2006 New York Code - Bonds Of The Authority.

 
    §  1596-i.  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  ninety-six-d
  of  this  title, 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 thirty
  million dollars  outstanding  on  or  before  June  thirtieth,  nineteen
  hundred ninety-two. 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,  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; provided, however, that any private
  sale shall be subject to the approval of  the  state  comptroller  where
  such sale is not to the comptroller, or the director of the budget where
  such sale is to the comptroller.
    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  fifteen hundred ninety-six-o of this
  title 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  ninety-six-h  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  ninety-six-o  of  this  title  upon  a  trustee  appointed   by
  bondholders.