§ 365 — Notes or bonds of the authority

New York § 365

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 9: New York State Thruway Authority
• Art. 2: Park, Parkway and Highway Authorities

Text

§ 365. Notes or bonds of the authority. 1. (a) Subject to the\nprovisions of section three hundred sixty-six of this title, the\nauthority shall have the power and is hereby authorized from time to\ntime to issue its negotiable notes and bonds in conformity with\napplicable provisions of the uniform commercial code in such principal\namount as, in the opinion of the authority, shall be necessary to\nprovide sufficient moneys for achieving the corporate purposes thereof,\nincluding construction, reconstruction and improvement of the thruway\nsections and connections, and highway connections herein described,\ntogether with suitable facilities and appurtenances, the payment of all\nindebtedness to the state, the cost of acquisition of all real property,\nthe expense of maintenance and operation, interest on notes and bonds\nduring construction and for a reasonable period thereafter,\nestablishment of reserves to secure notes or bonds, and all other\nexpenditures of the authority incident to and necessary or convenient to\ncarry out its corporate purposes and powers.\n (b) The authority shall have power from time to time to issue renewal\nnotes, to issue bonds to pay notes, and whenever it deems refunding\nexpedient, to refund any bonds by the issuance of new bonds, whether the\nbonds to be refunded have or have not matured, and may issue bonds\npartly to refund bonds then outstanding and partly for any other\npurpose. The refunding bonds shall be sold and the proceeds applied to\nthe purchase, redemption or payment of the bonds to be refunded.\n (c) Except as may otherwise be expressly provided by the authority,\nevery issue of the notes or bonds shall be general obligations payable\nout of any moneys or revenues of the authority, subject only to any\nagreements with the holders of notes or bonds pledging any receipts or\nrevenues.\n 2. The notes and bonds shall be authorized by resolution of the board,\nshall bear such date or dates and mature at such time or times, in the\ncase of notes and any renewals thereof within five years after their\nrespective dates and in the case of bonds not exceeding forty years from\ntheir respective dates, as such resolution or resolutions may provide.\nThe notes and bonds shall bear interest at such rate or rates, be in\nsuch denominations, be in such form, either coupon or registered, carry\nsuch registration privileges, be executed in such manner, be payable in\nsuch medium of payment, at such place or places, and be subject to such\nterms of redemption as such resolution or resolutions may provide. Bonds\nand notes shall be sold by the authority, at public or private sale, at\nsuch price or prices as the authority may determine. Bonds and notes of\nthe authority shall not be sold by the authority at private sale unless\nsuch sale and the terms thereof have been approved in writing by the\ncomptroller, where such sale is not to the comptroller, or by the\ndirector of the budget, where such sale is to the comptroller.\n 3. Any resolution or resolutions authorizing any notes or bonds or any\nissue thereof may contain provisions, which shall be a part of the\ncontract with the holders thereof, as to\n (a) pledging all or any part of the fees, charges, gifts, grants,\nrents, revenues or other moneys received or to be received and leases or\nagreements to secure the payment of the notes or bonds or of any issue\nthereof subject to such agreements with bondholders as may then exist;\n (b) The rates of the fees or charges to be established, and the\namounts to be raised in each year thereby and the use and disposition of\nthe fees, charges, gifts, grants, rents, revenues or other moneys\nreceived or to be received;\n (c) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) limitations on the purpose to which the proceeds of sale of any\nissue of notes or bonds then or thereafter to be issued may be applied\nand pledging such proceeds to secure the payment of the notes or bonds\nor of any issue thereof;\n (e) limitations on the issuance of additional notes or bonds; the\nterms upon which additional notes or bonds may be issued and secured;\nthe refunding of outstanding or other notes or bonds;\n (f) the procedure, if any, by which the terms of any contract with\nnoteholders or bondholders may be amended or abrogated, the amount of\nnotes or bonds the holders of which must consent thereto, and the manner\nin which such consent 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) in the case of notes or bonds not guaranteed by the state, vesting\nin a trustee or trustees such property, rights, powers and duties in\ntrust as the authority may determine which may include any or all of the\nrights, powers and duties of the trustee appointed by the bondholders\npursuant to this title, and limiting or abrogating the right of the\nbondholders to appoint a trustee under this title or limiting the\nrights, duties and powers of such trustee;\n (i) the acquisition of jurisdiction over, and of property for,\nthruways, and the construction, reconstruction, improvement, maintenance\nor operation thereof;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the notes or bonds.\n 4. Whenever the authority pledges its revenues under a resolution\nauthorized by this section, such resolution shall not prohibit the\nauthority from financing for additional corporate transportation\npurposes authorized by law secured by an additional pledge of such\nrevenues. Such additional pledge of revenues may, in the discretion of\nthe authority, be subordinate to the pledge of such revenues securing\nother bonds, notes or other evidence of indebtedness of the authority.\nProvided, however, the authority shall not make any such additional\npledge if the security of the bonds, notes or other evidences of\nindebtedness previously issued will be impaired as a result thereof.\n 5. It is the intention hereof that any pledge made by the authority\nshall be valid and binding from the time when the pledge is made; that\nthe moneys so pledged and thereafter received by the authority shall\nimmediately be subject to the lien of such pledge without any physical\ndelivery thereof or further act, and that the lien of any such pledge\nshall be valid and binding as against all parties having claims of any\nkind in tort, contract or otherwise against the authority irrespective\nof whether such parties have notice thereof. Neither the resolution nor\nany other instrument by which a pledge is created need be recorded.\n 6. Neither the members of the board nor any person executing the notes\nor bonds shall be liable personally on the notes or bonds or be subject\nto any personal liability or accountability by reason of the issuance\nthereof.\n 7. The authority shall have power out of any funds available therefor\nto purchase notes or bonds, which shall thereupon be cancelled, at a\nprice not exceeding (a) if the notes or bonds are then redeemable, the\nredemption price then applicable plus accrued interest to the next\ninterest payment date thereon, or (b) if the notes or bonds are not then\nredeemable, the redemption price applicable on the first date after such\npurchase upon which the notes or bonds become subject to redemption plus\naccrued interest to said date.\n