NY State Fin L § 69-N (2021)
2021 New York Laws STF - State Finance Article 5-F - Sales Tax Revenue Bond Financing Program 69-N - Issuance of Bonds and Notes.

§  69-n.  Issuance of bonds and notes. 1. (a) Authorized issuers shall have the power and are hereby authorized from  time  to  time  to  issue revenue   bonds,  in  such  principal  amount  or  amounts,  subject  to subdivision eight of this section and as  the  director  of  the  budget shall  determine  to  be  necessary,  to  provide  sufficient  funds for authorized purposes,  the  establishment  of  reserves  to  secure  such revenue  bonds,  the  payment of amounts required under revenue bonds or agreements relating thereto, and the payment of all costs of issuance of their revenue bonds.  (b) The authorized  issuers  shall  have  the  power  and  are  hereby authorized  from time to time to issue (i) revenue bonds to renew notes, (ii) revenue bonds to pay notes, and (iii) whenever it  deems  refunding expedient, to refund any bonds, notes or other obligations issued for an authorized   purpose  or  purposes,  including  bonds,  notes  or  other obligations that were  issued  prior  to  the  effective  date  of  this article, by the issuance of new revenue bonds, whether the bonds, notes, or  other  obligations  to  be refunded have or have not matured, and to issue revenue bonds in part to refund bonds, notes, or other obligations then outstanding and in part for any of its other  authorized  purposes. The  refunding revenue bonds may be exchanged for bonds, notes, or other obligations to be refunded, or sold and  the  proceeds  applied  to  the purchase,   redemption  or  payment  of  such  bonds,  notes,  or  other obligations.  (c) Except as may otherwise be expressly  provided  by  an  authorized issuer, every issue of revenue bonds of an authorized issuer pursuant to this  section  shall  be  special  obligations  of the authorized issuer payable solely out of any revenues paid over to such  authorized  issuer from  the  sales  tax  revenue  bond  tax  fund, established pursuant to section ninety-two-h of this chapter.  (d) All of the provisions of  the  enabling  acts  of  the  authorized issuers relating to bonds and notes, which are not inconsistent with the provisions  of  this  section,  may, at the discretion of the authorized issuer, apply to revenue bonds authorized by this section.  (e) The revenue bonds of the authorized  issuers  authorized  by  this section  shall  not  be  a  debt of the state and the state shall not be liable thereon, nor shall they be payable out of any  funds  other  than those of the authorized issuers pledged therefor; and such revenue bonds shall  contain  on  the  face  thereof  a  statement  to such effect. In addition, any agreements entered into by any entity pursuant to sections sixty-nine-o and ninety-two-h of this chapter on behalf of the state  to effect  the implementation of any of the activities financed in whole or in part with proceeds of the revenue bonds of  the  authorized  issuers, authorized  in  this  section  do not constitute or create a debt of the state,  nor  a  contractual  obligation  in  excess   of   the   amounts appropriated  therefor,  and  the state has no continuing legal or moral obligation  to  appropriate  money  for  payments  due  under  any  such agreement.  (f)  (i)  Revenue  bonds  shall  be  authorized  by  resolution of the authorized issuers, be in such denominations, bear such  date  or  dates and  mature at such time or times, as such resolution or other agreement may provide.  (ii) Revenue bonds shall be subject to such terms of redemption,  bear interest  at  such  rate  or rates, be payable at such times, be in such form,  either  coupon,  registered  or  book  entry  form,  carry   such registration  privileges, be executed in such manner, be payable in such medium of payment at such place or places, and be subject to such  terms and conditions as such resolution may provide.  (g)  Revenue  bonds  authorized  hereunder shall be sold by authorized issuers, at public or private sale, at  such  price  or  prices  as  the authorized  issuers  may  determine.  Revenue  bonds  of  the authorized issuers shall not be sold by the authorized  issuers  at  private  sales unless  such  sale and the terms thereof have been approved by the state comptroller.   2. Consistent with the provisions of this article, and subject to  the approval  of  the  director  of  the  budget,  any  resolution  or other agreement authorizing revenue bonds or any  issue  thereof  may  contain provisions,  which  shall  be  a  part  of the contract with the holders thereof, as to:  (a) pledging  all  or  any  part  of  the  revenues  received  by  the authorized  issuers  pursuant to section sixty-nine-o of this article to secure the payment of the bonds  or  notes  or  of  any  issue  thereof, subject  to  such  agreements  with holders of revenue bonds as may then exist;  (b) pledging all or any part of the assets of the  authorized  issuers to  secure  the  payment of the revenue bonds or of any issue of revenue bonds subject to such agreements with holders of revenue  bonds  as  may then exist;  (c)  the setting aside of reserves or sinking funds and the regulation and disposition thereof;  (d) limitations on the purposes to  which  the  proceeds  of  sale  of revenue  bonds,  may be applied and pledging such proceeds to secure the payment of the revenue bonds or of any issue thereof;  (e) limitations on the issuance of additional revenue bonds, the terms upon which additional revenue bonds may be issued and  secured  and  the refunding of outstanding or other revenue bonds;  (f)  the  procedure,  if  any, by which the terms of any contract with holders of revenue bonds may be amended  or  abrogated,  the  amount  of revenue  bonds  the holders of which must consent thereto and the manner in which such consent may be given;  (g) vesting in a trustee, as described  in  subdivision  six  of  this section,  such  property,  rights,  powers  and  duties  in trust as the authorized issuers may determine, which may include any or  all  of  the rights,  powers  and  duties  of the trustee appointed by the holders of revenue bonds of the respective  authorized  issuers  pursuant  to  this article,  and  limiting  or  abrogating  the  right of such revenue bond holders to appoint a trustee under this title or  limiting  the  rights, powers, and duties of such trustee;  (h)  the  acts or omissions to act which shall constitute a default in the obligations and duties of the authorized issuers to the  holders  of the  revenue  bonds  and  providing  for  the rights and remedies of the holders of the revenue bonds in event of  such  default,  including  the right  to appointment of a receiver; provided, however, that such rights and remedies shall not be inconsistent with the other provisions of this article;  (i) any other matters, of like or different character,  which  in  any way  affect  the  security  or  protection of the holders of the revenue bonds; and  (j) the application of any of the foregoing provisions to any provider of any applicable bond, note or other financial facility.   Notwithstanding the foregoing, the authorized  issuers  shall  not  be authorized   to   make  any  covenant,  pledge,  promise,  or  agreement purporting to bind the state except as otherwise specifically authorized by this article.   3. Any pledge made by the respective authorized issuers shall be valid and binding from the time when the  pledge  is  made.  The  revenues  or  property so pledged and thereafter received by the respective authorized issuers  shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and 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  respective authorized  issuers,  irrespective  of  whether such parties have notice thereof. Neither the resolution nor any  other  instrument  by  which  a pledge is created need be recorded or filed to protect such pledge.   4.  Neither the directors or members of the authorized issuers nor any other person executing the revenue bonds of the authorized issuers shall be liable personally thereon or be subject to any personal liability  or accountability solely by reason of the issuance thereof.   5.  The authorized issuers, subject to such agreements with holders of revenue bonds as may then exist, or with the providers of any applicable bond or note or other financial or agreement facility, shall have  power out  of  any  funds  available therefor to purchase revenue bonds of the authorized issuers, which may or may not thereupon  be  canceled,  at  a price not exceeding:  (a)  If  the  revenue  bonds are then redeemable, the redemption price then applicable, including any accrued interest;  (b) If the revenue bonds are not then redeemable, the redemption price and accrued interest applicable on the first date  after  such  purchase upon which the revenue bonds become subject to redemption.   6.  In  the discretion of authorized issuers, the revenue bonds may be secured by a trust indenture by and between the authorized issuers and a corporate trustee, or a corporate trustee may  be  appointed  under  the resolution as provided in subdivision two of this section.   7.  Whether or not the revenue bonds are of such form and character as to be negotiable instruments under the terms of the  uniform  commercial code,  the  revenue  bonds are hereby made negotiable instruments within the meaning of and for all purposes  of  the  uniform  commercial  code, subject  only to the provisions of the revenue bonds for registration or any book-entry-only system.   8. Revenue bonds may  only  be  issued  for  authorized  purposes,  as defined  in  section  sixty-nine-m  of this article. Notwithstanding the foregoing, any  authorized  issuer  may  issue  revenue  bonds  for  any authorized  purpose. Any such revenue bonds issued by the New York state thruway authority shall be subject to the approval of the New York state public authorities control board, pursuant to section fifty-one  of  the public  authorities  law.  The  authorized  issuers  shall not issue any revenue bonds in an amount in excess  of  statutory  authorizations  for such  authorized  purposes.  Authorizations for such authorized purposes shall be reduced in an amount equal  to  the  amount  of  revenue  bonds issued  for  such authorized purposes under this article. Such reduction shall not be made in relation to revenue bonds issued  to  fund  reserve funds,  if  any,  and  costs of issuance, if these items are not counted under existing authorizations, nor shall revenue bonds issued to  refund bonds  issued  under  existing  authorizations reduce the amount of such authorizations.   9. Except upon the  amendment  of  the  New  York  state  constitution allowing the issuance or assumption of bonds, notes or other obligations secured  by  revenues,  which  may include the revenues securing revenue bonds of authorized issuers, and  the  affirmative  assumption  of  such bonds, notes or other obligations by the state, the revenue bonds of the authorized issuers authorized by this section shall not be a debt of the state  and  the  state  shall  not  be liable thereon, nor shall they be payable out of any funds other than  those  of  the  authorized  issuers pledged  therefor;  and  such  revenue  bonds  shall contain on the face  thereof a statement to such effect. In addition, any agreements  entered into by any entity pursuant to sections sixty-nine-o and ninety-two-h of this  chapter on behalf of the state to effect the implementation of any of  the  activities  financed  in  whole or in part with proceeds of the obligations of the authorized issuers authorized in this section do  not constitute  or  create a debt of the state, nor a contractual obligation in excess of the amounts appropriated therefor  and  the  state  has  no continuing  legal  or moral obligation to appropriate money for payments due under any such agreement.   10. Nothing in this article shall affect the authority of each of  the authorized  issuers  to  issue  or  incur  indebtedness for any purposes otherwise authorized by law and nothing in this article shall be  deemed to  alter or affect the rights of outstanding bondholders or noteholders of any authorized issuer.   11. The authorization, sale and issuance of revenue bonds pursuant  to this  section  shall  not be deemed an action as such term is defined in article eight of the environmental conservation law for the purposes  of such   article.   Such  exemption  shall  be  strictly  limited  in  its application to such  financing  activities  of  the  authorized  issuers hereunder and does not exempt any other entity from compliance with such article.   12.   The  comptroller  is  hereby  authorized  to  receive  from  the authorized issuers any portion of bond proceeds paid  to  provide  funds for or reimburse the state for its costs associated with such authorized purposes  and to credit such amounts to the capital projects fund or any other appropriate fund.