N.Y. Public Authorities Law § 532: Bonds of the authority

§ 532. 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 for

any corporate purpose in the aggregate principal amount not to exceed

one hundred fifty-three million two hundred fifty-five thousand dollars.

2. In addition to the bonds authorized in subdivision one of this

section, the authority shall have power from time to time and whenever

it deems refunding expedient, to issue bonds in such principal amount as

the authority may determine for the purpose of refunding bonds then

outstanding and to issue such additional bonds as may be necessary to

pay the costs incurred in connection with said refunding, whether the

bonds to be refunded have or have not matured. 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,

redemption or payment of the bonds to be refunded, provided, however,

that upon any such refunding or repayment the aggregate principal amount

of outstanding bonds may be greater than one hundred fifty-three million

two hundred fifty-five thousand dollars only if the present value of the

aggregate debt service of the refunding or repayment bonds to be issued

shall not exceed the present value of the aggregate debt service of the

bonds so to be refunded or repaid. For purposes hereof, the present

values of the aggregate debt service of the refunding or repayment bonds

and of the aggregate debt service of the bonds so refunded or repaid,

shall be calculated by utilizing the effective interest rate of the

refunding or repayment bonds, which shall be that rate arrived at by

doubling the semi-annual interest rate (compounded semi-annually)

necessary to discount the debt service payments on the refunding or

repayment bonds from the payment dates thereof to the date of issue of

the refunding or repayment bonds and to the price bid including

estimated accrued interest or proceeds received by the authority

including estimated accrued interest from the sale thereof.

3. Bonds shall be authorized by resolution of the board and shall bear

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

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

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, and be subject to such terms of redemption (not inconsistent

with subdivision four of this section) as such resolution or resolutions

may provide. Any bonds of the authority may be sold at public or private

sale for such price or prices as the authority shall determine.

4. Every issue of bonds shall be subject to redemption prior to

maturity at the election of the authority on notice by publication in a

newspaper published in the city of New York of not more than ninety

days, and if the state shall furnish the authority with sufficient money

therefor, the authority shall redeem the bonds in accordance with the

terms of redemption then applicable.

5. Except as otherwise may be expressly provided by the authority

every issue of bonds and notes shall be general obligations payable out

of any moneys or revenues of the authority, subject only to any

agreement with the holders of particular bonds or notes pledging any

particular tolls or revenues.

6. Any resolution or resolutions authorizing any bonds or notes may

contain provisions, which shall be a part of the contract with the

holders of the bonds or notes, as to

(a) Pledging the tolls and revenues of the bridges or any of them to

secure the payment of the bonds or notes;

(b) The rates of the tolls to be charged, and the amount to be raised

in each year by tolls, and the use and disposition of the tolls and

other 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 the bridges;

(e) Limitations on the purposes to which the proceeds of sale of any

issue of bonds or notes then or thereafter to be issued may be applied

and pledging such proceeds to secure the payment of the bonds or notes

or of any issue thereof;

(f) Limitations on the issuance of additional bonds or notes or on

other debt;

(g) The procedure, if any, by which the terms of any contract with

bondholders or noteholders may be amended or abrogated, the amount of

bonds or notes 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 any of the

bridges 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 of the rights, powers and duties of the trustee appointed by the

bondholders pursuant to section five hundred thirty-seven 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;

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

way affect the security or protection of the bonds or notes.

7. Neither the members of the board nor any person executing such

bonds or notes shall be liable personally on said bonds or notes or be

subject to any personal liability or accountability by reason of the

issuance thereof.

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

to purchase any bonds or notes issued by it. The authority may hold,

cancel, or resell such bonds or notes subject to and in accordance with

agreements with bondholders or noteholders.

9. It is the intention hereof that any pledge of tolls or other

revenues or other moneys made by the authority shall be valid and

binding from the time when the pledge is made; that the tolls or other

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.