2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 8-A - New York State Local Water and Sewer Authority Act › 1196-F - Bonds and Notes of an Authority.

§  1196-f. Bonds and notes of an authority. 1. An 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 to pay the
cost of any water  project  or  projects  or  for  any  other  corporate
purposes,  including  incidental  expenses  in  connection therewith. An
authority shall have power from time to time to refund any bonds 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 then outstanding and
partly for any other corporate purpose. Bonds issued by an authority may
be general obligations secured by the faith and credit of the  authority
or  may be special obligations 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 with the holders of outstanding bonds pledging
particular revenues or moneys.
2. An authority is authorized to obtain from any department or  agency
of the United States of America or nongovernmental insurer any insurance
or guaranty, to the extent now or hereafter available, as to, or for the
payment  or  repayment  of  interest  or principal, or both, or any part
thereof, on any bonds or notes issued by the authority and to enter into
any agreement  or  contract  with  respect  to  any  such  insurance  or
guaranty,  except to the extent that the same would in any way impair or
interfere with the ability of the authority to perform and  fulfill  the
terms of any agreement made with the holders of the bonds or notes of an
authority.
3. Bonds shall be authorized by resolution of an authority, be in such
denominations and bear such date or dates, mature at such time or times,
except  that  bonds  and  any  renewal thereof shall mature within forty
years of the date of their original issuance and notes and  any  renewal
thereof  shall  mature  within  five years of the date of their original
issuance. Such bonds shall be subject to such terms of redemption,  bear
interest  at  such rate or rates payable at such times, be in such 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.
Bonds  may  be  sold  at  public sale or, upon the approval of the state
comptroller, at private sale for such price or prices  as  an  authority
shall  determine, provided that no issue of bonds may be sold at private
sale unless the terms of such sale shall have been approved  by  writing
by  (a)  the  comptroller, where such sale is not to the comptroller, or
(b) the director of the division of the budget, where such  sale  is  to
the comptroller.
4.  Any  resolution  or  resolutions authorizing bonds or any issue of
bonds by an authority may contain provisions which may be  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, contracts or property, 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 right of the authority to restrict and regulate
the  use  of  any project or part thereof in connection with which bonds
are issued;
(e) limitations on the issuance of additional bonds,  the  terms  upon
which additional bonds may be issued and the refunding of outstanding or
other bonds;
(f)  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;
(g) the creation of special funds into which  any  revenues  or  other
moneys may be deposited;
(h)  the  terms and provisions of any trust deed or indenture securing
the bonds under which the bonds may be issued;
(i) 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 eleven hundred ninety-six-g 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;
(j) 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;
(k)  limitations  on  the  power of the authority to sell or otherwise
dispose of any system or any part thereof or other property;
(l) limitations on the amount of  revenues  and  other  moneys  to  be
expended   for  operating,  administrative  or  other  expenses  of  the
authority;
(m) the payment of the proceeds of bonds, revenues and other moneys to
a trustee or other  depository,  and  for  the  method  of  disbursement
thereof  with  such  safeguards  and  restrictions  as the authority may
determine; and
(n) any other matters of like or different character which in any  way
affect  the  security  or  protection  of  the  bonds  or the rights and
remedies of bondholders.
5. In addition to the powers herein conferred  upon  an  authority  to
secure  its  bonds, an authority shall have power in connection with the
issuance of bonds to enter into such agreements  as  the  authority  may
deem   necessary,   consistent   or  desirable  concerning  the  use  or
disposition of its revenues or other moneys or property,  including  the
mortgaging  of  any property and the entrusting, pledging or creation of
any other security interest in any such revenues, moneys or property and
the doing of any act, including refraining from doing any act, which  an
authority  would have the right to do in the absence of such agreements.
An 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.
6. Any provision of  the  uniform  commercial  code  to  the  contrary
notwithstanding,  any  pledge of or other security interest in revenues,
moneys, accounts, contract rights, general intangibles or other personal
property made or created by an 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.
7.  Whether  or  not  the  bonds  of an 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.
8.  Neither  the  directors  of  an 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.
9.  An  authority, subject to such agreements with bondholders as then
may exist, shall have power out of  any  moneys  available  therefor  to
purchase  bonds of the authority, which shall thereupon be cancelled, at
a price not  exceeding  (i)  if  the  bonds  are  then  redeemable,  the
redemption  price  then  applicable,  plus  accrued interest to the next
interest payment date, (ii) if the bonds are not  then  redeemable,  the
redemption  price  applicable on the first date after such purchase upon
which the bonds become subject to redemption plus  accrued  interest  to
the next interest payment date.
10.  An  authority  shall have power and is hereby authorized to issue
negotiable  bond  anticipation  notes  in  conformity  with   applicable
provisions  of  the  uniform commercial code and may renew the same from
time to time but the  maximum  maturity  of  any  such  note,  including
renewals  thereof, shall not exceed five years from the date of issue of
such original note. Such notes shall be paid  from  any  moneys  of  the
authority  available  therefore  and  not  otherwise pledged or from the
proceeds of sale of the bonds of the authority in anticipation of  which
they  were  issued.  The notes shall be issued in the same manner as the
bonds and such notes and the resolution or resolutions  authorizing  the
same  may  contain  any  provisions, conditions or limitations which the
bonds or a bond resolution of the authority may contain. Such notes  may
be  sold  at public sale or, upon the approval of the state comptroller,
at private sale. Such notes shall be as fully negotiable as the bonds of
the authority.