2006 New York Code - Bonds Of The Authority.

 
    §  2785. Bonds of the authority. 1. The authority shall have the power
  and is hereby authorized from time to time  to  issue  bonds,  notes  or
  other  obligations  to  pay  the  cost  of  any project or for any other
  corporate purpose, including the establishment of reserves to secure the
  bonds, the payment of principal of, premium, if any, and interest on the
  bonds and the payment of incidental expenses  in  connection  therewith.
  The aggregate principal amount of such bonds, notes or other obligations
  outstanding  shall  not  exceed  two hundred eighty-five million dollars
  ($285,000,000), excluding bonds, notes or other  obligations  issued  to
  refund  or otherwise repay bonds, notes or other obligations theretofore
  issued  for  such  purposes;  provided,  however,  that  upon  any  such
  refunding   or   repayment  the  total  aggregate  principal  amount  of
  outstanding bonds, notes or other obligations may be  greater  than  two
  hundred  eighty-five  million dollars ($285,000,000) only if the present
  value of the aggregate debt service of the refunding or repayment bonds,
  notes or other obligations to be issued shall  not  exceed  the  present
  value  of  the  aggregate  debt  service  of  the  bonds, notes or other
  obligations so to be  refunded  or  repaid.  For  purposes  hereof,  the
  present  values  of  the  aggregate  debt  service  of  the refunding or
  repayment bonds, notes or other obligations and of  the  aggregate  debt
  service  of the bonds, notes or other obligations so refunded or repaid,
  shall be calculated by utilizing the  effective  interest  rate  of  the
  refunding or repayment bonds, notes or other obligations, which shall be
  that   rate  arrived  at  by  doubling  the  semi-annual  interest  rate
  (compounded  semi-annually)  necessary  to  discount  the  debt  service
  payments on the refunding or repayment bonds, notes or other obligations
  from  the payment dates thereof to the date of issue of the refunding or
  repayment bonds, notes  or  other  obligations  and  to  the  price  bid
  including  estimated  accrued  interest  or  proceeds  received  by  the
  authority including estimated accrued interest from  the  sale  thereof.
  The  authority  shall  have power and is hereby authorized to enter into
  such agreements and perform such acts  as  may  be  required  under  any
  applicable  federal  legislation  to  secure  a federal guarantee of any
  bonds.
    2. The authority shall have power from time to time to renew bonds  or
  to  issue  renewal  bonds for such purpose, to issue bonds to pay bonds,
  and, whenever it deems refunding expedient, to refund any  bond  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 corporate purpose of the authority. Bonds (other
  than notes or other  evidence  of  indebtedness)  issued  for  refunding
  purposes,  which  have a final maturity date longer than the maturity of
  the bonds being refunded, shall be  approved  by  a  resolution  of  the
  county legislature adopted by a majority vote and approved by the county
  executive.  Bonds  issued  for  refunding purposes shall be sold and the
  proceeds applied to the purchase, redemption or payment of the bonds  or
  notes to be refunded.
    3. Bonds issued by the authority may be general obligations secured by
  the  faith  and  credit  of  the authority or may be special obligations
  payable solely out of particular revenues or  other  moneys  as  may  be
  designated  in  the  proceedings  of the authority under which the bonds
  shall be authorized to be issued, subject as to  priority  only  to  any
  agreements with the holders of outstanding bonds pledging any particular
  property,  revenues  or  moneys.  The authority may also enter into loan
  agreements, lines of credit and other security agreements and obtain for
  or on its behalf letters  of  credit,  insurance,  guarantees  or  other
  credit  enhancements  to  the extent now or hereafter available, in each
  case for securing its bonds or to provide direct payment  of  any  costs
  which the authority is authorized to pay.
    4.  Bonds  shall  be  authorized by resolution of the authority, be in
  such denominations and bear such date or dates and mature at  such  time
  or  times,  as  such  resolution  may  provide,  provided that bonds and
  renewals thereof shall mature  within  forty  years  from  the  date  of
  original issuance of any such bonds.
    Bonds  shall  be subject to such terms of redemption, bear interest at
  such rate or rates, be payable at such times, 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 and conditions as  such  resolution
  may  provide.  Notwithstanding  any other provision of law, the bonds of
  the authority issued pursuant to this  section  shall  be  sold  to  the
  bidder offering the lowest true interest cost, taking into consideration
  any  premium  or discount not less than four nor more that fifteen days,
  Sundays excepted, after a notice of such  sale  has  been  published  at
  least  once  in a newspaper of general circulation in the area served by
  the authority, which shall state the terms of the sale. The terms of the
  sale may not change unless notice of such change is  published  in  such
  newspaper at least one day prior to the date of the sale as set forth in
  the original notice of sale. Advertisements shall contain a provision to
  the  effect that the authority, in its discretion, may reject any or all
  bids made in pursuance of such advertisements, and in the event of  such
  rejection,  the authority is authorized to negotiate a private or public
  sale or readvertise for bids in the form and manner above  described  as
  many  times as, in its judgment, may be necessary to effect satisfactory
  sale.
    Notwithstanding the provisions of the preceding paragraph, whenever in
  the judgment of the authority the interests of  the  authority  will  be
  served   thereby,   the   members  of  the  authority,  on  the  written
  recommendation of the chairperson, may authorize the sale of such  bonds
  at  private  or  public  sale  on  a  negotiated  basis  or  on either a
  competitive or negotiated basis.  The  authority  shall  set  guidelines
  governing  the terms and conditions of any such private or public sales.
  The private or public bond sale guidelines set by  the  authority  shall
  include,  but  not be limited to, a requirement that where the interests
  of the authority will be served by a private or public  sale  of  bonds,
  the  authority shall select underwriters for each private or public bond
  sale  conducted  pursuant  to  a  request  for  proposal   process   and
  consideration  of  proposals  from  qualified  underwriters  taking into
  account, among  other  things,  qualifications  of  underwriters  as  to
  experience,  their  ability to structure and sell authority bond issues,
  anticipated  costs  to  the  authority,  the  prior  experience  of  the
  authority  with  the  firm,  if  any,  the capitalization of such firms,
  participation of qualified minority and women-owned business  enterprise
  firms  in such private or public sales of bonds of the authority and the
  experience and  ability  of  firms  under  consideration  to  work  with
  minority  and  women-owned  business  enterprises  so  as to promote and
  assist participation by such enterprises.
    The authority shall have the power from time to  time  to  amend  such
  private  bond  sale guidelines in accordance with the provisions of this
  subdivision.
    No private or  public  bond  sale  on  a  negotiated  basis  shall  be
  conducted   by  the  authority  without  prior  approval  of  the  state
  comptroller and the county comptroller.  The  authority  shall  annually
  prepare  and  approve a bond sale report which shall include the private
  or public  bond  sale  guidelines  as  specified  in  this  subdivision,
  amendments to such guidelines since the last private or public bond sale
  report,  an  explanation of the bond sale guidelines and amendments, and
  the results of any sale of bonds conducted during the fiscal year.  Such
  bond  sale  report  may  be  a  part of any other annual report that the
  authority is required to make.
    The authority shall annually submit its bond sale report to the  state
  comptroller  and the county comptroller and copies thereof to the senate
  finance committee and the assembly ways and means committee.
    The authority shall make available to the public copies  of  its  bond
  sale report upon reasonable request thereof.
    Nothing contained in this subdivision shall be deemed to alter, affect
  the validity of, modify the terms of or impair any contract or agreement
  made  or  entered  into in violation of, or without compliance with, the
  provisions of this subdivision.
    5. Any resolution or resolutions authorizing bonds  or  any  issue  of
  bonds  may  contain  provisions which may be a part of the contract with
  the holders of the bonds thereby authorized as to:
    (a) pledging all or part of the revenues, other monies or property  of
  the  authority  to  secure  the  payment  of  the bonds, or any costs of
  issuance thereof, including but not limited to any  contracts,  earnings
  or  proceeds  of any grant to the authority received from any private or
  public source subject to such agreements with bond holders as  may  then
  exist;
    (b)  the  setting  aside of reserves and the creation of sinking funds
  and the regulation and disposition thereof;
    (c) limitations on the purpose to which the proceeds from the sale  of
  bonds may be applied;
    (d) the rates, rents, fees and other charges to be fixed and collected
  by  the  authority  and the amount to be raised in each year thereby and
  the use and disposition of revenues;
    (e) limitations on the right of the authority to restrict and regulate
  the use of the project or part thereof in connection  with  which  bonds
  are issued;
    (f)  limitations  on  the issuance of additional bonds, the terms upon
  which additional bonds may be issued and secured and  the  refunding  of
  outstanding or other bonds;
    (g)  the  procedure,  if  any, by which the terms of any contract with
  bond holders 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) the creation of special funds into which any  revenues  or  monies
  may be deposited;
    (i) the terms and provisions of any trust, mortgage, deed or indenture
  securing the bonds under which the bond may be issued;
    (j)  vesting  in a trustee or trustees such properties, 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 trustees appointed by the
  bond holders to appoint a trustee pursuant to this title or limiting the
  rights, duties and powers of such trustee;
    (k) defining the acts or omissions  to  act  which  may  constitute  a
  default  in  the  obligations  and  duties  of the authority to the bond
  holders and providing for the rights and remedies of the bond holders in
  the event of such default, including as a matter of right appointment of
  a receiver, provided, however, that such rights and remedies  shall  not
  be  inconsistent with the general laws of the state and other provisions
  of this title;
    (l) limitations on the power of the authority  to  sell  or  otherwise
  dispose of any project or any part thereof;
    (m)  limitations  on  the  amount  of  revenues and other monies to be
  expended  for  operating,  administrative  or  other  expenses  of   the
  authority;
    (n) the payment of the proceeds of bonds, revenues and other monies to
  a  trustee  or  other  depository,  and  for  the method of disbursement
  thereof with such safeguards  and  restrictions  as  the  authority  may
  determine; and
    (o)  any other matters of like or different character which in any way
  affect the security or  protection  of  the  bonds  or  the  rights  and
  remedies of bondholders.
    6.  In  addition  to the powers herein conferred upon the authority to
  secure its bonds, the authority shall have power in connection with  the
  issuance  of  bonds  to  adopt  resolutions  and  enter  into such trust
  indentures, agreements or other instruments as the  authority  may  deem
  necessary,  convenient or desirable concerning the use or disposition of
  its revenues or other monies or property, including  the  mortgaging  of
  any  property  and  the  entrusting,  pledging  or creation of any other
  security interest in any such revenues, monies or property and the doing
  of any act, including refraining from doing any act which the  authority
  would  have  the  right  to do in the absence of such resolutions, trust
  indentures, agreements or other instruments. The  authority  shall  have
  power   to   enter  into  amendments  of  any  such  resolutions,  trust
  indentures, agreements or other instruments. The provisions of any  such
  resolutions,  trust  indentures,  agreements or other instruments may be
  made a part of the contract with the holders of bonds of the authority.
    7. Any provision of  the  uniform  commercial  code  to  the  contrary
  notwithstanding,  any  pledge of or other security interest in revenues,
  monies, accounts, contract rights, general intangibles or other personal
  property made or created by the authority shall be  valid,  binding  and
  perfected  from  the  time  when  such  pledge is made or other security
  interest attaches without any physical delivery  of  the  collateral  or
  further  act, and the lien of any such pledge or other security interest
  shall be valid, binding and perfected against all parties having  claims
  of  any  kind  in  tort,  contract  or  otherwise  against the authority
  irrespective of whether or not such  parties  have  notice  thereof.  No
  instrument  by  which  such a pledge or security interest is created nor
  any financing statement need be recorded or filed.
    8. Whether or not the bonds are of such form and character  as  to  be
  negotiable  instruments  under the terms of the uniform commercial code,
  the bonds are hereby made negotiable instruments within the  meaning  of
  and for all the purposes of the uniform commercial code, subject only to
  the provisions of the bonds for registration.
    9.  Neither  the members of the authority nor any person executing its
  bonds shall be liable personally on its  bonds  or  be  subject  to  any
  personal liability or accountability by reason of the issuance thereof.
    10. Subject to such agreements with bondholders as may then exist, the
  authority  shall  have  power  out  of  any  funds available therefor to
  purchase bonds of the authority, which shall thereupon be cancelled,  at
  a  price  not  exceeding  (a)  if  the  bonds  are  then redeemable, the
  redemption price then applicable  plus  accrued  interest  to  the  next
  interest  payment date, or (b) if the bonds are not then redeemable, the
  redemption price applicable on the first date after such  purchase  upon
  which  the  bonds  become subject to redemption plus accrued interest to
  the next interest payment date. Bonds so purchased  shall  thereupon  be
  cancelled.