2006 New York Code - Additional Powers Of The Authority To Finance Certain Projects In Connection With The New York State Canal System.

 
    §  383. Additional powers of the authority to finance certain projects
  in connection with the  New  York  state  canal  system.  1.    (a)  The
  authority  is  hereby  authorized,  as  an  additional corporate purpose
  thereof, to issue its bonds, notes and other obligations  in  conformity
  with  applicable  provisions of the uniform commercial code for purposes
  of  financing  the   construction,   reconstruction,   development   and
  improvement of the New York state canal system.
    (b) The authority may issue bonds, notes or other obligations pursuant
  to  paragraph  (a)  of this subdivision in an aggregate principal amount
  not exceeding sixty million dollars plus a principal  amount  of  bonds,
  notes  or  other obligations issued (i) to fund any related debt service
  reserve fund, (ii) to provide capitalized  interest  for  a  period  not
  exceeding  six  months,  except  that  where the proceeds of such bonds,
  notes or other obligations are expended on a revenue-producing  project,
  such  period  shall  be  that allowable under the United States internal
  revenue code of nineteen hundred eighty-six, as  amended,  in  order  to
  preserve  the  exclusion  of  interest  on  such  bonds,  notes or other
  obligations from federal income taxation, and (iii) to provide fees  and
  other  charges  and expenses, including underwriters' discounts, related
  to the issuance of such bonds,  notes  and  other  obligations  and  the
  maintenance  of  such  reserves,  all  as  determined  by the authority,
  excluding  bonds,  notes  and  other  obligations   issued   to   refund
  outstanding  bonds,  notes and other obligations issued pursuant to this
  section.
    (c)  The  authority,  in  addition  to  the  bonds,  notes  and  other
  obligations  authorized  pursuant  to paragraph (b) of this subdivision,
  may issue bonds, notes or other obligations pursuant to paragraph (a) of
  this subdivision in an aggregate  principal  amount  not  exceeding  ten
  million  dollars  for  the  purpose  of funding capital construction and
  reconstruction projects on the New York state  canal  system  which  are
  deemed  by  the  authority  as  necessary  due  to  the  existence of an
  emergency involving danger to life, safety or  property  which  requires
  immediate  action. Provided, however, that no such bonds, notes or other
  obligations shall  be  issued  pursuant  to  this  paragraph  until  the
  authority  has  exhausted its authorization pursuant to paragraph (b) of
  this subdivision.
    (d) In computing the total principal amount of bonds, notes and  other
  obligations  that  may  at any time be issued for any purpose under this
  section, the amount of  the  bonds,  notes  or  other  obligations  that
  constitutes  interest  under  the United States internal revenue code of
  nineteen hundred eighty-six, as amended, shall be excluded.
    2. All of the provisions of this title relating to  bonds,  notes  and
  other  obligations,  which are not inconsistent with this section, shall
  apply to obligations authorized  by  this  section,  including  but  not
  limited to the power to issue renewal notes or refunding bonds thereof.