N.Y. Public Authorities Law § 1048-o: Bonds of the authority

§ 1048-o. Bonds of the authority. 1. The authority shall have the

power and is hereby authorized from time to time to issue bonds, in

conformity with applicable provisions of the uniform commercial code, in

such principal amounts as it may determine to be necessary to pay the

cost of any water project or water projects, or for any other corporate

purposes, including incidental expenses in connection therewith. The

authority shall have power from time to time 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. Bonds issued by the authority

shall be special obligations payable solely out of particular revenues

or other moneys of the authority as may be designated in the proceedings

of the authority under which the bonds shall be authorized to be issued,

subject to any agreements entered into between the authority and the

city, and the authority, the water board and the city, and subject to

any agreements with the holders of outstanding bonds pledging any

particular revenues or moneys.

2. The authority is authorized to obtain from any department or agency

of the United States of America or non-governmental insurer any

insurance or guaranty, to the extent now or hereafter available, as to,

or for the payment or repayment of interest or principal, or both, or

any part thereof, on any bonds or notes issued by the authority, or on

any municipal obligations of governmental units purchased or held by the

authority; and to enter into any agreement or contract with respect to

any such insurance or guaranty, except to the extent that the same would

in any way impair or interfere with the ability of the authority to

perform and fulfill the terms of any agreement made with the holders of

the bonds or notes of the authority.

3. Whenever the authority shall determine that the issuance of its

bonds is appropriate, the comptroller shall make a recommendation as to

the arrangements necessary for the issuance and sale of such bonds

including the underwriting of such bonds through negotiated agreement or

public letting or the private sale of such bonds and such recommendation

shall include compensation for services rendered as he deems

appropriate. The comptroller shall recommend to the authority the price

or prices, interest rate or rates, maturities and other terms and

conditions for the issuance of the bonds, except that bonds and any

renewal thereof shall mature within forty years of the date of their

original issuance and notes and any renewal thereof shall mature within

five years of the date of their original issuance. Following such

recommendation, bonds shall be authorized by bond resolution of the

authority which shall set forth the arrangements for the issuance of the

bonds, the price or prices, the interest rate or rates, maturities,

terms of redemption, form and other terms of the bonds. Such bond

resolution and the minutes of the authority related thereto shall be

transmitted to the comptroller for his approval or disapproval thereof.

Approval of such bond resolution shall be indicated by the execution of

the bond resolution by the comptroller whereupon such bond resolution

shall come into full force and effect in accordance with its terms.

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

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

the holders of the bonds thereby authorized as to:

(a) pledging all or part of its revenues, together with any other

moneys, securities, contracts or property, to secure the payment of the

bonds, subject to such agreements with bondholders as may then exist;

(b) the setting aside of reserves and the creation of sinking funds

and the regulation and disposition thereof;

(c) limitations on the purpose to which the proceeds from the sale of

bonds may be applied;

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

the use of any project or part thereof in connection with which bonds

are issued;

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

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

outstanding or other bonds;

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

bondholders may be amended or abrogated, including the proportion of

bondholders which must consent thereto and the manner in which such

consent may be given;

(g) the creation of special funds into which any revenues or other

moneys may be deposited;

(h) the terms and provisions of any trust, deed or indenture securing

the bonds under which the bonds may be issued;

(i) vesting in a trustee or trustees such properties, rights, powers

and duties in trust as the authority may determine, which may include

any or all of the rights, powers and duties of the trustee appointed by

the bondholders pursuant to section one thousand forty-eight-p of this

title and limiting or abrogating the rights of the bondholders to

appoint a trustee under such section or limiting the rights, duties and

powers of such trustee;

(j) defining the acts or omissions to act which may constitute a

default in the obligations and duties of the authority to the

bondholders and providing for the rights and remedies of the bondholders

in the event of such default, including as a matter of right the

appointment of a receiver, provided, however, that such rights and

remedies shall not be inconsistent with the general laws of the state

and other provisions of this title;

(k) limitations on the amount of revenues and other moneys to be

expended for operating, administrative or other expenses of the

authority;

(l) the payment of the proceeds of bonds, revenues and other moneys to

a trustee or other depository, and for the method of disbursement

thereof with such safeguards and restrictions as the authority may

determine; and

(m) any other matters of like or different character which in any way

affect the security or protection of the bonds or the rights and

remedies of bondholders.

5. In addition to the powers herein conferred upon the authority to

secure its bonds, the authority shall have power in connection with the

issuance of bonds to enter into such agreements as the authority may

deem necessary, consistent or desirable concerning the use or

disposition of its revenues or other moneys or property, including the

mortgaging of any property and the entrusting, pledging or creation of

any other security interest in any such revenues, moneys or property and

the doing of any act, including refraining from doing any act, which the

authority would have the right to do in the absence of such agreements.

The authority shall have power to enter into amendments of any such

agreements within the powers granted to the authority by this title and

to perform such agreements. The provisions of any such agreements may be

made a part of the contract with the holders of bonds of the authority.

6. Any provision of the uniform commercial code to the contrary

notwithstanding, any pledge of or other security interest in revenues,

moneys, accounts, contract rights, general intangibles or other personal

property made or created by the authority shall be valid, binding and

perfected from the time when such pledge is made or other security

interest attaches without any physical delivery of the collateral or

further act, and the lien of any such pledge or other security interest

shall be valid, binding and perfected against all parties having claims

of any kind in tort, contract or otherwise against the authority

irrespective of whether or not such parties have notice thereof. No

instrument by which such a pledge or security interest is created nor

any financing statement need be recorded or filed.

7. Whether or not the bonds of the authority are of such form and

character as to be negotiable instruments under the terms of the uniform

commercial code, the bonds are hereby made negotiable instruments within

the meaning of and for all the purposes of the uniform commercial code,

subject only to the provisions of the bonds for registration.

8. Neither the directors of the authority nor any person executing

bonds shall be liable personally thereon or be subject to any personal

liability or accountability solely by reason of the issuance thereof.

9. The authority, subject to such agreements with bondholders as then

may exist, shall have power out of any moneys available therefor to

purchase bonds of the authority, which shall thereupon be cancelled, at

a price not exceeding (i) if the bonds are then redeemable, the

redemption price then applicable, plus accrued interest to the next

interest payment date, or (ii) if the bonds are not then redeemable, the

redemption price applicable on the first date after such purchase upon

which the bonds become subject to redemption, plus accrued interest to

the next interest payment date.