2023 New York Laws › TRA - Transportation › Article 2-D - Utica Transit Authority › 60 - Bond Covenants.

§ 60. Bond  covenants.  1. In connection with the issuance of bonds or
the incurring of an obligation, and to secure the payment of such  bonds
or  obligations,  the  Utica transit authority, in addition to its other
powers, may:
(a) Pledge, covenant to pledge or covenant against  pledging,  all  or
any  part  of its rents, fares, fees, revenues, subsidies, gifts, grants
or other moneys received or to be  received  to  which  its  right  then
exists   or   may  thereafter  come  into  existence;  covenant  against
permitting or suffering any lien thereon; it  is  the  intention  hereof
that  any  pledge  of revenues or other moneys made by the Utica transit
authority shall be valid and binding from the time when  the  pledge  is
made,  that  revenues or other moneys so pledged and thereafter received
by the Utica transit authority shall immediately be subject to the  lien
of  such pledge without any physical delivery thereof or further act and
that 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  Utica  transit  authority,  irrespective  of  whether  such
parties have notice thereof;
(b) Mortgage, covenant to mortgage or covenant against mortgaging, all
or  any part of its property, real or personal, then owned or thereafter
acquired; covenant against permitting or suffering any lien thereon;
(c) Covenant with respect to limitations on its right to sell,  lease,
or otherwise dispose of any municipal project or part thereof;
(d)  Covenant  as  to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition  of
the  proceeds thereof; provide for the replacement of lost, destroyed or
mutilated bonds;
(e) Covenant as to what other or additional debts may be  incurred  by
it;
(f)  Covenant  that  the Utica transit authority warrants the title to
the premises;
(g) Covenant as to the rents, fares and fees to be charged, the amount
to be raised each year or other period of time by rents, fares, fees and
other revenues, and as to the use and disposition to be made thereof;
(h) Covenant as to the use of any or all  of  its  property,  real  or
personal;
(i)  Create or authorize the creation of special funds segregating (1)
the proceeds of any grants, subsidies  or  contributions;  (2)  all  the
rents,  fares,  fees  and revenues of any municipal project or projects;
(3) any moneys held for the  payment  of  the  costs  of  operation  and
maintenance  of  municipal  projects, or as a reserve for the meeting of
contingencies in the operation and maintenance thereof; (4)  any  moneys
held  for  the  payment of the principal of and interest on its bonds or
the sums due under its leases or as a reserve for such payments; and (5)
any moneys held for any other reserves or contingencies; and covenant as
to the use and disposal of the moneys held in such funds;
(j) Redeem the bonds and covenant for their  redemption,  and  provide
the terms and conditions thereof;
(k)  Covenant  against extending the time for the payment of its bonds
or interest thereon;
(l) Prescribe the procedure,  if  any,  by  which  the  terms  of  any
contract  with  bondholders  may  be amended or abrogated, the amount of
bonds the holders of which must consent thereto, and the manner in which
such consent may be given;
(m) Covenant as to the maintenance of its  property,  the  replacement
thereof,   the  insurance  to  be  carried  thereon,  and  the  use  and
disposition of insurance moneys;
(n) Vest in an obligee, in the event of a default by the Utica transit
authority the right to cure any such default and to advance  any  moneys
necessary  for  such purpose, and covenant that the money so advanced by
an additional obligation of such authority with such interest,  security
and  priority  as  may  be provided in any resolutions, trust indenture,
mortgage, lease or contract;
(o) Covenant and prescribe as to the events of default and  terms  and
conditions  upon  which  any  or all of its bonds shall become or may be
declared due before maturity, and as to the terms  and  conditions  upon
which such declaration and its consequences may be waived;
(p)  Covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition or obligation;
(q) Covenant  to  surrender  possession  of  a  municipal  project  or
projects or parts thereof upon the happening of an event of default; and
vest  in  an  obligee  the  right,  upon  such default, without judicial
proceedings, to take possession and use, operate,  manage,  and  control
such  projects  or  any  part thereof, and to collect and receive rents,
fares, fees and revenues arising therefrom in the same  manner  as  such
authority  itself  might  do,  and to dispose of the moneys collected in
accordance with the agreement of such obligee  with  the  Utica  transit
authority;
(r) Vest in a trustee or trustees the right to enforce any covenant to
secure,  or  pay the bonds, or otherwise relating to such bonds; provide
for the powers, duties and limitations of liabilities of such trustee or
trustees, or the holders of  bonds,  or  any  proportion  of  them,  may
enforce any such covenant;
(s)  Vest  in  a  trustee  or  in  other  obligee  the right, upon any
happening  of  an  event  of  default,  to  foreclose  through  judicial
proceedings  or through the exercise of a power of sale without judicial
proceedings, any mortgage as to  all  or  such  part  or  parts  of  the
property  covered  thereby as such trustee or other obligee shall elect;
the institution, prosecution and  conclusion  of  any  such  foreclosure
proceedings  or  the  sale  of  any such parts of the mortgaged property
shall not affect in any manner or to any extent the lien of the mortgage
on the parts of the mortgaged property not included in such  proceedings
or not sold as aforesaid;
(t)  Make such other covenants and do any and all such acts and things
as may be necessary or convenient or desirable in order  to  secure  its
bonds   or  make  them  more  marketable,  not  withstanding  that  such
covenants, acts or things may not  be  enumerated  herein;  execute  all
instruments necessary or convenient in the exercise of the powers herein
granted,  or  in  the  performance of its covenants or duties, which may
contain such covenants  and  provisions,  in  addition  to  those  above
specified, as the purchaser of the bonds of an authority may require.
2.  In  case  of conflict between this section and article nine of the
uniform commercial code, this section shall control.