§ 906 — Bonds of the authority

New York § 906

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 5: Long Island Market Authority
• Art. 4: Market Authorities

Text

§ 906. Bonds of the authority. 1. The authority shall have the power\nand is hereby authorized from time to time to issue bonds, notes or\nother obligations to pay the cost of any project or for any other\npurpose under this title, including the establishment of reserves to\nsecure the bonds, the payment of principal of, premium, if any, and\ninterest on the bonds and the payment of incidental expenses in\nconnection therewith. The aggregate principal amount of such bonds,\nnotes or other obligations shall not exceed ten million dollars\n($10,000,000), excluding bonds, notes or other obligations issued to\nrefund or repay bonds, notes, or other obligations theretofore issued\nfor such purposes; provided, however, that upon any such refunding or\nrepayment the total aggregate principal amount of outstanding bonds,\nnotes or other obligations may be greater than ten million dollars\n($10,000,000), only if the present value of the aggregate debt service\nof the refunding or repayment of bonds, notes or other obligations to be\nissued shall not exceed the present value of the aggregate debt service\nof the bonds, notes or other obligations so to be refunded or repaid.\nFor purposes of this section, the present value of the aggregate debt\nservice of the refunding or repayment of bonds, notes or other\nobligations and the aggregate debt service of the bonds, notes or other\nobligations and of the aggregate debt service of the bonds, notes or\nother obligations so to be refunded or repaid shall be calculated by\nutilizing the effective interest rate of the refunding or repayment of\nbonds, notes or other obligations, which shall be that rate arrived at\nby doubling the semi-annual interest rate (compounded semi-annually)\nnecessary to discount the debt service payments on the refunding or\nrepayment of bonds, notes or other obligations from payment of dates\nthereof to the date of issue of the refunding or repayment of bonds,\nnotes or other obligations and to the price bid including estimated\naccrued interest from the sale thereof. The authority shall have the\npower and is hereby authorized to enter into such agreements and perform\nsuch acts as may be required under any applicable federal legislation to\nsecure a federal guarantee or other subsidy with respect to any bonds.\n 2. The authority shall have the power from time to time to renew bonds\nor to issue renewal bonds for the purposes authorized under this title,\nto issue bonds to pay bonds, and, whenever it deems refunding expedient,\nto refund any bond by the issuance of new bonds, whether the bonds to be\nrefunded have or have not matured, and may issue bonds, partly to refund\nbonds then outstanding and partly for any other purpose of the\nauthority. Bonds issued for refunding purposes shall be sold and the\nproceeds applied to the purchase, redemption or payment of the bonds or\nnotes to be refunded.\n 3. Bonds issued by the authority may be general obligations secured by\nthe faith and credit of the authority or may be special obligations\npayable solely out of particular revenues or other monies as may be\ndesignated in the proceedings of the authority under which the bonds\nshall be authorized to be issued, subject as to priority only to any\nagreements with the holders of outstanding bonds pledging any particular\nproperty, revenues or monies. The authority may also enter into loan\nagreements, lines of credit and other security agreements and obtain for\nor on its behalf letters of credit, insurance, guarantees or other\ncredit enhancements to the extent now or hereafter available, in each\ncase for securing its bonds or to provide direct payment of any costs\nwhich the authority is authorized to pay.\n 4. (a) Bonds shall be authorized by resolution of the governing body\nof the authority, be in such denominations and bear such date or dates\nand mature at such time or times, as such resolution may provide,\nprovided that bonds and renewals thereof shall mature within thirty\nyears from the date of original issuance of any such bonds.\n (b) Bonds shall be subject to such terms of redemption, bear interest\nat such rate or rates, be payable at such times, be in such form, either\ncoupon or registered, carry such registration privileges, be executed in\nsuch manner, be payable in such medium of payment at such place or\nplaces, and be subject to such terms and conditions as such resolution\nmay provide. Notwithstanding any other provision of law, the bonds of\nthe authority issued pursuant to this section shall be sold to the\nbidder offering the lowest true interest cost, taking into consideration\nany premium or discount not less than four nor more than fifteen days,\nSunday excepted, after a notice of such sale has been published at least\nonce in a newspaper of general circulation in the service area of the\nauthority, which shall state the terms of the sale. The terms of the\nsale may not change unless notice of such change is published in such\nnewspaper at least one day prior to the date of the sale as set forth in\nthe original notice of sale. Advertisements shall contain a provision to\nthe effect that the authority, in its discretion, may reject any or all\nbids made pursuant to such advertisements, and in the event of such\nrejection, the authority is authorized to negotiate a private or public\nsale or readvertise for bids in the form and manner above described as\nmany times as, in its judgment, may be necessary to effect satisfactory\nsale.\n (c) Notwithstanding the provisions of paragraph (b) of this\nsubdivision, whenever in the judgment of the authority the interests of\nthe authority will be served thereby, the governing body of the\nauthority, on the written recommendation of the chairperson may\nauthorize the sale of such bonds at private or public sale on a\nnegotiated basis or on either a competitive or negotiated basis. The\nauthority shall set guidelines governing the terms and conditions of any\nsuch private or public sales. The private or public bond sale\nguidelines set by the authority shall include, but not be limited to, a\nrequirement that where the interests of the authority will be served by\na private or public sale of bonds, the authority shall select\nunderwriters taking into account, among other things, qualifications of\nunderwriters as to experience, their ability to structure and sell\nauthority bond issues, anticipated costs to the authority, the prior\nexperience of the authority with the firm, if any, the capitalization of\nsuch firms, participation of qualified minority and women-owned business\nenterprise firms in such private or public sales of bonds of the\nauthority and the experience and ability of firms under consideration to\nwork with minority and women-owned business enterprises so as to promote\nand assist participation by such enterprises.\n (d) The authority shall have the power from time to time to amend such\nprivate bond sale guidelines in accordance with the provisions of this\nsubdivision.\n (e) In addition to the authority to sell notes at private sale\ncontained in this section.\n (f) No private or public bond sale on a negotiated basis shall be\nconducted by the authority without prior approval of the state\ncomptroller. The authority shall annually prepare and approve a bond\nsale report which shall include the private or public bond sale\nguidelines as specified in this subdivision, amendments to such\nguidelines since the last private or public bond sale report, an\nexplanation of the bond sale guidelines and amendments, and the results\nof any sale of bonds conducted during the fiscal year. Such bond sale\nreport may be a part of any other annual report that the authority is\nrequired to make.\n (g) The authority shall annually submit its bond sale report to the\nstate comptroller and copies thereof to the senate finance committee and\nthe assembly ways and means committee.\n (h) The authority shall make available to the public copies of its\nbond sale report upon reasonable request thereof.\n (i) Nothing contained in this subdivision shall be deemed to alter,\naffect the validity of, modify the terms of, or impair any contract or\nagreement made or entered into in violation of, or without compliance\nwith, the provisions of this subdivision.\n 5. Any resolution or resolutions authorizing bonds or any issue of\nbonds by the authority may contain provisions which may be a part of the\ncontract with the holders of the bonds thereby authorized as to:\n (a) pledging all or part of the revenues, together with any other\nmonies or property of the authority to secure the payment of the bonds,\nor any costs of issuance thereof, including but not limited to, any\ncontracts, earnings or proceeds of any grant to the authority received\nfrom any private or public source subject to such agreements with\nbondholders as may then exist;\n (b) the setting aside of reserves and the creation of sinking the\nfunds and the regulation and disposition thereof;\n (c) limitations on the purpose to which the proceeds from the sale of\nbonds may be applied;\n (d) the rates, rents, fees and other charges to be fixed and collected\nby the authority and the amount to be raised in each year thereby and\nthe use and disposition of revenues;\n (e) limitations on the right of the authority to restrict and regulate\nthe use of the project or part thereof in connection with which bonds\nare issued;\n (f) limitations on the issuance of additional bonds, the terms upon\nwhich additional bonds may be issued and secured and 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, including the proportion of\nbondholders which must consent thereto, and the manner in which such\nconsent may be given;\n (h) the creation of special funds into which any revenues or monies\nmay be deposited;\n (i) the terms and provisions of any trust, mortgage, deed or indenture\nsecuring the bonds under which the bonds may be issued;\n (j) vesting in a trustee or trustees such properties, rights, powers\nand duties in trust as the authority may determine which may include any\nor all of the rights, powers and duties of the trustees appointed by the\nbondholders pursuant to this title or limiting the rights, duties and\npowers of such trustee;\n (k) defining the acts or omissions to act which may constitute a\ndefault in the obligations and duties of the authority to the\nbondholders and providing for the rights and remedies of the bondholders\nin the event of such default, including as a matter of right appointment\nof a receiver, provided, however, that such rights and remedies shall\nnot be inconsistent with the general laws of the state and other\nprovisions of this title;\n (l) limitations on the power of the authority to sell or otherwise\ndispose of any project or any part thereof or other property;\n (m) limitations on the amount of revenues and other monies to be\nexpended or operating, administrative or other expenses of the\nauthority;\n (n) the payment of the proceeds of bonds, revenues and other monies to\na trustee or other depository, and for the method of disbursement\nthereof with such safeguards and restrictions as the authority may\ndetermine; and\n (o) any other matters of like or different character which in any way\naffect the security or protection of the bonds or the rights and\nremedies of the bondholders.\n 6. In addition to the powers conferred under this section upon the\nauthority to secure its bonds, the authority shall have the power in\nconnection with the issuance of bonds to adopt resolutions and enter\ninto such trust indentures, agreements or other instruments as the\nauthority may deem necessary, convenient or desirable concerning the use\nor disposition of its revenues or other monies or property, including\nthe mortgaging of any property and the entrusting, pledging or creation\nof any other security interest in any such revenues, monies or property\nand the doing of any act, including refraining from doing any act which\nthe authority would have the right to do in the absence of such\nresolutions, trust indentures, agreements or other instruments. The\nauthority shall have power to enter into amendments of any such\nresolutions, trust indentures, agreements or other instruments within\nthe powers granted to the authority by this title and to perform such\nresolutions, trust indentures, agreements or other instruments. The\nprovisions of any such resolutions, trust indentures, agreements or\nother instruments may be made a part of the contract with the holders of\nbonds of the authority.\n 7. Any provision of the uniform commercial code to the contrary\nnotwithstanding, any pledge of or other security interest in revenues,\nmonies, accounts, 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 or not such parties have notice thereof. No\ninstrument by which such a pledge or security interest is created nor\nany financing statement need be recorded or filed.\n 8. Whether or not the bonds of the authority are of such form and\ncharacter as to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds are hereby made negotiable instruments within\nthe meaning of and for all the purposes of the uniform commercial code,\nsubject only to the provisions of the bonds for registration.\n 9. Neither the members of the governing body of the authority nor the\nofficers of the authority nor any person executing its bonds shall be\nliable personally on its bonds or be subject to any personal liability\nor accountability by reason of the issuance thereof.\n 10. Subject to such agreements with bondholders as may then exist, the\nauthority shall have power out of any funds available therefor to\npurchase bonds of the authority, in lieu of redemption, at a price not\nexceeding, if the bonds are then redeemable, the redemption price then\napplicable plus accrued interest to the next interest payment date, or,\nif the bonds are not then redeemable, the redemption price applicable on\nthe first date after such purchase upon which the bonds become subject\nto redemption plus accrued interest to the next interest payment date.\nBonds so purchased shall thereupon be canceled.\n 11. The authority shall have power and is hereby authorized to issue\nnegotiable 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 any such note, including\nrenewals thereof, shall not exceed five years from the date of issue of\nsuch original note.\n