2006 New York Code - Bonds, Notes Or Other Obligations Of The Authority.

 
    §  3862.  Bonds,  notes  or other obligations 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 in such principal
  amounts as  it  may  determine  to  be  necessary  pursuant  to  section
  thirty-eight  hundred  sixty-one  of  this  title to pay any financeable
  costs and to  fund  reserves  to  secure  such  bonds,  notes  or  other
  obligations,  including  incidental  expenses  in  connection therewith;
  provided, however, the aggregate principal amounts of such bonds,  notes
  or  other  obligations  outstanding at any one time shall not exceed one
  hundred seventy-five million dollars, and such bonds shall be tax exempt
  to the maximum extent practicable, as provided by  section  thirty-eight
  hundred  sixty-nine  of  this  title.  Bonds, notes or other obligations
  issued by the authority (a) to pay  reasonable  costs  of  issuance,  as
  determined  by  the  authority,  (b)  to  establish debt service reserve
  funds, (c) to refund or advance refund any outstanding bonds or notes of
  the city or the authority, or (d) as  cash  flow  borrowings  shall  not
  count  against  the  above  limit  on  outstanding bonds, notes or other
  obligations of the authority, nor shall any accretion  of  principal  of
  bonds  that would constitute interest under the Internal Revenue Code of
  1986, as amended, count against such limit; provided, however, that  the
  aggregate  principal  amount  of cash flow borrowings outstanding at any
  one time shall not exceed one hundred forty-five million dollars.
    2. The authority may issue bonds, notes or other obligations to refund
  bonds, notes or other obligations previously issued,  but  in  no  event
  shall the final maturity of any bonds, notes or other obligations of the
  authority  be  later  than June thirtieth, two thousand thirty-seven. No
  bond of the authority shall mature more than thirty years from the  date
  of  its  issue,  or  after  June  thirtieth,  two thousand thirty-seven,
  whichever date is earlier.
    3. Bonds, notes or other obligations of the authority may  be  issued,
  amortized, redeemed and refunded without regard to the provisions of the
  local finance law.
    4.  The directors may delegate to the chairperson or other director or
  officer of the authority the power to set the financial terms of  bonds,
  notes or other obligations.
    5.  The  authority  in  its  sole  discretion shall determine that the
  issuance of its bonds, notes or other obligations is appropriate. Bonds,
  notes or other obligations shall be  authorized  by  resolution  of  the
  authority. Bonds shall bear interest at such fixed or variable rates and
  shall  be  in  such  denominations,  be  in  such form, either coupon or
  registered, be sold at such public or private sale, be executed in  such
  manner,  be  denominated  in  United States currency, be payable in such
  medium of payment, at such  place  and  be  subject  to  such  terms  of
  redemption  as  the  authority may provide in such resolution. No bonds,
  notes or other obligations of the authority may be sold at private  sale
  unless  such sale and the terms thereof have been approved in writing by
  (a)  the  state  comptroller  where  such  sale  is  not  to  the  state
  comptroller,  or  (b)  the director of the budget, where such sale is to
  the state comptroller.
    6. Any resolution or resolutions authorizing  bonds,  notes  or  other
  obligations  or  any  issue  of  bonds,  notes  or other obligations may
  contain provisions which may be a part of the contract with the  holders
  of  the  bonds, notes or other obligations thereby authorized as to: (a)
  pledging all or part of the  authority's  revenues,  together  with  any
  other  moneys,  securities  or  contracts,  to secure the payment of the
  bonds, notes or other  obligations,  subject  to  such  agreements  with
  bondholders 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 purposes to which the proceeds from the  sale  of
  bonds, notes or other obligations may be applied; (d) limitations on the
  issuance of additional bonds, notes or other obligations, the terms upon
  which  additional  bonds,  notes  or other obligations may be issued and
  secured and the refunding of bonds, notes or other obligations; (e)  the
  procedure,  if  any, by which the terms of any contract with bondholders
  may be amended or abrogated, including  the  proportion  of  bondholders
  which  must  consent thereto and the manner in which such consent may be
  given; (f) 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  trustee
  appointed  by  the  bondholders pursuant to section thirty-eight hundred
  sixty-three of this title and limiting or abrogating the rights  of  the
  bondholders  to  appoint  a  trustee  under such section or limiting the
  rights, duties and powers of such trustee; and (g) defining the acts  or
  omissions  of the authority to act which may constitute a default in the
  obligations and duties of the authority to the bondholders and providing
  for the rights and remedies of the bondholders  in  the  event  of  such
  default,  including  as a matter of right the appointment of a receiver;
  provided, however, that such acts or omissions of the authority  to  act
  which may constitute a default and such rights and remedies shall not be
  inconsistent  with the general laws of the state and other provisions of
  this title.
    7. In addition to the powers conferred  upon  the  authority  in  this
  section  to  secure its bonds, notes or other obligations, the authority
  shall have power in connection with the  issuance  of  bonds,  notes  or
  other  obligations  to enter into such agreements for the benefit of the
  bondholders as the authority may deem necessary, convenient or desirable
  concerning the use or disposition  of  its  revenues  or  other  moneys,
  including  the  entrusting,  pledging  or creation of any other security
  interest in any  such  revenues,  moneys  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 agreements. The  authority  shall
  have  power  to  enter into amendments of any such agreements within the
  powers granted to the authority  by  this  title  and  to  perform  such
  agreements.  The provisions of any such agreements may be made a part of
  the contract with the holders of bonds, notes or  other  obligations  of
  the authority.
    7-a.  Whenever  a  series  of bonds, notes or other obligations of the
  authority is issued pursuant to this section  for  purposes  other  than
  deficit financing authorized by section thirty-eight hundred fifty-seven
  of  this  title,  the  payment  of the proceeds of such series of bonds,
  notes or other obligations to the city may be, at  the  request  of  the
  authority,  evidenced  by  obligations  of the city issued in accordance
  with applicable provisions of the state constitution and  local  finance
  law then in effect at the time any such obligations are issued, provided
  that  the  principal  amount  of  the  authority's bonds, notes or other
  obligations issued in connection with any such exchange shall not exceed
  the principal amount  of  such  obligations  of  the  city  and  accrued
  interest  thereon  at  the stated rate to the date of such exchange, and
  provided further, however, that the principal payments on any such issue
  of city obligations shall in no event be scheduled to  fall  on  a  date
  later  than  the date on which falls a corresponding amount of scheduled
  principal payments on the series of bonds, notes or other obligations of
  the authority originally issued to provide such proceeds  or  issued  to
  refund  bonds,  notes  or  other  obligations  issued  to  provide  such
  proceeds.
    8. Notwithstanding any provision of the uniform commercial code to the
  contrary, any pledge of or other security interest in revenues,  moneys,
  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 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 to be valid and binding.
    9.  Whether  or  not  the  bonds,  notes  or  other obligations of the
  authority are of such form and character as to be negotiable instruments
  under the terms of the uniform commercial  code,  the  bonds,  notes  or
  other  obligations  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.
    10.  Neither  the  directors of the authority nor any person executing
  bonds, notes or other obligations shall be liable personally thereon  or
  be  subject to any personal liability or accountability solely by reason
  of the issuance thereof. The bonds, notes or other  obligations  of  the
  authority  shall  not  be  a  debt  of either the state or the city, and
  neither the state nor the city shall be liable thereon, nor  shall  they
  be  payable out of any funds other than those of the authority; and such
  bonds, notes or other obligations shall contain on the  face  thereof  a
  statement to such effect.
    11. The authority, subject to such agreements with bondholders as then
  may   exist,  shall  have  power  to  purchase  bonds,  notes  or  other
  obligations of the authority out of any moneys available therefor, which
  shall thereupon be canceled.