N.Y. Public Authorities Law § 1553: Bonds of the authority

* § 1553. Bonds of the authority. 1. The authority shall have the

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 mentioned in section fifteen hundred forty-eight

hereof, including the acquisition, construction, reconstruction and

repair of personal and real property of all kinds deemed by the board to

be necessary or desirable to carry out such purposes, as well as to pay

such expenses as may be deemed by the board necessary or desirable to

the financing thereof and placing the project or projects in operation

in the aggregate principal amount of not exceeding one million dollars

outstanding at any one time. The authority shall have power from time to

time and 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 purpose hereinabove described. The refunding

bonds may be exchanged for the bonds to be refunded, with such cash

adjustments as may be agreed, or may be sold and the proceeds applied to

the purchase or payment of the bonds to be refunded. In computing the

total amount of bonds of the authority which may at any time be

outstanding the amount of the outstanding bonds to be refunded from the

proceeds of the sale of new bonds or by exchange for new bonds shall be

excluded. Except as may otherwise be expressly provided by the

authority, the bonds 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

pledging any particular moneys or revenues.

2. The 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, 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, as such

resolution or resolutions may provide. The bonds may be sold at public

or private sale for such price or prices as the authority shall

determine, but which shall not at the time of sale yield more than five

per centum per annum.

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

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 revenues of a project or projects

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, and the amounts

to be raised in each year thereby, and the use and disposition of the

revenues;

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

and disposition thereof;

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

the use of a project;

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

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

pledging such proceeds to secure the payment of the bonds or of any

issue of the bonds;

(f) limitations on the issuance of additional bonds; the terms upon

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

outstanding or other bonds;

(g) 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 consent thereto, and the manner in which such consent may

be given;

(h) limitations on the amount of moneys derived from a project to be

expended for operating, administrative or other expenses of the

authority;

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

duties in trust as the authority may determine which may include any or

all the rights, powers and duties of the trustees appointed by the

bondholders pursuant to section fifteen hundred sixty hereof, and

limiting or abrogating the right of the bondholders to appoint a trustee

under said section or limiting the rights, duties and powers of such

trustee;

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

way affect the security or protection of the bonds.

4. It is the intention hereof that any pledge of revenues or other

moneys made by the authority shall be valid and binding from the time

when the pledge is made; that the revenues or other moneys 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 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 or accountability by reason of the issuance thereof.

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

to purchase bonds. The authority may hold, cancel or resell such bonds,

subject to and in accordance with agreements with bondholders.

7. In the discretion of the authority, the bonds may be secured by a

trust indenture by and between the authority and a corporate trustee,

which may be any trust company or bank having the powers of a trust

company in the state of New York. Such trust indenture may contain such

provisions for protecting and enforcing the rights and remedies of the

bondholders as may be reasonable and proper and not in violation of law,

including covenants setting forth the duties of the authority in

relation to the construction, maintenance, operation, repair and

insurance of the project or projects and the custody, safeguarding and

application of all moneys, and may provide that the project or projects

shall be constructed and paid for under the supervision and approval of

consulting engineers. Notwithstanding the provisions of section fifteen

hundred fifty-two of this title the authority may provide by such trust

indenture for the payment of the proceeds of the bonds and the revenues

of the project or projects to the trustee under such trust indenture or

other depository, and for the method of disbursement thereof, with such

safeguards and restrictions as it may determine. All expenses incurred

in carrying out such trust indenture may be treated as a part of the

cost of maintenance, operation, and repairs of the project or projects.

If the bonds shall be secured by a trust indenture, the bondholders

shall have no authority to appoint a separate trustee to represent them,

and the trustee under such trust indenture shall have and possess all of

the powers which are conferred by section fifteen hundred sixty upon a

trustee appointed by bondholders.

* NB Dissolved December 1977

* NB There are 2 § 1553's