2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 6 - New York City Off-Track Betting Corporation › 611 - Issuance of Bonds and Notes by Corporation.

§  611. Issuance of bonds and notes by corporation. 1. The corporation
  shall have the power and is hereby authorized, from  time  to  time,  to
  issue  negotiable bonds and notes in such aggregate principal amounts as
  shall, in the opinion of the corporation,  be  necessary  together  with
  such  other  moneys  or funds as may be available to the corporation, to
  provide funds sufficient to enable the  corporation  to  carry  out  its
  corporate purposes, including the acquisition, construction, maintenance
  and repair of personal and real property, the payment of interest on and
  amortization  of,  or payment of such bonds and notes, the establishment
  of reserves or sinking funds to secure such bonds  and  notes,  and  all
  other  expenditures  of  the  corporation  incident  to and necessary or
  desirable for the  carrying  out  of  its  corporate  purposes  and  the
  exercise of its powers. 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 or moneys  of
  the  corporation,  subject  only  to  any agreements with the holders of
  particular bonds or notes pledging any particular  revenues  or  moneys.
  Whether  or  not the bonds or notes are of such form and character as to
  be negotiable instruments under the provisions of article eight  of  the
  uniform  commercial  code,  the  bonds and notes shall be and are hereby
  made negotiable instruments within  the  meaning  of  and  for  all  the
  purposes  of  article eight of the uniform commercial code, subject only
  to the provisions of the bonds or notes for registration.
2. The corporation shall have the power and is hereby authorized, from
  time to time, to issue renewal notes, and 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 to pay notes or partly to refund bonds then
  outstanding.
3. The said bonds and notes  shall  be  authorized  by  resolution  or
  resolutions  of  the  board,  and  shall  mature  as  such resolution or
  resolutions may provide. Bonds and notes shall  bear  interest  at  such
  rate  or rates, 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. Bonds and notes may be sold by the corporation
  at public or private sale at such price or  prices  as  the  corporation
  shall  determine;  provided, however, that no such bonds or notes may be
  sold at a private sale unless the sale and the terms thereof  have  been
  approved by the comptroller in writing.
4.  Any  resolution  or resolutions authorizing any bonds or notes may
  contain provisions, which shall be a part of the contract  or  contracts
  with the holders thereof, as to:
a.  pledging all or any part of the moneys or revenues or other assets
  of the corporation to secure the payment of such bonds or notes;
b. the setting aside of reserves or sinking funds and  the  regulation
  or disposition thereof;
c.  limitations  on  the purposes to which the proceeds of the sale of
  any issue of bonds or notes then or  thereafter  to  be  issued  may  be
  applied and pledging such proceeds to secure the payment of the bonds or
  notes or any issue thereof;
d. limitations on the issuance of additional bonds or notes; the terms
  upon which such additional bonds or notes may be issued and secured; the
  refunding of outstanding bonds or notes;
e. the procedures, if any, by which the terms of any contract with the
  holders  of  bonds  or notes may be extended 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;
f.  the creation of special funds into which any moneys or revenues of
  the corporation may be deposited;
g.  limitations  on  the  amounts  that the corporation may expend for
  administrative or other expenses thereof;
h. vesting in a trustee such properties, rights, powers and duties  in
  trust  as  the  corporation may determine and limiting or abrogating the
  right of the holders of the bonds or notes to appoint  a  trustee  under
  section six hundred sixteen of this chapter;
i.  defining  the  acts  or  omissions  to act that 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 the event of such default, including as
  a matter of right the 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 article; and
j.  any other matters, of like or different character, that in any way
  affect the security or protection of the holders of the bonds or notes.
5. Any pledge of revenues, moneys or property made by the  corporation
  shall  be  valid  and binding from the time when the pledge is made; the
  revenues, moneys 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 or resolutions nor any other instrument by which
  a pledge is created need be recorded.
6. Neither the directors of  the  corporation  nor  any  other  person
  executing such bonds or notes shall be subject to any personal liability
  or accountability by reason of the issuance thereof.
7.  The  corporation,  subject  to such agreements with the holders of
  bonds or notes as may then exist, shall have the power out of any  funds
  available  therefor  to  purchase  any  bonds or notes issued by it at a
  price not exceeding the redemption price thereof, which price shall be:
a. if the bonds or notes are then  redeemable,  the  redemption  price
  then  applicable plus accrued interest to the next interest payment date
  thereon, or
b. if the bonds or notes are not then redeemable, the redemption price
  applicable on the first date after such purchase  upon  which  bonds  or
  notes  become  subject to redemption plus accrued interest to such date.
  All bonds or notes so purchased shall be cancelled.