NY Pub Auth L § 1128-2 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 6-C* - Dutchess County Water and Wastewater Authority 1128*2 - Bonds of the Authority.

* §  1128.  Bonds  of  the  authority. 1. The authority shall have the power and is hereby authorized from time to time to issue bonds in  such principal amounts as it may determine to be necessary to pay the cost of any  project  or  for  any other corporate purpose, including incidental expenses in connection therewith. 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.  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  only  to  any agreements with the holders of outstanding bonds pledging any particular revenues, earnings or moneys.   2. The authority is authorized to obtain from any insurer or financial institution  any  insurance, guaranty or other credit support device, to the extent now or hereafter available, as to,  or  for  the  payment  or repayment of interest or principal, or both, or any part thereof, on any bonds  issued  by  the  authority  and  to  enter  into any agreement or contract with respect to any such insurance, guaranty  or  other  credit support  device,  except  to  the  extent that the same would in any way impair or interfere with the ability of the  authority  to  perform  and fulfill  the terms of any agreement made with the holders of outstanding bonds of the authority.   3. (a) Bonds shall be authorized by resolution of the authority, be in such denominations, bear such date or dates and mature at such  time  or times as such resolution may provide, except that bonds and any renewals thereof  shall mature within forty years from the date of their original issuance and notes and any renewals thereof  shall  mature  within  five years  from  the date of their original issuance. Bonds shall be subject to such terms of redemption, bear interest at such  rate  or  rates  per annum,  which  may vary from time to time, as may be necessary to effect the sale thereof and shall be payable at such times, be  in  such  form, carry  such  registration  privileges,  be  executed  in such manner, be subject to tender to  the  authority,  with  or  without  extinction  or cancellation,  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. Bonds may be sold at public or private sale for such price or prices as the authority shall determine, provided that  no  bonds  of the  authority  may be sold by the authority at private sale unless such sale and the  terms  thereof  have  been  approved  in  writing  by  the comptroller, where such sale is not to be to such comptroller, or by the state  director  of  the  budget,  where  such  sale  is  to  be  to the comptroller.  (b) The state comptroller shall promulgate rules in  conformance  with the   state  administrative  procedure  act  governing  the  sale  on  a negotiated basis of bonds, notes and certificates  of  participation  by public  authorities and public benefit corporations made subject to such rules by law. No such sale by the authority on a negotiated basis  shall be  conducted  without prior approval of the state comptroller except as provided in such rules, which shall set forth  the  circumstances  under which  such approval shall not be required. Such rules shall be reviewed at least annually and updated as may be necessary. The corporation shall annually deliver to the senate finance committee, the assembly ways  and means  committee and the director of the division of the budget a report listing all such sales conducted in the previous year, including but not  limited to the name of the issuer, the amount of the issue, the interest rate and interest cost per year for each such sale.  (c)  Agreements  for  credit  enhancement. (1) The authority is hereby authorized and empowered to enter  into  such  agreements  as  it  deems reasonable  and appropriate, with any department or agency of the United States of America, the  state,  or  any  other  financially  responsible party,  to  facilitate  the issuance, sale, resale and payment of bonds, notes, or other evidences of indebtedness of the  authority,  including, but not limited to letters of credit, lines of credit, revolving credit, bond insurance or other credit enhancements. Such agreements may provide for:  (i) the advance or advances of funds on behalf of the authority to pay bonds, notes or other evidences of indebtedness of the authority  on their   date   or   dates  of  maturity  or  redemption;  and  (ii)  the reimbursement of such advance or advances by the authority.  (2) Such agreements may be executed on or before the date of  issuance of  the obligations to be paid pursuant thereto, provided, however, that any  reimbursement  obligation  of  the  authority   shall   be   deemed indebtedness  of  the  authority;  (i)  only  as  of  the  date that the corresponding advance is made  pursuant  to  subparagraph  one  of  this paragraph;  and  (ii) only in the amount of the advance made pursuant to such subparagraph. Such agreements may include a pledge by the authority of its faith and credit for the payment of any indebtedness deemed to be contracted as set forth in this paragraph, and may provide that any such indebtedness arising from a reimbursement obligation contracted pursuant to this section shall be paid in  accordance  with  the  terms  of  such agreement. Such indebtedness shall be excluded in ascertaining the power of the authority to contract indebtedness pursuant to this chapter. Such agreements shall also include such terms and conditions as the authority shall   deem  appropriate,  including  provisions  for  the  payment  of reasonable fees by the authority in return for a commitment  to  advance funds  pursuant to such agreement. Such fees shall be deemed part of the cost of the  object  or  purpose  in  connection  with  which  they  are incurred.  (3)  Prior to procurement of any credit or liquidity enhancements, the authority shall, to the extent practicable:  (i) consider the  ability  of  the  credit  or  liquidity  enhancement provider  to  make  required payments as and when due under the terms of the appropriate governing instruments;  (ii) consider the business  reputation  of  the  credit  or  liquidity enhancement provider;  (iii) consider the maximum term of the credit or liquidity enhancement relative  to the maturity of the bonds, notes or other obligations being credit or liquidity enhanced;  (iv) provide for the right of substitution for the credit or liquidity enhancement provider in all agreements, including a provision permitting such substitution when the rating of the credit or liquidity enhancement provider falls below the probable credit rating  of  the  issue  without considering the credit or liquidity enhancer; and  (v)  consider the cost of the credit or liquidity enhancement relative to the savings or other  benefit  likely  to  be  achieved  through  the utilization of the credit or liquidity enhancement.  (4)   Where  the  credit  or  liquidity  enhancement  procured  is  an irrevocable letter of  credit  or  an  acquisition  arrangement  with  a liquidity enhancer, such instrument shall be:  (i)  issued  or  confirmed  by  a  bank  holding company or its direct subsidiaries, a federally chartered bank or its subsidiaries, or a state chartered bank  or  its  subsidiaries,  licensed  or  authorized  to  do business in this state; and  (ii)  issued  or confirmed by an agency or branch of a foreign banking institution licensed to do business in this state with  total  worldwide assets in excess of five billion dollars.  (5)  Any such issuing banking organization referred to in subparagraph four of this paragraph shall meet the regulatory guidelines for  capital adequacy  as  promulgated  by  the appropriate federal banking agency as defined in the Federal Deposit Insurance Act, 12 U.S.C. 1813(q).  (6) Where the credit or liquidity enhancement procured is provided  by an  insurance company, such insurer shall be licensed to write financial guarantee insurance in this state.  (7) The failure of the authority to comply  with  subparagraphs  three through  six of this paragraph shall not invalidate or impair any credit or liquidity enhancement contract or instrument.   4. 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  any  part  of  the  revenues  of  the  authority, together  with  any other moneys or property of the authority, to secure the payment of the bonds, subject to such agreements with bondholders 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 any project or part hereof 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 bondholders may be  amended  or  abrogated,  including  the  portion  of bondholders  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  moneys may be deposited;  (i) the terms and provisions of any trust, deed, mortgage or indenture securing the bonds under which the bonds 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 trustee appointed by  the bondholders  pursuant to section one thousand one hundred twenty-nine of this title and limiting or abrogating the rights of the  bondholders  to appoint  a trustee under such section 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 bondholders and providing for the rights and remedies of the bondholders in the event of such  default,  including  as  a  matter  of  right  the 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  moneys  to  be expended   for  operating,  administrative  or  other  expenses  of  the authority;  (n) the payment of the proceeds of bonds, revenues and other moneys 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 may in any way affect the security or protection of the bonds  or  the  rights  and remedies of bondholders.   5.  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  enter into such agreements as the authority may deem  necessary,  convenient  or  desirable  concerning   the   use   or disposition  of  its revenues or other moneys or property, including the mortgaging of any of its properties  and  the  entrusting,  pledging  or creation  of any other security interest in any such revenues, moneys or properties and the doing of any act (including refraining from doing any act) which the authority would  have  to  do  in  the  absence  of  such agreements.  The  authority shall have power to enter into amendments of any such agreements within the powers granted to the authority  by  this title  and  to  perform  such  agreements.  The  provisions  of any such agreements may be made a part of the contract with the holders of  bonds of the authority.   6.  Any  provision  of  the  uniform  commercial  code to the contrary notwithstanding, any pledge of or other security interest  in  revenues, moneys, accounts, contract rights, general intangibles or other personal property  made  or  created by the authority shall be valid, binding and perfected from the time 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.   7. 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.   8. Neither the members of the authority nor any person executing bonds shall  be  liable  personally  thereon  or  be  subject  to any personal liability or accountability by reason of the issuance thereof.   9. The authority, subject to such agreements with bondholders as  then may  exist,  shall  have  power  out of any moneys available therefor to purchase bonds of the authority, which shall thereupon be cancelled at a price  not  exceeding;  (i)  if  the  bonds  are  then  redeemable,  the redemption  price  then  applicable  plus  accrued  interest to the next interest payment date, or (ii) if the bonds  are  not  then  immediately redeemable  then 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.   * NB There are 2 § 1128's