N.Y. Public Authorities Law § 1207: Notes and equipment trusts

§ 1207. Notes and equipment trusts. 1. The authority may issue notes

in conformity with applicable provisions of the uniform commercial code

in anticipation of the receipt of revenues provided that the aggregate

principal amount of such revenue anticipation notes outstanding at any

time shall not exceed ten per cent of the average annual revenues of the

authority. All such revenue anticipation notes shall mature within two

years of the date of issue and an installment or installments of not

less than fifty per cent of the principal amount of such notes shall

mature in the first fiscal year succeeding the fiscal year in which such

notes are issued. Such notes may be sold at public or private sale and

the city shall have power to purchase the same from any revenues or

funds of the city other than moneys derived from borrowings.

2. The authority shall have power to purchase pursuant to conditional

sales agreements or equipment trust agreements, to lease and otherwise

to acquire subject to a lien for the purchase price, such equipment as

it deems desirable including cars and rolling stock, electric and other

motive power vehicles, automobiles, buses, and other motor vehicles,

provided, however, that the amount of liabilities which the authority

may incur under this subdivision shall be governed by the limitations

contained in paragraph b of subdivision one of section eighteen hundred

three of this law and shall in no event exceed such sum of five million

dollars in any one fiscal year without the approval of the mayor.

Payment for such equipment, or rentals therefor, may be made in

installments to a trustee in trust to secure payment of equipment trust

certificates, and provision may be made that title to such equipment

shall not vest in the authority until the equipment trust certificates

are paid, or that such equipment shall be subject to a lien to secure

equipment trust certificates. Any such agreements, leases and equipment

trust certificates shall contain such covenants, conditions and

provisions as it deems necessary or desirable to insure payment of the

equipment trust certificates.

3. The authority may also issue its promissory notes from time to time

in conformity with applicable provisions of the uniform commercial code

for the purpose of raising working capital to pay its expenses of

operation. Such promissory notes shall be general obligations of the

authority, may be secured or unsecured as the authority shall determine,

subject to the prior rights, if any, of the holders of other obligations

of the authority, shall mature not later than five years from the date

of issue and shall at no time be outstanding in an unpaid principal

amount in excess of two hundred million dollars. Such promissory notes

may be sold at public or private sale.