§ 561 — Bonds of the authority

§ 561. Bonds of the authority. 1. The authority shall have the power\nand is hereby authorized from time to time to issue its negotiable bonds\nin conformity with applicable provisions of the uniform commercial code\nfor any corporate purpose or power. The authority shall have power from\ntime to time and whenever it deems refunding advantageous or desirable,\nto refund, redeem or otherwise pay, including by purchase or tender any\nbonds by the issuance of new bonds, whether the bonds to be refunded\nhave or have not matured, and may issue bonds partly to refund bonds\nthen outstanding and partly for any other corporate purpose or power.\nThe refunding bonds may be exchanged for the bonds to be refunded, with\nsuch cash adjustments as may be agreed, or may be sold and the proceeds\napplied to the purchase or payment of the bonds to be refunded. The\nauthority may issue general or special obligation bonds. Every issue of\ngeneral obligation bonds shall be payable out of any moneys or revenues\nof the authority, subject only to any agreements with the holders of\nparticular bonds pledging any particular tolls or revenues. Every issue\nof special obligation bonds shall be payable out of any revenues,\nreceipts, monies or assets of the authority, the metropolitan\ntransportation authority and its subsidiary corporations and the New\nYork city transit authority and its subsidiary corporations identified\nfor such purposes in accordance with agreements with the holders of\nparticular bonds.\n 2. The bonds shall be authorized by resolution of the board and shall\nbear such date or dates, mature at such time or times, not exceeding\nfifty years from their respective dates, bear interest at such rate or\nrates, be payable at such time or times, be in such denominations, be in\nsuch form either coupon or registered, carry such registration\nprivileges, be executed in such manner, be payable in such medium of\npayment, at such place or places, and be subject to such terms of\nredemption, as such resolution or resolutions may provide. The bonds may\nbe sold at public or private sale for such price or prices as the\nauthority shall determine. Notwithstanding the foregoing provisions,\nsuch bonds as may be authorized by resolution of the board and issued on\nor before June thirtieth, nineteen hundred sixty-five, shall bear\ninterest at such rate or rates as such resolution may provide.\n 3. The bonds may be issued for any corporate purpose of the authority.\n 4. Any resolution or resolutions authorizing any bonds or any issue of\nbonds may contain provisions, which shall 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 tolls and revenues of the project\nor of all or any part of any or all such projects to secure the payment\nof the bonds or of any issue of the bonds subject to such agreements\nwith bondholders as may then exist;\n (b) the rates of the tolls to be charged, and the amounts to be raised\nin each year by tolls, and the use and disposition of the tolls and\nother revenues;\n (c) the setting aside of reserves or sinking funds, and the regulation\nand disposition thereof;\n (d) limitations on the right of the authority to restrict and regulate\nthe use of the project in connection with which such bonds are issued;\n (e) 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 of the bonds;\n (f) limitations on the issuance of additional bonds; the terms upon\nwhich additional bonds may be issued and secured; 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) limitations on the amount of moneys derived from any project to be\nexpended for operating, administrative or other expenses of the\nauthority;\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\nbondholders pursuant to section five hundred sixty-seven hereof, and\nlimiting or abrogating the right of the bondholders to appoint a trustee\nunder section five hundred sixty-seven hereof or limiting the rights,\nduties and powers of such trustee;\n (j) any other matters, of like or different character, which in any\nway affect the security or protection of the bonds.\n 4-a. Any resolution or resolutions authorizing any bonds or any issue\nof bonds maturing in not exceeding ten years from their date (hereafter\nin this subdivision four-a referred to as "short term obligations") may\ncontain, in addition to all other provisions authorized by this title,\nprovisions, which shall be a part of the contract with the holders of\nthe short term obligations thereby authorized, as to (a) refunding the\nshort term obligations and, if so provided, outstanding bonds by the\nissuance of bonds of the authority either by the sale of bonds and the\napplication of the proceeds to the payment of the short term obligations\nand outstanding bonds or by the exchange of bonds for the short term\nobligations and outstanding bonds; provided, however, that the authority\nshall make no covenant to refund which shall require it to issue bonds,\nthe aggregate principal amount of which shall exceed by more than ten\nper centum the aggregate principal amount of the short term obligations\nand outstanding bonds to be refunded thereby;\n (b) satisfying, paying or discharging the short term obligations, at\nthe election of the authority, by the tender or delivery of bonds of the\nauthority in exchange therefor; provided, however, that the aggregate\nprincipal amount of bonds shall not exceed by more than ten per centum\nthe aggregate principal amount of the short term obligations to satisfy,\npay or discharge which the bonds are tendered or delivered;\n (c) exchanging or converting the short term obligations, at the\nelection of the holder thereof, for or into bonds of the authority;\nprovided, however, that the aggregate principal amount of the bonds\nshall not exceed by more than ten per centum the aggregate principal\namount of the short term obligations to be exchanged for or converted\ninto bonds;\n (d) pledging bonds of the authority as collateral to secure payment of\nthe short term obligations and providing for the terms and conditions of\nthe pledge and manner of enforcing the pledge, which terms and\nconditions may provide for the delivery of the bonds in satisfaction of\nthe short term obligations; provided, however, that the aggregate\nprincipal amount of the bonds pledged shall not exceed by more than ten\nper centum the aggregate principal amount of the short term obligations\nto secure which they are pledged;\n (e) depositing bonds in escrow or in trust with a trustee or fiscal\nagent or otherwise providing for the issuance and disposition of the\nbonds as security for carrying out any provisions in any resolution\nadopted pursuant to the foregoing paragraphs (a), (b), (c) and (d)\nhereof and providing for the powers and duties of the trustee or fiscal\nagent or other depositary and the terms and conditions on which the\nbonds are to be issued, held and disposed of;\n (f) any other matters of like or different character which relate to\nany provision or provisions of any resolution adopted pursuant to the\nforegoing paragraphs (a), (b), (c), (d) and (e) hereof.\n In computing the amount of bonds of the authority which may be\noutstanding at any one time, short term obligations shall be excluded to\nthe extent that the resolution authorizing the issuance of such short\nterm obligations shall provide for the issuance of bonds pursuant to\nparagraphs (a), (b), (c) or (d) of this section, but the bonds provided\nto be issued by such resolution shall be included in making such\ncomputation whether or not such bonds are outstanding.\n The authority shall have power to make contracts for the future sale\nfrom time to time of short term obligations, by which the purchasers\nshall be committed to purchase short term obligations from time to time\non the terms and conditions stated in such contracts, and the authority\nshall have power to pay such consideration as it shall deem proper for\nsuch commitments.\n 4-b. The authority shall have power from time to time to issue notes\n(herein referred to as notes) for any corporate purpose or power and\nfrom time to time to issue renewal notes maturing not later than five\nyears, from their respective dates whenever the authority shall\ndetermine that payment thereof can be made in full from any moneys or\nrevenues which the authority expects to receive from any source. The\nauthority may pledge such moneys or revenues (subject to any other\npledge thereof) for the payment of the notes and may in addition secure\nthe notes in the same manner as herein provided for bonds or otherwise.\nThe notes shall be issued in the same manner as bonds. The authority\nshall have power to make contracts for the future sale from time to time\nof the notes, by which the purchasers shall be committed to purchase the\nnotes from time to time on terms and conditions stated in such\ncontracts, and the authority shall have power to pay such consideration\nas it shall deem proper for such commitments.\n 4-c. It is the intention hereof that any pledge of tolls or other\nrevenues or other moneys made by the authority shall be valid and\nbinding from the time when the pledge is made; that the tolls or other\nrevenues or other moneys so pledged and thereafter received by the\nauthority shall immediately be subject to the lien of such pledge\nwithout any physical delivery thereof or further act, and that the lien\nof any such pledge shall be valid and binding as against all parties\nhaving claims of any kind in tort, contract or otherwise against the\nauthority irrespective of whether such parties have notice thereof.\nNeither the resolution nor any other instrument by which a pledge is\ncreated need be recorded.\n 5. Neither the members of the board nor any person executing the bonds\nshall be liable personally on the bonds or be subject to any personal\nliability or accountability by reason of the issuance thereof.\n 6. The authority shall have power out of any funds available therefor\nto purchase bonds. The authority may hold, cancel or resell such bonds,\nsubject to and in accordance with agreements with bondholders.\n