2006 New York Code - Bonds Of The Authority.

 
    §  1599-ii.  Bonds  of the authority. (a) 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-nine-dd
  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 purposes, 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 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.
    (b) 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
  semiannually,  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 shall not be sold by the authority at private sale unless
  such sale and the terms thereof have been approved  in  writing  by  the
  comptroller  where  such  sale  is  not  to  the  comptroller, or by the
  director of the budget where such sale is to the comptroller. The  bonds
  shall not at the time of sale yield more than five per centum per annum.
    (c)  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
    (1)  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;
    (2) 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;
    (3) the setting aside of reserves or sinking funds, and the regulation
  and disposition thereof; (4) limitations on the right of  the  authority
  to restrict and regulate the use of a project;
    (5)  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;
    (6) 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;
    (7)  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;
    (8)  limitations  on the amount of moneys derived from a project to be
  expended  for  operating,  administrative  or  other  expenses  of   the
  authority;
    (9) 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 ninety-nine-pp 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;
    (10) any other matters, of like or different character, which  in  any
  way affect the security or protection of the bonds.
    (d)  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.
    (e) 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.
    (f) 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.
    (g)  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-nine-hh 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-nine-pp upon a trustee appointed by bondholders.