N.Y. Public Authorities Law § 1010: Bonds of the authority

§ 1010. Bonds of the authority. 1. The authority shall have power and

is hereby authorized from time to time to issue its negotiable bonds in

conformity with applicable provisions of the uniform commercial code for

the purpose of financing any project authorized by this title, including

the acquisition of any real or personal property or facilities deemed

necessary by the authority.

2. In anticipation of the sale of such bonds the authority may issue

negotiable bond anticipation notes in conformity with applicable

provisions of the uniform commercial code and may renew the same from

time to time but the maximum maturity of any such note, including

renewals thereof, shall not exceed five years from the date of issue of

such original notes. Such notes shall be paid from any moneys of the

authority available therefor and not otherwise pledged, or from the

proceeds of sale of the bonds of the authority in anticipation of which

they were issued. Such notes shall not be issued in an amount in excess

of the amount of bonds which the authority is authorized to issue, less

the amount of any bonds or other notes theretofore issued and

outstanding. The notes shall be issued in the same manner as the bonds.

Such notes and the resolution or resolutions authorizing the same may

contain any provisions, conditions or limitations which a bond

resolution of the authority may contain.

3. Except as may be otherwise expressly provided by the authority, the

bonds and notes of every issue shall be general obligations of the

authority payable out of any moneys or revenues of the authority,

subject only to any agreements with the holders of particular bonds or

notes pledging any particular moneys or revenues.

4. The authority shall have power from time to time, whenever it deems

refunding expedient, to refund any bonds by the issuance of new bonds,

whether the bonds to be refunded have or have not matured, and may issue

bonds partly to refund bonds then outstanding and partly for any other

purpose hereinbefore described. Refunding bonds may be exchanged for the

bonds to be refunded, with such cash adjustments as may be agreed, or

may be sold with the proceeds applied to the purchase or payment of the

bonds to be refunded.

5. The bonds may be issued payable in annual installments or may be

issued as term bonds or the authority, in its discretion, may issue

bonds of both types. The bonds shall be authorized by resolution of the

trustees of the authority and shall bear such date or dates, mature at

such time or times, not exceeding fifty years from their respective

dates, bear interest at such rate or rates, payable annually or

semi-annually, be in such denominations, be in such form, either coupon

or registered, carry such registration privileges, be executed in such

manner, be payable in lawful money of the United States of America at

such place or places, and be subject to such terms of redemption, as

such resolution or resolutions may provide. In the event that term

bonds are issued, the resolution authorizing the same may make such

provisions for the establishment and management of adequate sinking

funds for the payment thereof, as the authority may deem necessary. The

bonds or notes may be sold at public or private sale for such price or

prices as the authority shall determine. Pending preparation of the

definite bonds, the authority may issue interim receipts which shall be

exchanged for such bonds.

6. Any resolution or resolutions authorizing any bonds or any issue of

bonds may contain provisions, which shall be a part of the contract with

the holders of the bonds to be authorized as to

(a) pledging all or any part of the revenues of the project or any

revenue producing contract or contracts made by the authority with any

individual, partnership, corporation or association to secure the

payment of the bonds or of any particular issue of bonds, subject to

such agreements with bondholders as may then exist;

(b) the rentals, fees and other charges to be charged, and the amounts

to be raised in each year thereby, and the use and disposition of the

revenues;

(c) the setting aside of reserves or sinking funds, and the regulation

and disposition thereof;

(d) limitations on the right of the authority to restrict and regulate

the use of any project;

(e) limitations on the purpose to which the proceeds of sale of any

issue of bonds then or thereafter to be issued may be applied and

pledging such proceeds to secure the payment of the bonds or of any

issue of the bonds;

(f) limitations on the issuance of additional bonds; the terms upon

which additional bonds may be issued and secured; the refunding of

outstanding bonds;

(g) the procedure, if any, by which the terms of any contract with

bondholders may be amended or abrogated, the amount of bonds the holders

of which must consent thereto, and the manner in which such consent may

be given;

(h) limitations on the amount of moneys derived from a project to be

expended for operating, administrative or other expenses of the

authority;

(i) defining the acts or omissions to act which shall constitute a

default in the duties of the authority to holders of its obligations and

providing the rights and remedies of such holders in the event of a

default.

7. Notwithstanding any other provisions of this title, any such

resolution or resolutions shall contain a covenant by the authority that

it will at all times maintain rates, fees or charges sufficient to pay,

and that any contracts entered into by the authority for the sale,

transmission or distribution of power shall contain rates, fees or

charges sufficient to pay the costs of operation and maintenance of the

project, the principal of and interest on any obligations issued

pursuant to such resolution as the same severally become due and

payable, and to maintain any reserves required by the terms of such

resolution or resolutions.

8. It is the intention hereof that any pledge of revenues or other

moneys or of a revenue producing contract or contracts made by the

authority shall be valid and binding from the time when the pledge is

made; that the revenues or other moneys or proceeds of any contract or

contracts so pledged and thereafter received by the authority shall

immediately be subject to the lien of such pledge without any physical

delivery thereof or further act; and that the lien of any such pledge

shall be valid and binding as against all parties having claims of any

kind in tort, contract or otherwise against the authority irrespective

of whether such parties have notice thereof. Neither the resolution nor

any other instrument by which a pledge is created need be recorded.

9. Neither the members of the authority nor any person executing the

bonds or notes shall be liable personally on the bonds or notes or be

subject to any personal liability or accountability by reason of the

issuance thereof.

10. The authority shall have power out of any funds available therefor

to purchase bonds or notes. The authority may hold, pledge, cancel or

resell such bonds, subject to and in accordance with agreements with

bondholders.

11. Any bonds or notes issued by the authority are hereby made

securities in which all public officers and bodies of this state and all

municipalities and municipal subdivisions, all insurance companies and

associations and other persons carrying on an insurance business, all

banks, bankers, trust companies, savings banks and savings associations,

including savings and loan associations, building and loan associations,

investment companies and other persons carrying on a banking business,

and all other persons whatsoever, except as hereinafter provided, who

are now or may hereafter be authorized to invest in bonds or other

obligations of the state, may properly and legally invest funds

including capital in their control or belonging to them; provided that,

notwithstanding the provisions of any other general or special law to

the contrary, such bonds and notes shall not be eligible for the

investment of funds, including capital, of trusts, estates or

guardianships under the control of individual administrators, guardians,

executors, trustees and other individual fiduciaries except when any

such individual fiduciary shall be acting in such capacity with one or

more corporate co-fiduciaries. The bonds and notes are also hereby made

securities which may be deposited with and shall be received by all

public officers and bodies of this state and all municipalities and

municipal subdivisions for any purpose for which the deposit of bonds or

other obligations of this state is now or may hereafter be authorized.