NY Pub Auth L § 1196-F (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 8-A - New York State Local Water and Sewer Authority Act 1196-F - Bonds and Notes of an Authority.

§  1196-f. Bonds and notes of an authority. 1. An 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  projects  or  for  any  other  corporate purposes,  including  incidental  expenses  in  connection therewith. An 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 an authority may be general obligations secured by the faith and credit of the  authority or  may 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 with the holders of outstanding bonds pledging particular revenues or moneys.   2. An authority is authorized to obtain from any department or  agency of the United States of America or nongovernmental 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 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 an authority.   3. Bonds shall be authorized by resolution of an 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 sale or, upon the approval of the state comptroller, at private sale for such price or prices  as  an  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  by  writing by  (a)  the  comptroller, where such sale is not to the comptroller, or (b) the director of the division of the budget, where such  sale  is  to the comptroller.   4.  Any  resolution  or  resolutions authorizing bonds or any issue of bonds by an authority may contain provisions which may be  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 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 eleven hundred ninety-six-g 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  power of the authority to sell or otherwise dispose of any system or any part thereof or other property;  (l) limitations on the amount of  revenues  and  other  moneys  to  be expended   for  operating,  administrative  or  other  expenses  of  the authority;  (m) 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  (n) 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  an  authority  to secure  its  bonds, an 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  an authority  would have the right to do in the absence of such agreements. An 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 an 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 an 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  an 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.  An  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, (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.   10.  An  authority  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 five years from the date of issue of such original note. Such notes shall be paid  from  any  moneys  of  the authority  available  therefore  and  not  otherwise pledged or from the proceeds of sale of the bonds of the authority in anticipation of  which they  were  issued.  The notes shall be issued in the same manner as the bonds and such notes and the resolution or resolutions  authorizing  the same  may  contain  any  provisions, conditions or limitations which the bonds or a bond resolution of the authority may contain. Such notes  may be  sold  at public sale or, upon the approval of the state comptroller, at private sale. Such notes shall be as fully negotiable as the bonds of the authority.