2023 New York Laws › PBA - Public Authorities › Article 10-B › Title 4 - New York Local Government Assistance Coporation › 3236 - Bonds and Notes of the Corporation.

§  3236.  Bonds  and  notes of the corporation. 1. (a) The corporation
shall have power and is hereby authorized from time to time to issue its
bonds and  notes  in  such  principal  amount  or  amounts,  subject  to
subdivision eight of this section, as the corporation shall determine to
be  necessary,  to  provide sufficient funds for achieving its corporate
purposes, including the making of payments  pursuant  to  section  three
thousand two hundred thirty-eight of this title, the payment of interest
on  bonds and notes of the corporation, the establishment of reserves to
secure such bonds and notes, the payment of amounts required under  bond
or  note  facilities  or agreements relating thereto, and the payment of
all costs of issuance of its bonds and notes.
(b) The corporation shall have the power and is hereby authorized from
time to time to issue (i) notes to renew notes and  (ii)  bonds  to  pay
notes,  including  the interest thereon 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  of  its  other
corporate  purposes.  The refunding bonds may be exchanged for the bonds
to be refunded or  sold  and  the  proceeds  applied  to  the  purchase,
redemption or payment of such bonds.
(c)  Except as may otherwise be expressly provided by the corporation,
every issue of its bonds and notes shall be general obligations  of  the
corporation payable out of any revenues of the corporation, subject only
to any agreements with the holders of particular bonds or notes pledging
any particular revenues.
(d)  (i)  Bonds  and  notes  shall  be authorized by resolution of the
corporation, be in such denominations and bear such date  or  dates  and
mature  at  such time or times, as such resolution may provide, provided
that bonds and notes and renewals or refundings thereof shall mature  on
a  date  not  later than December thirty-first, two thousand twenty-five
nor more than thirty years from the date of original issuance.
(ii) Bonds and notes 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.
(e)  Such  bonds  shall  be  sold  to  the  bidder offering the lowest
interest cost to the corporation, taking into consideration any  premium
or  discount  and, in the case of refunding bonds, the bona fide initial
public offering price, not less than four nor more  than  fifteen  days,
Sundays  excepted,  after  a  notice  of such sale has been published at
least once in a definitive  trade  publication  of  the  municipal  bond
industry  published  on each business day in the state of New York which
is generally available to participants in the municipal  bond  industry,
which  notice shall state the terms of the sale. The corporation may not
change the terms of the sale unless notice of such change is sent via  a
definitive  trade  wire service of the municipal bond industry which, in
general, makes available information regarding  activity  and  sales  of
municipal  bonds  and  is  generally  available  to  participants in the
municipal bond industry, at least one hour prior to the time of the sale
as set forth in the original notice of sale. In so changing the terms or
conditions of a sale the  corporation  may  send  notice  by  such  wire
service  that  the  sale  will be delayed by up to thirty days, provided
that wire notice of the new  sale  date  will  be  given  at  least  one
business  day  prior to the new time when bids will be accepted. In such
event, no new  notice  of  sale  shall  be  required  to  be  published.
Advertisements  shall  contain  a  provision  to  the  effect  that  the

corporation, in its discretion, may reject  any  or  all  bids  made  in
pursuance  of  such  advertisements, and in the event of such rejection,
the corporation is authorized to negotiate a private sale or readvertise
for bids in the form and manner above described as many times as, in its
judgment,   may   be   necessary   to   effect   a   satisfactory  sale.
Notwithstanding the foregoing provisions of this paragraph, whenever  in
the judgment of the corporation the interests of the corporation will be
served  thereby,  the  corporation  may  sell bonds at private sale. The
corporation  shall  promulgate  regulations  governing  the  terms   and
conditions  of any such private sales, which regulations shall include a
provision that it give notice to the governor, the  temporary  president
of  the  senate,  and  the  speaker  of the assembly of its intention to
conduct a private sale of obligations pursuant to this section not  less
than  five  days  prior  to  such  sale  or the execution of any binding
agreement to effect such sale.
(f) The corporation shall enter into an agreement with the comptroller
pursuant to which the comptroller shall be the exclusive  agent  of  the
corporation for the sale of its bonds and notes.
2.  Consistent  with  the  provisions  of  this  title, any resolution
authorizing any  bonds  or  notes  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 to secure the payment  of
the  bonds  or notes 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  to
secure  the  payment  of  the bonds or notes or of any issue of bonds or
notes, subject to such agreements with bondholders or noteholders 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 bonds
or notes may be applied and pledging such proceeds to secure the payment
of the bonds or notes or of any issue thereof;
(e)  limitations  on  the  issuance  of additional bonds or notes; the
terms upon which additional bonds or notes may be  issued  and  secured;
and the refunding of outstanding or other bonds or notes;
(f)  the  procedure,  if  any, by which the terms of any contract with
bondholders or noteholders may be amended or abrogated,  the  amount  of
bonds or notes the holders of which must consent thereto, and the manner
in which such consent may be given;
(g)  limitations  on  the  amount  of  moneys  to  be  expended by the
corporation for operating expenses of the corporation;
(h) vesting in a trustee, as described  in  subdivision  six  of  this
section,  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 title or limiting the rights, powers,
and duties of such trustee;
(i) the acts or omissions to act which shall constitute a  default  in
the  obligations  and  duties  of  the corporation to the holders of the
bonds or notes and providing for the rights and remedies of the  holders
of  the  bonds or notes in event of such default, including the right to
appointment of a receiver; providing,  however,  that  such  rights  and
remedies  shall  not  be inconsistent with the general laws of the state
and the other provisions of this title;
(j) any other matters, of like or different character,  which  in  any
way  affect  the  security  or protection of the holders of the bonds or
notes; and
(k) the application of any of the foregoing provisions to any provider
of any applicable bond or note facility.
Notwithstanding the foregoing, the corporation shall not be authorized
to  make  any covenant, pledge, promise, or agreement purporting to bind
the state except as otherwise specifically authorized by this title.
3. Any pledge made by the corporation shall be valid and binding  from
the  time  when  the pledge is made. The revenues or property so pledged
and thereafter received by the corporation 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 corporation, 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  of  the  corporation nor any other person
executing the bonds or notes of the corporation shall be subject to  any
personal liability or accountability by reason of the issuance thereof.
5.  The  corporation,  subject  to such agreements with bondholders or
noteholders as may then exist, or with the providers of  any  applicable
bond  or  note  facility,  shall  have  power out of any funds available
therefor to purchase bonds or notes of the corporation, which may or may
not thereupon be cancelled, at a price not substantially exceeding:
(a) if the bonds or notes are then redeemable,  the  redemption  price
then applicable, including any accrued interest;
(b)  if  the  bonds  or  notes are not then redeemable, the redemption
price and accrued interest applicable  on  the  first  date  after  such
purchase upon which the bonds or notes become subject to redemption.
6.  In  the  discretion of the directors of the corporation, the bonds
and notes may be secured  by  a  trust  indenture  by  and  between  the
corporation  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 bonds and notes are of such form and character
as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
commercial  code,  the  bonds  and  notes  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 and
notes for registration or any book-entry-only system.
8. (a) The corporation shall not issue any bonds or notes in an amount
in  excess  of  four  billion  seven  hundred  million  dollars,  plus a
principal amount of bonds or notes:
(i) to fund any capital reserve fund in accordance  with  the  capital
reserve fund requirement,
(ii)  to  provide  capitalized interest for a period not to exceed six
months, and
(iii) to provide for  the  payment  of  fees  and  other  charges  and
expenses,  including  underwriters' discount, related to the issuance of
such bonds or notes, or related to the provision of any applicable  bond
or note facilities.
(b)  In  computing  for  the  purposes  of this section, the aggregate
amount of indebtedness evidenced by bonds and notes of  the  corporation
issued pursuant to this title, there shall be excluded (i) the amount of
bonds  or  notes issued that would constitute interest under the Code as
amended to the effective date of this title, and (ii) the amount of such

indebtedness represented by such bonds or  notes  issued  to  refund  or
otherwise  repay  bonds  or  notes, provided that the amount so excluded
under this subparagraph (ii) may exceed the  principal  amount  of  such
bonds or notes that were issued to refund or otherwise repay only if the
present  value  of  the  aggregate  debt  service  on  the  refunding or
repayment bonds or notes shall not have at the time  of  their  issuance
exceeded the present value of the aggregate debt service of the bonds or
notes  they  were  issued to refund or repay, such present value in each
case being calculated by  using  the  effective  interest  rate  of  the
refunding  or repayment bonds or notes, which shall be that rate arrived
at by doubling the semi-annual interest rate (compounded  semi-annually)
necessary  to  discount  the  debt  service payments on the refunding or
repayment bonds or notes from the payment date thereof to  the  date  of
issue  of the refunding or repayment bonds or notes and to the price bid
therefor, or to the proceeds received by the corporation from  the  sale
thereof, in each case including estimated accrued interest.
9.  Each  issuance  of bonds by the corporation under this title shall
provide for  the  retirement  thereof  so  that  debt  service  thereon,
calculated  in  accordance with reasonably assumed interest rates to the
extent not then determinable, shall  be  on  a  substantially  level  or
decreasing  debt-service  payment  basis no later than one year from the
date of their issuance to the date of  retirement  of  the  latest  bond
within  such  issue  to retire. Each issuance of notes shall provide for
annual reductions of the aggregate outstanding  principal  in  equal  or
increasing  amounts of such reduction. Notwithstanding the foregoing, if
the corporation shall issue refunding bonds, the  debt  service  thereon
shall  be  structured  on any basis that the corporation deems is in its
best interest, provided that debt  service  on  all  outstanding  bonds,
notes  and  other  financial  obligations is not increased in any future
fiscal year after giving effect to such refunding.