N.Y. Public Authorities Law § 1976: Bonds of the authority

§ 1976. 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

for any corporate purpose, including incidental expenses in connection

therewith. 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 corporate purpose. Except as may be otherwise expressly

provided by the authority, every issue of bonds by the authority shall

be general obligations payable out of any moneys, earnings, or revenues

of the authority, subject only to any agreements with the holders of

particular bonds, pledging any particular moneys, earnings or revenues.

* NB There are two sub one's

* 1. The authority shall have power and is hereby authorized from time

to time to issue its negotiable bonds for any corporate purpose,

including incidental expenses in connection therewith. 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

corporate purpose. Except as may be otherwise expressly provided by the

authority, every issue of bonds by the authority shall be general

obligations payable out of any moneys, earnings, or revenues of the

authority, subject only to any agreements with the holders of particular

bonds, pledging any particular moneys, earnings or revenues. Whether or

not the bonds are 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.

* NB There are two sub one's

2. The bonds shall be authorized by resolution of the authority and

shall bear such date or dates, mature at such time or times, bear

interest at such rate or rates, 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 prior to

maturity as such resolution or resolutions may provide.

3. All bonds of the authority shall be sold at public or private sale

as may be determined by the authority.

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 moneys, earnings, income and

revenues derived from the project to secure the payment of the bonds or

of any issue of the bonds, subject to such agreements with bondholders

as may then exist;

(b) the rates, rentals, fees and other charges to be fixed,

established and collected and the amounts to be raised in each year

thereby, and the use and disposition of the earnings and 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 the project;

(e) limitations on the purposes to which and the manner in which the

proceeds of sale of any bonds or any issue of bonds may be applied;

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

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

outstanding bonds 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) the creation of special funds into which any earnings or revenues

of the authority may be deposited;

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

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

(j) 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 nineteen hundred eighty-three of this

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

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

duties of such trustee;

(k) 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 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 this state

and other provisions of this title;

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

dispose of its properties;

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

expended for operating, administrative and other expenses of the

authority;

(n) the protection and enforcement of the rights and remedies of the

bondholders;

(o) the obligations of the authority in relation to the construction,

maintenance, operation, repairs and insurance of the project and the

safeguarding and application of all moneys;

(p) the payment of the proceeds of bonds and revenues of the project

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

thereof and such safeguards and restrictions as the authority may

determine;

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

way affect the security or protection of the bonds.

5. It is the intention of the legislature that any pledge of earnings,

revenues or other moneys made by the authority shall be valid and

binding from the time when the pledge is made; that the earnings,

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 authority nor any person executing the

bonds or other obligations shall be liable personally on the bonds or

other obligations or be subject to any personal liability or

accountability by reason of the issuance thereof.

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

to purchase (as distinguished from the power of redemption hereinabove

provided) any bonds, and all bonds so purchased shall be cancelled.

8. 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, and the custody, safeguarding and application

of all moneys. The authority may provide by such trust indenture for the

payment of the proceeds of the bonds and the revenues of the project 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. If the bonds shall be secured by a trust

indenture the bondholders shall have no authority to appoint a separate

trustee to represent them.