N.Y. Public Authorities Law § 206: Bonds of the authority

* § 206. 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 in

the aggregate principal amount of not exceeding one million five hundred

thousand dollars for any corporate purpose. 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.

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

be issued in one or more series, 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, not exceeding five per

centum per annum payable 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 such medium of

payment, at such place or places, be subject to such terms of

redemption, and be declared or become due before the maturity date

thereof, as such resolution or resolutions may provide. Such bonds may

be issued for money or property (at public or private sale for such

price or prices) as the authority shall determine, provided that the

interest cost to maturity of the money or property (at its value as

determined by the board, the determination of which shall be conclusive)

received for any issue of such bonds, shall not exceed five per centum

per annum. Refunding bonds exchanged for outstanding bonds may be

exchanged on such terms and with such cash adjustments as the authority

shall determine.

3. In connection with the issuance of bonds or in order to secure the

payment of its bonds the authority shall have power

(a) To mortgage all or any part of its property, real or personal,

then owned or thereafter acquired;

(b) To pledge all or any part of its revenues;

(c) To covenant against mortgaging all or any part of its property,

real or personal, then owned or thereafter acquired or against

permitting or suffering any lien thereon;

(d) To covenant against pledging all or any part of its revenues to

which its right then exists or the right to which may thereafter come

into existence;

(e) To provide for the release of property or revenues from any pledge

or mortgage, and to reserve rights and powers in, or the right to

dispose of, property which is subject to a pledge or mortgage;

(f) To covenant as to the bonds to be issued pursuant to any mortgage,

deed of trust or other instrument and as to the issuance of such bonds

in escrow or otherwise, and as to the use and disposition of the

proceeds thereof;

(g) To covenant as to what other, or additional debt may be incurred

by it;

(h) To provide for the terms, form, registration, exchange, execution

and authentication of bonds;

(i) To provide for the replacement of lost, destroyed or mutilated

bonds;

(j) To covenant that the authority warrants the title to the premises;

(k) To covenant as to the fees and rentals to be charged, the amount

(calculated as may be determined) to be raised each year or other period

of time by fees, rentals, and other revenues and as to the use and

disposition to be made thereof;

(l) To covenant as to the use of any or all of its property, real or

personal;

(m) To covenant to set aside or pay over reserves and sinking funds

and as to the disposition thereof;

(n) To redeem the bonds, and to covenant for their redemption, and to

provide the terms and conditions thereof;

(o) To covenant against extending the time for the payment of bond

interest, directly or indirectly, by any means or in any manner;

(p) To covenant to maintain offices and agencies for any purpose

connected with its bonds;

(q) To covenant as to the maintenance of its property, the replacement

thereof, the insurance to be carried thereon and the use and disposition

of insurance moneys;

(r) To covenant as to its books of account and as to the inspection

and audit thereof and as to the accounting methods;

(s) To covenant and prescribe as to the events of default and terms

and conditions upon which any or all of its bonds shall become or may be

declared due before maturity and as to the terms and conditions upon

which such declaration and its consequences may be waived;

(t) To covenant as to the rights, liabilities, powers and duties

arising upon the breach by it of any covenant, condition, or obligation;

(u) To vest in a trustee or trustees the right to enforce any covenant

made to secure, to pay or in relation to the bonds, or to foreclose any

mortgage, to provide for the powers and duties of such trustee or

trustees, to limit liabilities thereof and to provide the terms and

conditions upon which the trustee or trustees or the holders of bonds or

any proportion of them may enforce any such covenant or exercise the

right of foreclosure;

(v) To make covenants in addition to the covenants herein expressly

authorized, of like or different character;

(w) To execute all mortgages, bills of sale, conveyances, deeds of

trust and other instruments necessary or convenient in the exercise of

the powers herein granted or in the performance of its covenants or

duties;

(x) To make such covenants and to do any and all such acts and things

as may be necessary or convenient or desirable in order to secure its

bonds, or in the absolute discretion of the board tend to make the bonds

more marketable, notwithstanding that such covenants, acts or things may

not be enumerated herein and notwithstanding that such covenants, acts

or things may restrict or interfere with the carrying out of its

corporate purpose; it being the intention hereof to give the authority

power to do all things in the issuance of bonds, and for their security

that a business corporation can do under the general laws of the state

and no consent or approval of any judge or court shall be required

therefor.

* NB (Abolished in 1975)