N.Y.
Public Authorities Law Section 2059
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 its corporate purposes in the aggregate principal amount of not exceeding one million dollars. 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. 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 expressly 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 semi-annually, 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 prior to maturity, at par or a price not exceeding one hundred five per centum of the face value, as such resolution or resolutions may provide. The bonds of the authority may be sold at public or private sale. The bonds shall be sold for a price not less than ninety-eight per centum of the par value thereof, plus accrued interest, provided always that the interest cost on such bonds shall not exceed 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 the project 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 the 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 the 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 of the rights, powers and duties of the trustee appointed by the bondholders pursuant to section seventeen 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 shall cancel such bonds. * NB Authority dissolved September 1, 1977
Source:
Section 2059 — Bonds of the authority, https://www.nysenate.gov/legislation/laws/PBA/2059 (updated Sep. 22, 2014; accessed May 4, 2024).
