N.Y. Public Authorities Law § 2059: Bonds of the authority

* § 2059. Bonds of the authority. a. The authority shall have the

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 its corporate purposes in the aggregate principal amount of not

exceeding one million dollars. 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. 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 particular bonds

pledging any particular moneys or revenues.

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

bear such date or dates, mature at such time or times, not exceeding

thirty years from their respective dates, bear interest at such rate or

rates, not exceeding five per centum per annum payable annually or

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 lawful money of the United States of America at

such place or places, and be subject to such terms of redemption prior

to maturity, at par or a price not exceeding one hundred five per centum

of the face value, as such resolution or resolutions may provide. The

bonds of the authority may be sold at public or private sale. The bonds

shall be sold for a price not less than ninety-eight per centum of the

par value thereof, plus accrued interest, provided always that the

interest cost on such bonds shall not exceed five per centum per annum.

c. 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

(1) pledging all or any part of the revenues of the project to secure

the payment of the bonds, subject to such agreements with bondholders as

may then exist;

(2) 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

revenues;

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

and disposition thereof;

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

the use of the project;

(5) 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;

(6) 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;

(7) 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;

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

expended for operating, administrative or other expenses of the

authority;

(9) 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 seventeen 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;

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

way affect the security or protection of the bonds.

d. 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.

e. 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.

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

to purchase bonds. The authority shall cancel such bonds.

* NB Authority dissolved September 1, 1977