N.Y. Public Authorities Law § 1682: Bonds of the authority

§ 1682. Bonds of the authority. 1. The authority shall have power as

hereby authorized from time to time to issue negotiable bonds in

conformity with applicable provisions of the uniform commercial code.

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. 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 moneys or

revenues.

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

such denominations 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 payable at such times, 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 purposes of the

authority.

4. Any resolution or resolutions authorizing any bonds may contain

provisions which may be a part of the contract with the holders of the

bonds, as to

(a) pledging all or any part of the moneys or property of the

authority to secure the payment of its bonds, including, but not limited

to, the revenues of designated dormitories, the proceeds of any grant in

aid of the authority received from any private or public source, any

federally guaranteed security and moneys received therefrom whether such

security is initially acquired by the authority or an educational

institution, any moneys received under the terms of any lease, loan or

other agreement executed pursuant to section sixteen hundred

seventy-eight, section sixteen hundred eighty or sixteen hundred

eighty-a of this chapter or any other revenues, state aid, local

assistance payments, user charges or surcharges made available in

accordance with law for such purpose;

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

or disposition thereof;

(c) the purpose and limitations thereon to which the proceeds of sale

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

including as authorized purposes, all costs and expenses necessary or

incidental to the issuance of bonds, to the acquisition of or commitment

to acquire any federally guaranteed security and to the issuance and

obtaining of any federally insured mortgage note;

(d) 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;

(e) 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;

(f) the creation of special funds into which any moneys of the

authority may be deposited;

(g) vesting in a trustee or trustees such properties, 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 sixteen hundred eighty-six of this

chapter, and limiting or abrogating the right of the bondholders to

appoint a trustee under such section or limiting the rights, duties and

powers of such trustee;

(h) defining the acts or omissions to act which shall 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, providing, that such rights and remedies

shall not be inconsistent with the general laws of this state and other

provisions of this title;

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

way affect the security and protection of the bonds.

4-a. Any pledge of or other security interest in moneys, earnings,

income, revenues, accounts, contract rights, general intangibles or

other personal property made or created by the authority shall be valid,

binding and perfected from the time when such pledge or other security

interest attaches, without any physical delivery of the collateral or

further act. The lien of any such pledge or other security interest

shall be valid, binding and perfected as against all parties having

claims of any kind in tort, contract or otherwise against the authority

irrespective of whether or not such parties have notice thereof. No

instrument by which such a pledge or other security interest is created

nor any financing statement need be recorded or filed. This subdivision

shall apply notwithstanding the provisions of the uniform commercial

code. Any moneys, earnings, income, revenues, accounts, contract rights,

general intangibles or other personal property held or received by the

authority or on behalf of the authority by any lender, servicer,

trustee, custodian, collection agent or institution of higher education,

pursuant to any resolution, trust agreement or other agreement

authorized by, or entered into in connection with, the program

established pursuant to section sixteen hundred seventy nine-c of this

title and pledged by the authority pursuant to a resolution, trust

agreement or such other agreement for the benefit of bondholders shall

constitute moneys, earnings, income, revenues, accounts, contract

rights, general intangibles or other personal property pledged by the

authority for all purposes of this subdivision.

4-b. Any resolution authorizing the issuance of bonds for the purpose

of providing facilities for the city university pursuant to a lease,

sublease or other agreement entered into by the city university

construction fund and the dormitory authority on or after July first,

nineteen hundred eighty-five, refunding any such bonds, or establishing

or funding reserves for such bonds shall state the principal amount of

bonds being issued in connection with senior college facilities and the

principal amount of bonds being issued in connection with community

college facilities. The proceeds of such bonds to be applied to the

payment of the costs of providing senior college facilities shall be

held separate and apart from the proceeds of such bonds to be applied to

the payment of the costs of providing community college facilities. The

proceeds to be applied to the payment of the costs of providing senior

college facilities shall not be applied to the payment of the costs of

providing community college facilities and the proceeds to be applied to

the payment of the costs of providing community college facilities shall

not be applied to the payment of the costs of providing senior college

facilities.

5. Neither the members of the board nor any person executing such

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 any bonds issued by it at a price not exceeding the

redemption price thereof. All bonds so purchased shall be cancelled.

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 dormitories or of any dormitory, and the custody,

safeguarding and application of all moneys, and may provide that any

dormitory shall be constructed and paid for under the supervision and

approval of consulting engineers. The authority may provide by such

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

revenues of any dormitory or moneys received under the terms of any

lease or loan executed pursuant to section sixteen hundred eighty of

this chapter, as the case may be, to the trustee of such trust indenture

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

such safeguards and restrictions as it may determine. Notwithstanding

the provisions of section sixteen hundred eighty-six of this chapter, if

the bonds shall be secured by trust indenture the bondholders shall have

no authority to appoint a separate trustee to represent them.