2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 33 - New York City Transitional Finance Authority › 2799-GG - Bonds of the Authority.

§  2799-gg.  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 pursuant to
section twenty-seven hundred ninety-nine-ff of this  title  to  pay  the
cost of any project and to fund reserves to secure such bonds, including
incidental expenses in connection therewith.
The   aggregate  principal  amount  of  such  bonds,  notes  or  other
obligations outstanding shall not  exceed,  beginning  July  first,  two
thousand  twenty-four,  twenty-one  billion five hundred million dollars
($21,500,000,000) and beginning July first,  two  thousand  twenty-five,
twenty-seven  billion  five  hundred  million dollars ($27,500,000,000),
excluding bonds, notes or other obligations issued pursuant to  sections
twenty-seven    hundred    ninety-nine-ss   and   twenty-seven   hundred
ninety-nine-tt of this title; provided, however, that upon any refunding
or repayment of bonds (which term shall not, for this  purpose,  include
bond  anticipation  notes),  the  total  aggregate  principal  amount of
outstanding bonds, notes or  other  obligations  may  be  greater  than,
beginning  July first, two thousand twenty-four, twenty-one billion five
hundred million dollars ($21,500,000,000), and beginning July first, two
thousand twenty-five, twenty-seven billion five hundred million  dollars
($27,500,000,000),  only  if  the refunding or repayment bonds, notes or
other obligations were issued  in  accordance  with  the  provisions  of
subparagraph  (a)  of subdivision two of paragraph b of section 90.10 of
the local finance law, as amended from time to time. Notwithstanding the
foregoing, bonds, notes or other obligations issued by the authority may
be outstanding in an amount greater than the  amount  permitted  by  the
preceding  sentence,  provided  that such additional amount at issuance,
together with the amount of indebtedness contracted by the city  of  New
York,  shall  not  exceed  the limit prescribed by section 104.00 of the
local finance law. The authority shall have the power from time to  time
to  refund  any  bonds  of  the  authority  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  of  the  authority  then  outstanding  and
partly  to  pay the cost of any project pursuant to section twenty-seven
hundred ninety-nine-ff of this title.  Bonds  issued  by  the  authority
shall  be  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  subject
to  any  agreements  with  the holders of outstanding bonds pledging any
particular revenues or moneys.
2. The authority is authorized to obtain insurance, letters of  credit
and  other credit or liquidity facilities related to bonds in accordance
with paragraph a and paragraphs c through g of  section  168.00  of  the
local finance law, as amended from time to time; provided, however, that
the  board of directors of the authority shall make the determination as
to "financially responsible parties" required under  the  local  finance
law.
3.  (a)  The authority (i) shall amortize its serial and term bonds in
accordance with sections 11.00, 21.00 and 57.00 of the local finance law
and its bond anticipation notes in accordance with section 23.00 of  the
local  finance  law,  as amended from time to time, (ii) shall establish
provisions relating to redemption of its bonds that conform with section
53.00 of the local finance law, as amended  from  time  to  time,  (iii)
subject   to   the  limitation  set  forth  in  paragraph  (b)  of  this
subdivision, may issue bonds with variable rates of interest, and  enter
into  agreements  related thereto, subject to the limitations prescribed

in paragraphs a and c of section 54.90 of  the  local  finance  law,  as
amended  from  time  to  time,  other than the limitation therein on the
total principal amount of such variable rate bonds, and (iv)  shall  not
issue  refunding bonds without meeting the standards of subparagraph (a)
or (b) of subdivision two of paragraph b of section 90.10 of  the  local
finance  law,  as  amended  from  time  to  time. In addition, except as
provided in this title, bonds of the authority shall be subject  to  all
other provisions of the local finance law, as amended from time to time,
applicable to bonds of the city of New York, except where application of
such  law  to  bonds  of the authority would be inappropriate. Functions
assigned by such law to the mayor, comptroller, finance board and  chief
fiscal  officer  shall,  to  the  extent  not performed by such officers
pursuant to this title, be reserved or delegated by the directors of the
authority.
(b) The authority shall not issue variable rate bonds pursuant to this
section in an amount outstanding at issuance exceeding twenty percent of
the limit prescribed by subdivision one of this section, excluding bonds
(i) bearing interest at rates and for periods of time that are specified
without reference  to  future  events  or  contingencies,  or  (ii)  the
interest  rate  on  which  is  reasonably expected to be equivalent to a
fixed rate over time in conjunction with other bonds  or  by  reason  of
payments  made pursuant to agreements with financially responsible third
parties.
4. The directors may delegate to the chairperson of the authority  the
power to set the final terms of bonds.
5.  Whenever  the  authority  shall determine that the issuance of its
bonds is appropriate, which  determination  shall  occur  at  a  minimum
whenever  necessary  to  reimburse  the  city  for project capital costs
incurred by the city, 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  the
public or, subject to approval of the state comptroller, private sale of
such  bonds  and  such  recommendation  shall  include  compensation for
services rendered as they deem appropriate. Subject  to  the  applicable
provisions   of  subdivision  three  of  this  section,  the  mayor  and
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.  Following  such  recommendation,  the  bonds
shall be authorized by resolution of the authority. The bonds shall bear
interest  at  such  fixed  or  variable  rates  and  shall  be  in  such
denominations, be in such form, either coupon or registered, be sold  at
such  public or private sale, be executed in such manner, be denominated
in United States' currency, be payable in such  medium  of  payment,  at
such  place  and be subject to such terms of redemption as the authority
may provide in such resolution. Such resolution and the minutes  of  the
authority  related  thereto  shall  be  transmitted to the mayor and the
comptroller who shall then approve  or  disapprove  the  bond  issuance.
Approval  of  such  bond issuance 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.
6. 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  or  contracts,  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 issuance of additional bonds,  the  terms  upon
which  additional  bonds  may be issued and secured and the refunding of
bonds;
(e) 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;
(f)  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 twenty-seven hundred  ninety-nine-oo
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; and
(g)  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.
7. 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 for the benefit  of  the
bondholders as the authority may deem necessary, convenient or desirable
concerning  the  use  or  disposition  of  its revenues or other moneys,
including the entrusting, pledging or creation  of  any  other  security
interest  in  any  such  revenues,  moneys  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.
8. Notwithstanding any provision of the uniform commercial code to the
contrary,  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.
9.  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.
10.  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.

The bonds or other obligations of the authority shall not be a  debt  of
either  the  state or the city, and neither the state nor the city shall
be liable thereon, nor shall they be payable out of any funds other than
those of the authority; and such bonds shall contain on the face thereof
a statement to such effect.
11. The authority, subject to such agreements with bondholders as then
may  exist,  shall  have power to purchase bonds of the authority out of
any moneys available therefore, which shall thereupon be cancelled.