N.Y. Public Authorities Law § 1020-k: Bonds of the authority

* § 1020-k. 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 any purpose authorized by this title, including without limitation

(a) to acquire any real or personal property or facilities deemed

necessary by the authority, (b) to pay interest on bonds or notes of the

authority, (c) to establish reserves to secure such bonds and notes, (d)

to establish or maintain such other funds or accounts for such purpose

or purposes as the authority may deem necessary or desirable, and (e) to

pay all other expenses of the authority incident to the issuance of such

bonds or notes.

2. 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, or any trustee therefor, pledging any particular moneys or

revenues.

3. 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

corporate purpose of the authority. 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, payment or

provision for payment of the bonds to be refunded.

4. Bonds may be issued, payable in annual installments or as term

bonds or both. Bonds shall be authorized by resolution of the board 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, 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 or by check 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 maintenance of

sinking funds for the payment thereof as the authority may deem

necessary or appropriate. Bonds or notes may be sold at public or

private sale at such price or prices as the authority shall determine

but shall not be sold by the authority at private sale unless such sale

and terms thereof have been approved in writing by the state

comptroller. Pending preparation of definitive bonds or notes, the

authority may issue bonds or notes in temporary form which shall be

exchanged for bonds or notes in definitive form when available.

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

bonds may (a) delegate to an officer or officers of the authority the

power to approve the issuance of bonds from time to time and to fix the

details of any such bonds or issues of bonds by an appropriate

certificate of such authorized officer or officers and (b) contain

provisions, which shall be a part of the contract with the holders of

the bonds to be authorized as to: (i) pledging or creating a lien on all

or any part of the moneys, revenues or properties of the authority to

secure the payment of the bonds or of any particular issue of bonds or

any portion of any issue of bonds, subject to such agreements with

bondholders as may then exist;

(ii) the rates, 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;

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

regulation and disposition thereof;

(iv) limitations on the right of the authority to restrict and

regulate the use of any of its property;

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

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

(vi) limitations on the issuance of additional bonds, the terms upon

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

outstanding bonds;

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

bondholders may be amended, the amount or percentage of outstanding

bonds the holders of which must consent thereto, and the manner in which

such consent may be given;

(viii) 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 or of a trustee acting

on their behalf in the event of a default; and

(ix) any other matters of like or different character, which in any

way may affect the security and protection of the bonds and the rights

of the holders thereof.

6. 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 electricity shall contain rates, fees or

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

facilities owned or operated by the authority, payments in lieu of

taxes, renewals, replacements and capital additions, the principal of

and interest on any obligations issued pursuant to such resolution as

the same severally become due and payable, and to establish or maintain

any reserves or other funds or accounts required or established by or

pursuant to the terms of such resolution or resolutions.

7. It is the intention of the legislature that any pledge of moneys,

revenues or property 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 moneys, revenues or proceeds 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 or lien is created pursuant to this subdivision need be

recorded in order to perfect such pledge or lien.

8. Neither the trustees 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.

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

to purchase bonds or notes at such price or prices as it deems

advisable. The authority may hold, pledge, cancel or resell such bonds,

subject to agreements with bondholders.

10. All bonds, notes and other obligations issued by the authority

under the provisions of this title are hereby declared to have all the

qualities and incidents of negotiable instruments under the applicable

laws of the state.

* NB There are 2 § 1020-k's