NY Pub Auth L § 1098 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 5 - Monroe County Water Authority 1098 - Bonds of the Authority.

§  1098. 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 a lien or pledge covering all or part  of  its  contracts,  earnings  or  revenues except that no resolution or other action of the authority providing for the issuance of bonds may be adopted or otherwise made effective without the  prior  approval  of  the  Monroe  county  legislature.  The  powers conferred by this section on such Monroe  county  legislature  shall  be exercised  with due regard for the rights of the holders of bonds of the authority at any time outstanding, and nothing in, or done pursuant  to, this section shall in any way limit, restrict or alter the obligation or powers   of   the   authority   or  any  member,  director,  officer  or representative of the authority to carry out and perform in every detail each and every covenant, agreement or  contract  at  any  time  made  or entered  into by or on behalf of the authority with respect to its bonds or for the benefit, protection, or security of the holders thereof.  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 rates per annum not exceeding six per centum per annum payable  at  such times  within  the limitations as to interest cost hereinafter provided, 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, at par or at a price not exceeding one hundred five per centum of their face value,  as such resolution or resolutions may provide.   All bonds of the authority may be sold at public or private sale. Such bonds  shall  be sold for a price not less than ninety-six per centum of the par value thereof, plus accrued interest, provided always  that  the interest  cost  to maturity of the monies realized from the sale of such bonds shall not exceed six per centum per annum.   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  on the purposes to which and the manner in which the proceeds of sale of any issue of bonds may be applied;  (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 trust deed or  indenture  securing the bonds or under which bonds may be issued;  (j)  defining  the  acts  or omissions to act which shall constitute a default  in  the  obligations  and  duties  of  the  authority  to   the bondholders  and providing 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 this state;  (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.   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 (as distinguished from the power of  redemption  hereinabove provided)  any  bonds  issued  by  it  at  a  price of not more than the principal amount thereof and accrued interest, and all such bonds  shall be cancelled.   7.  In  the discretion of the authority, the bonds may be secured by a trust indenture 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  such provisions  for  protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants  setting  forth  the  duties  of  the  authority  in relation   to  the  construction,  maintenance,  operation,  repair  and insurance  of  the  properties,  and  the  custody,   safeguarding   and application  of all moneys, and may provide that the properties shall be constructed  and  paid  for  under  the  supervision  and  approval   of consulting  engineers. The authority may provide by such trust indenture for the payment of the proceeds of the bonds and  the  revenues  of  the  properties   to   the  trustee  under  such  trust  indenture  or  other depository, and for  the  method  of  disbursement  thereof,  with  such safeguards  and  restrictions as it may determine. All expenses incurred in  carrying  out  such  trust indenture may be treated as a part of the cost of maintenance, operation and repairs of  the  properties.  If  the bonds  shall  be secured by a trust indenture the bondholders shall have no authority to appoint a separate trustee to represent them.   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 or 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 obligation 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.