§ 3656 — Bonds of the authority

New York § 3656

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 1: Nassau County Interim Finance Authority
• Art. 10-D: Miscellaneous Authorities

Text

§ 3656. Bonds of the authority. 1. The authority shall have the power\nand is hereby authorized from time to time to issue bonds in such\nprincipal amounts as it may determine to be necessary pursuant to\nsection thirty-six hundred fifty-five of this title to pay any\nfinanceable costs and to fund reserves to secure such bonds, including\nincidental expenses in connection therewith. Provided, however, the\naggregate principal amounts of such bonds issued to pay the financeable\ncounty costs described in paragraph (c) of subdivision twelve of section\nthirty-six hundred fifty-one of this title, which resulted from\ncertiorari proceedings commenced on or after June first, two thousand,\nshall not exceed eight hundred million dollars in the aggregate,\nexcluding bonds, notes, or other obligations issued to refund or\notherwise repay bonds, notes, or other obligations theretofore issued\nfor such purposes. Effective in the year two thousand six, upon request\nof the county, the authority shall issue, in the amount requested, bonds\nto pay tax certiorari settlements or judgments of any kind to which the\ncounty is a party, not to exceed fifteen million dollars; and effective\nin the year two thousand seven, upon request of the county, the\nauthority shall issue, in the amount requested, bonds to pay tax\ncertiorari settlements or judgments of any kind to which the county is a\nparty, not to exceed ten million dollars. Whenever this title\nestablishes a limit on the principal amount of bonds that the authority\nis authorized to issue, there shall not be counted against such limit\n(i) amounts determined by the authority as reasonable to be used to pay\nthe cost of issuing such bonds, (ii) the amount of bonds that would\nconstitute interest under the Internal Revenue Code of 1986, as amended,\nand (iii) amounts determined by the authority as necessary to establish\nany reserves.\n The authority shall have the power from time to time to refund any\nbonds of the authority by the issuance of new bonds, whether the bonds\nto be refunded have or have not matured, and may issue bonds partly to\nrefund bonds of the authority then outstanding and partly to pay the\nfinanceable costs pursuant to section thirty-six hundred fifty-five of\nthis title. Bonds issued by the authority shall be payable solely out of\nparticular revenues or other moneys of the authority as may be\ndesignated in the proceedings of the authority under which the bonds\nshall be authorized to be issued, subject to any agreements entered into\nbetween the authority and the county, and subject to any agreements with\nthe holders of outstanding bonds pledging any particular revenues or\nmoneys; but in no event shall transitional state aid be pledged as\nsecurity for or be made available for the payment of bonds.\n 2. The authority is authorized to issue its bonds for a period ending\nnot later than December thirty-first, two thousand twenty-one. The\nauthority may issue bonds to refund bonds previously issued without\nregard to the limitation in the first sentence of this subdivision, but\nin no event shall any bonds of the authority finally mature later than\nJanuary thirty-first, two thousand fifty-one. Notwithstanding any other\nprovision of law, no bond of the authority shall mature more than thirty\nyears from the date of its issue.\n 3. Bonds of the authority may be issued, amortized, redeemed and\nrefunded without regard to the provisions of the local finance law;\nprovided, however, that the principal amount of outstanding bonds issued\nby the authority shall be deemed to be indebtedness of the county solely\nin ascertaining the amount of indebtedness the county may contract\npursuant to the local finance law and the state constitution and the\nauthority shall not exceed such limitation.\n 4. The directors may delegate to the chairperson or other director or\nofficer of the authority the power to set the final terms of bonds.\n 5. The authority in its sole discretion shall determine that the\nissuance of its bonds is appropriate. Bonds shall be authorized by\nresolution of the authority. Bonds shall bear interest at such fixed or\nvariable rates and shall be in such denominations, be in such form,\neither coupon or registered, be sold at such public or private sale, be\nexecuted in such manner, be denominated in United States currency, be\npayable in such medium of payment, at such place and be subject to such\nterms of redemption as the authority may provide in such resolution. No\nbonds of the authority may be sold at private sale unless such sale and\nthe terms thereof have been approved in writing by (a) the state\ncomptroller where such sale is not to the state comptroller, or (b) the\ndirector of the budget, where such sale is to the state comptroller.\n 6. As a condition precedent to authorizing the issuance of any bonds\nhereunder, the authority may include in any agreement with the county\nsuch provisions as are deemed necessary and appropriate including\nexpress provisions regarding compliance with sections thirty-six hundred\nsixty-six and thirty-six hundred sixty-seven of this title, as\napplicable.\n 7. 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 part of the authority's revenues, together with\nany other moneys, securities or contracts, to secure the payment of the\nbonds, subject to such agreements with bondholders as may then exist;\n (b) the setting aside of reserves and the creation of sinking funds\nand the regulation and disposition thereof;\n (c) limitations on the purposes to which the proceeds from the sale of\nbonds may be applied;\n (d) limitations on the issuance of additional bonds, the terms upon\nwhich additional bonds may be issued and secured and the refunding of\nbonds;\n (e) the procedure, if any, by which the terms of any contract with\nbondholders may be amended or abrogated, including the proportion of\nbondholders which must consent thereto and the manner in which such\nconsent may be given;\n (f) vesting in a trustee or trustees such properties, rights, powers\nand duties in trust as the authority may determine, which may include\nany or all of the rights, powers and duties of the trustee appointed by\nthe bondholders pursuant to section thirty-six hundred sixty-four of\nthis title and limiting or abrogating the rights of the bondholders to\nappoint a trustee under such section or limiting the rights, duties and\npowers of such trustee; and\n (g) 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 acts or\nomissions to act which may constitute a default and such rights and\nremedies shall not be inconsistent with the general laws of the state\nand other provisions of this title.\n 8. 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 enter into such agreements for the benefit of the\nbondholders as the authority may deem necessary, convenient or desirable\nconcerning the use or disposition of its revenues or other moneys,\nincluding the entrusting, pledging or creation of any other security\ninterest in any such revenues, moneys and the doing of any act,\nincluding refraining from doing any act, which the authority would have\nthe right to do in the absence of such agreements. The authority shall\nhave power to enter into amendments of any such agreements within the\npowers granted to the authority by this title and to perform such\nagreements. The provisions of any such agreements may be made a part of\nthe contract with the holders of bonds of the authority.\n 9. Notwithstanding any provision of the uniform commercial code to the\ncontrary, any pledge of or other security interest in revenues, moneys,\naccounts, 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 such parties have notice thereof. No instrument\nby which such a pledge or security interest is created nor any financing\nstatement need be recorded or filed.\n 10. Whether or not the bonds of the authority are of such form and\ncharacter as to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds are hereby made negotiable instruments within\nthe meaning of and for all the purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 11. Neither the directors of the authority nor any person executing\nbonds shall be liable personally thereon or be subject to any personal\nliability or accountability solely by reason of the issuance thereof.\nThe bonds or other obligations of the authority shall not be a debt of\neither the state or the county, and neither the state nor the county\nshall be liable thereon, nor shall they be payable out of any funds\nother than those of the authority; and such bonds shall contain on the\nface thereof a statement to such effect.\n 12. The authority, subject to such agreements with bondholders as then\nmay exist, shall have power to purchase bonds of the authority out of\nany moneys available therefor, which shall thereupon be cancelled.\n