NY Pub Auth L § 1045-O (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 2-A - New York City Municipal Water Finance Authority 1045-O - Bonds of the Authority.

§  1045-o.  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 to pay the cost of any water project or water projects, or for any other  corporate purposes,  including  incidental  expenses  in connection therewith. The authority shall have power from time to time to refund any bonds 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 corporate purpose. Bonds issued  by  the  authority shall  be  special obligations 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  the  authority, the water board 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 from any department or agency of  the  United  States  of  America  or  non-governmental  insurer  any insurance or guaranty, to the extent now or hereafter available, as  to, or  for  the  payment or repayment of interest or principal, or both, or any part thereof, on any bonds or notes issued by the authority,  or  on any municipal obligations of governmental units purchased or held 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 the bonds or notes of the authority.   * 3. Bonds shall be authorized by resolution of the authority,  be  in such  denominations  and bear such date or dates, mature at such time or times, except that bonds and any renewal  thereof  shall  mature  within forty  years  of  the  date of their original issuance and notes and any renewal thereof shall mature within five years  of  the  date  of  their original  issuance.  Such  bonds  shall  be  subject  to  such  terms of redemption, bear interest at such rate or rates payable at  such  times, be in such 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.  Bonds  may be sold at public or private sale for such price or prices as the authority shall determine, provided that no issue of bonds may be sold at private sale unless the terms of  such  sale  shall  have been  approved in writing by (i) the comptroller, where such sale is not to such comptroller, or (ii) the  director  of  management  and  budget, where such sale is to such comptroller.   * NB There are 2 sub 3's   * 3.  Whenever  the authority shall determine that the issuance of its bonds is appropriate, 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 negotiated agreement or public letting or the private sale of such bonds and such recommendation shall include compensation for services rendered as  they deem appropriate. The mayor and the 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,  except that  bonds  and  any renewal thereof shall mature within forty years of the date of their original issuance and notes and  any  renewal  thereof shall  mature  within five years of the date of their original issuance. Following such recommendation, bonds shall be authorized  by  resolution  of the authority which shall set forth the arrangements for the issuance of  the  bonds,  the  price  or  prices,  the  interest  rate  or rates, maturities, terms of redemption, form and other terms of the bonds. Such resolution  and  the  minutes  of the authority related thereto shall be transmitted to the mayor and  the  comptroller  for  their  approval  or disapproval  thereof.  Approval of such resolution 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.   * NB There are 2 sub 3's   4. 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, contracts or property, 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 right of the authority to restrict and regulate the use of any project or part thereof in connection  with  which  bonds are issued;  (e)  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;  (f)  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;  (g) the creation of special funds into which  any  revenues  or  other moneys may be deposited;  (h)  the terms and provisions of any trust, deed or indenture securing the bonds under which the bonds may be issued;  (i) 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 one thousand forty-five-p 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;  (j) 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;  (k)  limitations  on  the  amount  of  revenues and other moneys to be expended  for  operating,  administrative  or  other  expenses  of   the authority;  (l) the payment of the proceeds of bonds, revenues and other moneys to a  trustee  or  other  depository,  and  for  the method of disbursement thereof with such safeguards  and  restrictions  as  the  authority  may determine; and  (m)  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 bondholders.    5.  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 as the authority may deem  necessary,  consistent  or  desirable  concerning   the   use   or disposition  of  its revenues or other moneys or property, including the mortgaging of any property and the entrusting, pledging or  creation  of any other security interest in any such revenues, moneys 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 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.   6. Any provision of  the  uniform  commercial  code  to  the  contrary notwithstanding,  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.   7. 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.   8. 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.   9. The authority, subject to such agreements with bondholders as  then may  exist,  shall  have  power  out of any moneys available therefor to purchase bonds of the authority, which shall thereupon be cancelled,  at a  price  not  exceeding  (i)  if  the  bonds  are  then redeemable, the redemption price then applicable, plus  accrued  interest  to  the  next interest payment date, or (ii) 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.