NY Pub Auth L § 1156 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 7 - Onondaga County Water Authority 1156 - Bonds of the Authority.

§  1156. 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 contract, earnings or  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 rates  per  annum not exceeding six per centum 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.   Bonds  of  the authority shall be sold at public sale upon sealed bids to the bidder who shall offer the lowest interest cost to the  authority to be determined by the authority. The notice of sale shall be published at  least  once,  not  less than ten nor more than forty days before the date of sale, in a financial newspaper published and circulated  in  the city  of New York and designated by the authority. The notice shall call for the receipt of sealed bids and shall fix the date, time and place of sale. Bonds may also be  sold  at  private  sale.  Such  bonds,  whether publicly  or  privately  sold,  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 moneys realized from the sale of such bonds shall not exceed six per centum per annum. The terms of private sale shall be approved by  the  comptroller, or by the division of the budget when the sale is to the comptroller.   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 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  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 eleven hundred forty-three 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)  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 and other provisions of this title;  (l)  limitations  on  the  power of the authority to sell or otherwise dispose of its properties;  (m) any other matters, of like or different character which in any way affect the security or protection of the bonds;  (n) limitations on the amount of moneys derived from the properties to be expended for operating,  administrative  or  other  expenses  of  the authority;  (o)  the  protection and enforcement of the rights and remedies of the bondholders;  (p) 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;  (q) 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  or  other  obligations shall be liable personally on the bonds or other  obligations  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  or  which  may be assumed by such  authority 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 and/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.