§ 706 — Bonds of the authority

§ 706. Bonds of the authority. 1. The authority shall have power and\nis hereby authorized from time to time to issue its negotiable bonds in\nconformity with applicable provisions of the uniform commercial code in\nsuch amount as may be necessary to pay the cost of the bridge and\napproach roads herein authorized and the cost of all land, property,\nrights, easements and franchises deemed necessary for the construction\nthereof, and to pay interest prior to and during construction and for\none year after completion of construction, for reconstruction and\nupgrades to the bridge, the purchase price of the ferry or ferries\nauthorized to be acquired, the repayment of any advances or\nappropriations made by the state of New York to the authority and such\nother expenses as may be deemed necessary or incident to the financing\nand to the construction of the bridge and approach roads, and to placing\nthe same in operation, and infrastructure, upgrade and expansion at the\nOgdensburg international airport.\n 2. The authority shall have power and is hereby authorized from time\nto time to issue its negotiable bonds in conformity with applicable\nprovisions of the uniform commercial code for the purpose of refunding\nbonds of the authority theretofore issued, but the aggregate principal\namount of such refunding bonds shall not exceed the aggregate principal\namount of the bonds to be refunded and the amount of the accrued\ninterest and the premium required to be paid upon such bonds by reason\nof redemption before maturity.\n 3. The bonds shall be authorized by resolution of the board. The bonds\nshall be dated, shall bear interest at such rate or rates not exceeding\nsix per centum per annum, shall mature at such time or times all as may\nbe determined by the authority and may be made redeemable before\nmaturity, at the option of the authority, at such price or prices and\nunder such terms and conditions as may be fixed by the authority prior\nto the issuance of the bonds. The authority shall determine the form and\nthe manner of execution of the bonds, including any interest coupons to\nbe attached thereto, and shall fix the denomination or denominations of\nthe bonds and the place or places of payment of principal and interest,\nwhich may be at any bank or trust company within or without the state.\nIn case any officer whose signature or a facsimile of whose signature\nshall appear on any bonds or coupons shall cease to be such officer\nbefore the delivery of such bonds, such signature or such facsimile\nshall nevertheless be valid and sufficient for all purposes the same as\nif he had remained in office until such delivery, and any bond may bear\nthe facsimile signature of, or may be signed by, such person as at the\nactual time of the execution of such bond shall be duly authorized to\nsign such bond although at the date of such bond such person may not\nhave been such officer. The bonds may be issued in coupon form or in\nregistered form or both coupon form and registered form as the authority\nmay determine, and provisions may be made by the authority for the\nregistration of any coupon bond as to principal alone and also as to\nboth principal and interest, for the reconversion into coupon bonds of\nany bonds registered as to both principal and interest, and for the\nexchange of either coupon bonds or registered bonds without coupons for\nan equal aggregate principal amount of other coupon bonds or registered\nbonds without coupons or both of any denomination or denominations.\nNotwithstanding any other provisions of this title or any recitals in\nthe bonds issued under the provisions of this title, all such bonds\nshall be deemed to be negotiable instruments under the laws of the state\nof New York. The authority may sell such bonds at public or private\nsale, to the bidders who shall offer the lowest interest cost to the\nauthority, at such a price, not less than ninety-five per centum of\ntheir value, that the interest cost to maturity for the money received\nfor any issue of such bonds shall not exceed six per centum per annum.\nPrior to the preparation of definitive bonds, the authority may, under\nlike restrictions, issue interim receipts or temporary bonds, with or\nwithout coupons, exchangeable for definitive bonds when such bonds shall\nhave been executed and are available for delivery. The authority may\nalso provide for the replacement of any bonds which shall become\nmutilated or shall be destroyed or lost. Bonds may be issued by the\nauthority under the provisions of this title without any other\nproceedings or the happenings of any other conditions or things than\nthose proceedings, conditions or things which are specifically required\nby this title.\n 4. Any resolution or resolutions authorizing any bonds may contain\nprovisions, which shall be a part of the contract with the holders of\nthe bonds thereby authorized, as to\n (a) pledging the tolls and revenues of the authority to secure the\npayment of the bonds;\n (b) the rates of the tolls to be charged for use of the bridge, the\namounts to be raised in each year by tolls, and the use and disposition\nof 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 rights of the authority to restrict and\nregulate the use of the bridge;\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;\n (f) limitations on the issuance of additional 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; and\n (h) any other matters, of like or different character, which in any\nway affect the security or protection of the bonds.\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 of New York. Such trust indenture may contain such\nprovisions for protecting and enforcing the rights and remedies of the\nbondholders as may be reasonable and proper and not in violation of law,\nincluding covenants setting forth the duties of the authority in\nrelation to the construction, maintenance, operation, repair and\ninsurance of the bridge and the ferry or ferries, and the custody,\nsafeguarding and application of all moneys, and may provide that the\nbridge and approach roads shall be constructed and paid for under the\nsupervision and approval of consulting engineers. Notwithstanding any\nother provisions of this title, the authority may provide by such trust\nindenture for the payment of the proceeds of the bonds and the revenues\nof the bridge and the ferry or ferries to the trustee under such trust\nindenture or other depository, and for the method of disbursement\nthereof, with such safeguards and restrictions as it may determine. All\nexpenses incurred in carrying out such trust indenture may be treated as\na part of the cost of maintenance, operation and repair of the bridge.\nIf the bonds shall be secured by a trust indenture, the bondholders\nshall have no authority to appoint a separate trustee to represent them,\nand the trustee under such trust indenture shall have and possess, in\naddition to other powers granted by such trust indenture, all of the\npowers which are conferred by section seven hundred seven of this title\nupon a trustee appointed by bondholders.\n 6. It is the intention hereof that any pledge of revenues or other\nmoneys made by the authority shall be valid and binding from the time\nwhen the pledge is made; that the tolls or other revenues or other\nmoneys 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 7. Neither the members of the authority nor any person executing any\nbonds shall be liable personally on the bonds or be subject to any\npersonal liability or accountability by reason of the issuance thereof.\n 8. The authority shall have power out of any funds available therefor\nto purchase any of the outstanding bonds at a cost not exceeding the\nredemption price of the bonds purchased as fixed by the resolution of\nthe authority which authorized their issuance. All bonds so purchased\nshall be cancelled.\n 9. No bonds shall be issued by the authority, except with the approval\nand consent of the comptroller of the state of New York, until and\nunless assurance, by appropriate legislation, agreements, or otherwise,\nshall have been obtained that Canada, the province of Ontario and the\nmunicipality or municipalities in which the Canadian terminal of the\nbridge is to be located will exempt the property and income of the\nauthority from taxation so long as such bonds are outstanding.\n