2023 New York Laws › STF - State Finance › Article 5-C - Revenue Bond Financing Program › 68-B - Issuance of Bonds and Notes.

§  68-b.  Issuance of bonds and notes. 1. (a) Authorized issuers shall
have the power and are hereby authorized from  time  to  time  to  issue
revenue   bonds,  in  such  principal  amount  or  amounts,  subject  to
subdivision eight of this section and as  the  director  of  the  budget
shall  determine  to  be  necessary,  to  provide  sufficient  funds for
authorized purposes,  the  establishment  of  reserves  to  secure  such
revenue  bonds,  the  payment of amounts required under revenue bonds or
agreements relating thereto, and the payment of all costs of issuance of
their revenue bonds.
(b) The authorized  issuers  shall  have  the  power  and  are  hereby
authorized  from time to time to issue (i) revenue bonds to renew notes,
(ii) revenue bonds to pay notes, and (iii) whenever it  deems  refunding
expedient,  to  refund any bonds, notes, or other obligations issued for
an authorized purpose or purposes, by the issuance of new revenue bonds,
including bonds, notes, or other obligations that were issued  prior  to
the  enactment  of  this  article,  whether  the  bonds, notes, or other
obligations to be refunded have  or  have  not  matured,  and  to  issue
revenue  bonds in part to refund bonds, notes, or other obligations then
outstanding and in part for any of its other  authorized  purposes.  The
refunding  revenue  bonds  may  be  exchanged for bonds, notes, or other
obligations to be refunded, or sold and  the  proceeds  applied  to  the
purchase,   redemption  or  payment  of  such  bonds,  notes,  or  other
obligations.
(c) Except as may otherwise be expressly  provided  by  an  authorized
issuer, every issue of revenue bonds of an authorized issuer pursuant to
this  section  shall  be  special  obligations  of the authorized issuer
payable solely out of any revenues paid over to such  authorized  issuer
from  the  revenue  bond  tax  fund,  established  pursuant  to  section
ninety-two-z of this chapter.
(d) All of the provisions of  the  enabling  acts  of  the  authorized
issuers relating to bonds and notes, which are not inconsistent with the
provisions  of  this  section,  may, at the discretion of the authorized
issuer, apply to revenue bonds authorized by this section.
(e) The revenue bonds of the authorized  issuers  authorized  by  this
section  shall  not  be  a  debt of the state and the state shall not be
liable thereon, nor shall they be payable out of any  funds  other  than
those of the authorized issuers pledged therefor; and such revenue bonds
shall  contain  on  the  face  thereof  a  statement  to such effect. In
addition, any agreements entered into by any entity pursuant to sections
sixty-eight-c and ninety-two-z of this chapter on behalf of the state to
effect the implementation of any of the activities financed in whole  or
in  part  with  proceeds  of the revenue bonds of the authorized issuers
authorized in this section do not constitute or create  a  debt  of  the
state,   nor   a   contractual  obligation  in  excess  of  the  amounts
appropriated therefor, and the state has no continuing  legal  or  moral
obligation  to  appropriate  money  for  payments  due  under  any  such
agreement.
(f) (i) Revenue  bonds  shall  be  authorized  by  resolution  of  the
authorized  issuers,  be  in such denominations, bear such date or dates
and mature at such time or times, as such resolution or other  agreement
may provide.
(ii)  Revenue 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,  registered  or  book  entry  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.
(g) Revenue bonds authorized hereunder shall  be  sold  by  authorized
issuers,  at  public  or  private  sale,  at such price or prices as the
authorized issuers  may  determine.  Revenue  bonds  of  the  authorized
issuers  shall  not  be  sold by the authorized issuers at private sales
unless  such  sale and the terms thereof have been approved by the state
comptroller.
2. Consistent with the provisions of this article, and subject to  the
approval  of  the  director  of  the  budget,  any  resolution  or other
agreement authorizing revenue 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  revenues  received  by  the
authorized  issuers pursuant to section sixty-eight-c of this article to
secure the payment of the bonds  or  notes  or  of  any  issue  thereof,
subject  to  such  agreements  with holders of revenue bonds as may then
exist;
(b) pledging all or any part of the assets of the  authorized  issuers
to  secure  the  payment of the revenue bonds or of any issue of revenue
bonds subject to such agreements with holders of revenue  bonds  as  may
then exist;
(c)  the setting aside of reserves or sinking funds and the regulation
and disposition thereof;
(d) limitations on the purposes to  which  the  proceeds  of  sale  of
revenue  bonds,  may be applied and pledging such proceeds to secure the
payment of the revenue bonds or of any issue thereof;
(e) limitations on the issuance of additional revenue bonds the  terms
upon  which  additional  revenue bonds may be issued and secured and the
refunding of outstanding or other revenue bonds;
(f) the procedure, if any, by which the terms  of  any  contract  with
holders  of  revenue  bonds  may  be amended or abrogated, the amount of
revenue bonds the holders of which must consent thereto and  the  manner
in which such consent may be given;
(g)  vesting  in  a  trustee,  as described in subdivision six of this
section, such property, rights,  powers  and  duties  in  trust  as  the
authorized  issuers  may  determine, which may include any or all of the
rights, powers and duties of the trustee appointed  by  the  holders  of
revenue  bonds  of  the  respective  authorized issuers pursuant to this
article, and limiting or abrogating  the  right  of  such  revenue  bond
holders  to  appoint  a trustee under this title or limiting the rights,
powers, and duties of such trustee;
(h) the acts or omissions to act which shall constitute a  default  in
the  obligations  and duties of the authorized issuers to the holders of
the revenue bonds and providing for  the  rights  and  remedies  of  the
holders  of  the  revenue  bonds in event of such default, including the
right to appointment of a receiver; provided, however, that such  rights
and remedies shall not be inconsistent with the other provisions of this
article;
(i)  any  other  matters, of like or different character, which in any
way affect the security or protection of  the  holders  of  the  revenue
bonds; and
(j) the application of any of the foregoing provisions to any provider
of any applicable bond, note or other financial facility.
Notwithstanding  the  foregoing,  the  authorized issuers shall not be
authorized  to  make  any  covenant,  pledge,  promise,   or   agreement
purporting to bind the state except as otherwise specifically authorized
by this article.
3. Any pledge made by the respective authorized issuers shall be valid
and  binding  from  the  time  when  the pledge is made. The revenues or

property so pledged and thereafter received by the respective authorized
issuers shall immediately be subject to the lien of such pledge  without
any  physical  delivery thereof or further act, and the lien of any such
pledge  shall  be valid and binding as against all parties having claims
of any kind in  tort,  contract  or  otherwise  against  the  respective
authorized  issuers,  irrespective  of  whether such parties have notice
thereof. Neither the resolution nor any  other  instrument  by  which  a
pledge is created need be recorded or filed to protect such pledge.
4.  Neither the directors or members of the authorized issuers nor any
other person executing the revenue bonds of the authorized issuers shall
be liable personally thereon or be subject to any personal liability  or
accountability solely by reason of the issuance thereof.
5.  The authorized issuers, subject to such agreements with holders of
revenue bonds as may then exist, or with the providers of any applicable
bond or note or other financial or agreement facility, shall have  power
out  of  any  funds  available therefor to purchase revenue bonds of the
authorized issuers, which may or may not thereupon  be  canceled,  at  a
price not exceeding:
(a)  if  the  revenue  bonds are then redeemable, the redemption price
then applicable, including any accrued interest; or
(b) if the revenue bonds are not then redeemable, the redemption price
and accrued interest applicable on the first date  after  such  purchase
upon which the revenue bonds become subject to redemption; or
(c)  whether  or  not  the  revenue  bonds  are  then redeemable, at a
redemption price that provides present value savings to  the  state,  as
certified in writing by an independent financial advisor.
No  later than seven days after a redemption pursuant to paragraph (c)
of this subdivision, the director  of  the  budget  shall  provide  such
written  certification  to the chair of the senate finance committee and
the chair of the assembly ways and means committee.
6. In the discretion of the authorized issuers, the revenue bonds  may
be  secured  by  a trust indenture by and between the authorized issuers
and a corporate trustee, or a corporate trustee may be  appointed  under
the resolution as provided in subdivision two of this section.
7.  Whether or not the revenue bonds are of such form and character as
to be negotiable instruments under the terms of the  uniform  commercial
code,  the  revenue  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 revenue bonds for registration or
any book-entry-only system.
8. Revenue bonds may  only  be  issued  for  authorized  purposes,  as
defined  in  section  sixty-eight-a of this article. Notwithstanding the
foregoing, the dormitory authority of the state of New York,  the  urban
development  corporation  and  the  New York state thruway authority may
issue revenue bonds  for  any  authorized  purpose  of  any  other  such
authorized  issuer through March thirty-first, two thousand twenty-five.
Any such revenue bonds issued by the New York  state  thruway  authority
shall  be  subject  to  the  approval  of  the  New  York  state  public
authorities control board, pursuant to section fifty-one of  the  public
authorities  law.  The  authorized  issuers  shall not issue any revenue
bonds in an amount  in  excess  of  statutory  authorizations  for  such
authorized  purposes.  Authorizations for such authorized purposes shall
be reduced in an amount equal to the amount of revenue bonds issued  for
such authorized purposes under this article. Such reduction shall not be
made  in relation to revenue bonds issued to fund reserve funds, if any,
and costs of issuance, if these items are  not  counted  under  existing
authorizations,  nor  shall  revenue bonds issued to refund bonds issued
under existing authorizations reduce the amount of such authorizations.
9. Except upon the  amendment  of  the  New  York  state  constitution
allowing the issuance or assumption of bonds, notes or other obligations
secured  by  revenues,  which  may include the revenues securing revenue
bonds of authorized issuers, and  the  affirmative  assumption  of  such
bonds, notes or other obligations by the state, the revenue bonds of the
authorized issuers authorized by this section shall not be a debt of the
state  and  the  state  shall  not  be liable thereon, nor shall they be
payable out of any funds other than  those  of  the  authorized  issuers
pledged  therefor;  and  such  revenue  bonds  shall contain on the face
thereof a statement to such effect. In addition, any agreements  entered
into  by  any entity pursuant to sections sixty-eight-c and ninety-two-z
of this chapter on behalf of the state to effect the  implementation  of
any  of the activities financed in whole or in part with proceeds of the
obligations of the authorized issuers authorized in this section do  not
constitute  or  create a debt of the state, nor a contractual obligation
in excess of the amounts appropriated therefor  and  the  state  has  no
continuing  legal  or moral obligation to appropriate money for payments
due under any such agreement.
10. Nothing in this article shall affect the authority of each of  the
authorized  issuers  to  issue  or  incur  indebtedness for any purposes
otherwise authorized by law and nothing in this article shall be  deemed
to  alter or affect the rights of outstanding bondholders or noteholders
of any authorized issuer.
11. The authorization, sale and issuance of revenue bonds pursuant  to
this  section  shall  not be deemed an action as such term is defined in
article eight of the environmental conservation law for the purposes  of
such   article.   Such  exemption  shall  be  strictly  limited  in  its
application to such  financing  activities  of  the  authorized  issuers
hereunder and does not exempt any other entity from compliance with such
article.
12.   The  comptroller  is  hereby  authorized  to  receive  from  the
authorized issuers any portion of bond proceeds paid  to  provide  funds
for or reimburse the state for its costs associated with such authorized
purposes  and to credit such amounts to the capital projects fund or any
other appropriate fund.