NY Pub Auth L § 1226-L (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 10 - Upper Mohawk Valley Regional Water Finance Authority 1226-L - Bonds of the Authority.

§  1226-l.  Bonds  of  the  authority. 1. The authority shall have the power and is hereby authorized from time to time to issue  bonds,  notes or  other  obligations  to  pay the cost of any project or for any other corporate purpose, including the establishment of reserves to secure the bonds, the payment of principal of, premium, if any, and interest on the bonds and the payment of incidental expenses in connection therewith.  (a) The aggregate principal amount  of  such  bonds,  notes  or  other obligations   shall   not  exceed  one  hundred  fifty  million  dollars ($150,000,000), excluding bonds, notes or other  obligations  issued  to refund  or otherwise repay bonds, notes or other obligations theretofore issued  for  such  purposes;  provided,  however,  that  upon  any  such refunding   or   repayment  the  total  aggregate  principal  amount  of outstanding bonds, notes or other obligations may be  greater  than  one hundred  fifty  million dollars ($150,000,000) only if the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations to be issued shall not exceed the present value  of the  aggregate  debt service of the bonds, notes or other obligations so to be refunded or repaid.  (b) Provided further that no such bonds, notes  or  other  obligations that  such  board  has  determined to be reasonably necessary to service manufacturing facilities constructed or to be constructed in the service area after January first, two thousand fourteen shall be issued if  such issuance would cause the aggregate principal amount of such bonds, notes or  other  obligations  outstanding  to exceed one hundred fifty million dollars. Provided, however, that upon any such  refunding  or  repayment the  total  aggregate  principal  amount  of outstanding bonds, notes or other obligations may be greater than one hundred million fifty  dollars ($150,000,000)  only  if the present value of the aggregate debt service of the refunding or repayment bonds, notes or other  obligations  to  be issued  shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be refunded or repaid.   For purposes hereof, the present values of the aggregate debt  service of  the  refunding or repayment bonds, notes or other obligations and of the aggregate debt service of the bonds, notes or other  obligations  so refunded  or  repaid,  shall  be  calculated  by utilizing the effective interest rate of the  refunding  or  repayment  bonds,  notes  or  other obligations,  which  shall  be  that  rate  arrived  at  by doubling the semi-annual  interest  rate  (compounded  semi-annually)  necessary   to discount  the debt service payments on the refunding or repayment bonds, notes or other obligations from the payment dates thereof to the date of issue of the refunding or repayment bonds, notes  or  other  obligations and  to  the  price bid including estimated accrued interest or proceeds received by the authority including estimated accrued interest from  the sale thereof. The authority shall have power and is hereby authorized to enter  into  such  agreements  and  perform such acts as may be required under any applicable federal legislation to secure a  federal  guarantee of any bonds.   2.  The authority shall have power from time to time to renew bonds or to issue renewal bonds for such purpose, to issue bonds  to  pay  bonds, and,  whenever  it  deems refunding expedient, to refund any bond 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 of the  authority.  Bonds  (other than  notes  or  other  evidence  of  indebtedness) issued for refunding purposes, which have a final maturity date longer than the  maturity  of the  bonds  being  refunded,  shall  be  approved by a resolution of the county legislature adopted by a majority vote and approved by the county executive. Bonds issued for refunding purposes shall  be  sold  and  the  proceeds  applied to the purchase, redemption or payment of the bonds or notes to be refunded.   3. Bonds issued by the authority may be general obligations secured by the  faith  and  credit  of  the authority or may be special obligations payable solely out of particular revenues or  other  moneys  as  may  be designated  in  the  proceedings  of the authority under which the bonds shall be authorized to be issued, subject as to  priority  only  to  any agreements with the holders of outstanding bonds pledging any particular property,  revenues  or  moneys.  The authority may also enter into loan agreements, lines of credit and other security agreements and obtain for or on its behalf letters  of  credit,  insurance,  guarantees  or  other credit  enhancements  to  the extent now or hereafter available, in each case for securing its bonds or to provide direct payment  of  any  costs which the authority is authorized to pay.   4.  Bonds  shall  be  authorized by resolution of the authority, be in such denominations and bear such date or dates and mature at  such  time or  times,  as  such  resolution  may  provide,  provided that bonds and renewals thereof shall mature  within  forty  years  from  the  date  of original issuance of any such bonds.   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 or registered, 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.  Notwithstanding  any other provision of law, the bonds of the authority issued pursuant to this  section  shall  be  sold  to  the bidder offering the lowest true interest cost, taking into consideration any  premium  or discount not less than four nor more that fifteen days, Sundays excepted, after a notice of such  sale  has  been  published  at least  once  in a newspaper of general circulation in the area served by the authority, which shall state the terms of the sale. The terms of the sale may not change unless notice of such change is  published  in  such newspaper at least one day prior to the date of the sale as set forth in the original notice of sale. Advertisements shall contain a provision to the  effect that the authority, in its discretion, may reject any or all bids made in pursuance of such advertisements, and in the event of  such rejection,  the authority is authorized to negotiate a private or public sale or readvertise for bids in the form and manner above  described  as many  times as, in its judgment, may be necessary to effect satisfactory sale.   Notwithstanding the provisions of the preceding paragraph, whenever in the judgment of the authority the interests of  the  authority  will  be served   thereby,   the   members  of  the  authority,  on  the  written recommendation of the chairperson, may authorize the sale of such  bonds at  private  or  public  sale  on  a  negotiated  basis  or  on either a competitive or negotiated basis.  The  authority  shall  set  guidelines governing  the terms and conditions of any such private or public sales. The private or public bond sale guidelines set by  the  authority  shall include,  but  not be limited to, a requirement that where the interests of the authority will be served by a private or public  sale  of  bonds, the  authority shall select underwriters for each private or public bond sale  conducted  pursuant  to  a  request  for  proposal   process   and consideration  of  proposals  from  qualified  underwriters  taking into account, among  other  things,  qualifications  of  underwriters  as  to experience,  their  ability to structure and sell authority bond issues, anticipated  costs  to  the  authority,  the  prior  experience  of  the authority  with  the  firm,  if  any,  the capitalization of such firms, participation of qualified minority and women-owned business  enterprise  firms  in such private or public sales of bonds of the authority and the experience and  ability  of  firms  under  consideration  to  work  with minority  and  women-owned  business  enterprises  so  as to promote and assist participation by such enterprises.   The  authority  shall  have  the power from time to time to amend such private bond sale guidelines in accordance with the provisions  of  this subdivision.   No  private  or  public  bond  sale  on  a  negotiated  basis shall be conducted  by  the  authority  without  prior  approval  of  the   state comptroller  and  the  county  comptroller. The authority shall annually prepare and approve a bond sale report which shall include  the  private or  public  bond  sale  guidelines  as  specified  in  this subdivision, amendments to such guidelines since the last private or public bond sale report, an explanation of the bond sale guidelines and  amendments,  and the  results of any sale of bonds conducted during the fiscal year. Such bond sale report may be a part of  any  other  annual  report  that  the authority is required to make.   The  authority shall annually submit its bond sale report to the state comptroller and the county comptroller and copies thereof to the  senate finance committee and the assembly ways and means committee.   The  authority  shall  make available to the public copies of its bond sale report upon reasonable request thereof.   Nothing contained in this subdivision shall be deemed to alter, affect the validity of, modify the terms of or impair any contract or agreement made or entered into in violation of, or without  compliance  with,  the provisions of this subdivision.   5.  Any  resolution  or  resolutions authorizing bonds or any issue of bonds may contain provisions which may be a part of  the  contract  with the holders of the bonds thereby authorized as to:  (a)  pledging all or part of the revenues, other monies or property of the authority to secure the payment  of  the  bonds,  or  any  costs  of issuance  thereof,  including but not limited to any contracts, earnings or proceeds of any grant to the authority received from any  private  or public  source  subject to such agreements with bond holders as may then exist;  (b) the setting aside of reserves and the creation  of  sinking  funds and the regulation and disposition thereof;  (c)  limitations on the purpose to which the proceeds from the sale of bonds may be applied;  (d) the rates, rents, fees and other charges to be fixed and collected by the authority and the amount to be raised in each  year  thereby  and the use and disposition of revenues;  (e) limitations on the right of the authority to restrict and regulate the  use  of  the project or part thereof in connection with which bonds are issued;  (f) limitations on the issuance of additional bonds,  the  terms  upon which  additional  bonds  may be issued and secured and the refunding of outstanding or other bonds;  (g) the procedure, if any, by which the terms  of  any  contract  with bond  holders  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;  (h)  the  creation  of special funds into which any revenues or monies may be deposited;  (i) the terms and provisions of any trust, mortgage, deed or indenture securing the bonds under which the bond may be issued;  (j) vesting in a trustee or trustees such properties,  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 trustees appointed by the bond holders to appoint a trustee pursuant to this title or limiting the rights, duties and powers of such trustee;  (k)  defining  the  acts  or  omissions  to act which may constitute a default in the obligations and duties  of  the  authority  to  the  bond holders and providing for the rights and remedies of the bond holders in the event of such default, including as a matter of right appointment of a  receiver,  provided, however, that such rights and remedies shall not be inconsistent with the general laws of the state and other  provisions of this title;  (l)  limitations  on  the  power of the authority to sell or otherwise dispose of any project or any part thereof;  (m) limitations on the amount of  revenues  and  other  monies  to  be expended   for  operating,  administrative  or  other  expenses  of  the authority;  (n) the payment of the proceeds of bonds, revenues and other monies to a trustee or other  depository,  and  for  the  method  of  disbursement thereof  with  such  safeguards  and  restrictions  as the authority may determine; and  (o) any other matters of like or different character which in any  way affect  the  security  or  protection  of  the  bonds  or the rights and remedies of bondholders.   6. In addition to the powers herein conferred upon  the  authority  to secure  its bonds, the authority shall have power in connection with the issuance of bonds  to  adopt  resolutions  and  enter  into  such  trust indentures,  agreements  or  other instruments as the authority may deem necessary, convenient or desirable concerning the use or disposition  of its  revenues  or  other monies or property, including the mortgaging of any property and the entrusting,  pledging  or  creation  of  any  other security interest in any such revenues, monies or property and the doing of  any act, including refraining from doing any act which the authority would have the right to do in the absence  of  such  resolutions,  trust indentures,  agreements  or  other instruments. The authority shall have power  to  enter  into  amendments  of  any  such   resolutions,   trust indentures,  agreements or other instruments. The provisions of any such resolutions, trust indentures, agreements or other  instruments  may  be made a part of the contract with the holders of bonds of the authority.   7.  Any  provision  of  the  uniform  commercial  code to the contrary notwithstanding, any pledge of or other security interest  in  revenues, monies, accounts, contract rights, general intangibles or other personal property  made  or  created by the authority shall be valid, binding and perfected from the time when such  pledge  is  made  or  other  security interest  attaches  without  any  physical delivery of the collateral or further act, and the lien of any such pledge or other security  interest shall  be valid, binding and perfected against all parties having claims of any kind  in  tort,  contract  or  otherwise  against  the  authority irrespective  of  whether  or  not  such parties have notice thereof. No instrument by which such a pledge or security interest  is  created  nor any financing statement need be recorded or filed.   8.  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.   9. Neither the members of the authority nor any person  executing  its bonds  shall  be  liable  personally  on  its bonds or be subject to any personal liability or accountability by reason of the issuance thereof.    10. Subject to such agreements with bondholders as may then exist, the authority shall have power  out  of  any  funds  available  therefor  to purchase  bonds of the authority, which shall thereupon be cancelled, at a price not  exceeding  (a)  if  the  bonds  are  then  redeemable,  the redemption  price  then  applicable  plus  accrued  interest to the next interest payment date, or (b) if the bonds are not then redeemable,  the redemption  price  applicable on the first date after such purchase upon which the bonds become subject to redemption plus  accrued  interest  to the  next  interest  payment date. Bonds so purchased shall thereupon be cancelled.