2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 8-E* - Orange County Water Authority › 1199-II*2 - Bonds of the Authority.

* §  1199-ii.  Bonds of the authority. 1. The authority shall have the
power and is hereby authorized from time  to  time  to  issue  bonds  in
conformance  with  the  applicable  provisions of the uniform commercial
code in such principal amounts as it may determine to  be  necessary  to
pay  the  cost  of  any  project  or  for  any  other corporate purpose,
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  as  may  be designated in the proceedings of the authority under
which the bonds shall be authorized to be issued, subject  only  to  any
agreements with the holders of outstanding bonds pledging any particular
revenues, earnings or moneys.
2. The authority is authorized to obtain from any insurer or financial
institution  any  insurance, guaranty or other credit support device, 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  issued  by  the  authority  and  to  enter  into any agreement or
contract with respect to any such insurance, guaranty  or  other  credit
support  device,  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 outstanding
bonds of the authority.
3. Bonds shall be authorized by resolution of  the  authority,  be  in
such  denominations,  bear such date or dates and mature at such time or
times as such resolution may provide, except that bonds and any renewals
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
per  annum,  which  may  vary  from time to time, as may be necessary to
effect the sale thereof and shall be payable at such time,  be  in  such
form,  carry  such  registration privileges, be executed in such manner,
shall be subject to tender to the authority, with or without  extinction
or  cancellation,  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  of the authority, other than obligations designated as notes, may
be sold by the authority at private sale unless such sale and the  terms
thereof  have  been  approved  in writing by the comptroller, where such
sale is not to be to such comptroller, or by the state director  of  the
budget, where such sale is to be to the comptroller.
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 holders of bonds or notes as then
may 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 rates, fees and other charges to be fixed and collected by the
authority  and the amount to be raised in each year thereby, and the use
and disposition of revenues;
(e) limitations on the right of the authority to restrict and regulate
the use of the 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  proportion  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 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-nine-jj 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  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;
(l)  limitations  on  the  power of the authority 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
authority;
(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 authority 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.
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,   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  authority  would  have  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 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 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 members of the authority 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.
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 redeemable then redemption price
applicable on the first date after such purchase upon  which  the  bonds
become  subject to redemption, plus accrued interest to interest payment
date.
* NB There are 2 § 1199-ii's