2006 New York Code - Bonds Of The Authority.

 
    §  1508. 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 purpose mentioned in section fifteen hunded three, including the
  acquisition,  construction,  reconstruction  and  repair of personal and
  real property of all kinds deemed  by  the  board  to  be  necessary  or
  desirable  to carry out such purpose, as well as to pay such expenses as
  may be deemed by the board  necessary  or  desirable  to  the  financing
  thereof  and  placing  the  project  or  projects  in  operation  in the
  aggregate  principal  amount  of  not  exceeding  one  million   dollars
  outstanding at any one time. 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 purpose hereinabove  described.  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,  the bonds of every issue shall be general obligations of the
  authority payable out of  any  moneys  or  revenues  of  the  authority,
  subject  only  to  any  agreements  with the holders of particular bonds
  pledging any particular moneys 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
  thirty years from their respective dates, bear interest at such rate  or
  rates,  not  exceeding  five  per  centum  per annum payable annually or
  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 lawful money of the United States  of  America  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,  but which shall not at the time of sale yield more than five
  per centum per annum.
    3. 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 revenues of a project or  projects
  to  secure  the  payment  of  the bonds, subject to such agreements with
  bondholders as may then exist;
    (b) the rentals, fees and other charges to be charged, and the amounts
  to be raised in each year thereby, and the use and  disposition  of  the
  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 a project;
    (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 a 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 one thousand five hundred thirty-five
  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.
    4.  It  is  the  intention hereof that any pledge of revenues or other
  moneys made by the authority shall be valid and binding  from  the  time
  when  the  pledge  is made; that the 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.
    5. 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.
    6. 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.
    7. 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  the  construction,  maintenance,  operation,  repair   and
  insurance  of  the project or projects and the custody, safeguarding and
  application of all moneys, and may provide that the project or  projects
  shall  be constructed and paid for under the supervision and approval of
  consulting engineers. Notwithstanding  the  provisions  of  section  one
  thousand  five  hundred seventy-three, the authority may provide by such
  trust indenture for the payment of the proceeds of  the  bonds  and  the
  revenues  of  the  project  or  projects 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 the project
  or projects. If the bonds shall be secured by  a  trust  indenture,  the
  bondholders  shall  have  no  authority to appoint a separate trustee to
  represent them, and the trustee under such trust  indenture  shall  have
  and  possess  all  of  the  powers  which  are  conferred by section one
  thousand  five  hundred  eighty-one  upon   a   trustee   appointed   by
  bondholders.