§ 60 — Bond covenants

§ 60. Bond covenants. 1. In connection with the issuance of bonds or\nthe incurring of an obligation, and to secure the payment of such bonds\nor obligations, the Utica transit authority, in addition to its other\npowers, may:\n (a) Pledge, covenant to pledge or covenant against pledging, all or\nany part of its rents, fares, fees, revenues, subsidies, gifts, grants\nor other moneys received or to be received to which its right then\nexists or may thereafter come into existence; covenant against\npermitting or suffering any lien thereon; it is the intention hereof\nthat any pledge of revenues or other moneys made by the Utica transit\nauthority shall be valid and binding from the time when the pledge is\nmade, that revenues or other moneys so pledged and thereafter received\nby the Utica transit authority shall immediately be subject to the lien\nof such pledge without any physical delivery thereof or further act and\nthat the lien of any such pledge shall be valid and binding as against\nall parties having claims of any kind in tort, contract or otherwise\nagainst the Utica transit authority, irrespective of whether such\nparties have notice thereof;\n (b) Mortgage, covenant to mortgage or covenant against mortgaging, all\nor any part of its property, real or personal, then owned or thereafter\nacquired; covenant against permitting or suffering any lien thereon;\n (c) Covenant with respect to limitations on its right to sell, lease,\nor otherwise dispose of any municipal project or part thereof;\n (d) Covenant as to the bonds to be issued and as to the issuance of\nsuch bonds in escrow or otherwise, and as to the use and disposition of\nthe proceeds thereof; provide for the replacement of lost, destroyed or\nmutilated bonds;\n (e) Covenant as to what other or additional debts may be incurred by\nit;\n (f) Covenant that the Utica transit authority warrants the title to\nthe premises;\n (g) Covenant as to the rents, fares and fees to be charged, the amount\nto be raised each year or other period of time by rents, fares, fees and\nother revenues, and as to the use and disposition to be made thereof;\n (h) Covenant as to the use of any or all of its property, real or\npersonal;\n (i) Create or authorize the creation of special funds segregating (1)\nthe proceeds of any grants, subsidies or contributions; (2) all the\nrents, fares, fees and revenues of any municipal project or projects;\n(3) any moneys held for the payment of the costs of operation and\nmaintenance of municipal projects, or as a reserve for the meeting of\ncontingencies in the operation and maintenance thereof; (4) any moneys\nheld for the payment of the principal of and interest on its bonds or\nthe sums due under its leases or as a reserve for such payments; and (5)\nany moneys held for any other reserves or contingencies; and covenant as\nto the use and disposal of the moneys held in such funds;\n (j) Redeem the bonds and covenant for their redemption, and provide\nthe terms and conditions thereof;\n (k) Covenant against extending the time for the payment of its bonds\nor interest thereon;\n (l) Prescribe the procedure, if any, by which the terms of any\ncontract with bondholders may be amended or abrogated, the amount of\nbonds the holders of which must consent thereto, and the manner in which\nsuch consent may be given;\n (m) Covenant as to the maintenance of its property, the replacement\nthereof, the insurance to be carried thereon, and the use and\ndisposition of insurance moneys;\n (n) Vest in an obligee, in the event of a default by the Utica transit\nauthority the right to cure any such default and to advance any moneys\nnecessary for such purpose, and covenant that the money so advanced by\nan additional obligation of such authority with such interest, security\nand priority as may be provided in any resolutions, trust indenture,\nmortgage, lease or contract;\n (o) Covenant and prescribe as to the events of default and terms and\nconditions upon which any or all of its bonds shall become or may be\ndeclared due before maturity, and as to the terms and conditions upon\nwhich such declaration and its consequences may be waived;\n (p) Covenant as to the rights, liabilities, powers and duties arising\nupon the breach by it of any covenant, condition or obligation;\n (q) Covenant to surrender possession of a municipal project or\nprojects or parts thereof upon the happening of an event of default; and\nvest in an obligee the right, upon such default, without judicial\nproceedings, to take possession and use, operate, manage, and control\nsuch projects or any part thereof, and to collect and receive rents,\nfares, fees and revenues arising therefrom in the same manner as such\nauthority itself might do, and to dispose of the moneys collected in\naccordance with the agreement of such obligee with the Utica transit\nauthority;\n (r) Vest in a trustee or trustees the right to enforce any covenant to\nsecure, or pay the bonds, or otherwise relating to such bonds; provide\nfor the powers, duties and limitations of liabilities of such trustee or\ntrustees, or the holders of bonds, or any proportion of them, may\nenforce any such covenant;\n (s) Vest in a trustee or in other obligee the right, upon any\nhappening of an event of default, to foreclose through judicial\nproceedings or through the exercise of a power of sale without judicial\nproceedings, any mortgage as to all or such part or parts of the\nproperty covered thereby as such trustee or other obligee shall elect;\nthe institution, prosecution and conclusion of any such foreclosure\nproceedings or the sale of any such parts of the mortgaged property\nshall not affect in any manner or to any extent the lien of the mortgage\non the parts of the mortgaged property not included in such proceedings\nor not sold as aforesaid;\n (t) Make such other covenants and do any and all such acts and things\nas may be necessary or convenient or desirable in order to secure its\nbonds or make them more marketable, not withstanding that such\ncovenants, acts or things may not be enumerated herein; execute all\ninstruments necessary or convenient in the exercise of the powers herein\ngranted, or in the performance of its covenants or duties, which may\ncontain such covenants and provisions, in addition to those above\nspecified, as the purchaser of the bonds of an authority may require.\n 2. In case of conflict between this section and article nine of the\nuniform commercial code, this section shall control.\n