N.Y. Public Authorities Law § 661: Bonds of the authority

§ 661. Bonds of the authority. 1. The authority shall have the 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 of not

exceeding an amount fixed by the county legislature from time to time by

ordinance. 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 corporate purpose. 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 for new bonds shall be excluded. Except as may

otherwise be expressly provided by the authority, every issue of the

bonds shall be general obligations payable out of any moneys or revenues

of the authority, subject only to any agreements with the holders of

particular bonds pledging any particular tolls or revenues.

2. The bonds shall be authorized by resolution of the board and 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, as the board shall determine and shall be 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, 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.

3. The bonds may be issued for any corporate purpose of the authority.

4. 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 tolls and revenues of the project

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

bondholders as may then exist;

(b) the rates of the tolls to be charged, and the amounts 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 project in connection with which such bonds are issued;

(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 of 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 any 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 of the rights, powers and duties of the trustee appointed by the

bondholders pursuant to section six hundred sixty-six hereof, and

limiting or abrogating the right of the bondholders to appoint a trustee

under said section hereof 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.

5. 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.

6. Neither the members of the authority nor any person executing the

bonds shall be liable personally on the bonds or be subject to any

personal liability or accountability by reason of the issuance thereof.

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

to purchase bonds. The authority may hold, cancel or resell such bonds,

subject to and in accordance with agreements with bondholders.