NY Pub Auth L § 1207-B (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 9 - New York City Transit Authority 1207-B - Issuance of Bonds and Notes by the Authority.

§   1207-b.   Issuance  of  bonds  and  notes  by  the  authority.  1. Notwithstanding the provisions of sections twelve hundred through twelve hundred twenty-one, inclusive, of this title or of any other  provisions of  law to the contrary, but subject to the provisions of section twelve hundred seven-j of this title, the authority shall have the power and is hereby authorized to borrow money and  to  issue  negotiable  bonds  and notes  therefor  in conformity with applicable provisions of the uniform commercial code in such principal amount  as,  in  the  opinion  of  the authority,  shall  be  necessary  to provide funds sufficient to pay the purchase price of no more than seven hundred twenty-four  cars  for  the rapid  transit  lines  under the jurisdiction of the authority purchased pursuant to section  twelve  hundred  seven-a  of  this  title,  to  pay interest  on the bonds and notes of the authority, to establish reserves to secure such bonds and notes, and to pay all other expenditures of the authority incident to or incurred in connection  with  the  purchase  of such  cars  and  the  authorization, issuance and sale of said bonds and notes. In no event shall there be outstanding at any one time more  than ninety-two million dollars ($92,000,000) in such bonds and notes.   1-a.   The  authority  may  also  issue  its  bonds,  notes  or  other obligations in such principal amounts as shall be necessary  to  finance the  construction,  purchase,  lease  or  acquisition  of,  or an equity interest in, an office building located or  to  be  constructed  in  the borough  of  Brooklyn in the city, provided that (i) all or a portion of such building is intended to be occupied by the authority and  that  the board  shall,  by  resolution,  have  made  findings that the sum of the capitalized value of all payments due  from  the  authority  under  such bonds,   notes   or   other   obligations  (not  including  any  amounts attributable to principal repayment) together with any rent payments for the space in such building to be occupied by the authority  and  of  all payments  required of the authority under any related agreement does not exceed the capitalized value of those payments which would be made in  a conventional  commercial  lease transaction for comparable space with an unrelated party and (ii) not more than an insubstantial portion  of  any real  property  so  financed with the proceeds of bonds, notes, or other obligations is  utilized  by  other  than  the  New  York  city  transit authority or its designated subsidiary. The term "capitalized value" for the  purposes  of  this  subdivision shall be computed in the manner set forth in subdivision four of section  twelve  hundred  seven-m  of  this title.  The metropolitan transportation authority is hereby additionally authorized from time  to  time  to  issue  bonds  for  the  purposes  of refunding,  redeeming  or otherwise paying, including paying by purchase or tender, bonds issued by the authority for such purposes and to secure such bonds in the manner set forth in section twelve hundred  sixty-nine of this article.   2. The authority shall have the power from time to time to renew notes or to issue renewal notes for such purpose, to issue bonds to pay notes, and  whenever  it  deems  refunding  expedient,  to  refund bonds by the issuance of new bonds and to issue bonds  partly  to  refund  bonds  and notes  then  outstanding  and  partly  for  the  purposes  authorized by subdivision one of this section. The refunding bonds  may  be  exchanged for  bonds  to be refunded, with such cash adjustments as may be agreed, or may be sold and the proceeds applied to the purchase  or  payment  of the  bonds  to  be  refunded. In no event shall the maturity date of the refunding bonds be a date beyond thirty-five years  from  the  date  the first bond was issued.   3.  Every  issue  of bonds and notes of the authority shall be special obligations of the authority payable solely from the moneys and revenues of the authority derived from the operation of  the  transit  facilities  under  its  jurisdiction,  subject  to any agreement with the holders of particular bonds or notes pledging any particular moneys or revenues.   4.  The  bonds  and  notes  shall  be  authorized by resolution of the authority and shall bear such date or dates and  shall  mature  at  such time or times as such resolution or resolutions may provide, except that no  note  or any renewal thereof shall mature more than five years after the date of issue of the original note and no  bond  shall  mature  more than  thirty-five  years  from  the date of issue. Bonds and notes shall bear interest at such rate or rates, be in  such  denominations,  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 of redemption and to such other terms and conditions as such resolution  or resolutions  may  provide.  The bonds and notes may be sold at public or private sale for such price or prices as the authority shall  determine. Pending preparation of definitive bonds, the authority may issue interim receipts which shall be exchanged for such bonds.   5. Any resolution or resolutions authorizing any bonds or notes or any issue of bonds or notes may contain provisions, which shall be a part of the contract with the holders of the bonds, or notes thereby authorized, as to  (a)  pledging  all  or any part of the revenues or other monies of the authority to secure the payment of the bonds or notes or of any issue of the bonds or notes, subject  to  such  agreements  with  bondholders  or noteholders as may then exist;  (b)  the  rate  or  rates  of fare to be charged and the amounts to be raised in each year from revenues and the use  and  disposition  of  the revenues;  (c) the setting aside of reserves or sinking funds, and the regulation and disposition thereof;  (d) limitations on the rights of the authority with respect to the use and disposition of the cars for which such bonds or notes are issued and with respect to all other transit facilities of the authority;  (e)  limitations  on  the purpose to which the proceeds of sale of any issue of bonds or notes then or thereafter to be issued may  be  applied and  pledging  such proceeds to secure the payment of the bonds or notes or of any issue of the bonds or notes;  (f) limitations on the issuance of additional  bonds  and  notes;  the terms  upon  which additional bonds and notes may be issued and secured, and the funding or refunding of outstanding or other bonds and notes;  (g) the procedure, if any, by which the terms  of  any  contract  with bondholders  or  noteholders  may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which such consent may be given;  (h) vesting in a trustee or trustees such property, 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  or  noteholders  pursuant to section twelve hundred seven-h hereof, and limiting or abrogating  the  right  of  the  bondholders  to appoint  a  trustee  under  section  twelve  hundred  seven-h hereof, or limiting the rights, duties and powers of such trustee;  (i) defining the acts or omissions to act  which  shall  constitute  a default  in  the duties of the authority to the holders of its bonds and notes and providing the rights and remedies of such holders in the event of default;  (j) any other matters, of like or different character,  which  in  any way affect the security or protection of the bonds and notes.    6.  It  is  the  intention hereof that any pledge of revenues or other moneys made by the authority shall be valid and binding  from  the  time when  the  pledge  is made; that the 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.   7. Neither the members of the board nor any person executing the bonds or  notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason  of  the  issuance thereof.   8.  Subject  to such agreements with bondholders or noteholders as may then exist, the authority shall have power out of  any  funds  available therefor  to  purchase bonds or notes. The authority may hold, cancel or resell  such  bonds  and  notes,  subject  to  and  in  accordance  with agreements with bondholders and noteholders.