N.Y.
Public Authorities Law Section 706
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 such amount as may be necessary to pay the cost of the bridge and approach roads herein authorized and the cost of all land, property, rights, easements and franchises deemed necessary for the construction thereof, and to pay interest prior to and during construction and for one year after completion of construction, for reconstruction and upgrades to the bridge, the purchase price of the ferry or ferries authorized to be acquired, the repayment of any advances or appropriations made by the state of New York to the authority and such other expenses as may be deemed necessary or incident to the financing and to the construction of the bridge and approach roads, and to placing the same in operation, and infrastructure, upgrade and expansion at the Ogdensburg international airport.2.
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 for the purpose of refunding bonds of the authority theretofore issued, but the aggregate principal amount of such refunding bonds shall not exceed the aggregate principal amount of the bonds to be refunded and the amount of the accrued interest and the premium required to be paid upon such bonds by reason of redemption before maturity.3.
The bonds shall be authorized by resolution of the board. The bonds shall be dated, shall bear interest at such rate or rates not exceeding six per centum per annum, shall mature at such time or times all as may be determined by the authority and may be made redeemable before maturity, at the option of the authority, at such price or prices and under such terms and conditions as may be fixed by the authority prior to the issuance of the bonds. The authority shall determine the form and the manner of execution of the bonds, including any interest coupons to be attached thereto, and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the state. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery, and any bond may bear the facsimile signature of, or may be signed by, such person as at the actual time of the execution of such bond shall be duly authorized to sign such bond although at the date of such bond such person may not have been such officer. The bonds may be issued in coupon form or in registered form or both coupon form and registered form as the authority may determine, and provisions may be made by the authority for the registration of any coupon bond as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the exchange of either coupon bonds or registered bonds without coupons for an equal aggregate principal amount of other coupon bonds or registered bonds without coupons or both of any denomination or denominations. Notwithstanding any other provisions of this title or any recitals in the bonds issued under the provisions of this title, all such bonds shall be deemed to be negotiable instruments under the laws of the state of New York. The authority may sell such bonds at public or private sale, to the bidders who shall offer the lowest interest cost to the authority, at such a price, not less than ninety-five per centum of their value, that the interest cost to maturity for the money received for any issue of such bonds shall not exceed six per centum per annum. Prior to the preparation of definitive bonds, the authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost. Bonds may be issued by the authority under the provisions of this title without any other proceedings or the happenings of any other conditions or things than those proceedings, conditions or things which are specifically required by this title.4.
Any resolution or resolutions authorizing any bonds may contain provisions, which shall be a part of the contract with the holders of the bonds thereby authorized, as to (a) pledging the tolls and revenues of the authority to secure the payment of the bonds;(b)
the rates of the tolls to be charged for use of the bridge, the amounts to be raised in each year by tolls, and the use and disposition of the tolls and other revenues;(c)
the setting aside of reserves or sinking funds, and the regulation and disposition thereof;(d)
limitations on the rights of the authority to restrict and regulate the use of the bridge;(e)
limitations on the purpose to which the proceeds of sale of any issue of bonds then or thereafter to be issued may be applied;(f)
limitations on the issuance of additional bonds;(g)
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; and(h)
any other matters, of like or different character, which in any way affect the security or protection of the bonds.5.
In the discretion of the authority, the bonds may be secured by a trust indenture by and between the authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company in the state of New York. Such trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the authority in relation to the construction, maintenance, operation, repair and insurance of the bridge and the ferry or ferries, and the custody, safeguarding and application of all moneys, and may provide that the bridge and approach roads shall be constructed and paid for under the supervision and approval of consulting engineers. Notwithstanding any other provisions of this title, the authority may provide by such trust indenture for the payment of the proceeds of the bonds and the revenues of the bridge and the ferry or ferries to the trustee under such trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of maintenance, operation and repair of the bridge. If the bonds shall be secured by a trust indenture, the bondholders shall have no authority to appoint a separate trustee to represent them, and the trustee under such trust indenture shall have and possess, in addition to other powers granted by such trust indenture, all of the powers which are conferred by § 707 (Remedies of bondholders)section seven hundred seven of this title upon a trustee appointed by bondholders.6.
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 tolls or other 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.7.
Neither the members of the authority nor any person executing any bonds shall be liable personally on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.8.
The authority shall have power out of any funds available therefor to purchase any of the outstanding bonds at a cost not exceeding the redemption price of the bonds purchased as fixed by the resolution of the authority which authorized their issuance. All bonds so purchased shall be cancelled.9.
No bonds shall be issued by the authority, except with the approval and consent of the comptroller of the state of New York, until and unless assurance, by appropriate legislation, agreements, or otherwise, shall have been obtained that Canada, the province of Ontario and the municipality or municipalities in which the Canadian terminal of the bridge is to be located will exempt the property and income of the authority from taxation so long as such bonds are outstanding.
Source:
Section 706 — Bonds of the authority, https://www.nysenate.gov/legislation/laws/PBA/706 (updated Nov. 27, 2015; accessed Oct. 26, 2024).
