NY Pub Auth L § 1056 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 3 - Erie County Water Authority 1056 - Bonds of the Authority.

§  1056. Bonds of the authority. 1. The authority shall have the 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  any  of  its  corporate  purposes, including incidental expenses in connection therewith, and to secure the payment of the same by  lien  of the  pledge of the revenues. The authority shall have power from time to time whenever it deems refunding expedient, 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  of  its corporate purposes. Except as may be otherwise expressly provided by  the  authority,  every  issue  of  bonds  by  the authority  shall  be  general  obligations  payable  out  of any moneys, earnings or revenues of the authority, subject only  to  any  agreements with  the  holders  of  particular bonds pledging any particular moneys, earnings or revenues.   2. The bonds shall be authorized by resolution of  the  authority  and 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 per annum payable at such times, be in such denominations, be in such form either coupon or  registered,  carry  such  registration privileges,  be  executed  in such manner, be payable in lawful money of the United States of America, at such place or places and be subject  to such terms of redemption, as such resolution or resolutions may provide. Such  bonds  of  the authority may be sold at public or private sale for such price or prices as the authority shall determine provided, however, that any private sale shall be subject to  the  approval  of  the  state comptroller.  The  foregoing  provisions  shall  be  applicable to bonds issued by the authority notwithstanding  the  provisions  of  any  other general, special or local law to the contrary.   3. Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions, which shall be a part of the contract with the holders of the bonds thereby authorized, as to  (a)  pledging  all  or  any  part  of the moneys, earnings, income and revenues derived from all or any part of the properties of the authority to secure the payment of the bonds or of any issue of the bonds  subject to such agreements with bondholders as may then exist;  (b)  the  rates,  rentals,  fees  and  other  charges  to be fixed and collected and the amounts to be raised in each year thereby, and the use and disposition of the earnings and other revenues;  (c) the setting aside of reserves and the creation  of  sinking  funds and the regulation and disposition thereof;  (d) limitations on the right of the authority to restrict and regulate the  use  of  the  properties  in  connection  with which such bonds are issued;  (e) limitations in the purposes to which the proceeds of sale  of  any issue  of  bonds may be applied and pledging such proceeds to secure the payment of the bonds or any issue of the bonds;  (f) limitations on the issuance of additional bonds,  the  terms  upon which  additional  bonds  may  be  issued  and secured; 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, 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 earnings or  revenues of the authority may be deposited;  (i)  the  terms  and  provisions  of  any  mortgage  or  trust deed or indenture securing the bonds or under which 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  sixty-six  hereof,  and limiting or abrogating the right of the bondholders to appoint a trustee under  such  section  or  limiting the rights, duties and powers of such trustee;  (k) limitations on the power of the authority  to  sell  or  otherwise dispose of its properties;  (l) any other matters, of like or different character which in any way affect the security or protection of the bonds;  (m) limitations on the amount of moneys derived from the properties to be  expended  for  operating,  administrative  or  other expenses of the authority;  (n) the protection and enforcement of the rights and remedies  of  the bondholders;  (o)  the obligations of the authority in relation to the construction, maintenance, operation, repairs and insurance  of  the  properties,  the safeguarding  and  application  of all moneys and as to the requirements for the supervision and approval of consulting engineers  in  connection with construction, reconstruction and operation;  (p)  the  payment  of  the  proceeds  of  bonds  and  revenues  of the properties to a trustee or other  depositary,  and  for  the  method  of disbursement  thereof  with  such  safeguards  and  restrictions  as the authority may determine.   4. It is the intention of the legislature that any pledge of earnings, revenues or other moneys made  by  the  authority  shall  be  valid  and binding  from  the  time  when  the  pledge  is made; that the earnings, 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.   5.  Neither  the members of the authority nor any person executing the bonds shall be liable personally on the  bonds  or  be  subject  to  any personal liability or accountability by reason of the issuance thereof.   6.  The authority shall have power out of any funds available therefor to purchase bonds. The authority shall cancel such bonds, subject to and in accordance with agreements with bondholders.   7. In the discretion of the authority, the bonds may be secured  by  a trust  indenture  (instead of a resolution) 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  any  of  the  provisions  which  a   resolution authorizing bonds may contain.   Notwithstanding  any other provisions of this title, any resolution or resolutions authorizing bonds or notes of the authority shall contain  a covenant  by  the  authority  that  it will at all times maintain rates, fees, rentals  and  other  charges  sufficient  to  pay,  and  that  any contracts  entered into by the authority for the sale or distribution of water shall contain rates, fees, rentals or other charges sufficient  to pay,  the  cost  of  operation  and  maintenance  of the properties, the principal of and interest on any obligations  issued  pursuant  to  such resolution  or resolutions as the same severally become due and payable,  and to maintain any reserves or other funds required  by  the  terms  of such resolution or resolutions.