2012 New York Consolidated Laws
PBA - Public Authorities
Article 8 - MISCELLANEOUS AUTHORITIES
Title 29 - (2700 - 2724) DEVELOPMENT AUTHORITY OF THE NORTH COUNTRY ACT
2711 - Bonds of the authority.

 
    §  2711. Bonds of the authority. 1. (a) The authority shall have power
  and is hereby authorized from time to time to issue its  bonds  in  such
  principal amount as, in the opinion of the authority, shall be necessary
  to  provide  sufficient  funds  for  achieving  its  corporate purposes,
  including the construction, acquisition, reconstruction, rehabilitation,
  improvement or refinancing of projects and subject to the  provision  of
  this title, any project as defined in title one of article eighteen-A of
  the  general  municipal  law,  the  payment  of interest on bonds of the
  authority, establishment of reserves to secure such bonds, and all other
  expenditures of the authority incident to and necessary or convenient to
  carry out its corporate purposes and powers.  In addition, the authority
  may, in anticipation  of  the  issuance  of  bonds  or  the  receipt  of
  appropriations,  grants,  reimbursements, revenues or other funds, issue
  notes the principal of or interest on which or both shall be payable out
  of the proceeds of bonds of the  authority  or  appropriations,  grants,
  reimbursements,  revenues or other funds of the authority. The authority
  may also enter into bank loan agreements,  lines  of  credit  and  other
  security agreements and obtain for or on its behalf letters of credit in
  each  case  for  securing  its bonds or to provide direct payment of any
  costs which the authority is authorized to pay.
    (b) The authority shall have  power,  from  time  to  time,  to  issue
  renewal  notes,  to  issue  bonds  or other obligations to pay notes 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 to issue bonds partly to refund bonds then outstanding and
  partly for any other purpose. The refunding bonds shall be sold and  the
  proceeds  applied  to  the purchase, redemption or payment of the bonds,
  including any interest thereon, to be refunded.
    2. Except as may otherwise be expressly  provided  by  the  authority,
  every  issue  of its bonds shall be general obligations of the authority
  payable out of any moneys, assets or revenues of the authority,  subject
  as  to  priority  only  to any agreements with the holders of particular
  bonds theretofore or thereafter made pledging, assigning or  creating  a
  lien  upon  any particular moneys, assets or revenues. The authority may
  provide by agreement with the holders of its bonds that such bonds shall
  be payable solely from and secured by particular revenues  and  property
  of the authority.
    3. The bonds shall be authorized by a resolution or resolutions of the
  authority adopted as provided by this title; provided, however, that any
  such resolution authorizing the issuance of bonds may delegate to one or
  more  members  or to an officer of the authority the power to issue such
  bonds from time to time and to fix the details  of  any  such  issue  of
  bonds by an appropriate certificate of such member, members or officer.
    4. The bonds of the authority shall bear such date or dates, mature at
  such  time  or  times,  bear  interest  at such rate or rates (simple or
  compounded), if any, be of such  denominations,  be  in  such  form,  be
  executed  in  such manner, be payable in such medium of payment, at such
  place or places within or without the state,  and  be  subject  to  such
  terms  of  redemption  prior  to  maturity,  as  may be provided by such
  resolution or resolutions or  such  certificate  with  respect  to  such
  bonds,  as  the  case  may  be; provided, however, that no bond or other
  obligations shall mature more than forty years after the date  of  issue
  thereof  and  no  notes  or  renewal thereof shall mature more than five
  years after the date of issue of the original notes.
    5. The bonds of the authority may be sold by  the  authority  at  such
  price  or  prices,  at public or private sale, provided that no issue of
  bonds may be sold at private sale unless the terms of  such  sale  shall
  have  been  approved in writing by (i) the state comptroller, where such

  sale is not to such comptroller, or  (ii)  the  director  of  the  state
  division  of the budget, where such sale is to such comptroller, in such
  manner and from time to time as may be determined by the authority,  and
  the  authority  may  pay all expenses, premiums and commissions which it
  may deem necessary or advantageous in connection with the  issuance  and
  sale thereof.
    6.  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.
    7. Any resolution or resolutions authorizing any bonds  or  any  issue
  thereof  or any trust indenture or indentures relating to such bonds may
  contain provisions, which shall be a  part  of  the  contract  with  the
  holders thereof, as to:
    (a)  pledging,  assigning or creating a lien on all or any part of the
  rates, rentals, fees and charges made or received by the authority,  and
  all or any part of the moneys received or to be received as repayment of
  loans,  to  secure  the  payment  of  the bonds or of any issue thereof,
  subject to such agreement with the holders of the authority's  bonds  as
  may then exist;
    (b)  pledging,  assigning or creating a lien on all or any part of the
  assets of the authority, including mortgages  and  obligations  securing
  the same, to secure the payment of the bonds, subject to such agreements
  with the holders of the authority's bonds as may then exist;
    (c) the establishment and maintenance of reserves or sinking funds and
  the regulation and disposition thereof;
    (d)  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 thereof;
    (e) limitations on the issuance of additional bonds,  the  terms  upon
  which  additional  bonds  may be issued and secured and the refunding of
  outstanding bonds;
    (f) the procedure, if any, by which the terms of any contract with the
  holders of bonds 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;
    (g) limitations on  the  amount  of  moneys  to  be  expended  by  the
  authority  for  operating,  administrative  or  other  expenses  of  the
  authority;
    (h) the creation of  special  funds  into  which  any  moneys  of  the
  authority may be deposited;
    (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
  holders of bonds pursuant to this title, and limiting or abrogating  the
  right  of  the  holders  of  bonds to appoint a trustee pursuant to this
  title or limiting the rights, powers and duties of such trustee;
    (j) defining the acts or omissions to act  which  shall  constitute  a
  default in the obligations and duties of the authority and providing for
  the  rights  and  remedies  of the holders of bonds in the event of such
  default, providing, however, that such rights and remedies shall not  be
  inconsistent with the general laws of this state and other provisions of
  this title; and
    (k)  any  other  matters, of like or different character, which in any
  way affect the security or protection of the bonds and the rights of the
  holders thereof.

    8. Any pledge or assignment made or  lien  created  by  the  authority
  shall  be  valid and binding from the time when the pledge or assignment
  is made or the lien is created;  the  moneys  or  property  so  pledged,
  assigned  or encumbered by the authority shall immediately be subject to
  such pledge, assignment or lien without any physical delivery thereof or
  further  act;  and  such  pledge,  assignment or lien 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, assignment or lien is made or created need
  be recorded or filed.
    9.  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.
    10.  The authority, subject to such agreements with the holders of the
  authority's bonds as may then exist, shall have power out of  any  funds
  available therefor to purchase bonds of the authority.
    11.  The  state shall not be liable on bonds of the authority and such
  bonds shall not be a debt of the state, and such bonds shall contain  on
  the face thereof a statement to such effect.