NY Pub Auth L § 906 (2021)
2021 New York Laws PBA - Public Authorities Article 4 - Market Authorities Title 5 - Long Island Market Authority 906 - Bonds of the Authority.

§  906.  Bonds of the authority. 1. The authority shall have the power and is hereby authorized from time to time  to  issue  bonds,  notes  or other  obligations  to  pay  the  cost  of  any project or for any other purpose under this title, including the  establishment  of  reserves  to secure  the  bonds,  the  payment  of principal of, premium, if any, and interest on  the  bonds  and  the  payment  of  incidental  expenses  in connection  therewith.    The  aggregate principal amount of such bonds, notes  or  other  obligations  shall  not  exceed  ten  million  dollars ($10,000,000),  excluding  bonds,  notes  or other obligations issued to refund or repay bonds, notes, or other  obligations  theretofore  issued for  such  purposes;  provided, however, that upon any such refunding or repayment the total aggregate principal  amount  of  outstanding  bonds, notes  or  other  obligations  may  be  greater than ten million dollars ($10,000,000), only if the present value of the aggregate  debt  service of the refunding or repayment of bonds, notes or other obligations to be issued  shall not exceed the present value of the aggregate debt service of the bonds, notes or other obligations so to be  refunded  or  repaid. For  purposes  of  this section, the present value of the aggregate debt service  of  the  refunding  or  repayment  of  bonds,  notes  or  other obligations  and the aggregate debt service of the bonds, notes or other obligations and of the aggregate debt service of  the  bonds,  notes  or other  obligations  so  to  be refunded or repaid shall be calculated by utilizing the effective interest rate of the refunding or  repayment  of bonds,  notes  or other obligations, 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 of bonds, notes or other obligations  from  payment  of  dates thereof  to  the  date  of issue of the refunding or repayment of bonds, notes or other obligations and to  the  price  bid  including  estimated accrued  interest  from  the sale thereof.  The authority shall have the power and is hereby authorized to enter into such agreements and perform such acts as may be required under any applicable federal legislation to secure a federal guarantee or other subsidy with respect to any bonds.   2. The authority shall have the power from time to time to renew bonds or to issue renewal bonds for the purposes authorized under this  title, to issue bonds to pay bonds, and, whenever it deems refunding expedient, to refund any bond 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  other  purpose  of  the authority. Bonds issued for refunding purposes shall  be  sold  and  the proceeds  applied to the purchase, redemption or payment of the bonds or notes to be refunded.   3. Bonds issued by the authority may be general obligations secured by the faith and credit of the authority  or  may  be  special  obligations payable  solely  out  of  particular  revenues or other monies as may be designated in the proceedings of the authority  under  which  the  bonds shall  be  authorized  to  be issued, subject as to priority only to any agreements with the holders of outstanding bonds pledging any particular property, revenues or monies. The authority may  also  enter  into  loan agreements, lines of credit and other security agreements and obtain for or  on  its  behalf  letters  of  credit, insurance, guarantees or other credit enhancements to the extent now or hereafter  available,  in  each case  for  securing  its bonds or to provide direct payment of any costs which the authority is authorized to pay.   4. (a) Bonds shall be authorized by resolution of the  governing  body of  the  authority, be in such denominations and bear such date or dates and mature at such time  or  times,  as  such  resolution  may  provide,  provided  that  bonds  and  renewals  thereof shall mature within thirty years from the date of original issuance of any such bonds.  (b)  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 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 and conditions as such resolution may provide. Notwithstanding any other provision of law,  the  bonds  of the  authority  issued  pursuant  to  this  section shall be sold to the bidder offering the lowest true interest cost, taking into consideration any premium or discount not less than four nor more than  fifteen  days, Sunday excepted, after a notice of such sale has been published at least once  in  a  newspaper of general circulation in the service area of the authority, which shall state the terms of the sale.  The  terms  of  the sale  may  not  change unless notice of such change is published in such newspaper at least one day prior to the date of the sale as set forth in the original notice of sale. Advertisements shall contain a provision to the effect that the authority, in its discretion, may reject any or  all bids  made  pursuant  to  such  advertisements, and in the event of such rejection, the authority is authorized to negotiate a private or  public sale  or  readvertise for bids in the form and manner above described as many times as, in its judgment, may be necessary to effect  satisfactory sale.  (c)   Notwithstanding   the   provisions  of  paragraph  (b)  of  this subdivision, whenever in the judgment of the authority the interests  of the  authority  will  be  served  thereby,  the  governing  body  of the authority,  on  the  written  recommendation  of  the  chairperson   may authorize  the  sale  of  such  bonds  at  private  or  public sale on a negotiated basis or on either a competitive  or  negotiated  basis.  The authority shall set guidelines governing the terms and conditions of any such  private  or  public  sales.    The  private  or  public  bond sale guidelines set by the authority shall include, but not be limited to,  a requirement  that where the interests of the authority will be served by a  private  or  public  sale  of  bonds,  the  authority  shall   select underwriters  taking into account, among other things, qualifications of underwriters as to experience,  their  ability  to  structure  and  sell authority  bond  issues,  anticipated  costs to the authority, the prior experience of the authority with the firm, if any, the capitalization of such firms, participation of qualified minority and women-owned business enterprise firms in such  private  or  public  sales  of  bonds  of  the authority and the experience and ability of firms under consideration to work with minority and women-owned business enterprises so as to promote and assist participation by such enterprises.  (d) The authority shall have the power from time to time to amend such private  bond  sale guidelines in accordance with the provisions of this subdivision.  (e) In addition to  the  authority  to  sell  notes  at  private  sale contained in this section.  (f)  No  private  or  public  bond sale on a negotiated basis shall be conducted  by  the  authority  without  prior  approval  of  the   state comptroller.  The  authority  shall  annually prepare and approve a bond sale report  which  shall  include  the  private  or  public  bond  sale guidelines   as  specified  in  this  subdivision,  amendments  to  such guidelines since the  last  private  or  public  bond  sale  report,  an explanation  of the bond sale guidelines and amendments, and the results of any sale of bonds conducted during the fiscal year.  Such  bond  sale report  may  be  a part of any other annual report that the authority is required to make.  (g) The authority shall annually submit its bond sale  report  to  the state comptroller and copies thereof to the senate finance committee and the assembly ways and means committee.  (h)  The  authority  shall  make available to the public copies of its bond sale report upon reasonable request thereof.  (i) Nothing contained in this subdivision shall be  deemed  to  alter, affect  the  validity of, modify the terms of, or impair any contract or agreement made or entered into in violation of,  or  without  compliance with, the provisions of this subdivision.   5.  Any  resolution  or  resolutions authorizing bonds or any issue of bonds by the authority may contain provisions which may be a part of the contract with the holders of the bonds thereby authorized as to:  (a) pledging all or part of the  revenues,  together  with  any  other monies  or property of the authority to secure the payment of the bonds, or any costs of issuance thereof, including  but  not  limited  to,  any contracts,  earnings  or proceeds of any grant to the authority received from any private or  public  source  subject  to  such  agreements  with bondholders as may then exist;  (b)  the  setting  aside  of  reserves and the creation of sinking the funds and the regulation and disposition thereof;  (c) limitations on the purpose to which the proceeds from the sale  of bonds may be applied;  (d) the rates, rents, fees and other charges to be fixed and collected by  the  authority  and the amount to be raised in each year thereby and the use and disposition of revenues;  (e) limitations on the right of the authority to restrict and regulate the use of the project or part thereof in connection  with  which  bonds are issued;  (f)  limitations  on  the issuance of additional bonds, the terms upon which additional bonds may be issued and secured and  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,  including  the  proportion  of bondholders  which  must  consent  thereto, and the manner in which such consent may be given;  (h) the creation of special funds into which any  revenues  or  monies may be deposited;  (i) the terms and provisions of any trust, mortgage, deed or indenture securing the bonds under which the 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 trustees appointed by the bondholders pursuant to this title or limiting the  rights,  duties  and powers of such trustee;  (k)  defining  the  acts  or  omissions  to act which may constitute a default  in  the  obligations  and  duties  of  the  authority  to   the bondholders and providing for the rights and remedies of the bondholders in the event of such default, including as a matter of right appointment of  a  receiver,  provided, however, that such rights and remedies shall not be inconsistent with  the  general  laws  of  the  state  and  other provisions of this title;  (l)  limitations  on  the  power of the authority to sell or otherwise dispose of any project or any part thereof or other property;  (m) limitations on the amount of  revenues  and  other  monies  to  be expended   or   operating,  administrative  or  other  expenses  of  the authority;  (n) the payment of the proceeds of bonds, revenues and other monies to a trustee or other  depository,  and  for  the  method  of  disbursement  thereof  with  such  safeguards  and  restrictions  as the authority may determine; and  (o)  any other matters of like or different character which in any way affect the security or  protection  of  the  bonds  or  the  rights  and remedies of the bondholders.   6.  In  addition  to  the powers conferred under this section upon the authority to secure its bonds, the authority shall  have  the  power  in connection  with  the  issuance  of bonds to adopt resolutions and enter into such trust indentures,  agreements  or  other  instruments  as  the authority may deem necessary, convenient or desirable concerning the use or  disposition  of  its revenues or other monies or property, including the mortgaging of any property and the entrusting, pledging or  creation of  any other security interest in any such revenues, 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 resolutions, trust indentures,  agreements  or  other  instruments.  The authority  shall  have  power  to  enter  into  amendments  of  any such resolutions, trust indentures, agreements or  other  instruments  within the  powers  granted  to the authority by this title and to perform such resolutions, trust indentures,  agreements  or  other  instruments.  The provisions  of  any  such  resolutions,  trust indentures, agreements or other instruments may be made a part of the contract with the holders of bonds of the authority.   7. Any provision of  the  uniform  commercial  code  to  the  contrary notwithstanding,  any  pledge of or other security interest in revenues, monies, accounts, contract rights, general intangibles or other personal property made or created by the authority shall be  valid,  binding  and perfected  from  the  time  when  such  pledge is made or other security interest attaches without any physical delivery  of  the  collateral  or further  act, and the lien of any such pledge or other security interest shall be valid, binding and perfected against all parties having  claims of  any  kind  in  tort,  contract  or  otherwise  against the authority irrespective of whether or not such  parties  have  notice  thereof.  No instrument  by  which  such a pledge or security interest is created nor any financing statement need be recorded or filed.   8. Whether or not the bonds of the authority  are  of  such  form  and character as to be negotiable instruments under the terms of the uniform commercial code, the 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 bonds for registration.   9. Neither the members of the governing body of the authority nor  the officers  of  the  authority nor any person executing its bonds shall be liable personally on its bonds or be subject to any  personal  liability or accountability by reason of the issuance thereof.   10. Subject to such agreements with bondholders as may then exist, the authority  shall  have  power  out  of  any  funds available therefor to purchase bonds of the authority, in lieu of redemption, at a  price  not exceeding,  if  the bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date,  or, if the bonds are not then redeemable, the redemption price applicable on the  first  date after such purchase upon which the bonds become subject to redemption plus accrued interest to the next interest  payment  date. Bonds so purchased shall thereupon be canceled.   11.  The  authority shall have power and is hereby authorized to issue negotiable  bond  anticipation  notes  in  conformity  with   applicable provisions  of  the  uniform commercial code and may renew the same from time to time but the  maximum  maturity  of  any  such  note,  including  renewals  thereof, shall not exceed five years from the date of issue of such original note.