N.Y. Public Authorities Law § 2511: Security for bonds or notes

* § 2511. Security for bonds or notes. 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 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 provision 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 for the time and manner of and the requisites

for disbursements to be made for the cost of a sports facility, and for

all certificates and approvals of construction and disbursements as the

authority shall deem necessary.

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; 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

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 any sports facility 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 any such sports facility 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 any such sports facility.

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 (Discontinued-Board of Directors never appointed)