N.Y. Public Authorities Law § 1005-c: Additional powers of the authority to finance certain projects in connection with the New York state canal system

§ 1005-c. Additional powers of the authority to finance certain

projects in connection with the New York state canal system. 1. (a) The

authority is hereby authorized, as an additional corporate purpose

thereof, to issue its bonds, notes and other evidences of indebtedness

in conformity with applicable provisions of the uniform commercial code

for purposes of financing the construction, reconstruction, development

and improvement of the New York state canal system.

(b) The authority shall issue any such bonds, notes, or evidences of

indebtedness pursuant to paragraph (a) of this subdivision on a basis

subordinate in lien and priority of payment to the authority's senior

lien indebtedness as the authority shall provide by resolution.

2. All of the provisions of this title relating to bonds, notes and

other evidence of indebtedness, which are not inconsistent with this

section, shall apply to obligations authorized by this section,

including but not limited to the power to issue renewal notes or

refunding bonds thereof.

3. Subject to agreements with noteholders or bondholders, the

authority shall have the authority to fix and collect such fees, rentals

and charges for the use of the canal system or any part thereof

necessary or convenient, with an adequate margin of safety, to produce

sufficient revenue to meet the expense of maintenance and operation and

to fulfill the terms of any agreements made with the holders of its

notes or bonds, and to establish the rights and privileges granted upon

payment thereof; provided, however, that tolls may only be imposed for

the passage through locks and lift bridges by vessels which are

propelled in whole or in part by mechanical power.