§ 3962 — Bonds, notes or other obligations of the authority

New York § 3962

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 3: Erie County Fiscal Stability Authority
• Art. 10-D: Miscellaneous Authorities

Text

§ 3962. Bonds, notes or other obligations of the authority. 1. The\nauthority shall have the power and is hereby authorized from time to\ntime to issue bonds, notes or other obligations in such principal\namounts as it may determine to be necessary pursuant to section\nthirty-nine hundred sixty-one of this title to pay any financeable costs\nand to fund reserves to secure such bonds, notes or other obligations,\nincluding incidental expenses in connection therewith; provided,\nhowever, the aggregate principal amounts of such bonds, notes or other\nobligations outstanding at any one time shall not exceed seven hundred\nmillion dollars, and such bonds shall be exempt as provided in section\nthirty-nine hundred sixty-nine of this title. Bonds, notes or other\nobligations issued by the authority (a) to pay reasonable costs of\nissuance, as determined by the authority, (b) to establish debt service\nreserve funds, (c) to refund or advance refund any outstanding bonds or\nnotes of the county or the authority, or (d) as cash flow borrowings\nshall not count against the above limit on outstanding bonds, notes or\nother obligations of the authority, nor shall any accretion of principal\nof bonds that would constitute interest under the Internal Revenue Code\nof 1986, as amended, count against such limit; provided further, that\nthe aggregate principal amount of cash flow borrowings outstanding at\nany time shall not exceed two hundred fifty million dollars.\n 2. The authority may issue bonds, notes or other obligations to refund\nbonds, notes or other obligations previously issued, but in no event\nshall the final maturity of any bonds, notes or other obligations of the\nauthority be later than December thirty-first, two thousand thirty-nine.\nNo bond of the authority shall mature more than thirty years from the\ndate of its issue, or after December thirty-first, two thousand\nthirty-nine, whichever date is earlier.\n 3. Bonds, notes or other obligations of the authority may be issued,\namortized, redeemed and refunded without regard to the provisions of the\nlocal finance law.\n 4. The directors may delegate to the chairperson or other director or\nofficer of the authority the power to set the financial terms of bonds,\nnotes or other obligations.\n 5. The authority in its sole discretion shall determine that the\nissuance of its bonds, notes or other obligations is appropriate. Bonds,\nnotes or other obligations shall be authorized by resolution of the\nauthority. Bonds shall bear interest at such fixed or variable rates and\nshall be in such denominations, be in such form, either coupon or\nregistered, be sold at such public or private sale, be executed in such\nmanner, be denominated in United States currency, be payable in such\nmedium of payment, at such place and be subject to such terms of\nredemption as the authority may provide in such resolution. No bonds,\nnotes or other obligations of the authority may be sold at private sale\nunless such sale and the terms thereof have been approved in writing by:\n(a) the state comptroller where such sale is not to the state\ncomptroller; or (b) the director of the budget, where such sale is to\nthe state comptroller.\n 6. Any resolution or resolutions authorizing bonds, notes or other\nobligations or any issue of bonds, notes or other obligations may\ncontain provisions which may be a part of the contract with the holders\nof the bonds, notes or other obligations thereby authorized as to: (a)\npledging all or part of the authority's revenues, together with any\nother moneys, securities or contracts, to secure the payment of the\nbonds, notes or other obligations, subject to such agreements with\nbondholders as may then exist; (b) the setting aside of reserves and the\ncreation of sinking funds and the regulation and disposition thereof;\n(c) limitations on the purposes to which the proceeds from the sale of\nbonds, notes or other obligations may be applied; (d) limitations on the\nissuance of additional bonds, notes or other obligations, the terms upon\nwhich additional bonds, notes or other obligations may be issued and\nsecured and the refunding of bonds, notes or other obligations; (e) the\nprocedure, if any, by which the terms of any contract with bondholders\nmay be amended or abrogated, including the proportion of bondholders\nwhich must consent thereto and the manner in which such consent may be\ngiven; (f) vesting in a trustee or trustees such properties, rights,\npowers and duties in trust as the authority may determine, which may\ninclude any or all of the rights, powers and duties of the trustee\nappointed by the bondholders pursuant to section thirty-nine hundred\nsixty-three of this title and limiting or abrogating the rights of the\nbondholders to appoint a trustee under such section or limiting the\nrights, duties and powers of such trustee; and (g) defining the acts or\nomissions of the authority to act which may constitute a default in the\nobligations and duties of the authority to the bondholders and providing\nfor the rights and remedies of the bondholders in the event of such\ndefault, including as a matter of right the appointment of a receiver;\nprovided, however, that such acts or omissions of the authority to act\nwhich may constitute a default and such rights and remedies shall not be\ninconsistent with the general laws of the state and other provisions of\nthis title.\n 7. In addition to the powers conferred upon the authority in this\nsection to secure its bonds, notes or other obligations, the authority\nshall have power in connection with the issuance of bonds, notes or\nother obligations 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, notes or other obligations of\nthe authority.\n 8. 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 to be valid and binding.\n 9. Whether or not the bonds, notes or other obligations of the\nauthority are of such form and character as to be negotiable instruments\nunder the terms of the uniform commercial code, such bonds, notes or\nother obligations are hereby made negotiable instruments within the\nmeaning of and for all the purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 10. Neither the directors of the authority nor any person executing\nbonds, notes or other obligations shall be liable personally thereon or\nbe subject to any personal liability or accountability solely by reason\nof the issuance thereof. The bonds, notes or other obligations of the\nauthority shall not be a debt of either the state or the county, and\nneither the state nor the county shall be liable thereon, nor shall they\nbe payable out of any funds other than those of the authority; and such\nbonds, notes or other obligations shall contain on the face thereof a\nstatement to such effect.\n 11. The authority, subject to such agreements with bondholders as then\nmay exist, shall have power to purchase bonds, notes or other\nobligations of the authority out of any moneys available therefor, which\nshall thereupon be canceled.\n