NY State Fin L § 68-B (2021)
2021 New York Laws STF - State Finance Article 5-C - Revenue Bond Financing Program 68-B - Issuance of Bonds and Notes.

§  68-b.  Issuance of bonds and notes. 1. (a) Authorized issuers shall have the power and are hereby authorized from  time  to  time  to  issue revenue   bonds,  in  such  principal  amount  or  amounts,  subject  to subdivision eight of this section and as  the  director  of  the  budget shall  determine  to  be  necessary,  to  provide  sufficient  funds for authorized purposes,  the  establishment  of  reserves  to  secure  such revenue  bonds,  the  payment of amounts required under revenue bonds or agreements relating thereto, and the payment of all costs of issuance of their revenue bonds.  (b) The authorized  issuers  shall  have  the  power  and  are  hereby authorized  from time to time to issue (i) revenue bonds to renew notes, (ii) revenue bonds to pay notes, and (iii) whenever it  deems  refunding expedient,  to  refund any bonds, notes, or other obligations issued for an authorized purpose or purposes, by the issuance of new revenue bonds, including bonds, notes, or other obligations that were issued  prior  to the  enactment  of  this  article,  whether  the  bonds, notes, or other obligations to be refunded have  or  have  not  matured,  and  to  issue revenue  bonds in part to refund bonds, notes, or other obligations then outstanding and in part for any of its other  authorized  purposes.  The refunding  revenue  bonds  may  be  exchanged for bonds, notes, or other obligations to be refunded, or sold and  the  proceeds  applied  to  the purchase,   redemption  or  payment  of  such  bonds,  notes,  or  other obligations.  (c) Except as may otherwise be expressly  provided  by  an  authorized issuer, every issue of revenue bonds of an authorized issuer pursuant to this  section  shall  be  special  obligations  of the authorized issuer payable solely out of any revenues paid over to such  authorized  issuer from  the  revenue  bond  tax  fund,  established  pursuant  to  section ninety-two-z of this chapter.  (d) All of the provisions of  the  enabling  acts  of  the  authorized issuers relating to bonds and notes, which are not inconsistent with the provisions  of  this  section,  may, at the discretion of the authorized issuer, apply to revenue bonds authorized by this section.  (e) The revenue bonds of the authorized  issuers  authorized  by  this section  shall  not  be  a  debt of the state and the state shall not be liable thereon, nor shall they be payable out of any  funds  other  than those of the authorized issuers pledged therefor; and such revenue bonds shall  contain  on  the  face  thereof  a  statement  to such effect. In addition, any agreements entered into by any entity pursuant to sections sixty-eight-c and ninety-two-z of this chapter on behalf of the state to effect the implementation of any of the activities financed in whole  or in  part  with  proceeds  of the revenue bonds of the authorized issuers authorized in this section do not constitute or create  a  debt  of  the state,   nor   a   contractual  obligation  in  excess  of  the  amounts appropriated therefor, and the state has no continuing  legal  or  moral obligation  to  appropriate  money  for  payments  due  under  any  such agreement.  (f) (i) Revenue  bonds  shall  be  authorized  by  resolution  of  the authorized  issuers,  be  in such denominations, bear such date or dates and mature at such time or times, as such resolution or other  agreement may provide.  (ii)  Revenue bonds shall be subject to such terms of redemption, bear interest at such rate or rates, be payable at such  times,  be  in  such form,   either  coupon,  registered  or  book  entry  form,  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 and conditions as such resolution may provide.  (g) Revenue bonds authorized hereunder shall  be  sold  by  authorized issuers,  at  public  or  private  sale,  at such price or prices as the authorized issuers  may  determine.  Revenue  bonds  of  the  authorized issuers  shall  not  be  sold by the authorized issuers at private sales unless  such  sale and the terms thereof have been approved by the state comptroller.   2. Consistent with the provisions of this article, and subject to  the approval  of  the  director  of  the  budget,  any  resolution  or other agreement authorizing revenue bonds or any  issue  thereof  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  received  by  the authorized  issuers pursuant to section sixty-eight-c of this article to secure the payment of the bonds  or  notes  or  of  any  issue  thereof, subject  to  such  agreements  with holders of revenue bonds as may then exist;  (b) pledging all or any part of the assets of the  authorized  issuers to  secure  the  payment of the revenue bonds or of any issue of revenue bonds subject to such agreements with holders of revenue  bonds  as  may then exist;  (c)  the setting aside of reserves or sinking funds and the regulation and disposition thereof;  (d) limitations on the purposes to  which  the  proceeds  of  sale  of revenue  bonds,  may be applied and pledging such proceeds to secure the payment of the revenue bonds or of any issue thereof;  (e) limitations on the issuance of additional revenue bonds the  terms upon  which  additional  revenue bonds may be issued and secured and the refunding of outstanding or other revenue bonds;  (f) the procedure, if any, by which the terms  of  any  contract  with holders  of  revenue  bonds  may  be amended or abrogated, the amount of revenue bonds the holders of which must consent thereto and  the  manner in which such consent may be given;  (g)  vesting  in  a  trustee,  as described in subdivision six of this section, such property, rights,  powers  and  duties  in  trust  as  the authorized  issuers  may  determine, which may include any or all of the rights, powers and duties of the trustee appointed  by  the  holders  of revenue  bonds  of  the  respective  authorized issuers pursuant to this article, and limiting or abrogating  the  right  of  such  revenue  bond holders  to  appoint  a trustee under this title or limiting the rights, powers, and duties of such trustee;  (h) the acts or omissions to act which shall constitute a  default  in the  obligations  and duties of the authorized issuers to the holders of the revenue bonds and providing for  the  rights  and  remedies  of  the holders  of  the  revenue  bonds in event of such default, including the right to appointment of a receiver; provided, however, that such  rights and remedies shall not be inconsistent with the other provisions of this article;  (i)  any  other  matters, of like or different character, which in any way affect the security or protection of  the  holders  of  the  revenue bonds; and  (j) the application of any of the foregoing provisions to any provider of any applicable bond, note or other financial facility.   Notwithstanding  the  foregoing,  the  authorized issuers shall not be authorized  to  make  any  covenant,  pledge,  promise,   or   agreement purporting to bind the state except as otherwise specifically authorized by this article.   3. Any pledge made by the respective authorized issuers shall be valid and  binding  from  the  time  when  the pledge is made. The revenues or  property so pledged and thereafter received by the respective authorized issuers shall immediately be subject to the lien of such pledge  without any  physical  delivery thereof or further act, and 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  respective authorized  issuers,  irrespective  of  whether such parties have notice thereof. Neither the resolution nor any  other  instrument  by  which  a pledge is created need be recorded or filed to protect such pledge.   4.  Neither the directors or members of the authorized issuers nor any other person executing the revenue bonds of the authorized issuers shall be liable personally thereon or be subject to any personal liability  or accountability solely by reason of the issuance thereof.   5.  The authorized issuers, subject to such agreements with holders of revenue bonds as may then exist, or with the providers of any applicable bond or note or other financial or agreement facility, shall have  power out  of  any  funds  available therefor to purchase revenue bonds of the authorized issuers, which may or may not thereupon  be  canceled,  at  a price not exceeding:  (a)  if  the  revenue  bonds are then redeemable, the redemption price then applicable, including any accrued interest;  (b) if the revenue bonds are not then redeemable, the redemption price and accrued interest applicable on the first date  after  such  purchase upon which the revenue bonds become subject to redemption.   6.  In the discretion of the authorized issuers, the revenue bonds may be secured by a trust indenture by and between  the  authorized  issuers and  a  corporate trustee, or a corporate trustee may be appointed under the resolution as provided in subdivision two of this section.   7. Whether or not the revenue bonds are of such form and character  as to  be  negotiable instruments under the terms of the uniform commercial code, the revenue 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 revenue bonds for registration  or any book-entry-only system.   8.  Revenue  bonds  may  only  be  issued  for authorized purposes, as defined in section sixty-eight-a of this  article.  Notwithstanding  the foregoing,  the  dormitory authority of the state of New York, the urban development corporation and the New York  state  thruway  authority  may issue  revenue  bonds  for  any  authorized  purpose  of  any other such authorized issuer through March thirty-first, two thousand  twenty-five. Any  such  revenue  bonds issued by the New York state thruway authority shall  be  subject  to  the  approval  of  the  New  York  state  public authorities  control  board, pursuant to section fifty-one of the public authorities law. The authorized issuers  shall  not  issue  any  revenue bonds  in  an  amount  in  excess  of  statutory authorizations for such authorized purposes.  Authorizations for such authorized purposes  shall be  reduced in an amount equal to the amount of revenue bonds issued for such authorized purposes under this article. Such reduction shall not be made in relation to revenue bonds issued to fund reserve funds, if  any, and  costs  of  issuance,  if these items are not counted under existing authorizations, nor shall revenue bonds issued to  refund  bonds  issued under existing authorizations reduce the amount of such authorizations.   9.  Except  upon  the  amendment  of  the  New York state constitution allowing the issuance or assumption of bonds, notes or other obligations secured by revenues, which may include  the  revenues  securing  revenue bonds  of  authorized  issuers,  and  the affirmative assumption of such bonds, notes or other obligations by the state, the revenue bonds of the authorized issuers authorized by this section shall not be a debt of the state and the state shall not be  liable  thereon,  nor  shall  they  be  payable  out  of  any  funds  other than those of the authorized issuers pledged therefor; and such revenue  bonds  shall  contain  on  the  face thereof  a statement to such effect. In addition, any agreements entered into  by  any entity pursuant to sections sixty-eight-c and ninety-two-z of this chapter on behalf of the state to effect the  implementation  of any  of the activities financed in whole or in part with proceeds of the obligations of the authorized issuers authorized in this section do  not constitute  or  create a debt of the state, nor a contractual obligation in excess of the amounts appropriated therefor  and  the  state  has  no continuing  legal  or moral obligation to appropriate money for payments due under any such agreement.   10. Nothing in this article shall affect the authority of each of  the authorized  issuers  to  issue  or  incur  indebtedness for any purposes otherwise authorized by law and nothing in this article shall be  deemed to  alter or affect the rights of outstanding bondholders or noteholders of any authorized issuer.   11. The authorization, sale and issuance of revenue bonds pursuant  to this  section  shall  not be deemed an action as such term is defined in article eight of the environmental conservation law for the purposes  of such   article.   Such  exemption  shall  be  strictly  limited  in  its application to such  financing  activities  of  the  authorized  issuers hereunder and does not exempt any other entity from compliance with such article.   12.   The  comptroller  is  hereby  authorized  to  receive  from  the authorized issuers any portion of bond proceeds paid  to  provide  funds for or reimburse the state for its costs associated with such authorized purposes  and to credit such amounts to the capital projects fund or any other appropriate fund.