity date longer than the maturity of\nthe bonds being refunded, shall be approved by a resolution of the\ncommon council adopted by a majority vote and approved by the mayor.\nBonds issued for refunding purposes shall be sold and the proceeds\napplied to the purchase, redemption or payment of the bonds or notes to\nbe refunded.\n 3. Bonds issued by the authority may be general obligations secured by\nthe faith and credit of the authority or may be special obligations\npayable solely out of particular revenues or other moneys as may be\ndesignated in the proceedings of the authority under which the bonds\nshall be authorized to be issued, subject as to priority only to any\nagreements with the holders of outstanding bonds pledging any particular\nproperty, revenues or moneys. The authority may also enter into loan\nagreements, lines of credit and other security agreements and obtain for\nor on its behalf letters of credit, insurance, guarantees or other\ncredit enhancements to the extent now or hereafter available, in each\ncase for securing its bonds or to provide direct payment of any costs\nwhich the authority is authorized to pay.\n 4. (a) 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.\n (b) Bonds shall be subject to such terms of redemption, bear interest\nat such rate or rates, be payable at such times, be in such form, either\ncoupon or registered, carry such registration privileges, be executed in\nsuch manner, be payable in such medium of payment at such place or\nplaces, and be subject to such terms and conditions as such resolution\nmay provide.\n (c) Notwithstanding any other provision of law, the bonds of the\nauthority issued pursuant to this section shall be sold to the bidder\noffering the lowest true interest cost, taking into consideration any\npremium or discount not less than four nor more than fifteen days,\nSundays excepted, after a notice of such sale has been published at\nleast once in a newspaper of general circulation in the area served by\nthe authority and on the authority website, which shall state the terms\nof the sale. The terms of the sale may not change unless notice of such\nchange is published in such newspaper and on the authority website at\nleast one day prior to the date of the sale as set forth in the original\nnotice of sale. Advertisements shall contain a provision to the effect\nthat the authority, in its discretion, may reject any or all bids made\nin pursuance of such advertisements, and in the event of such rejection,\nthe authority is authorized to negotiate a private or public sale or\nre-advertise for bids in the form and manner above described as many\ntimes as, in its judgment, may be necessary to effect a satisfactory\nsale.\n (d) Notwithstanding the provisions of the preceding paragraph,\nwhenever in the judgment of the authority the interests of the authority\nwill be served thereby, the members of the authority, on the written\nrecommendation of the chairperson, may authorize the sale of such bonds\nat 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 (e) The private or public bond sale guidelines set by the authority\nshall include, but not be limited to a requirement that where the\ninterests of the authority will be served by a private or public sale of\nbonds, the authority shall select underwriters for private or public\nbond sales conducted pursuant to a request for proposal process\nundertaken at least once annually and consideration of proposals from\nqualified underwriters taking into account, among other things,\nqualifications of underwriters as to experience, their ability to\nstructure and sell authority bond issues, anticipated costs to the\nauthority, the prior experience of the authority with the firm, if any,\nthe capitalization of such firms, participation of qualified minority\nand women-owned business enterprise firms in such private or public\nsales of bonds of the authority and the experience and ability of firms\nunder consideration to work with minority and women-owned business\nenterprises so as to promote and assist participation by such\nenterprises.\n (f) 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 (g) No private or public bond sale on a negotiated basis shall be\nconducted by the authority without prior approval of the state\ncomptroller and the city comptroller.\n (h) The authority shall annually prepare and approve a bond sale\nreport which 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 (i) The authority shall annually submit its bond sale report to the\nstate comptroller and copies thereof to the senate finance committee,\nthe assembly ways and means committee and the authority budget office.\n (j) The authority shall make available to the public copies of its\nbond sale report upon reasonable request therefore.\n (k) Nothing contained in this subdivision shall be deemed to alter,\naffect the validity of, modify the terms of or impair any contract or\nagreement made or entered into in violation of, or without compliance\nwith, the provisions of this subdivision.\n 5. 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 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 with bondholders as may then\nexist;\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 contract with\nbondholders may be amended or abrogated, the amount of bonds the holders\nof which must consent thereto, and the manner in which such consent may\nbe 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 this title and limiting or abrogating the rights\nof the bondholders to appoint a trustee under such section or limiting\nthe rights, duties and powers 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 6. 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 adopt resolutions and enter into such trust\nindentures, agreements or other instruments as the authority may deem\nnecessary, convenient or desirable concerning the use or disposition of\nits revenues or other moneys or property, including the mortgaging of\nany property and the entrusting, pledging or creation of any other\nsecurity interest in any such revenues, moneys or property and the doing\nof any act, including refraining from doing any act which the authority\nwould have the right to do in the absence of such resolutions, trust\nindentures, agreements or other instruments. The authority shall have\npower to enter into amendments of any such resolutions, trust\nindentures, agreements or other instruments. The provisions of any such\nresolutions, trust indentures, agreements or other instruments may be\nmade a part of the contract with the holders of bonds of the authority.\n 7. 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 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 8. 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 9. Neither the members of the authority nor any person executing its\nbonds shall be liable personally on its bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\n 10. Subject to such agreements with bondholders as may then exist, the\nauthority shall have power out of any funds available therefor to\npurchase bonds of the authority, which shall thereupon be cancelled, at\na price not exceeding (a) if the bonds are then redeemable, the\nredemption price then applicable plus accrued interest to the next\ninterest payment date, or (b) 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. Bonds so purchased shall thereupon be\ncancelled.\n