§ 881 — Bonds of the authority

§ 881. Bonds of the authority. 1. The authority shall have power and\nis hereby authorized from time to time to issue negotiable bonds in\nconformity with applicable provisions of the uniform commercial code,\nfor any corporate purpose of the authority. The authority shall have\npower from time to time to refund any bonds by the issuance of new\nbonds, whether the bonds to be refunded have or have not matured, and\nmay issue bonds partly to refund bonds then outstanding and partly for\nany other corporate purpose. Except as may be otherwise expressly\nprovided by contract between the authority and the holders of its bonds,\nall bonds of the authority shall be general obligations payable out of\nany moneys or revenues of the authority, subject only to any agreements\nwith the holders of particular bonds the payment of which is secured by\na pledge of particular moneys or revenues.\n 2. Such bonds shall be authorized by resolution of the board and shall\nbear such date or dates, mature at such time or times, not exceeding\nthirty years from their respective dates, bear interest at such rate or\nrates, not exceeding four per centum per annum payable annually or\nsemi-annually, be in such denominations, be in such form, either coupon\nor registered, carry such registration privileges, be executed in such\nmanner, be payable in lawful money of the United States of America at\nsuch place or places, and be subject to such terms of redemption prior\nto maturity, at par or a price not exceeding one hundred three per\ncentum of the face value, as such resolution or resolutions may provide.\nAll bonds shall be sold at public sale upon sealed bids, after public\nnotice, to the bidder who shall offer the lowest interest cost to the\nauthority to be determined by the board; provided that bonds may be sold\nat private sale, without notice, to the United States of America or to\nthe state of New York or to any sinking fund or pension fund of the\nstate of New York or any municipality thereof. The notice of sale shall\nbe published at least once, not less than ten nor more than forty days\nbefore the date of sale, in a financial newspaper published and\ncirculated in the city of New York and designated by the board. The\nnotice shall call for the receipt of sealed bids and shall fix the date,\ntime and place of sale. Bonds shall be sold for a price not less than\nninety-eight per centum of the par value thereof, plus accrued interest,\nprovided always that the interest cost to maturity of the money received\nfor any issue of such bonds shall not exceed four per centum per annum.\n 3. Any resolution or resolutions authorizing the issuance of any bonds\nmay contain provisions, which shall be a part of the contract with the\nholders of the bonds thereby authorized, as to:\n (a) Pledging all or any part of the gross or net revenues of the\nauthority to secure the payment of the bonds, subject to such agreements\nwith bond holders as may then exist;\n (b) The rentals, fees and other charges to be charged for the use of\nmarket facilities, and the amounts to be raised in each year thereby,\nand the use and disposition of revenues of the authority;\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 market facilities;\n (e) Limitations on the purpose to which the proceeds of the sale of\nany issue of bonds then or thereafter to be issued may be applied;\n (f) Limitations on the issuance of additional bonds, including the\nterms upon which additional bonds may be issued and secured;\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 give consent thereto, and the manner in which such consent\nmay be 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 4. Any pledge of revenues or other moneys made by the authority shall\nbe valid and binding from the time when the pledge is made. The revenues\nor other moneys so pledged and thereafter received by the authority\nshall be immediately subject to the lien of such pledge without any\nphysical delivery thereof or further act. 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 5. Neither the members of the authority nor any person executing the\nbonds shall be liable personally on the bonds or be subject to any\npersonal liability by reason of the issuance thereof, excepting solely\nfor things willfully done or willfully omitted to be done with an intent\nto defraud.\n 6. The authority shall have power out of any funds available therefor\nto purchase any of its outstanding bonds at a price not more than the\nprincipal amount thereof and accrued interest. All bonds so purchased\nshall be cancelled.\n