N.Y. Public Authorities Law § 157: Bonds of the authority

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

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

conformity with applicable provisions of the uniform commercial code in

the aggregate principal amount of not exceeding ten million, fifty

thousand dollars outstanding at any one time. 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 purposes. 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, every issue of the

bonds 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 pledging any particular 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 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 such medium of payment, at such place or places, and be

subject to such terms of redemption, as such resolution or resolutions

may provide. Such bonds may be sold at public or private sale for such

price or prices as the authority shall determine.

3. Such bonds may be issued for any corporate purpose of the authority

including payment of the cost of the acquisition of any additional

lands, easements or rights in land which may hereafter be acquired for

Jones Beach parkway or Captree bridge or Captree parkway or any other

improvements that the authority is authorized to construct.

4. Any resolution or resolutions authorizing any bonds may contain

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

the bonds, as to (a) pledging the revenues of Jones Beach parkway and

Captree bridge and Captree parkway and any improvements operated by the

authority, or any part of such revenues to secure the payment of the

bonds or of any issue of the bonds;

(b) the rates of the tolls and rentals to be charged and of other

charges to be made, and the amount to be raised in each year in revenues

of any kind 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 commission and of the authority

and their successors to restrict and regulate the use of Jones Beach

parkway, Captree bridge, Captree parkway, or any other improvement in

connection with which such bonds are issued;

(e) limitations on the purposes to which the proceeds of the sale of

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

pledging such proceeds to the payment of the bonds on such terms and

conditions as the resolution may provide;

(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 agreement 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 revenues derived from Jones Beach

parkway, Captree bridge, Captree parkway or any improvement operated by

the authority 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 of the rights, powers and duties of the trustee appointed by the

bondholders pursuant to section one hundred sixty-two hereof, and

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

under section one hundred sixty-two hereof 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-a. Any resolution or resolutions authorizing any bonds or any issue

of bonds maturing in not exceeding ten years from their date (hereafter

in this subsection four-a referred to as "short term obligations") may

contain, in addition to all other provisions authorized by this title,

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

the short term obligations thereby authorized, as to (a) refunding the

short term obligations by the issuance of bonds of the authority either

by the sale of bonds and the application of the proceeds to the payment

of the short term obligations or by the exchange of bonds for the short

term obligations; provided, however, that the authority shall make no

covenant to refund which shall require it to issue bonds, the aggregate

principal amount of which shall exceed by more than ten per centum the

aggregate principal amount of the short term obligations to be refunded

thereby;

(b) satisfying, paying or discharging the short term obligations, at

the election of the authority, by the tender or delivery of bonds of the

authority in exchange therefor; provided, however, that the aggregate

principal amount of bonds shall not exceed by more than ten per centum

the aggregate principal amount of the short term obligations to satisfy,

pay or discharge which the bonds are tendered or delivered;

(c) exchanging or converting the short term obligations, at the

election of the holder thereof, for or into bonds of the authority;

provided, however, that the aggregate principal amount of the bonds

shall not exceed by more than ten per centum the aggregate principal

amount of the short term obligations to be exchanged for or converted

into bonds;

(d) pledging bonds of the authority as collateral to secure payment of

the short term obligations and providing for the terms and conditions of

the pledge and manner of enforcing the pledge, which terms and

conditions may provide for the delivery of the bonds in satisfaction of

the short term obligations; provided, however, that the aggregate

principal amount of the bonds pledged shall not exceed by more than ten

per centum the aggregate principal amount of the short term obligations

to secure which they are pledged;

(e) depositing bonds in escrow or in trust with a trustee or fiscal

agent or otherwise providing for the issuance and disposition of the

bonds as security for carrying out any provisions in any resolution

adopted pursuant to the foregoing paragraphs (a), (b), (c) and (d)

hereof and providing for the powers and duties of the trustee or fiscal

agent or other depositary and the terms and conditions on which the

bonds are to be issued, held and disposed of;

(f) any other matters of like or different character which relate to

any provision or provisions of any resolution adopted pursuant to the

foregoing paragraphs (a), (b), (c), (d) and (e) hereof.

In computing the amount of bonds of the authority which may be

outstanding at any one time, short term obligations shall be excluded to

the extent that the resolution authorizing the issuance of such short

term obligations shall provide for the issuance of bonds pursuant to

paragraphs (a), (b), (c) or (d) of this subsection, but the bonds

provided to be issued by such resolution shall be included in making

such computation whether or not such bonds are outstanding.

The authority shall have power to make contracts for the future sale

from time to time of short term obligations, by which the purchasers

shall be committed to purchase short term obligations from time to time

on the terms and conditions stated in such contracts, and the authority

shall have power to pay such consideration as it shall deem proper for

such commitments.

5. 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 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.

6. Neither the members of the board 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.

7. For the purpose of refunding or reducing its debt the authority

shall have power out of any funds available therefor to purchase any

bonds issued by it at a price not more than one hundred and five per

centum of the principal amount thereof and accrued interest. The

authority may hold, cancel or resell such bonds, subject to and in

accordance with agreements with bondholders.

* NB (Authority abolished June 30, 1978)