N.Y. Public Authorities Law § 1363: Bonds of the authority

§ 1363. Bonds of the authority. 1. The authority shall have power and

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

conformity with applicable provisions of the uniform commercial code for

any corporate purpose of the authority, including the paying, funding or

refunding of any notes theretofore issued by the authority under the

provisions of section one thousand eight hundred thirty-nine of this

act. 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. Except as

may be otherwise expressly provided by contract between the authority

and the holders of its bonds, all bonds of the authority shall be

general obligations payable out of any moneys or revenues of the

authority, subject only to any agreements with the holders of particular

bonds the payment of which is secured by a pledge of particular moneys

or revenues.

2. Such bonds shall be authorized by resolution of the board and shall

bear such date or dates, mature at such time or times, not exceeding

thirty 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 prior to maturity, at par or a price, as such

resolution or resolutions may provide. Such bonds may be sold, with or

without advertisement, in such manner as the authority shall determine

by resolution. If advertisement is made, a notice of sale shall be

published at least once, not less than ten nor more than forty days

before the date of sale, in a newspaper published and circulated in the

city of Oswego and in a financial newspaper published and circulated in

the city of New York and designated by the board. The notice shall call

for the receipt of sealed bids and shall fix the date, time and place of

sale. Bonds shall be sold at such price or prices as will yield to the

purchasers income at a rate set forth in the resolution or resolutions

to the maturity dates of said bonds, computed in accordance with

standard tables of bond values.

3. Any resolutions authorizing the issuance of any bonds may contain

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

the bonds thereby authorized, as to:

a. Pledging all or any part of the gross or net revenues of the

authority to secure the payment of the bonds, subject to such agreements

with bondholders as may then exist;

b. The rentals, fees and other charges to be charged for the use of

projects of the authority, and the amounts to be raised in each year

thereby, and the use and disposition of revenues of the authority;

c. The setting aside of reserves or sinking funds and the regulation

and disposition thereof;

d. The appointment of a bank or banks or trust company or trust

companies as trustee or trustees for the custody and disposition of any

moneys of the authority, including the proceeds of any bonds or other

obligations and any revenues or income of the authority, and the

execution of any trust agreements or indentures with such trustee or

trustees with such provisions as may be deemed necessary or desirable in

connection with the custody and disposition of such moneys of the

authority and the rights and remedies of the holders of such bonds;

e. Limitations on the right of the authority to restrict and regulate

the use of projects of the authority;

f. Limitations on the purpose to which the proceeds of the sale of any

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

g. Limitations on the issuance of additional bonds, including the

terms upon which additional bonds may be issued and secured.

h. 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 give consent thereto, and the manner in which such consent

may be given; and

i. Any other matters, of like or different character, which in any way

affect the security or protection of the bonds.

4. Any pledge of revenues or other moneys made by the authority shall

be valid and binding from the time when the pledge is made. The revenues

or other moneys so pledged and thereafter received by the authority

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

physical delivery thereof or further act. 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.

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

bonds shall be liable personally on the bonds or be subject to any

personal liability by reason of the issuance thereof, excepting solely

for things willfully done or willfully omitted to be done with an intent

to defraud.

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

to purchase any of its outstanding bonds at a price not more than the

then redemption price of such bonds. All bonds so purchased shall be

cancelled.