2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 4 - Dormitory Authority › 1682 - Bonds of the Authority.

§  1682.  Bonds of the authority. 1. The authority shall have power as
hereby authorized from  time  to  time  to  issue  negotiable  bonds  in
conformity  with  applicable  provisions of the uniform commercial code.
The 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. In computing the total
amount of bonds of the authority which may at any  time  be  outstanding
the  amount of the outstanding bonds to be refunded from the proceeds of
the sale of new bonds or by exchange for new bonds  shall  be  excluded.
Except  as  may  otherwise be expressly provided by the authority, every
issue of the bonds shall be  general  obligations  payable  out  of  any
moneys or revenues of the authority, subject only to any agreements with
the  holders  of  particular  bonds  pledging  any  particular moneys or
revenues.
2. Such bonds shall be authorized by resolution of the  board,  be  in
such  denominations  and  shall  bear such date or dates, mature at such
time or times not exceeding forty years  from  their  respective  dates,
bear  interest  at  such rate or rates payable at such times, 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. Such bonds may be sold at  public
or  private  sale  for  such  price  or  prices  as  the authority shall
determine.
3. Such bonds  may  be  issued  for  any  corporate  purposes  of  the
authority.
4.  Any  resolution  or  resolutions authorizing any bonds may contain
provisions which may be a part of the contract with the holders  of  the
bonds, as to
(a)  pledging  all  or  any  part  of  the  moneys  or property of the
authority to secure the payment of its bonds, including, but not limited
to, the revenues of designated dormitories, the proceeds of any grant in
aid of the authority received from any private  or  public  source,  any
federally guaranteed security and moneys received therefrom whether such
security  is  initially  acquired  by  the  authority  or an educational
institution, any moneys received under the terms of any lease,  loan  or
other   agreement   executed   pursuant   to   section  sixteen  hundred
seventy-eight,  section  sixteen  hundred  eighty  or  sixteen   hundred
eighty-a  of  this  chapter  or  any  other  revenues,  state aid, local
assistance payments,  user  charges  or  surcharges  made  available  in
accordance with law for such purpose;
(b)  the setting aside of reserves or sinking funds and the regulation
or disposition thereof;
(c) the purpose and limitations thereon to which the proceeds of  sale
of  any  issue  of bonds then or thereafter to be issued may be applied,
including as authorized purposes, all costs and  expenses  necessary  or
incidental to the issuance of bonds, to the acquisition of or commitment
to  acquire  any  federally  guaranteed security and to the issuance and
obtaining of any federally insured mortgage note;
(d) limitations on the issuance of additional bonds;  the  terms  upon
which  additional  bonds  may  be  issued  and secured; the refunding of
outstanding or other bonds;
(e) 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;
(f) the creation of  special  funds  into  which  any  moneys  of  the
authority may be deposited;
(g)  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  sixteen  hundred  eighty-six of this
chapter, and limiting or abrogating the  right  of  the  bondholders  to
appoint  a trustee under such section or limiting the rights, duties and
powers of such trustee;
(h) defining the acts or omissions to act  which  shall  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,  providing,  that such rights and remedies
shall not be inconsistent with the general laws of this state and  other
provisions of this title;
(i)  any  other  matters, of like or different character, which in any
way affect the security and protection of the bonds.
4-a. Any pledge of or other security  interest  in  moneys,  earnings,
income,  revenues,  accounts,  contract  rights,  general intangibles or
other personal property made or created by the authority shall be valid,
binding and perfected from the time when such pledge or  other  security
interest  attaches,  without  any physical delivery of the collateral or
further act. The lien of any such  pledge  or  other  security  interest
shall  be  valid,  binding  and  perfected as 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 other security interest is  created
nor  any financing statement need be recorded or filed. This subdivision
shall apply notwithstanding the provisions  of  the  uniform  commercial
code. Any moneys, earnings, income, revenues, accounts, contract rights,
general  intangibles  or other personal property held or received by the
authority or on  behalf  of  the  authority  by  any  lender,  servicer,
trustee, custodian, collection agent or institution of higher education,
pursuant   to   any  resolution,  trust  agreement  or  other  agreement
authorized  by,  or  entered  into  in  connection  with,  the   program
established  pursuant  to section sixteen hundred seventy nine-c of this
title and pledged by the  authority  pursuant  to  a  resolution,  trust
agreement  or  such other agreement for the benefit of bondholders shall
constitute  moneys,  earnings,  income,  revenues,  accounts,   contract
rights,  general  intangibles  or other personal property pledged by the
authority for all purposes of this subdivision.
4-b. Any resolution authorizing the issuance of bonds for the  purpose
of  providing  facilities  for  the city university pursuant to a lease,
sublease  or  other  agreement  entered  into  by  the  city  university
construction  fund  and  the dormitory authority on or after July first,
nineteen hundred eighty-five, refunding any such bonds, or  establishing
or  funding  reserves for such bonds shall state the principal amount of
bonds being issued in connection with senior college facilities and  the
principal  amount  of  bonds  being  issued in connection with community
college facilities. The proceeds of such bonds  to  be  applied  to  the
payment  of  the  costs  of providing senior college facilities shall be
held separate and apart from the proceeds of such bonds to be applied to
the payment of the costs of providing community college facilities.  The
proceeds  to  be applied to the payment of the costs of providing senior
college facilities shall not be applied to the payment of the  costs  of
providing community college facilities and the proceeds to be applied to
the payment of the costs of providing community college facilities shall

not  be  applied to the payment of the costs of providing senior college
facilities.
5.  Neither  the  members  of  the board nor any person executing such
bonds shall be liable personally on the  bonds  or  be  subject  to  any
personal liability or accountability by reason of the issuance thereof.
6.  The authority shall have power out of any funds available therefor
to purchase any bonds  issued  by  it  at  a  price  not  exceeding  the
redemption price thereof. All bonds so purchased shall be cancelled.
7.  In  the  discretion of the authority the bonds may be secured by a
trust indenture by and between the authority and  a  corporate  trustee,
which  may  be  any  trust  company or bank having the powers of a trust
company in the state of New York. Such trust indenture may contain  such
provisions  for  protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law,
including covenants  setting  forth  the  duties  of  the  authority  in
relation   to  the  construction,  maintenance,  operation,  repair  and
insurance of the dormitories or  of  any  dormitory,  and  the  custody,
safeguarding  and  application  of  all moneys, and may provide that any
dormitory shall be constructed and paid for under  the  supervision  and
approval  of  consulting  engineers.  The  authority may provide by such
trust indenture for the payment of the proceeds of  the  bonds  and  the
revenues  of  any  dormitory  or  moneys received under the terms of any
lease or loan executed pursuant to section  sixteen  hundred  eighty  of
this chapter, as the case may be, to the trustee of such trust indenture
or  other  depository,  and for the method of disbursement thereof, with
such safeguards and restrictions as it  may  determine.  Notwithstanding
the provisions of section sixteen hundred eighty-six of this chapter, if
the bonds shall be secured by trust indenture the bondholders shall have
no authority to appoint a separate trustee to represent them.