NY Pub Auth L § 2799-GG (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 33 - New York City Transitional Finance Authority 2799-GG - Bonds of the Authority.

§  2799-gg.  Bonds  of the authority.  1. The authority shall have the power and is hereby authorized from time to  time  to  issue  bonds,  in conformity with applicable provisions of the uniform commercial code, in such  principal  amounts as it may determine to be necessary pursuant to section twenty-seven hundred ninety-nine-ff of this  title  to  pay  the cost of any project and to fund reserves to secure such bonds, including incidental expenses in connection therewith.   The   aggregate  principal  amount  of  such  bonds,  notes  or  other obligations outstanding shall not exceed thirteen billion, five  hundred million  dollars  ($13,500,000,000),  excluding  bonds,  notes  or other obligations   issued   pursuant   to   sections   twenty-seven   hundred ninety-nine-ss  and  twenty-seven  hundred ninety-nine-tt of this title; provided, however, that upon any refunding or repayment of bonds  (which term  shall not, for this purpose, include bond anticipation notes), the total aggregate principal amount of outstanding bonds,  notes  or  other obligations  may  be greater than thirteen billion, five hundred million dollars ($13,500,000,000) only if  the  refunding  or  repayment  bonds, notes or other obligations were issued in accordance with the provisions of  subparagraph  (a) of subdivision two of paragraph b of section 90.10 of the local finance law, as amended from time to time.  Notwithstanding the foregoing, bonds, notes or other obligations issued by the authority may be outstanding in an amount greater than the amount permitted by the preceding  sentence,  provided  that such additional amount at issuance, together with the amount of indebtedness contracted by the city  of  New York,  shall  not  exceed  the limit prescribed by section 104.00 of the local finance law. The authority shall have the power from time to  time to  refund  any  bonds  of  the  authority  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  of  the  authority  then  outstanding  and partly  to  pay the cost of any project pursuant to section twenty-seven hundred ninety-nine-ff of this title.  Bonds  issued  by  the  authority shall  be  payable  solely out of particular revenues or other moneys of the authority as may be designated in the proceedings of  the  authority under  which  the bonds shall be authorized to be issued, subject to any agreements entered into between the authority and the city, and  subject to  any  agreements  with  the holders of outstanding bonds pledging any particular revenues or moneys.   2. The authority is authorized to obtain insurance, letters of  credit and  other credit or liquidity facilities related to bonds in accordance with paragraph a and paragraphs c through g of  section  168.00  of  the local finance law, as amended from time to time; provided, however, that the  board of directors of the authority shall make the determination as to "financially responsible parties" required under  the  local  finance law.   3.  (a)  The authority (i) shall amortize its serial and term bonds in accordance with sections 11.00, 21.00 and 57.00 of the local finance law and its bond anticipation notes in accordance with section 23.00 of  the local  finance  law,  as amended from time to time, (ii) shall establish provisions relating to redemption of its bonds that conform with section 53.00 of the local finance law, as amended  from  time  to  time,  (iii) subject   to   the  limitation  set  forth  in  paragraph  (b)  of  this subdivision, may issue bonds with variable rates of interest, and  enter into  agreements  related thereto, subject to the limitations prescribed in paragraphs a and c of section 54.90 of  the  local  finance  law,  as amended  from  time  to  time,  other than the limitation therein on the total principal amount of such variable rate bonds, and (iv)  shall  not issue  refunding bonds without meeting the standards of subparagraph (a) or (b) of subdivision two of paragraph b of section 90.10 of  the  local  finance  law,  as  amended  from  time  to  time. In addition, except as provided in this title, bonds of the authority shall be subject  to  all other provisions of the local finance law, as amended from time to time, applicable to bonds of the city of New York, except where application of such  law  to  bonds  of the authority would be inappropriate. Functions assigned by such law to the mayor, comptroller, finance board and  chief fiscal  officer  shall,  to  the  extent  not performed by such officers pursuant to this title, be reserved or delegated by the directors of the authority.  (b) The authority shall not issue variable rate bonds pursuant to this section in an amount outstanding at issuance exceeding twenty percent of the limit prescribed by subdivision one of this section, excluding bonds (i) bearing interest at rates and for periods of time that are specified without reference  to  future  events  or  contingencies,  or  (ii)  the interest  rate  on  which  is  reasonably expected to be equivalent to a fixed rate over time in conjunction with other bonds  or  by  reason  of payments  made pursuant to agreements with financially responsible third parties.   4. The directors may delegate to the chairperson of the authority  the power to set the final terms of bonds.   5.  Whenever  the  authority  shall determine that the issuance of its bonds is appropriate, which  determination  shall  occur  at  a  minimum whenever  necessary  to  reimburse  the  city  for project capital costs incurred by the city, the mayor and the comptroller shall make  a  joint recommendation  as  to  the  arrangements necessary for the issuance and sale of such bonds including the underwriting of such bonds through  the public or, subject to approval of the state comptroller, private sale of such  bonds  and  such  recommendation  shall  include  compensation for services rendered as they deem appropriate. Subject  to  the  applicable provisions   of  subdivision  three  of  this  section,  the  mayor  and comptroller shall recommend  to  the  authority  the  price  or  prices, interest  rate  or  rates, maturities and other terms and conditions for the issuance of the bonds.  Following  such  recommendation,  the  bonds shall be authorized by resolution of the authority. The bonds shall bear interest  at  such  fixed  or  variable  rates  and  shall  be  in  such denominations, be in such form, either coupon or registered, be sold  at such  public or private sale, be executed in such manner, be denominated in United States' currency, be payable in such  medium  of  payment,  at such  place  and be subject to such terms of redemption as the authority may provide in such resolution. Such resolution and the minutes  of  the authority  related  thereto  shall  be  transmitted to the mayor and the comptroller who shall then approve  or  disapprove  the  bond  issuance. Approval  of  such  bond issuance shall be indicated by the execution of the  resolution  by  the  mayor  and  the  comptroller  whereupon   such resolution  shall come into full force and effect in accordance with its terms.   6. Any resolution or resolutions authorizing bonds  or  any  issue  of bonds  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 its  revenues,  together  with  any  other moneys,  securities  or  contracts,  to secure the payment of the bonds, subject to such agreements with bondholders as may then exist;  (b) the setting aside of reserves and the creation  of  sinking  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) limitations on the issuance of additional bonds,  the  terms  upon which  additional  bonds  may be issued and secured and the refunding of bonds;  (e)  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;  (f) 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 twenty-seven hundred ninety-nine-oo of this title and limiting or abrogating the rights of  the  bondholders to  appoint  a trustee under such section or limiting the rights, duties and powers of such trustee; and  (g) 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  the 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.   7.  In  addition  to the powers herein conferred upon the authority to secure its bonds, the authority shall have power in connection with  the issuance  of  bonds to enter into such agreements for the benefit of the bondholders as the authority may deem necessary, convenient or desirable concerning the use or disposition  of  its  revenues  or  other  moneys, including  the  entrusting,  pledging  or creation of any other security interest in any  such  revenues,  moneys  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  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 of the authority.   8. Notwithstanding any provision of the uniform commercial code to the contrary, any pledge of or other security interest in revenues,  moneys, 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.   9. 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.   10. Neither the directors of the authority nor  any  person  executing bonds  shall  be liable personally thereon or be subject to any personal liability or accountability solely by reason of  the  issuance  thereof. The  bonds  or other obligations of the authority shall not be a debt of either the state or the city, and neither the state nor the  city  shall be liable thereon, nor shall they be payable out of any funds other than  those of the authority; and such bonds shall contain on the face thereof a statement to such effect.   11. The authority, subject to such agreements with bondholders as then may  exist,  shall  have power to purchase bonds of the authority out of any moneys available therefore, which shall thereupon be cancelled.