N.Y.
Public Authorities Law Section 206
Bonds of the authority
1.
The authority shall have power and is hereby authorized from time to time to issue its negotiable bonds in conformity with applicable provisions of the uniform commercial code in the aggregate principal amount of not exceeding one million five hundred thousand dollars for any corporate purpose. The authority shall have power from time to time 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 corporate purpose. 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.2.
Such bonds shall be authorized by resolution of the board and shall be issued in one or more series, shall bear such date or dates, mature at such time or times, not exceeding forty years from their respective dates, bear interest at such rate or rates, not exceeding five per centum per annum payable 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 such medium of payment, at such place or places, be subject to such terms of redemption, and be declared or become due before the maturity date thereof, as such resolution or resolutions may provide. Such bonds may be issued for money or property (at public or private sale for such price or prices) as the authority shall determine, provided that the interest cost to maturity of the money or property (at its value as determined by the board, the determination of which shall be conclusive) received for any issue of such bonds, shall not exceed five per centum per annum. Refunding bonds exchanged for outstanding bonds may be exchanged on such terms and with such cash adjustments as the authority shall determine.3.
In connection with the issuance of bonds or in order to secure the payment of its bonds the authority shall have power (a) To mortgage all or any part of its property, real or personal, then owned or thereafter acquired;(b)
To pledge all or any part of its revenues;(c)
To covenant against mortgaging all or any part of its property, real or personal, then owned or thereafter acquired or against permitting or suffering any lien thereon;(d)
To covenant against pledging all or any part of its revenues to which its right then exists or the right to which may thereafter come into existence;(e)
To provide for the release of property or revenues from any pledge or mortgage, and to reserve rights and powers in, or the right to dispose of, property which is subject to a pledge or mortgage;(f)
To covenant as to the bonds to be issued pursuant to any mortgage, deed of trust or other instrument and as to the issuance of such bonds in escrow or otherwise, and as to the use and disposition of the proceeds thereof;(g)
To covenant as to what other, or additional debt may be incurred by it;(h)
To provide for the terms, form, registration, exchange, execution and authentication of bonds;(i)
To provide for the replacement of lost, destroyed or mutilated bonds;(j)
To covenant that the authority warrants the title to the premises;(k)
To covenant as to the fees and rentals to be charged, the amount (calculated as may be determined) to be raised each year or other period of time by fees, rentals, and other revenues and as to the use and disposition to be made thereof;(l)
To covenant as to the use of any or all of its property, real or personal;(m)
To covenant to set aside or pay over reserves and sinking funds and as to the disposition thereof;(n)
To redeem the bonds, and to covenant for their redemption, and to provide the terms and conditions thereof;(o)
To covenant against extending the time for the payment of bond interest, directly or indirectly, by any means or in any manner;(p)
To covenant to maintain offices and agencies for any purpose connected with its bonds;(q)
To covenant as to the maintenance of its property, the replacement thereof, the insurance to be carried thereon and the use and disposition of insurance moneys;(r)
To covenant as to its books of account and as to the inspection and audit thereof and as to the accounting methods;(s)
To covenant and prescribe as to the events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived;(t)
To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, condition, or obligation;(u)
To vest in a trustee or trustees the right to enforce any covenant made to secure, to pay or in relation to the bonds, or to foreclose any mortgage, to provide for the powers and duties of such trustee or trustees, to limit liabilities thereof and to provide the terms and conditions upon which the trustee or trustees or the holders of bonds or any proportion of them may enforce any such covenant or exercise the right of foreclosure;(v)
To make covenants in addition to the covenants herein expressly authorized, of like or different character;(w)
To execute all mortgages, bills of sale, conveyances, deeds of trust and other instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties;(x)
To make such covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the board tend to make the bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein and notwithstanding that such covenants, acts or things may restrict or interfere with the carrying out of its corporate purpose; it being the intention hereof to give the authority power to do all things in the issuance of bonds, and for their security that a business corporation can do under the general laws of the state and no consent or approval of any judge or court shall be required therefor. * NB (Abolished in 1975)
Source:
Section 206 — Bonds of the authority, https://www.nysenate.gov/legislation/laws/PBA/206 (updated Sep. 22, 2014; accessed Oct. 26, 2024).
