N.Y. Transportation Law § 60: Bond covenants

§ 60. Bond covenants. 1. In connection with the issuance of bonds or

the incurring of an obligation, and to secure the payment of such bonds

or obligations, the Utica transit authority, in addition to its other

powers, may:

(a) Pledge, covenant to pledge or covenant against pledging, all or

any part of its rents, fares, fees, revenues, subsidies, gifts, grants

or other moneys received or to be received to which its right then

exists or may thereafter come into existence; covenant against

permitting or suffering any lien thereon; it is the intention hereof

that any pledge of revenues or other moneys made by the Utica transit

authority shall be valid and binding from the time when the pledge is

made, that revenues or other moneys so pledged and thereafter received

by the Utica transit 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 Utica transit authority, irrespective of whether such

parties have notice thereof;

(b) Mortgage, covenant to mortgage or covenant against mortgaging, all

or any part of its property, real or personal, then owned or thereafter

acquired; covenant against permitting or suffering any lien thereon;

(c) Covenant with respect to limitations on its right to sell, lease,

or otherwise dispose of any municipal project or part thereof;

(d) Covenant as to the bonds to be issued and as to the issuance of

such bonds in escrow or otherwise, and as to the use and disposition of

the proceeds thereof; provide for the replacement of lost, destroyed or

mutilated bonds;

(e) Covenant as to what other or additional debts may be incurred by

it;

(f) Covenant that the Utica transit authority warrants the title to

the premises;

(g) Covenant as to the rents, fares and fees to be charged, the amount

to be raised each year or other period of time by rents, fares, fees and

other revenues, and as to the use and disposition to be made thereof;

(h) Covenant as to the use of any or all of its property, real or

personal;

(i) Create or authorize the creation of special funds segregating (1)

the proceeds of any grants, subsidies or contributions; (2) all the

rents, fares, fees and revenues of any municipal project or projects;

(3) any moneys held for the payment of the costs of operation and

maintenance of municipal projects, or as a reserve for the meeting of

contingencies in the operation and maintenance thereof; (4) any moneys

held for the payment of the principal of and interest on its bonds or

the sums due under its leases or as a reserve for such payments; and (5)

any moneys held for any other reserves or contingencies; and covenant as

to the use and disposal of the moneys held in such funds;

(j) Redeem the bonds and covenant for their redemption, and provide

the terms and conditions thereof;

(k) Covenant against extending the time for the payment of its bonds

or interest thereon;

(l) Prescribe 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;

(m) Covenant as to the maintenance of its property, the replacement

thereof, the insurance to be carried thereon, and the use and

disposition of insurance moneys;

(n) Vest in an obligee, in the event of a default by the Utica transit

authority the right to cure any such default and to advance any moneys

necessary for such purpose, and covenant that the money so advanced by

an additional obligation of such authority with such interest, security

and priority as may be provided in any resolutions, trust indenture,

mortgage, lease or contract;

(o) Covenant and prescribe as to the events of default and terms and

conditions upon which any or all of its bonds shall become or may be

declared due before maturity, and as to the terms and conditions upon

which such declaration and its consequences may be waived;

(p) Covenant as to the rights, liabilities, powers and duties arising

upon the breach by it of any covenant, condition or obligation;

(q) Covenant to surrender possession of a municipal project or

projects or parts thereof upon the happening of an event of default; and

vest in an obligee the right, upon such default, without judicial

proceedings, to take possession and use, operate, manage, and control

such projects or any part thereof, and to collect and receive rents,

fares, fees and revenues arising therefrom in the same manner as such

authority itself might do, and to dispose of the moneys collected in

accordance with the agreement of such obligee with the Utica transit

authority;

(r) Vest in a trustee or trustees the right to enforce any covenant to

secure, or pay the bonds, or otherwise relating to such bonds; provide

for the powers, duties and limitations of liabilities of such trustee or

trustees, or the holders of bonds, or any proportion of them, may

enforce any such covenant;

(s) Vest in a trustee or in other obligee the right, upon any

happening of an event of default, to foreclose through judicial

proceedings or through the exercise of a power of sale without judicial

proceedings, any mortgage as to all or such part or parts of the

property covered thereby as such trustee or other obligee shall elect;

the institution, prosecution and conclusion of any such foreclosure

proceedings or the sale of any such parts of the mortgaged property

shall not affect in any manner or to any extent the lien of the mortgage

on the parts of the mortgaged property not included in such proceedings

or not sold as aforesaid;

(t) Make such other covenants and do any and all such acts and things

as may be necessary or convenient or desirable in order to secure its

bonds or make them more marketable, not withstanding that such

covenants, acts or things may not be enumerated herein; execute all

instruments necessary or convenient in the exercise of the powers herein

granted, or in the performance of its covenants or duties, which may

contain such covenants and provisions, in addition to those above

specified, as the purchaser of the bonds of an authority may require.

2. In case of conflict between this section and article nine of the

uniform commercial code, this section shall control.