2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 1 - Power Authority of the State of New York › 1010 - Bonds of the Authority.

§  1010. Bonds of the authority. 1. The authority shall have power and
is hereby authorized from time to time to issue its negotiable bonds  in
conformity with applicable provisions of the uniform commercial code for
the purpose of financing any project authorized by this title, including
the  acquisition  of  any real or personal property or facilities deemed
necessary by the authority.
2. In anticipation of the sale of such bonds the authority  may  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  notes.  Such  notes shall be paid from any moneys of the
authority available therefor and not  otherwise  pledged,  or  from  the
proceeds  of sale of the bonds of the authority in anticipation of which
they were issued. Such notes shall not be issued in an amount in  excess
of  the amount of bonds which the authority is authorized to issue, less
the  amount  of  any  bonds  or  other  notes  theretofore  issued   and
outstanding.  The notes shall be issued in the same manner as the bonds.
Such notes and the resolution or resolutions authorizing  the  same  may
contain   any   provisions,  conditions  or  limitations  which  a  bond
resolution of the authority may contain.
3. Except as may be otherwise expressly provided by the authority, the
bonds and notes of every issue  shall  be  general  obligations  of  the
authority  payable  out  of  any  moneys  or  revenues of the authority,
subject only to any agreements with the holders of particular  bonds  or
notes pledging any particular moneys or revenues.
4. The authority shall have power from time to time, 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 may issue
bonds partly to refund bonds then outstanding and partly for  any  other
purpose hereinbefore described. Refunding bonds may be exchanged for the
bonds  to  be  refunded, with such cash adjustments as may be agreed, or
may be sold with the proceeds applied to the purchase or payment of  the
bonds to be refunded.
5.  The  bonds  may be issued payable in annual installments or may be
issued as term bonds or the authority,  in  its  discretion,  may  issue
bonds  of both types. The bonds shall be authorized by resolution of the
trustees of the authority and shall bear such date or dates,  mature  at
such  time  or  times,  not  exceeding fifty years from their respective
dates, bear  interest  at  such  rate  or  rates,  payable  annually  or
semi-annually,  be in such denominations, be in such form, either coupon
or registered, carry such registration privileges, be executed  in  such
manner,  be  payable  in lawful money of the United States of America at
such place or places, and be subject to such  terms  of  redemption,  as
such  resolution  or  resolutions  may provide.   In the event that term
bonds are issued, the resolution authorizing  the  same  may  make  such
provisions  for  the  establishment  and  management of adequate sinking
funds for the payment thereof, as the authority may deem necessary.  The
bonds  or  notes may be sold at public or private sale for such price or
prices as the authority shall determine.   Pending  preparation  of  the
definite  bonds, the authority may issue interim receipts which shall be
exchanged for such bonds.
6. Any resolution or resolutions authorizing any bonds or any issue of
bonds may contain provisions, which shall be a part of the contract with
the holders of the bonds to be authorized as to
(a) pledging all or any part of the revenues of  the  project  or  any
revenue  producing  contract or contracts made by the authority with any
individual,  partnership,  corporation  or  association  to  secure  the

payment  of  the  bonds  or of any particular issue of bonds, subject to
such agreements with bondholders as may then exist;
(b) the rentals, fees and other charges to be charged, and the amounts
to  be  raised  in each year thereby, and the use and disposition of the
revenues;
(c) the setting aside of reserves or sinking funds, and the regulation
and disposition thereof;
(d) limitations on the right of the authority to restrict and regulate
the use of any project;
(e) limitations on the purpose to which the proceeds of  sale  of  any
issue  of  bonds  then  or  thereafter  to  be issued may be applied and
pledging such proceeds to secure the payment of  the  bonds  or  of  any
issue of the bonds;
(f)  limitations  on  the issuance of additional bonds; the terms upon
which additional bonds may be  issued  and  secured;  the  refunding  of
outstanding bonds;
(g)  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;
(h)  limitations  on the amount of moneys derived from a project to be
expended  for  operating,  administrative  or  other  expenses  of   the
authority;
(i)  defining  the  acts  or omissions to act which shall constitute a
default in the duties of the authority to holders of its obligations and
providing the rights and remedies of such holders  in  the  event  of  a
default.
7.  Notwithstanding  any  other  provisions  of  this  title, any such
resolution or resolutions shall contain a covenant by the authority that
it will at all times maintain rates, fees or charges sufficient to  pay,
and  that  any  contracts  entered  into  by the authority for the sale,
transmission or distribution of  power  shall  contain  rates,  fees  or
charges  sufficient to pay the costs of operation and maintenance of the
project, the  principal  of  and  interest  on  any  obligations  issued
pursuant  to  such  resolution  as  the  same  severally  become due and
payable, and to maintain any reserves required  by  the  terms  of  such
resolution or resolutions.
8.  It  is  the  intention hereof that any pledge of revenues or other
moneys or of a revenue producing  contract  or  contracts  made  by  the
authority  shall  be  valid and binding from the time when the pledge is
made; that the revenues or other moneys or proceeds of any  contract  or
contracts  so  pledged  and  thereafter  received by the 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 authority irrespective
of whether such parties have notice thereof. Neither the resolution  nor
any other instrument by which a pledge is created need be recorded.
9.  Neither  the members of the authority nor any person executing the
bonds or notes shall be liable personally on the bonds or  notes  or  be
subject  to  any  personal  liability or accountability by reason of the
issuance thereof.
10. The authority shall have power out of any funds available therefor
to purchase bonds or notes. The authority may hold,  pledge,  cancel  or
resell  such  bonds,  subject  to and in accordance with agreements with
bondholders.
11. Any bonds or  notes  issued  by  the  authority  are  hereby  made
securities in which all public officers and bodies of this state and all

municipalities  and  municipal subdivisions, all insurance companies and
associations and other persons carrying on an  insurance  business,  all
banks, bankers, trust companies, savings banks and savings associations,
including savings and loan associations, building and loan associations,
investment  companies  and other persons carrying on a banking business,
and all other persons whatsoever, except as  hereinafter  provided,  who
are  now  or  may  hereafter  be  authorized to invest in bonds or other
obligations  of  the  state,  may  properly  and  legally  invest  funds
including  capital in their control or belonging to them; provided that,
notwithstanding the provisions of any other general or  special  law  to
the  contrary,  such  bonds  and  notes  shall  not  be eligible for the
investment  of  funds,  including  capital,  of   trusts,   estates   or
guardianships under the control of individual administrators, guardians,
executors,  trustees  and  other  individual fiduciaries except when any
such individual fiduciary shall be acting in such capacity with  one  or
more  corporate co-fiduciaries. The bonds and notes are also hereby made
securities which may be deposited with and  shall  be  received  by  all
public  officers  and  bodies  of  this state and all municipalities and
municipal subdivisions for any purpose for which the deposit of bonds or
other obligations of this state is now or may hereafter be authorized.