2006 New York Code - Bonds Of The Authority.

 
    §  1533. 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  hundred twenty-eight
  hereof, 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 the rights, powers and duties  of  the  trustees  appointed  by  the
  bondholders  pursuant  to  section  fifteen  hundred  forty  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 fifteen
  hundred thirty-two of this title 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 fifteen hundred forty upon a
  trustee appointed by bondholders.