NY Pub Auth L § 2350-G (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 16 - Suffolk County Judicial Facilities Agency 2350-G - Bonds of the Agency.

§ 2350-g. Bonds of the agency.  1. The agency shall have the power and is  hereby  authorized  from time to time to issue bonds, notes or other obligations in conformity with  applicable  provisions  of  the  uniform commercial  code  to  pay  the cost of any project, 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.  (a)  The  aggregate  principal  amount  of  such bonds, notes or other obligations for the John P. Cohalen court complex shall not  exceed  one hundred  thirty-five  million  dollars  ($135,000,000), excluding bonds, notes or other obligations issued to refund or  repay  bonds,  notes  or other obligations therefore 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 one hundred thirty-five million dollars ($135,000,000), 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.  (b) The aggregate principal amount  of  such  bonds,  notes  or  other obligations  for  the  new  replacement correctional facility at Yaphank shall not exceed two  hundred  thirty  million  dollars  ($230,000,000), 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  and  other obligations  may  be  greater  than  two  hundred thirty million dollars ($230,000,000), 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.  (c) The aggregate principal amount  of  such  bonds,  notes  or  other obligations  for  the  H.  Lee  Dennison  building  and the North County Complex  shall  not  exceed  seventy  million   dollars   ($70,000,000), 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  and  other obligations  may  be greater than seventy million dollars ($70,000,000), 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  the  purpose  of this section, the present value of the aggregate debt service of  the  refunding  or  repayment  bonds,  notes  or  other obligations  and the aggregate debt service of the bonds, notes or other obligations 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 agency 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 to any bonds.    2. The agency shall have the power from time to time to renew bonds or to  issue  renewal  bonds for such purpose, 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  agency.  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 agency may be general  obligations  secured  by the faith and credit of the agency or may be special obligations payable solely  out  of particular revenues or other monies as may be designated in the proceedings  of  the  agency  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  agency  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 agency is authorized to pay.   4. (a) Bonds shall be authorized by resolution of the  agency,  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  issued  for  the  John P. Cohalen court complex shall mature no later than December thirty-first, two  thousand  sixteen;  and bonds and renewals thereof for the new replacement correctional facility at  Yaphank  shall  mature  no  later  than  December  thirty-first, two thousand thirty-five; and bonds and renewals  thereof  for  the  H.  Lee Dennison  building  and  the  North County Complex shall mature no later than December thirty-first, two thousand thirty-three.  (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 agency 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 area served by the agency, which shall state the terms  of  the  circulation  in  the  area served by the agency, 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 agency, in its discretion,  may  reject any  or  all bids made pursuant to such advertisements, and in the event of such rejection, the agency 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 agency the interests of the agency will be served thereby, the members of the agency, 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  agency  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  agency  shall include,  but  not be limited to, a requirement that where the interests of  the  agency will be served by a private or public sale of bonds, the agency shall  select  underwriters  taking  into  account,  among  other things,  qualifications  of underwriters as to experience, their ability to structure and sell agency  bond  issues,  anticipated  costs  to  the agency,  the  prior  experience of the agency 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  agency  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 agency shall have the power from time to time  to  amend  such private  bond  sale guidelines in accordance with the provisions of this subdivision.  (e) No private or public bond sale on  a  negotiated  basis  shall  be conducted by the agency without prior approval of the state comptroller. The  agency  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 agency is required to make.  (f) The agency 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.  (g) The agency shall make available to the public copies of  its  bond sale report upon reasonable request thereof.  (h)  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  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 any part of the revenues of the  agency,  together with  any  other moneys or property of the agency, to secure the payment of the bonds, subject to such agreements with bond holders 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) the rents, fees and other charges to be fixed and collected by the agency and the amount to be raised in each year thereby, and the use and disposition of revenues;  (e)  limitations  on  the right of the agency to restrict and regulate the use of any project or part hereof 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 portion 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 moneys may be deposited;  (i) the terms and provisions of any trust, deed, mortgage 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 agency 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-three hundred fifty-h 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;  (k) defining the acts or omissions  to  act  which  may  constitute  a default  in  the obligations and duties of the agency 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;  (1)  limitations  on  the  power  of  the  agency to sell or otherwise dispose of any project or any part thereof;  (m) limitations on the amount of  revenues  and  other  moneys  to  be expended for operating, administrative or other expenses of the agency;  (n) 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  agency  may determine; and  (o)  any other matters of like or different character which may in any way affect the security or protection of the bonds  or  the  rights  and remedies of bondholders.   6.  In  addition  to  the  powers  herein conferred upon the agency to secure its bonds, the agency shall have power  in  connection  with  the issuance  of  bonds to enter into such agreements as the agency may deem necessary, convenient or desirable concerning the use or disposition  of its  revenues  or  other moneys or property, 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 agency would have to do in the absence of such  agreements.  The  agency shall  have power to enter into amendments of any such agreements within the powers granted to the agency 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 agency.   7. 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  agency  shall  be  valid,  binding  and perfected  from  the time 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 agency  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 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 agency nor any person executing bonds shall be liable  personally  thereon  or  be  subject  to  any  personal liability or accountability by reason of the issuance thereof.   10.  The  agency,  subject to such agreements with bondholders as then may exist, shall have power out of  any  moneys  available  therefor  to purchase  bonds  of  the  agency, which shall thereupon be canceled at a price  not  exceeding;  (a)  if  the  bonds  are  then  redeemable,  the redemption  price  then  applicable  plus  accrued  interest to the next interest payment date, or (b) if the  bonds  are  not  then  immediately redeemable  then the redemption price applicable on the first date after such purchase upon which the bonds become subject  to  redemption,  plus accrued interest to be the next interest payment date.   11.  The  agency  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 two years from the date of issue of such original note.