N.Y. Public Authorities Law § 2316: Bonds of the authority

§ 2316. Bonds of the authority. 1. The authority shall have the power

and is hereby authorized from time to time to issue its negotiable bonds

for any of its corporate purposes in an aggregate principal amount not

exceeding five hundred million dollars, including interest during

construction and a reasonable period thereafter and such expenses as may

be deemed by the board necessary or desirable to the financing thereof

and placing the project or projects in operation. 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. The refunding bonds may be exchanged for the

bonds to be refunded, with such cash adjustments as may be agreed, or

may be sold and the proceeds applied to the purchase or payment of the

bonds to be refunded. 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 of 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. 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 the uniform commercial

code, subject only to the provisions of the bonds for registration.

2. The bonds shall be authorized by resolution of the authority 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 rates, not exceeding fifteen 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, as

such resolution or resolutions may provide. The bonds may be sold at

public or private sale for such price or prices as the authority shall

determine, but which shall not at the time of sale yield more than

fifteen per centum per annum.

3. 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 revenues of a project or projects

to secure the payment of the bonds, subject to such agreements with

bondholders or the city as may then exist;

(b) 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;

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

and disposition thereof;

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

the use of a project;

(e) 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 any issue

of the bonds;

(f) 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;

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

expended for operating, administrative or other expenses of the

authority;

(i) 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 the rights, powers and duties of the trustees appointed by the

bondholders pursuant to section twenty-three hundred thirty 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 trustee;

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

way affect the security or protection of the bonds.