US Laws, Codes, Statutes & Cases

 
    §  611. Issuance of bonds and notes by corporation. 1. The corporation
  shall have the power and is hereby authorized, from  time  to  time,  to
  issue  negotiable bonds and notes in such aggregate principal amounts as
  shall, in the opinion of the corporation,  be  necessary  together  with
  such  other  moneys  or funds as may be available to the corporation, to
  provide funds sufficient to enable the  corporation  to  carry  out  its
  corporate purposes, including the acquisition, construction, maintenance
  and repair of personal and real property, the payment of interest on and
  amortization  of,  or payment of such bonds and notes, the establishment
  of reserves or sinking funds to secure such bonds  and  notes,  and  all
  other  expenditures  of  the  corporation  incident  to and necessary or
  desirable for the  carrying  out  of  its  corporate  purposes  and  the
  exercise  of  its powers.  Except as may otherwise be expressly provided
  by the corporation, every issue of its bonds and notes shall be  general
  obligations  of the corporation payable out of any revenues or moneys of
  the corporation, subject only to any  agreements  with  the  holders  of
  particular  bonds  or  notes pledging any particular revenues or moneys.
  Whether or not the bonds or notes are of such form and character  as  to
  be  negotiable  instruments under the provisions of article eight of the
  uniform commercial code, the bonds and notes shall  be  and  are  hereby
  made  negotiable  instruments  within  the  meaning  of  and for all the
  purposes of article eight of the uniform commercial code,  subject  only
  to the provisions of the bonds or notes for registration.
    2. The corporation shall have the power and is hereby authorized, from
  time  to  time,  to  issue renewal notes, and to refund any bonds by the
  issuance of new bonds, whether the bonds to be refunded have or have not
  matured, and to issue bonds to pay notes or partly to refund bonds  then
  outstanding.
    3.  The  said  bonds  and  notes  shall be authorized by resolution or
  resolutions of the  board,  and  shall  mature  as  such  resolution  or
  resolutions  may  provide.   Bonds and notes shall bear interest at such
  rate or rates, 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. Bonds and notes may be sold by the  corporation
  at  public  or  private  sale at such price or prices as the corporation
  shall determine; provided, however, that no such bonds or notes  may  be
  sold  at  a private sale unless the sale and the terms thereof have been
  approved by the comptroller in writing.
    4. Any resolution or resolutions authorizing any bonds  or  notes  may
  contain  provisions,  which shall be a part of the contract or contracts
  with the holders thereof, as to:
    a. Pledging all or any part of the moneys or revenues or other  assets
  of the corporation to secure the payment of such bonds or notes;
    b.  The  setting aside of reserves or sinking funds and the regulation
  or disposition thereof;
    c. Limitations on the purposes to which the proceeds of  the  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 any issue thereof;
    d. Limitations on the issuance of additional bonds or notes; the terms
  upon which such additional bonds or notes may be issued and secured; the
  refunding of outstanding bonds or notes;
    e. The procedures, if any, by which the terms of any contract with the
  holders of bonds or notes may be extended 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;
    f. The creation of special funds into which any moneys or revenues  of
  the corporation may be deposited;
    g.  Limitations  on  the  amounts  that the corporation may expend for
  administrative or other expenses thereof;
    h. Vesting in a trustee such properties, rights, powers and duties  in
  trust  as  the  corporation may determine and limiting or abrogating the
  right of the holders of the bonds or notes to appoint  a  trustee  under
  section six hundred sixteen of this chapter;
    i.  Defining  the  acts  or  omissions to act which shall constitute a
  default in the obligations and duties of the corporation to the  holders
  of  the  bonds or notes and providing for the rights and remedies of the
  holders of the bonds or notes in the event of such default, including as
  a matter of right the appointment of  a  receiver;  providing,  however,
  that such rights and remedies shall not be inconsistent with the general
  laws of the state and the other provisions of this article;
    j. Any other matters, of like or different character, which in any way
  affect the security or protection of the holders of the bonds or notes.
    5.  Any pledge of revenues, moneys or property made by the corporation
  shall be valid and binding from the time when the pledge  is  made;  the
  revenues,  moneys  or property so pledged and thereafter received by the
  corporation 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
  corporation  irrespective  of  whether such parties have notice thereof.
  Neither the resolution or resolutions nor any other instrument by  which
  a pledge is created need be recorded.
    6.  Neither  the  directors  of  the  corporation nor any other person
  executing such bonds or notes shall be subject to any personal liability
  or accountability by reason of the issuance thereof.
    7. The corporation, subject to such agreements  with  the  holders  of
  bonds  or notes as may then exist, shall have the power out of any funds
  available therefor to purchase any bonds or notes  issued  by  it  at  a
  price not exceeding the redemption price thereof which price shall be:
    a.  If  the  bonds  or notes are then redeemable, the redemption price
  then applicable plus accrued interest to the next interest payment  date
  thereon, or
    b. If the bonds or notes are not then redeemable, the redemption price
  applicable  on  the  first  date after such purchase upon which bonds or
  notes become subject to redemption plus accrued interest to  such  date.
  All bonds or notes so purchased shall be cancelled.