NY Pub Auth L § 1021-I (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 1-B - North Country Power Authority 1021-I - Bonds, Notes and Other Obligations of the Authority.

§  1021-i. Bonds, notes and other obligations of the authority. 1. The authority shall have power and is hereby authorized from time to time to issue its bonds, notes or other obligations, in an aggregate amount  not to  exceed  one  hundred twenty-five million dollars, for the purpose of financing any capital project authorized by this  title,  including  but not  limited  to,  the  acquisition  of any real or personal property or facilities  deemed  necessary  by   the   authority,   development   and professional  expenses,  and  funding any capital or other reserve funds established in connection with the authority's operations or  issuances, in  such  principal amount as the directors shall determine necessary to perform its corporate duties and further its purposes as  authorized  in this  title.  The  maximum  maturity  of  any such bond shall not exceed thirty years from its date of issuance. The maximum maturity of any such note or other obligation shall not exceed five years from  its  date  of issuance.   2. Except as may be otherwise expressly provided by the authority, the issuance  of  bonds,  notes  or  other  obligations,  shall  be  general obligations of the authority payable out of any moneys  or  revenues  of the  authority,  subject  only  to  any  agreements  with the holders of particular bonds, notes or other  obligations  pledging  any  particular moneys or revenues.   3. The authority shall have power from time to time, whenever it deems refunding  expedient, to refund any bonds, notes or other obligations by the issuance of new bonds, notes or other obligations, up to one hundred twenty-five million dollars in the aggregate, whether the  bonds,  notes or  other  obligations  to be refunded have or have not matured, and may issue bonds, notes or other obligations partly to refund bonds, notes or other obligations then outstanding and  partly  for  any  other  purpose described  in  this section. Refunding bonds, notes or other obligations may be exchanged for  the  bonds,  notes  or  other  obligations  to  be refunded,  with  such  cash adjustments as may be agreed, or may be sold with the proceeds applied to the purchase or payment of the bonds to  be refunded.   4.  Bonds  may  be  issued  either  in a series with multiple discrete maturity dates or as term bonds with a single maturity date. The  bonds, notes  or  other  obligations  shall  be authorized by resolution of the directors and shall bear such date or dates,  mature  at  such  time  or times,  bear  interest  at  such  rate  or  rates,  payable  annually or semi-annually, be in such denominations, be in  such  form,  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. In the event that term bonds,  notes  or  other obligations  are  issued,  the  resolution authorizing the same may make such provisions for the establishment and management of adequate sinking funds for the payment thereof, as the authority may deem necessary.   5. The bonds, notes or other obligations of the authority may be  sold at  public  or  private  sale  for such price or prices as the authority shall determine. For a private sale of  its  securities,  the  authority shall  obtain  the  written  approval of the terms of such sale from the comptroller if such sale is to a party other than  the  comptroller,  or from  the  director of the budget where such sale is to the comptroller, in either case prior to closing the issuance transaction.   6. Any resolution authorizing any issuance of bonds,  notes  or  other obligations  may  contain  provisions,  which  shall  be  a  part of the contract between the authority and the holders of the issued securities, as to:  (a) pledging all or any part of the revenues of the authority  or  its projects  or  any  revenue  producing  contract or contracts made by the authority with any individual, partnership, limited  liability  company, corporation  or association to secure the payment of the bonds, notes or other obligations, subject to such agreements with holders of securities of the authority;  (b)  pledging,  assigning  or  creating  a  lien on all or any part of assets of the authority, including mortgages  and  obligations  security mortgages,  to  secure  the  payment  of  the  bonds,  subject  to  such agreements with holders of securities of the authority;  (c) the setting aside of reserves or sinking funds, and the regulation and disposition thereof;  (d) establishment of special funds for deposit of moneys received from the proceeds of the  issuance  of  securities  as  the  directors  shall determine, consistent with the authorizing resolution and the provisions of this title;  (e)  limitations  on  the purpose to which the proceeds of sale of any issuance of bonds, notes or other obligations then or thereafter  to  be issued  may  be applied and pledging such proceeds to secure the payment of the bonds, notes or other obligations;  (f) limitations of the issuance of additional bonds,  notes  or  other obligations;  the  terms  upon  which  additional  bonds, notes or other obligations may be issued and secured; and the refunding of  outstanding bonds, notes or other obligations;  (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)  providing for the appointment and powers of a trustee for holders of securities, and the rights, powers and duties of such trustee as  the directors may determine;  (i)  limitations  on the amount of moneys derived from a project to be expended  for  operating,  administrative  or  other  expenses  of   the authority;  (j)  defining  the  acts  or omissions to act which shall constitute a default in the duties of the authority to holders of its obligations and providing the rights and remedies of such holders  in  the  event  of  a default  provided,  however,  that such rights and remedies shall not be inconsistent with the laws of the state and the other provisions of this article; and provided, further, however, that nothing contained in  this article  shall  be  deemed  to restrict the right of the state or of any municipality to amend, modify or otherwise alter statutes,  local  laws, ordinances,  resolutions  or agreements imposing or relating to taxes or fees or appropriations relating thereto; and there shall not be included in any resolution or contract or  agreement  with  the  holders  of  the bonds,  notes  or  other  obligations  authorized  by  this  article any provision which provides that a default shall occur as a result  of  the state  or  of  a  municipality  exercising its right to amend, modify or otherwise alter laws, ordinances, resolutions or agreements imposing  or relating to taxes or fees or appropriations relating thereto; and  (k)  any  other  provisions  not inconsistent with those enumerated in this subdivision and necessary to effect its issuances of  bonds,  notes or other obligations and the rights of the holders of its securities, or otherwise in furtherance of its corporate purposes.   7.  Notwithstanding  any  other  provision  of  this  title,  any such resolution or resolutions shall contain a covenant by the authority that it will at all times maintain rates, fees or charges sufficient to  pay, and  that  any  contracts  entered into by the authority for the sale or  distribution of power shall contain rates, fees or charges sufficient to pay the costs of operation and maintenance of the project, the principal of and interest on any obligations issued pursuant to such resolution as the  same  severally  become  due  and payable, and to maintain any debt service coverage ratios and any reserves required by the terms  of  such resolution or resolutions. Provided however, that the total rates, fees, and  charges  shall not exceed the prevailing electric rate in the North Country. The prevailing electric rate in the North  Country  shall  mean the  average  of the total rates, fees, and charges paid by customers of National Grid and New York State Electric and Gas, or any successors, in St. Lawrence, Franklin, and  Jefferson  counties.  Compliance  with  the prevailing electric rates in the North Country shall be left to the sole determination of the public service commission.   8. It is the intent of this title that any pledge of revenues or other moneys  or  of  a  revenue  producing  contract or contracts made by the authority shall be valid and binding from the time when  the  pledge  is made;  that  the revenues or other moneys or proceeds of any contract or contracts 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.   9. Neither the directors of the authority nor any person executing the bonds, notes or other obligations shall  be  liable  personally  on  the bonds,  notes  or  other  obligations  or  be  subject  to  any personal liability or accountability by reason of the issuance thereof.   10. The authority shall have the power  out  of  any  funds  available therefor  to  purchase  bonds, notes or other obligations. The authority may  hold,  pledge,  cancel  or  resell  such  bonds,  notes  or   other obligations,   subject   to  and  in  accordance  with  agreements  with bondholders.   11. Any bonds, notes or other obligations issued by the authority  are hereby  made  securities in which all public officers and bodies of this state and all municipalities and municipal subdivisions,  all  insurance companies  and  associations  and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies  and  other  persons  carrying  on  a banking business, and all other persons whatsoever who are authorized to invest  in  bonds, notes or other obligations of the state, may properly and legally invest funds including capital in their control or belonging to them; subject to the provisions of any other general or  special  law to the contrary.   12.  The  authority  is  authorized  to  obtain from any department or agency  of  the  United  States  of  America  or  the   state   or   any nongovernmental insurer or financial institution any insurance, guaranty or  other  credit support device, to the extent available, as to, or for the payment or repayment of interest or principal, or both, or any  part thereof,  on  any  bonds,  notes  or  other  obligations  issued  by the authority and to enter into any agreement or contract  with  respect  to any such insurance or guaranty, except to the extent that the same would in  any  way  impair  or  interfere with the ability of the authority to perform and fulfill the terms of any agreement made with the holders  of outstanding bonds, notes or other obligations of the authority.   13.  In  addition  to  the  powers  conferred in this section upon the authority to secure its bonds, notes or other obligations, the authority  shall have the power in connection with the issuance of bonds, notes  or other  obligations  to  enter  into such agreements as the authority may deem  necessary,  convenient  or  desirable  concerning   the   use   or disposition  of  its  revenues  or other moneys or property, and for the acquisition,  alteration  or  disposition  of  its  property,  real  and personal,  including  the  mortgaging  of  any of its properties and the entrusting, pledging or creation of any other security interest  in  any such  revenues, moneys or properties 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 the 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 bonds, notes or other obligations of the authority.   14. All bonds, notes and other obligations  issued  by  the  authority under  the  provisions of this title are hereby declared to have all the qualities and incidents of negotiable instruments under  the  applicable laws of the state.   15. Nothing in this subdivision shall be deemed to allow the authority to  exceed  its  one  hundred  twenty-five million dollar aggregate debt limit.