N.Y. Public Authorities Law § 2053-j: Bonds of the authority

§ 2053-j. Bonds of the authority. 1. The authority shall have the

power and is hereby authorized from time to time to issue bonds or notes

in such principal amounts as it may determine to be necessary to pay the

cost of any project or for any other corporate purpose, including

incidental expenses in connection therewith. The authority shall have

power and is hereby authorized to enter into such agreements and perform

such acts as may be required under any applicable federal legislation to

secure a federal guarantee of any bonds. 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. Bonds issued by the authority may be general

obligations secured by the faith and credit of the authority or may be

special obligations payable solely out of particular revenues or other

moneys as may be designated in the proceedings of the authority under

which the bonds shall be authorized to be issued and subject to any

agreements with the holders of outstanding bonds pledging any particular

revenues or moneys. The authority may also enter into loan agreements,

lines of credit and other security agreements and obtain for or on its

behalf letters of credit in each case for securing its bonds or to

provide direct payment of any costs which the authority is authorized to

pay.

2. Bonds shall be authorized by resolution of the authority, be in

such denominations, bear such date or dates and mature at such time or

times as such resolution shall provide, except that notes and any

renewals thereof shall mature within five years from the date of the

original issuance and bonds and any renewals thereof shall mature within

thirty years from the date of the original issuance of any such bonds or

notes. The bonds and notes shall be subject to such terms of redemption,

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 and conditions as such

resolution may provide. Bonds may be sold at public or private sale for

such price or prices as the authority shall determine. Bonds of the

authority shall not be sold by the authority at private sale unless such

sale and the terms thereof have been approved in writing by the state

comptroller where such sale is not to be to such comptroller, or by the

state director of the budget where such sale is to said comptroller. The

authority may pay all expenses, premiums and commissions which it may

deem necessary or advantageous in connection with the issuance and sale

of bonds.

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

bonds may contain provisions which may 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, other moneys or property

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

limited to, any assets, contracts, investment securities, earnings or

proceeds of any grant to the authority received from any private or

public source, subject to such agreements with bondholders as may then

exist;

(b) the setting aside of reserves and the creation of sinking funds

and the regulation and disposition thereof;

(c) limitations on the purpose to which the proceeds from the sale of

bonds may be applied;

(d) the rates, rents, fees and other charges to be fixed and collected

by the authority and the amount to be raised in each year thereby and

the use and disposition of revenues;

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

the use of the project or part thereof in connection with which bonds

are issued;

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

which additional bonds may be issued and secured and 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) the creation of special funds into which any revenues or moneys

may be deposited;

(i) the terms and provisions of any trust, deed or indenture securing

the bonds 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 trustees appointed by

the bondholders pursuant to section two thousand fifty-three-i of this

title and limiting or abrogating the rights of the bondholders to

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

powers of the trustee;

(k) 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;

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

dispose of any project or any part thereof;

(m) limitations on the amount of revenues and other moneys to be

expended for operating, administrative or other expenses of the

authority;

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

a trustee or other depository and for the method of disbursement thereof

with such safeguards and restrictions as the authority may determine;

and

(o) any other matters of like or different character which in any way

affect the security or protection of the bonds or the rights and

remedies of bondholders.

4. 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, consistent or desirable concerning the use of

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

mortgaging of any property and the entrusting, pledging or creation of

any other security interest in any such revenues, moneys or property 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.

5. Any provision of the uniform commercial code to the contrary

notwithstanding, any pledge of or other security interest in revenues,

moneys, 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 is made or other security

interest attaches without any physical delivery of the collateral or

further act, and the lien of any such pledge or other security interest

shall be valid, binding and perfected 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 security is created nor any

financing statement need be recorded or filed.

6. Whether or not the bonds are of such form and character as to be

negotiable instruments under the terms of the uniform commercial code,

the bonds are hereby made negotiable instruments within the meaning of

and for all the purposes of the uniform commercial code, subject only to

the provisions of the bonds for registration.

7. Neither the members of the authority nor any person executing bonds

shall be liable personally thereon or be subject to any personal

liability or accountability by reason of the issuance thereof.

8. The authority, subject to such agreements with bondholders as then

may exist, shall have power out of any moneys available therefor to

purchase bonds of the authority, which shall thereupon be cancelled, at

a price not exceeding (a) if the bonds are then redeemable, the

redemption price then applicable, plus accrued interest to the next

interest payment date or (b) if the bonds are not then redeemable, the

redemption price applicable on the first date after such purchase upon

which the bonds become subject to redemption plus accrued interest to

the next interest payment date.