N.Y. Public Authorities Law § 1599-i*4: Bonds of the authority

* § 1599-i. Bonds of the authority. 1. The authority shall have the

power and is hereby authorized from time to time to issue its negotiable

bonds for any purpose mentioned in section fifteen hundred ninety-nine-d

hereof, as well as to pay such expenses, premiums and commissions as may

be deemed by the board necessary or desirable to or in connection with

the acquisition, construction, reconstruction, improving, equipping and

furnishing of any project and the financing thereof, including surveys,

planning, provisions for capitalized interest, reserve funds and

appropriate feasibility studies, and for the placing of the project or

projects in operation and to secure the payment of the same by,

including but not limited to, a pledge of the revenues of the authority

or by a lien on the property of the authority. 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, payment or redemption of the

bonds to be refunded. The amount of bonds issued by the authority shall

not exceed twenty-five million dollars outstanding at any one time. 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 any particular bonds

pledging any particular moneys or revenues. Notwithstanding the fact

that the bonds may be payable from a special fund, if they are otherwise

of such form and character as to be negotiable instruments under article

eight of the uniform commercial code the bonds shall be and are hereby

made negotiable instruments within the meaning of and for all the

purposes of article eight of the uniform commercial code, subject only

to the provisions of the bonds for registration.

2. The authority is authorized to obtain from any department or agency

of the United States of America or the state or any nongovernmental

insurer or financial institution any insurance, guaranty or other credit

support device, to the extent now or hereafter available, as to, or for

the payment or repayment of interest of principal, or both, or any part

thereof, on any bonds issued by the authority and to enter into any

agreement or contract with respect to any such insurance or guaranty,

except to the extent that the same would in any way impair or interfere

with the ability of the authority to perform and fulfill the terms of

any agreement made with the holders of outstanding bonds of the

authority.

3. The bonds shall be authorized by resolution of the board and shall

bear such date or dates, mature at such time or times, except that bonds

and any renewal thereof shall mature within thirty years of the date of

their original issuance, bear interest at such rate or rates as such

resolution or resolutions may provide, be payable at such times, be in

such denominations, be in such form, either coupon or registered, carry

such privileges, be executed in a 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 provided, however, that no issue of

bonds may be sold at private sale unless the terms of such sale shall

have been approved in writing by (i) the comptroller, where such sale is

not to such comptroller, or (ii) the state director of the budget, where

such sale is to the comptroller. The foregoing provisions shall be

applicable to bonds issued by the authority notwithstanding the

provisions of any other general, special or local law to the contrary.

4. 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,

together with any other moneys, securities, contracts or property 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, and the amounts

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

earnings and the other revenues;

(c) the setting aside of reserves and the creation of 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) the creation of special funds into which any revenues or other

moneys of the authority may be deposited;

(j) the terms and provisions of any mortgage or trust deed or

indenture securing the bonds or under which bonds may be issued;

(k) 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 ninety-nine-p 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;

(l) defining the acts or omissions to act which may constitute a

default in the obligations and duties of the authority to the

bondholders and providing for the rights and remedies of the bondholders

in the event of such default, including as a matter of right the

appointment of a receiver, provided, however, that such rights and

remedies shall not be inconsistent with the general laws of the state

and other provisions of this title;

(m) limitations on the power of the authority to sell or otherwise

dispose of its properties or any part thereof;

(n) limitations on the amount of moneys or revenues to be expended for

operating, administrative or other expenses of the authority;

(o) the payment of the proceeds of bonds, revenues and other moneys to

a trustee or other depositary, and for the method of disbursement

thereof with such safeguards and restrictions as the authority may

determine; and

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

way affect the security or protection of the bonds.

5. In addition to the powers herein conferred upon the authority to

secure its bonds, the authority shall have power in connection with the

issuance of bonds to enter into such agreements as the authority may

deem necessary, convenient or desirable concerning the use or

disposition of its revenues or other moneys or property, including the

mortgaging of any of its properties and the entrusting, pledging or

creation of any other security interest in any such revenues, moneys or

properties and the doing of any act, including refraining from doing any

act, which the authority would have the right to do in the absence of

such agreements. The authority shall have power to enter into amendments

of any such agreements within the powers granted to the authority by

this title and to perform such agreements. The provisions of any such

agreements may be made a part of the contract with the holders of bonds

of the authority.

6. 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.

7. 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.

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

to purchase bonds upon such terms and conditions as the authority may

determine. The authority may hold, cancel or resell such bonds, subject

to and in accordance with agreements with bondholders.

9. 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 ninety-nine-h 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 ninety-nine-p upon a trustee appointed by bondholders.

* NB Authority ceased to exist 08/05/2002

* NB There are 4 § 1599-i's