2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 9 - New York City Transit Authority › 1207-B - Issuance of Bonds and Notes by the Authority.

§   1207-b.   Issuance  of  bonds  and  notes  by  the  authority.  1.
Notwithstanding the provisions of sections twelve hundred through twelve
hundred twenty-one, inclusive, of this title or of any other  provisions
of  law to the contrary, but subject to the provisions of section twelve
hundred seven-j of this title, the authority shall have the power and is
hereby authorized to borrow money and  to  issue  negotiable  bonds  and
notes  therefor  in conformity with applicable provisions of the uniform
commercial code in such principal amount  as,  in  the  opinion  of  the
authority,  shall  be  necessary  to provide funds sufficient to pay the
purchase price of no more than seven hundred twenty-four  cars  for  the
rapid  transit  lines  under the jurisdiction of the authority purchased
pursuant to section  twelve  hundred  seven-a  of  this  title,  to  pay
interest  on the bonds and notes of the authority, to establish reserves
to secure such bonds and notes, and to pay all other expenditures of the
authority incident to or incurred in connection  with  the  purchase  of
such  cars  and  the  authorization, issuance and sale of said bonds and
notes. In no event shall there be outstanding at any one time more  than
ninety-two million dollars ($92,000,000) in such bonds and notes.
1-a.   The  authority  may  also  issue  its  bonds,  notes  or  other
obligations in such principal amounts as shall be necessary  to  finance
the  construction,  purchase,  lease  or  acquisition  of,  or an equity
interest in, an office building located or  to  be  constructed  in  the
borough  of  Brooklyn in the city, provided that (i) all or a portion of
such building is intended to be occupied by the authority and  that  the
board  shall,  by  resolution,  have  made  findings that the sum of the
capitalized value of all payments due  from  the  authority  under  such
bonds,   notes   or   other   obligations  (not  including  any  amounts
attributable to principal repayment) together with any rent payments for
the space in such building to be occupied by the authority  and  of  all
payments  required of the authority under any related agreement does not
exceed the capitalized value of those payments which would be made in  a
conventional  commercial  lease transaction for comparable space with an
unrelated party and (ii) not more than an insubstantial portion  of  any
real  property  so  financed with the proceeds of bonds, notes, or other
obligations is  utilized  by  other  than  the  New  York  city  transit
authority or its designated subsidiary. The term "capitalized value" for
the  purposes  of  this  subdivision shall be computed in the manner set
forth in subdivision four of section  twelve  hundred  seven-m  of  this
title.  The metropolitan transportation authority is hereby additionally
authorized from time  to  time  to  issue  bonds  for  the  purposes  of
refunding,  redeeming  or otherwise paying, including paying by purchase
or tender, bonds issued by the authority for such purposes and to secure
such bonds in the manner set forth in section twelve hundred  sixty-nine
of this article.
2. The authority shall have the power from time to time to renew notes
or to issue renewal notes for such purpose, to issue bonds to pay notes,
and  whenever  it  deems  refunding  expedient,  to  refund bonds by the
issuance of new bonds and to issue bonds  partly  to  refund  bonds  and
notes  then  outstanding  and  partly  for  the  purposes  authorized by
subdivision one of this section. The refunding bonds  may  be  exchanged
for  bonds  to be refunded, with such cash adjustments as may be agreed,
or may be sold and the proceeds applied to the purchase  or  payment  of
the  bonds  to  be  refunded. In no event shall the maturity date of the
refunding bonds be a date beyond thirty-five years  from  the  date  the
first bond was issued.
3.  Every  issue  of bonds and notes of the authority shall be special
obligations of the authority payable solely from the moneys and revenues
of the authority derived from the operation of  the  transit  facilities

under  its  jurisdiction,  subject  to any agreement with the holders of
particular bonds or notes pledging any particular moneys or revenues.
4.  The  bonds  and  notes  shall  be  authorized by resolution of the
authority and shall bear such date or dates and  shall  mature  at  such
time or times as such resolution or resolutions may provide, except that
no  note  or any renewal thereof shall mature more than five years after
the date of issue of the original note and no  bond  shall  mature  more
than  thirty-five  years  from  the date of issue. 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 and to such other terms and conditions as such resolution  or
resolutions  may  provide.  The bonds and notes may be sold at public or
private sale for such price or prices as the authority shall  determine.
Pending preparation of definitive bonds, the authority may issue interim
receipts which shall be exchanged for such bonds.
5. Any resolution or resolutions authorizing any bonds or notes or any
issue of bonds or notes may contain provisions, which shall be a part of
the contract with the holders of the bonds, or notes thereby authorized,
as to
(a)  pledging  all  or any part of the revenues or other monies of the
authority to secure the payment of the bonds or notes or of any issue of
the bonds or notes, subject  to  such  agreements  with  bondholders  or
noteholders as may then exist;
(b)  the  rate  or  rates  of fare to be charged and the amounts to be
raised in each year from revenues 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 rights of the authority with respect to the use
and disposition of the cars for which such bonds or notes are issued and
with respect to all other transit facilities of the authority;
(e)  limitations  on  the purpose to which the proceeds of 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 of any issue of the bonds or notes;
(f) limitations on the issuance of additional  bonds  and  notes;  the
terms  upon  which additional bonds and notes may be issued and secured,
and the funding or refunding of outstanding or other bonds and notes;
(g) the procedure, if any, by which the terms  of  any  contract  with
bondholders  or  noteholders  may be amended 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;
(h) vesting in a trustee or trustees such property, 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  or  noteholders  pursuant to section twelve hundred seven-h
hereof, and limiting or abrogating  the  right  of  the  bondholders  to
appoint  a  trustee  under  section  twelve  hundred  seven-h hereof, or
limiting the rights, duties and powers of such trustee;
(i) defining the acts or omissions to act  which  shall  constitute  a
default  in  the duties of the authority to the holders of its bonds and
notes and providing the rights and remedies of such holders in the event
of default;
(j) any other matters, of like or different character,  which  in  any
way affect the security or protection of the bonds and notes.
6.  It  is  the  intention hereof that any pledge of revenues or other
moneys made by the authority shall be valid and binding  from  the  time
when  the  pledge  is made; that the revenues or other moneys 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.
7. Neither the members of the board 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.
8.  Subject  to such agreements with bondholders or noteholders as may
then exist, the authority shall have power out of  any  funds  available
therefor  to  purchase bonds or notes. The authority may hold, cancel or
resell  such  bonds  and  notes,  subject  to  and  in  accordance  with
agreements with bondholders and noteholders.