NY Pub Auth L § 1269 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 11 - Metropolitan Commuter Transportation Authority 1269 - Notes, Bonds and Other Obligations of the Authority.

§  1269.  Notes,  bonds and other obligations of the authority. 1. (a) The authority shall have power and is hereby  authorized  from  time  to time  to  issue its bonds, notes and other obligations in such principal amount as,  in  the  opinion  of  the  authority,  shall  be  necessary, convenient  or  desirable  to effectuate any of its powers and purposes, including to  provide  sufficient  funds  for  achieving  its  purposes, including  the  acquisition,  establishment, construction, effectuation, operation,    maintenance,    renovation,    improvement,     extension, rehabilitation  or repair of any transportation facility, the payment of principal, redemption premium and interest on  bonds,  notes  and  other obligations  of  the authority, establishment of reserves to secure such bonds notes and other obligations, the provision of working capital  and all other expenditures of the authority and its subsidiary corporations, and  New  York  city  transit  authority and its subsidiary corporations incident to and necessary or convenient to carry out their purposes  and powers.  Such  bonds,  notes  or  other obligations may be issued for an individual transportation facility or issued on a consolidated basis for such groups or classes of facilities and projects as  the  authority  in its  discretion  deems  appropriate  and  be  payable  from  and secured separately or on a consolidated basis by, among other things, all or any portion of such revenues and other monies and assets  of  the  authority and its subsidiary corporations, and New York city transit authority and its  subsidiary  corporations  as the authority determines in accordance with the provisions of section twelve hundred seventy-d of this title;  (b) The authority shall have  power,  from  time  to  time,  to  issue renewal  notes,  to  issue  bonds  to  refund,  redeem or otherwise pay, including by  purchase  or  tender,  notes  of  the  authority  and  its subsidiary  corporations,  and  New  York city transit authority and its subsidiary corporations and whenever it deems refunding,  redemption  or payment  expedient,  to  refund,  redeem  or otherwise pay, including by purchase or tender, any  bonds  of  the  authority  and  its  subsidiary corporations,  New  York  city  transit  authority  and  its  subsidiary corporations and Triborough bridge and tunnel authority by the  issuance of  new  bonds,  whether the bonds to be refunded, redeemed or otherwise paid have or have not matured,  and  to  issue  bonds  partly  for  such purpose  and  partly  for  any  other  purpose  and to otherwise refund, redeem, acquire by purchase or tender, or in any  other  way  repay  any outstanding  notes,  bonds or other obligations of the authority, any of its subsidiary corporations, New York city transit authority, any of its subsidiary corporations and Triborough bridge and tunnel authority;  (c) Every issue of its notes, bonds  or  other  obligations  shall  be general  obligations  or  special  obligations.  Every  issue of general obligations of the authority shall be payable out  of  any  revenues  or monies of the authority, subject only to any agreements with the holders of  particular  notes  or  bonds  pledging  any  particular  receipts or revenues. Every issue of special obligations shall be payable out of any revenues, receipts, monies or other assets  of  the  authority  and  its subsidiary  corporations,  the  New  York city transit authority and its subsidiary corporations and the Triborough bridge and  tunnel  authority identified  for  such  purposes  in  accordance with agreements with the holders of particular notes, bonds or other obligations.  The  authority may  issue  transportation  revenue  special  obligation bonds, notes or other obligations as provided in section  twelve  hundred  seventy-d  of this title;   1-a.  Pension  obligation  bonds.  The authority may from time to time issue its bonds and notes in such principal amounts as, in  the  opinion of  the  authority,  shall  be necessary to finance the unfunded pension fund liabilities of the  authority,  its  affiliates  and  subsidiaries,  provided,  however,  that  in  no  event shall the cumulative amounts of bonds and notes issued pursuant to the  authority  of  this  subdivision exceed  one billion two hundred million dollars or sixty percent of such unfunded  pension  fund  liabilities,  whichever  is less, and provided, further, that no bonds shall be issued under this subdivision for a term longer than twenty years. The authority may not issue bonds or notes  in any  twelve  month  period in a cumulative principal amount in excess of forty percent of the total amount permitted  to  be  issued  under  this subdivision.  Prior to the issuance of any bonds or notes, the authority shall make a finding that such issue is expected to result, on a present value basis, in a lower effective cost to the authority than funding the unfunded pension fund liability solely through  the  payment  of  annual amounts  to  the  pension fund, assuming that the principal component of the unfunded liability will be amortized over the same number  of  years as  the term of the bonds or notes and that the interest payable thereon is the actuarial rate of interest determined  by  the  actuary  for  the pension  fund  at  the  time of the issuance of such bonds or notes. The aggregate principal amount of bonds and notes issued for  such  purposes may  be  increased to fund costs of issuance and may reasonably required debt service of other reserve funds. Bonds and notes may  be  issued  to refund  or  otherwise  repay  bonds or notes theretofore issued for such purposes; provided, however, that upon any such refunding  or  repayment (including  for  purpose of such calculation the principal amount of the refunding bonds or notes then to be issued and excluding  the  principal amount  of  the  bonds  or  notes  so  to be refunded or repaid and also excluding any amounts used to  pay  costs  of  issuance  and  reasonably required  debt  service or other reserve funds) the present value of the aggregate debt service of the refunding or repayment bonds or  notes  to be  issued  shall  not  exceed  the  present value of the aggregate debt service of the bonds or notes so to be refunded or repaid. For  purposes of  the  preceding  sentence,  the  present values of the aggregate debt service of the  refunding  or  repayment  bonds  or  notes  and  of  the aggregate debt service of the bonds or notes so to be refunded or repaid shall  be  calculated  by  utilizing  the effective interest rate of the refunding or repayment bonds or notes, 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  or notes from the payment dates thereof to the date of issue of the refunding or repayment bonds or notes and to the price  bid including  estimated  accrued  interest  or  proceeds  received  by  the authority including estimated accrued interest from  the  sale  thereof. Debt  service  on  the  bonds  or  notes shall be structured so that the economic benefits thereof shall be relatively uniform for each full year throughout the term of the bonds or notes. Beginning with  the  date  of first  issuance  of  bonds  under  this  section,  the authority and its subsidiaries shall make annual payments into the pension fund in amounts at least equal to the current pension contribution liability  applicable to  such  year.  The  net  proceeds of the bonds or notes intended to be invested in non-debt securities may be invested by the recipient pension fund in a fiscally prudent manner  in  securities  consistent  with  any trust  indentures  and  all  applicable  state  and  federal  law over a reasonable period of time not less than 30 days following  the  issuance of  the bonds or notes. The operating budget savings associated with the issuance of pension obligation bonds during the period from April first, two  thousand  five,  through  March  thirty-first,  two  thousand  ten, pursuant  to  this  subdivision  shall  be dedicated to reducing service eliminations projected to occur within that period.    2. The notes, bonds and  other  obligations  shall  be  authorized  by resolution approved by not less than a majority vote of the whole number of  members of the authority then in office, except that in the event of a tie vote the chairman shall cast  one  additional  vote.  Such  notes, bonds  and  other  obligations  shall bear such date or dates, and shall mature at such time or times, in the  case  of  any  such  note  or  any renewals thereof not exceeding five years from the date of issue of such original  note,  and  in  the  case of any such bond not exceeding fifty years from the date of issue, as  such  resolution  or  resolutions  may provide.  The  notes, bonds and other obligations shall bear interest at such rate or rates, be in such denominations, 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 of redemption as such resolution  or resolutions  may  provide. The notes, bonds and other obligations of the authority may be sold by the authority, at public or  private  sale,  at such price or prices as the authority shall determine. No notes or bonds of  the authority may be sold by the authority at private sale, however, unless such sale and the terms thereof have been approved in writing  by (a)  the  comptroller, where such sale is not to the comptroller, or (b) the director of the budget, where such sale is to the comptroller.   3. Any resolution or resolutions authorizing any notes, bonds  or  any issue  thereof,  or  any other obligations of the authority, 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 of the authority or of any of its subsidiary corporations or New York city transit authority or any of its subsidiary  corporations  or  Triborough  bridge  and  tunnel authority  to  secure  the payment of the notes or bonds or of any issue thereof, or any other obligations of  the  authority,  subject  to  such applicable agreements with bondholders, noteholders, or holders of other obligations  of  the  authority, the New York city transit authority and its subsidiary corporations, and Triborough bridge and tunnel  authority as may then exist;  (b)  pledging all or any part of the assets of the authority or of any of its subsidiary corporations or New York city transit authority or any of its subsidiary corporations or Triborough bridge and tunnel authority to secure the payment of the notes or bonds or of any issue of notes  or bonds,  or  any  other  obligations  of  the  authority, subject to such agreements  with  noteholders,  bondholders,   or   holders   of   other obligations  of  the  authority, the New York city transit authority and its subsidiary corporations, and Triborough bridge and tunnel  authority as may then exist;  (c)  the  use  and  disposition  of  revenues, including fares, tolls, rentals, rates,  charges  and  other  fees,  made  or  received  by  the authority,  any  of  its  subsidiary corporations, New York city transit authority or any of its subsidiary corporations,  or  Triborough  bridge and tunnel authority;  (d)  the setting aside of reserves or sinking funds and the regulation and disposition thereof;  (e) limitations on the purpose to which the proceeds of sale of notes, bonds or other obligations of the authority may be applied and  pledging such  proceeds  to  secure  the  payment of the notes or bonds or of any issue thereof or of other obligations;  (f) limitations on the issuance of additional notes,  bonds  or  other obligations  of  the  authority;  the terms upon which additional notes, bonds or other obligations of the authority may be issued  and  secured;  the  refunding of outstanding or other notes, bonds or other obligations of the authority;  (g)  the  procedure,  if  any, by which the terms of any contract with noteholders,  bondholders,  or  holders  of  other  obligations  of  the authority,  may  be  amended or abrogated, the amount of notes, bonds or other obligations of the authority the holders  of  which  must  consent thereto, and the manner in which such consent may be given;  (h)  limitations  on  the  amount  of  monies  to  be  expended by the authority or any of its subsidiary corporations or New York city transit authority or any of its subsidiary corporations or Triborough bridge and tunnel authority for operating, administrative or other expenses of  the authority or any of its subsidiary corporations or New York city transit authority or any of its subsidiary corporations or Triborough bridge and tunnel authority;  (i) vesting in a trustee or trustees such property, 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,  noteholders  or  holders  of  other  obligations  of   the authority  pursuant  to this title, and limiting or abrogating the right of the bondholders, noteholders or holders of other obligations  of  the authority  to  appoint  a  trustee  under  this  article or limiting the rights, powers and duties of such trustee;  (j) any other matters, of like or different character,  which  in  any way  affect  the  security  or  protection  of the notes, bonds or other obligations of the authority.   4. In addition to the powers herein conferred upon  the  authority  to secure  its notes, bonds and other obligations, the authority shall have power in  connection  with  the  issuance  of  notes,  bonds  and  other obligations  to  enter  into  such  agreements as the authority may deem necessary, convenient or desirable concerning the use or disposition  of the  monies  or  property  of  any  of  the  authority,  its  subsidiary corporations, New York city transit authority, or any of its  subsidiary corporations,  or  Triborough bridge and tunnel authority, including the mortgaging of any such property and the entrusting, pledging or creation of any other security interest in any such 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  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 the notes, bonds and other obligations of the authority.   5. It is the intention hereof that any pledge,  mortgage  or  security instrument  made  by  the  authority shall be valid and binding from the time when the pledge, mortgage or security instrument is made; that  the monies  or  property  so pledged, mortgaged and entrusted and thereafter received by the authority, or any of its subsidiary  corporations  shall immediately  be subject to the lien of such pledge, mortgage or security instrument without any physical delivery thereof  or  further  act;  and that  the lien of any such pledge, mortgage or security instrument shall be valid and binding as against all parties having claims of any kind in tort, contract or  otherwise  against  the  authority,  or  any  of  its subsidiary  corporations,  irrespective  of  whether  such  parties have notice thereof.  Neither  the  resolution  nor  any  mortgage,  security instrument or other instrument by which a pledge, mortgage lien or other security  is created need be recorded or filed and neither the authority nor, any of its subsidiary corporations shall be required to comply with any of the provisions of the uniform commercial code.    6. Neither the members of the authority, the  New  York  city  transit authority  or  the Triborough bridge and tunnel authority nor any person executing  the  notes,  bonds  or  other  obligations  shall  be  liable personally on the notes, bonds or other obligations or be subject to any personal liability or accountability by reason of the issuance thereof.   7.  The  authority,  subject  to  such  agreements with the holders of notes, bonds or other obligations as may then exist,  shall  have  power out  of  any  funds available therefor to purchase notes, bonds or other obligations of the authority. The authority may  hold,  cancel  or  sell such  bonds,  notes  and other obligations, subject to and in accordance with agreements with such holders.   8. Neither the state nor the city of  New  York  shall  be  liable  on notes, bonds or other obligations of the authority and such notes, bonds and  other  obligations  shall not be a debt of the state or the city of New York, and such notes, bonds and other obligations shall  contain  on the  face thereof, or in an equally prominent place, a statement to such effect.   9. So long as the authority has outstanding any bonds, notes or  other obligations issued pursuant to this section or any bonds, notes or other obligations  issued  or  incurred  pursuant  to  section  twelve hundred sixty-six-c of  this  title,  none  of  the  authority  or  any  of  its subsidiary  corporations,  New York city transit authority or any of its subsidiary corporations, or Triborough bridge and tunnel authority shall have the authority to file a voluntary petition under  chapter  nine  of the  federal  bankruptcy code or such corresponding chapter, chapters or sections as may, from time to time, be in effect, and neither any public officer nor any organization, entity or other person shall authorize the authority or any of its subsidiary corporations, New York  city  transit authority  or  any  of its subsidiary corporations, or Triborough bridge and tunnel authority to be or become a debtor under chapter nine or said corresponding chapter, chapters or sections during any such period.   10. The term "monies" as used in this section shall include,  but  not be  limited  to,  all  operating  subsidies  provided  by (i) any public benefit corporation, including without limitation transfers of operating surplus by Triborough bridge and tunnel authority  pursuant  to  section twelve  hundred  nineteen-a  of  this  article, or (ii) any governmental entity, federal, state or local.   11. Any resolution or agreement authorizing  the  issuance  of  bonds, notes  or  other  obligations pursuant to this section may, in addition, authorize and provide for the  issuance  of  lease  obligations  of  the authority  which  may  be  issued  for the purposes and on the terms and conditions under which the bonds, notes and other obligations authorized under this section may be issued, and may be secured in the same  manner as  such  bonds,  notes and other obligations, and which resolution with respect to such lease obligations, may  contain  such  other  provisions applicable  to  bonds, notes and other obligations not inconsistent with the provisions of this section, as the authority may determine.   12.  The  aggregate  principal  amount  of  bonds,  notes   or   other obligations  issued  after  the  first  day of January, nineteen hundred ninety-three  by  the  authority,  the  Triborough  bridge  and   tunnel authority  and  the  New  York  city  transit authority to fund projects contained in capital program plans approved pursuant to  section  twelve hundred  sixty-nine-b  of  this  title  for  the period nineteen hundred ninety-two through two thousand  twenty-four  shall  not  exceed  ninety billion  one hundred million dollars. Such aggregate principal amount of bonds, notes or other obligations or the expenditure thereof  shall  not be  subject to any limitation contained in any other provision of law on the principal amount  of  bonds,  notes  or  other  obligations  or  the  expenditure  thereof  applicable to the authority, the Triborough bridge and tunnel authority  or  the  New  York  city  transit  authority.  The aggregate  limitation  established by this subdivision shall not include (i)  obligations  issued to refund, redeem or otherwise repay, including by purchase or tender, obligations  theretofore  issued  either  by  the issuer  of  such refunding obligations or by the authority, the New York city transit authority or the Triborough bridge  and  tunnel  authority, (ii)  obligations issued to fund any debt service or other reserve funds for such obligations, (iii) obligations issued or incurred to  fund  the costs  of  issuance, the payment of amounts required under bond and note facilities, federal or other  governmental  loans,  security  or  credit arrangements  or  other  agreements  related  thereto and the payment of other financing, original issue premiums and  related  costs  associated with  such  obligations,  (iv)  an  amount  equal  to any original issue discount from the principal  amount  of  such  obligations  or  to  fund capitalized  interest,  (v)  obligations  incurred  pursuant  to section twelve hundred seven-m of this article,  (vi)  obligations  incurred  to fund  the  acquisition  of  certain  buses for the New York city transit authority as identified in a capital program plan approved  pursuant  to chapter  fifty-three  of  the laws of nineteen hundred ninety-two, (vii) obligations  incurred  in  connection  with  the  leasing,  selling   or transferring  of  equipment, and (viii) bond anticipation notes or other obligations payable solely from the proceeds of other  bonds,  notes  or other  obligations  which  would  be included in the aggregate principal amount specified in the first sentence of this subdivision,  whether  or not  additionally  secured  by  revenues of the authority, or any of its subsidiary corporations, New York city transit authority, or any of  its subsidiary corporations, or Triborough bridge and tunnel authority.