2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 12 - New York State Environmental Facilities Corporation › 1290 - Notes and Bonds of the Corporation.

§  1290.  Notes  and  bonds of the corporation. 1. (a) The corporation
shall have power and is hereby authorized from time to time to issue its
negotiable  or  non-negotiable  bonds  and  notes  in  conformity   with
applicable  provisions  of the uniform commercial code in such principal
amount, as, in the opinion of the corporation,  shall  be  necessary  to
provide  sufficient  funds  for  achieving  its  purposes, including the
acquisition  and  construction,  operation  and  maintenance  of  sewage
treatment   works,  sewage  collecting  systems,  solid  waste  disposal
facilities, storm water collecting systems, water management facilities,
air pollution control facilities, the removal, disposal and  remediation
of  petroleum storage tanks and the remediation of the sites thereof and
any other project or projects authorized pursuant to the  provisions  of
this  title, and paying the cost thereof; the making of loans to persons
and, for purposes  of  sections  twelve  hundred  eighty-five-j,  twelve
hundred  eighty-five-m  and  twelve  hundred eighty-five-o of this title
only, to any municipality or recipient for such purposes; the making  of
loans,  providing of financing or extension of credit to or on behalf of
beginning farmers for purposes of section twelve  hundred  eighty-five-r
of   this   title  only;  the  financing  of  the  design,  acquisition,
construction, improvement and installation of  all  or  any  portion  of
Riverbank Park, provided however, that any such bonds or notes issued to
finance  Riverbank Park shall only be issued in such principal amount as
shall be necessary to provide sufficient  funds  for  the  repayment  of
amounts  disbursed  pursuant to appropriations or reappropriations under
chapter fifty-four of the laws of nineteen hundred ninety-one  including
any  subsequent  reappropriation  of  the  unexpended  balance  of  such
appropriations or reappropriations for the purpose  of  Riverbank  Park,
plus  an  amount  sufficient  to  fund  any  debt  service  reserve fund
established by the corporation for the purpose of Riverbank Park and  to
provide  for  the  payment of fees and other charges and expenses of the
corporation in connection with such bonds  and  notes,  which  principal
amount shall constitute the statutory ceiling on the amount of bonds and
notes  that  can be issued for such purpose; the financing of all or any
portion of any state park infrastructure project or reimbursement of the
state for expenditures relating thereto, plus an amount to  provide  for
the payment of fees and other charges and expenses of the corporation in
connection  with  such  bonds  and  notes; the provision of funds to the
state for any amounts contributed or to  be  contributed  to  the  water
pollution  control  revolving  fund,  the  pipeline for jobs fund or the
drinking water revolving fund provided, however, that any such bonds  or
notes  issued  to provide funds to the water pollution control revolving
fund, the pipeline for jobs fund or the drinking  water  revolving  fund
shall  only  be issued in such principal amount as shall be necessary to
provide sufficient funds for the repayment of amounts disbursed pursuant
to any appropriation or reappropriation enacted  for  the  pipeline  for
jobs   fund   or  for  the  payment  of  the  state  match  for  federal
capitalization grants for the water pollution control revolving fund  or
the drinking water revolving fund, plus an amount sufficient to fund any
debt  service  reserve  fund  and to provide for fees, charges and other
costs of issuance, which principal amount shall constitute the statutory
ceiling on the amount of bonds and notes that can  be  issued  for  such
purpose;  the  financing  of  any  environmental infrastructure projects
authorized by section twelve hundred eighty-five-p of  this  title;  the
purchase  of  municipal  bonds and notes, and bonds and notes of a state
agency, the payment of the cost of any project, the payment of  interest
on  bonds and notes of the corporation, the establishment of reserves to
secure such bonds and notes; the provision of working  capital  and  all

other  expenditures  of  the  corporation  incident  to and necessary or
convenient to carry out its purposes and powers;
(b)  The  corporation  shall  have  power, from time to time, to issue
renewal notes, to issue  bonds  to  pay  notes  and  whenever  it  deems
refunding  expedient,  to refund any bonds by the issuance of new bonds,
whether the bonds to be refunded have or have not matured, and to  issue
bonds  partly to refund bonds then outstanding, and partly for any other
purpose. The refunding bonds shall be sold and the proceeds  applied  to
the  purchase,  redemption  or  payment  of  the  bonds  to be refunded.
Notwithstanding  any  statutory  ceiling  on  outstanding   bonds,   any
refunding  bonds  shall  be sold in the amount required to pay or redeem
outstanding bonds, to fund any reserve, escrow or payment fund,  and  to
provide  for  the  payment  of  all fees and other charges and expenses,
including costs of issuance, incurred in connection with the issuance of
such refunding bonds, provided that the present value of  the  aggregate
debt service on the refunding bonds does not exceed the present value of
the aggregate debt service on the bonds refunded thereby.
(c)  Except as may otherwise be expressly provided by the corporation,
every issue of its notes or bonds shall be (i)  general  obligations  of
the   corporation   payable  out  of  any  revenues  or  monies  of  the
corporation,  subject  only  to  any  agreements  with  the  holders  of
particular  notes or bonds pledging any particular receipts or revenues,
(ii) special obligations of the  corporation  payable  solely  from  the
revenues,  service  charges,  rentals,  proceeds or other payments to be
received on account of  the  mortgage,  loan  or  other  agreements  and
payments,  reserve  and  insurance funds or accounts issuance of special
obligations, and fees, charges or other monies to  be  received  by  the
corporation  in  respect  to  loans  pursuant  to section twelve hundred
eighty-five-b or twelve hundred eighty-five-j of  this  title,  or  from
amounts  received  by  the  corporation pursuant to any contract, lease,
easement, license or other instrument entered into  by  the  corporation
pursuant  to  sections  twelve  hundred eighty-five-k and twelve hundred
eighty-five-l of  this  title  or,  (iii)  special  obligations  of  the
corporation   payable  solely  from  amounts  received  pursuant  to  an
agreement with the commissioner of environmental  conservation  pursuant
to  subdivision  twelve  of section twelve hundred eighty-five-j of this
title, and may, but need not, be secured by  mortgages,  assignments  or
pledges  of  such  revenues,  service  charges, rentals, proceeds, other
payments, funds and accounts, fees, charges and  other  monies,  and  by
mortgages or assignments thereof in respect to projects, and may include
pooled  financings  subject  only  to any agreements with the holders of
particular special obligation notes or bonds issued to finance the  cost
of,  or  loans for, a project or projects; no general obligations of the
corporation shall be issued to finance the cost  of,  or  loans  for,  a
project  or  projects  authorized  to be constructed pursuant to section
twelve hundred eighty-five-b or twelve  hundred  eighty-five-j  of  this
title  or  to  finance  (A)  the  contribution of the state to the water
pollution  control  revolving  fund,  (B)   the   design,   acquisition,
construction,  improvement  and  installation  of  all or any portion of
Riverbank Park or (C) state park infrastructure projects and  no  funds,
monies,  revenues  or  other assets of the corporation shall be used for
loans authorized pursuant to section  twelve  hundred  eighty-five-b  or
twelve  hundred  eighty-five-j of this title, except as may be available
with respect to a project and a contract with a person as aforesaid,  or
for the payment to the state for amounts contributed by the state to the
water   pollution   control  revolving  fund,  to  finance  the  design,
acquisition, construction, improvement and installation of  all  or  any
portion  of  Riverbank  Park  or state park infrastructure projects. Nor

shall any special obligation authorized pursuant hereto be payable  from
or  secured by any debt service reserve fund created pursuant to section
twelve hundred ninety-one of this title, and  the  state  shall  not  be
entitled  to require the redemption of such special obligations pursuant
to section twelve hundred ninety-three of this title; and  such  special
obligation  and  the  security  therefor  shall  not  be  subject to the
provisions of section twelve hundred ninety-four of this title  but  the
remedies  of the holders thereof shall be set forth in the terms of such
special obligations and the instruments constituting such security;  the
making  of loans, providing of financial or extension of credit to or on
behalf of beginning farmers  for  purposes  of  section  twelve  hundred
eighty-five-r of this title only;
(d)  Any  bonds  or  notes issued for the purpose of financing amounts
deposited or to be deposited by the state in the water pollution control
revolving fund may be issued in an aggregate principal amount sufficient
to finance the amount to be paid or reimbursed  to  the  state  plus  an
amount  sufficient  to fund any debt service reserve fund established by
the corporation and to provide for the payment of fees and other charges
and expenses of the corporation in connection with such bonds and notes.
(e) Notwithstanding any other law to  the  contrary,  the  corporation
shall  not issue any notes or bonds on behalf of any state department or
agency to fund  the  removal,  disposal  and  remediation  of  petroleum
storage  tanks  and the remediation of the sites thereof or on behalf of
the office  of  mental  health  to  finance  the  pilgrim  state  sewage
treatment project, after the thirty-first day of March, nineteen hundred
ninety-six. This limitation shall not apply to bonds and notes issued to
refund bonds issued for such purposes.
2.  The  notes  and  bonds  shall  be  authorized by resolution of the
directors of the corporation, shall bear such date or dates,  and  shall
mature  at  such  time  or  times,  in  the case of any such note or any
renewals thereof not exceeding twelve years from the date  of  issue  of
such original note, and in the case of any such bond not exceeding forty
years  from  the  date  of  issue, as such resolution or resolutions may
provide; provided, however, that the final maturity of any  bond  issued
for the purpose of financing any amounts deposited or to be deposited by
the state in the water pollution control revolving fund shall not exceed
thirty  years  from  the date of issue of such bond. The notes and bonds
shall bear interest at such rate or rates which may vary  from  time  to
time,  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  as  such  resolution  or
resolutions  may  provide. The notes and bonds of the corporation may be
sold by the corporation, at public or private sale,  at  such  price  or
prices  as  the  corporation  shall  determine. No notes or bonds of the
corporation may be sold by the corporation  at  private  sale,  however,
unless  such sale and the terms thereof have been approved in writing by
(a) the comptroller, where such sale is not to the comptroller,  or  (b)
the director of the budget, where such sale is to the comptroller.
3. Any resolution or resolutions authorizing any notes or bonds or any
issue  thereof  may  contain  provisions,  which  shall be a part of the
contract with the holders thereof, as to:
(a) pledging all or any part of the rentals, rates, charges and  other
fees made or received by the corporation and other monies received or to
be  received  from the ownership or operation or otherwise in connection
with any project or projects and all or any part of the monies  received
in  payment  of  principal  or  interest  on bonds or notes of any state
agency and municipal bonds or notes  acquired  by  the  corporation,  to

secure  the  payment  of  the  notes  or  bonds or of any issue thereof,
subject to such agreements with bondholders or noteholders as  may  then
exist;
(b)  pledging  all  or  any  part  of  the  assets  of the corporation
including municipal bonds and notes acquired by the corporation  in  the
issuance  of  general  obligations,  and  in  the  issuance  of  special
obligations, notes or other evidences  of  indebtedness  of  any  person
acquired by the corporation, and assigning and pledging any mortgages or
other security interests acquired by the corporation or any interests of
the  corporation  in properties or revenues or other sums payable to the
corporation and any reserve and insurance funds  or  accounts  or  other
funds  and  accounts  established  in  connection  with  the issuance of
special obligations to secure the payment of the notes or  bonds  or  of
any   issue  of  notes  or  bonds  of  general  obligations  or  special
obligations, as the  case  may  be,  subject  to  such  agreements  with
noteholders or bondholders as may then exist;
(c)  the use and disposition of rentals, rates, charges and other fees
made or received by the corporation;
(d) the setting aside of reserves or sinking funds and the  regulation
and  disposition thereof from the ownership or operation or otherwise in
connection with any project or projects and of  the  gross  income  from
municipal  bonds and notes and bonds and notes of any state agency owned
by the corporation;
(e) limitations on the purpose to which the proceeds of sale of  notes
or bonds may be applied and pledging such proceeds to secure the payment
of the notes or bonds or of any issue thereof;
(f)  limitations  on  the  issuance  of additional notes or bonds; the
terms upon which additional notes or bonds may be  issued  and  secured;
the refunding of outstanding or other notes or bonds;
(g)  the  procedure,  if  any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated,  the  amount  of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;
(h)  limitations  on  the  amount  of  monies  to  be  expended by the
corporation for operating,  administrative  or  other  expenses  of  the
corporation;
(i) vesting in a trustee or trustees such property, rights, powers and
duties  in trust as the corporation may determine, which may include any
or all of the rights, powers and duties of the trustee appointed by  the
bondholders pursuant to this title, and limiting or abrogating the right
of  the  bondholders to appoint a trustee under this article or limiting
the rights, powers and duties of such trustee;
(j) any other matters, of like or different character,  which  in  any
way affect the security or protection of the notes or bonds.
4.  In addition to the powers herein conferred upon the corporation to
secure its  notes  and  bonds,  the  corporation  shall  have  power  in
connection  with  the  issuance  of  notes  and bonds to enter into such
agreements  as  the  corporation  may  deem  necessary,  convenient   or
desirable  concerning  the  use or disposition of its monies or property
including the mortgaging  of  any  such  property  and  the  entrusting,
pledging  or  creation of any other security interest in any such monies
or property and the doing of any act (including  refraining  from  doing
any act) which the corporation would have the right to do in the absence
of  such  agreements.  The  corporation  shall  have power to enter into
amendments of any such agreements  within  the  powers  granted  to  the
corporation 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 the notes and bonds of the corporation.
5. It is the intention hereof that any pledge,  mortgage  or  security
instrument  made  by the corporation shall be valid and binding from the
time when the pledge, mortgage or security instrument is made; that  the
monies  or  property  so pledged, mortgaged and entrusted and thereafter
received  by the corporation shall immediately be subject to the lien of
such pledge,  mortgage  or  security  instrument  without  any  physical
delivery  thereof  or further act; and that the lien of any such pledge,
mortgage or security instrument shall be valid and  binding  as  against
all  parties  having  claims  of any kind in tort, contract or otherwise
against the corporation,  irrespective  of  whether  such  parties  have
notice  thereof.  Neither  the  resolution  nor  any  mortgage, security
instrument or other instrument by which a pledge, mortgage lien or other
security is created need be recorded or filed and the corporation  shall
not  be  required  to  comply  with any of the provisions of the uniform
commercial code.
6. Neither the directors of the corporation nor any  person  executing
the  notes  or bonds shall be liable personally on the notes or bonds or
be subject to any personal liability or accountability by reason of  the
issuance thereof.
7.  The  corporation,  subject  to such agreements with noteholders or
bondholders as may then  exist,  shall  have  power  out  of  any  funds
available  therefor to purchase notes or bonds of the corporation, which
shall thereupon be cancelled, at a price not exceeding (a) if the  notes
or  bonds are then redeemable, the redemption price then applicable plus
accrued interest to the next interest payment thereon,  or  (b)  if  the
notes  or bonds are not then redeemable, the redemption price applicable
on the first date after such purchase upon  which  the  notes  or  bonds
become subject to redemption plus accrued interest to such date.
8.  Neither the state nor any municipality shall be liable on notes or
bonds issued as general obligations of the corporation  and  such  notes
and bonds shall not be a debt of the state or any municipality, and such
notes  and  bonds  shall contain on the face thereof a statement to such
effect. The state shall not be  liable  on  notes  or  bonds  issued  as
special  obligations  of the corporation, and such notes and bonds shall
not be a debt of  the  state  and  shall  be  payable  solely  from  the
revenues,  service  charges,  rentals,  proceeds or other payments to be
derived from the extension of credit or the loan  for  the  project  for
which  such  notes and bonds were issued, and such notes and bonds shall
contain on the face thereof a statement to such effect.