§ 581 — Bonds and notes of the authority

§ 581. Bonds and notes of the authority. 1. The authority shall have\nthe power and is hereby authorized from time to time to issue its\nnegotiable bonds and notes in conformity with applicable provisions of\nthe uniform commercial code in such amount as may be necessary to pay\nthe entire cost of financing any one or more of the purposes authorized\npursuant to section five hundred seventy-eight of this chapter, or for\nthe purpose of refunding any bonds or notes previously issued, and such\ncost of financing shall be deemed to include but not be limited to\nrefunding of any bonds or notes previously issued and then outstanding\nas well as any redemption premium thereon and any interest to accrue to\nthe date of redemption of such bonds or notes, such other expenses as\nmay be incident to the issuance of such new bonds or notes, interest\nprior to and during construction and for six months after completion\nthereof, and such other expenses as may be deemed necessary or incident\nthereto for placing the same in operation. The issuance of such bonds or\nnotes, the maturities and other details thereof, the rights of the\nholders thereof, and the rights, duties and obligations of the authority\nin respect of the same, shall be governed by the provisions of this\ntitle.\n 2. (a) Such bonds shall be authorized by resolution of the authority,\nsubject to the approval of the supervisors, and shall bear such date or\ndates, and shall mature at such time or times, not exceeding fifty years\nfrom the date of issue, bear interest at such rate or rates, be in such\ndenominations, be in such form, either coupon or registered, carry such\nregistration privileges, be executed in such manner, be payable in such\nmedium of payment, at such place or places, and be subject to such terms\nof redemption, as such resolution or resolutions may provide. Such bonds\nmay be sold at public or private sale for such price or prices as the\nauthority shall determine.\n (b) Whether or not the bonds or notes are of such form and character\nas to be negotiable instruments under article eight of the uniform\ncommercial code, the bonds or notes shall be and hereby are made\nnegotiable instruments within the meaning and for all purposes of\narticle eight of the uniform commercial code, subject only to the\nprovisions of the bonds for registration.\n 3. Any resolution or resolutions authorizing any bonds or notes may\ncontain provisions which shall be a part of the contract with the\nholders of the bonds or notes as to:\n (a) pledging the tolls and revenues of the authority to secure the\npayment of the bonds or notes;\n (b) the rates of the tolls to be charged for use of the bridges and\nroads and the amounts to be raised in each year by tolls and the use and\ndisposition of the tolls and other 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 and its successors to\nrestrict and regulate the use of the bridges hereby authorized;\n (e) limitations on the purpose to which the proceeds of sale of any\nissue of bonds or notes then or thereafter to be issued may apply;\n (f) limitations on the issuance of additional bonds or notes;\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 4. Neither the members of the board nor any person executing the bonds\nor notes shall be liable personally on the bonds or notes or be subject\nto any personal liability or accountability by reason of the issuance\nthereof.\n 5. In the discretion of the authority, the bonds may be secured by a\ntrust indenture by and between the authority and a corporate trustee,\nwhich may be any trust company or bank having the powers of a trust\ncompany in the state. Such trust indenture may contain such provisions\nfor protecting and enforcing the rights and remedies of the bondholders\nas may be reasonable and proper and not in violation of law, including\ncovenants setting forth the duties of the authority in relation to the\nconstruction, maintenance, operation, repair and insurance of the\nbridges or other facilities, and the custody, safeguarding and\napplication of all moneys, and may provide that the bridges and roads\nshall be constructed and paid for under the supervision and approval of\nconsulting engineers. Nothwithstanding the provisions of section five\nhundred eighty of this chapter, the authority may provide by such trust\nindenture for the payment of the proceeds of the bonds and the revenues\nof the authority to the trustee under such trust indenture or other\ndepository, and for the method of disbursement thereof, with such\nsafeguards and restrictions as it may determine. All expenses incurred\nin carrying out such trust indenture may be treated as an operating cost\nof the authority. If the bonds shall be secured by a trust indenture,\nthe bondholders shall have no power to appoint a separate trustee to\nrepresent them, and the trustee under such trust indenture shall have\nand possess all of the powers which are conferred by section five\nhundred eighty-six of this chapter upon a trustee appointed by\nbondholders.\n 6. The authority shall have the power and is hereby authorized to\nissue negotiable bond anticipation notes in conformity with applicable\nprovisions of the uniform commercial code and may renew the same from\ntime to time but the maximum maturity of such notes, including renewals\nthereof shall not exceed seven years from the date of issue of such\noriginal note. Such notes may be paid from any moneys of the authority\navailable therefor and not otherwise pledged or from the proceeds of\nsale of the bonds of the authority in anticipation of which they were\nissued. The notes shall be issued in the same manner as the bonds and\nsuch notes and the resolution or resolutions authorizing the same may\ncontain any provisions, conditions or limitations which the bonds or a\nbond resolution of the authority may contain. Such notes may be sold at\npublic or private sale. Such notes shall be as fully negotiable as the\nbonds of the authority.\n 7. The authority shall also have the power and is hereby authorized to\nissue negotiable notes and renewals thereof in conformity with the\napplicable provisions of the uniform commercial code provided, however,\nthat it shall not issue such notes in an aggregate amount of more than\none hundred thousand dollars without the prior approval of the\nsupervisors by resolution duly adopted. Such notes may be issued for any\ncorporate purpose of the authority. The maximum maturity of any such\nnote, including renewals thereof, shall not exceed five years from the\ndate of issue of the original note, unless otherwise approved by the\nsupervisors. Such notes may be paid from any moneys of the authority\navailable therefor and not otherwise pledged and the authority may\npledge its revenues for the payment thereof. The resolution or\nresolutions authorizing such notes may contain any provisions,\nconditions or limitations which the bonds or a bond resolution of the\nauthority may contain. Such notes may be sold at public or private sale.\nSuch notes shall be as fully negotiable as the bonds of the authority.\n