N.Y. Public Authorities Law § 1388: Bonds of the authority

§ 1388. 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 thirteen hundred eighty-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

forty years from their respective dates, bear interest at such rate or

rates, not exceeding five per centum per annum 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 not exceeding one hundred five per centum

of the face value, 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 Ogdensburg 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 not exceeding

five per centum per annum 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 of 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.

7. Issuance by the authority of one or more series of bonds for one or

more purposes in connection with any industrial project shall not

preclude it from issuing other bonds in connection with the same

industrial project or any other industrial project, but the proceedings

whereunder any subsequent bonds may be issued shall recognize and

protect any prior pledge or mortgage made for any prior issue of bonds

unless in the proceedings authorizing such prior issue the right is

reserved to issue subsequent bonds on a parity with such prior issue.