N.Y. Public Authorities Law § 2469: Security for bonds or notes; construction and acquisition of sports facilities

* § 2469. Security for bonds or notes; construction and acquisition of

sports facilities. 1. The principal of and interest on any bonds or

notes issued by the authority may be secured by a pledge of any revenues

and receipts of the authority and may be secured by a lease or other

instrument covering all or any part of a sports facility, including any

additions, improvements, extensions to or enlargements of any sports

facilities thereafter made.

2. Bonds or notes issued for the acquisition, construction,

reconstruction, construction of additions to, rehabilitation, or

improvement of a sports facility may also be secured by an assignment of

any lease of such sports facility and by an assignment of the revenues

and receipts derived by the authority from any such lease.

3. Each pledge, agreement, mortgage or other instrument made for the

benefit or security of any of the bonds or notes of the authority shall

continue effective until the principal of and interest on the bonds or

notes for the benefit of which the same were made shall have been fully

paid, or until provisions shall have been made for such payment in the

manner provided in the resolution or resolutions under which the same

may be authorized.

4. The authority may provide in any proceedings under which bonds or

notes may be authorized that any sports facility or part thereof may be

constructed, reconstructed, rehabilitated or improved by the authority,

or any participating municipality, and may also provide in such

proceedings for the time and manner of and requisites for disbursements

to be made for the cost of such construction, and for all such

certificates and approvals of construction and disbursements as the

authority shall deem necessary and provide for in such proceedings.

5. 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. 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 acquisition, construction, reconstruction, construction

of additions to, improvement and maintenance and operation, repair and

insurance of the sports facilities, 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.

* NB (Disbanded March, 1980)