2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 1-B - North Country Power Authority › 1021-I - Bonds, Notes and Other Obligations of the Authority.

§  1021-i. Bonds, notes and other obligations of the authority. 1. The
authority shall have power and is hereby authorized from time to time to
issue its bonds, notes or other obligations, in an aggregate amount  not
to  exceed  one  hundred twenty-five million dollars, for the purpose of
financing any capital project authorized by this  title,  including  but
not  limited  to,  the  acquisition  of any real or personal property or
facilities  deemed  necessary  by   the   authority,   development   and
professional  expenses,  and  funding any capital or other reserve funds
established in connection with the authority's operations or  issuances,
in  such  principal amount as the directors shall determine necessary to
perform its corporate duties and further its purposes as  authorized  in
this  title.  The  maximum  maturity  of  any such bond shall not exceed
thirty years from its date of issuance. The maximum maturity of any such
note or other obligation shall not exceed five years from  its  date  of
issuance.
2. Except as may be otherwise expressly provided by the authority, the
issuance  of  bonds,  notes  or  other  obligations,  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, notes or other  obligations  pledging  any  particular
moneys or revenues.
3. The authority shall have power from time to time, whenever it deems
refunding  expedient, to refund any bonds, notes or other obligations by
the issuance of new bonds, notes or other obligations, up to one hundred
twenty-five million dollars in the aggregate, whether the  bonds,  notes
or  other  obligations  to be refunded have or have not matured, and may
issue bonds, notes or other obligations partly to refund bonds, notes or
other obligations then outstanding and  partly  for  any  other  purpose
described  in  this section. Refunding bonds, notes or other obligations
may be exchanged for  the  bonds,  notes  or  other  obligations  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.
4.  Bonds  may  be  issued  either  in a series with multiple discrete
maturity dates or as term bonds with a single maturity date. The  bonds,
notes  or  other  obligations  shall  be authorized by resolution of the
directors and shall bear such date or dates,  mature  at  such  time  or
times,  bear  interest  at  such  rate  or  rates,  payable  annually or
semi-annually, be in such denominations, be in  such  form,  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,  notes  or  other
obligations  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.
5. The bonds, notes or other obligations of the authority may be  sold
at  public  or  private  sale  for such price or prices as the authority
shall determine. For a private sale of  its  securities,  the  authority
shall  obtain  the  written  approval of the terms of such sale from the
comptroller if such sale is to a party other than  the  comptroller,  or
from  the  director of the budget where such sale is to the comptroller,
in either case prior to closing the issuance transaction.
6. Any resolution authorizing any issuance of bonds,  notes  or  other
obligations  may  contain  provisions,  which  shall  be  a  part of the
contract between the authority and the holders of the issued securities,
as to:
(a) pledging all or any part of the revenues of the authority  or  its
projects  or  any  revenue  producing  contract or contracts made by the
authority with any individual, partnership, limited  liability  company,
corporation  or association to secure the payment of the bonds, notes or
other obligations, subject to such agreements with holders of securities
of the authority;
(b)  pledging,  assigning  or  creating  a  lien on all or any part of
assets of the authority, including mortgages  and  obligations  security
mortgages,  to  secure  the  payment  of  the  bonds,  subject  to  such
agreements with holders of securities of the authority;
(c) the setting aside of reserves or sinking funds, and the regulation
and disposition thereof;
(d) establishment of special funds for deposit of moneys received from
the proceeds of the  issuance  of  securities  as  the  directors  shall
determine, consistent with the authorizing resolution and the provisions
of this title;
(e)  limitations  on  the purpose to which the proceeds of sale of any
issuance of bonds, notes or other obligations then or thereafter  to  be
issued  may  be applied and pledging such proceeds to secure the payment
of the bonds, notes or other obligations;
(f) limitations of the issuance of additional bonds,  notes  or  other
obligations;  the  terms  upon  which  additional  bonds, notes or other
obligations may be issued and secured; and the refunding of  outstanding
bonds, notes or other obligations;
(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)  providing for the appointment and powers of a trustee for holders
of securities, and the rights, powers and duties of such trustee as  the
directors may determine;
(i)  limitations  on the amount of moneys derived from a project to be
expended  for  operating,  administrative  or  other  expenses  of   the
authority;
(j)  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  provided,  however,  that such rights and remedies shall not be
inconsistent with the laws of the state and the other provisions of this
article; and provided, further, however, that nothing contained in  this
article  shall  be  deemed  to restrict the right of the state or of any
municipality to amend, modify or otherwise alter statutes,  local  laws,
ordinances,  resolutions  or agreements imposing or relating to taxes or
fees or appropriations relating thereto; and there shall not be included
in any resolution or contract or  agreement  with  the  holders  of  the
bonds,  notes  or  other  obligations  authorized  by  this  article any
provision which provides that a default shall occur as a result  of  the
state  or  of  a  municipality  exercising its right to amend, modify or
otherwise alter laws, ordinances, resolutions or agreements imposing  or
relating to taxes or fees or appropriations relating thereto; and
(k)  any  other  provisions  not inconsistent with those enumerated in
this subdivision and necessary to effect its issuances of  bonds,  notes
or other obligations and the rights of the holders of its securities, or
otherwise in furtherance of its corporate purposes.
7.  Notwithstanding  any  other  provision  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 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 debt
service coverage ratios and any reserves required by the terms  of  such
resolution or resolutions. Provided however, that the total rates, fees,
and  charges  shall not exceed the prevailing electric rate in the North
Country. The prevailing electric rate in the North  Country  shall  mean
the  average  of the total rates, fees, and charges paid by customers of
National Grid and New York State Electric and Gas, or any successors, in
St. Lawrence, Franklin, and  Jefferson  counties.  Compliance  with  the
prevailing electric rates in the North Country shall be left to the sole
determination of the public service commission.
8. It is the intent of this title 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 directors of the authority nor any person executing the
bonds, notes or other obligations shall  be  liable  personally  on  the
bonds,  notes  or  other  obligations  or  be  subject  to  any personal
liability or accountability by reason of the issuance thereof.
10. The authority shall have the power  out  of  any  funds  available
therefor  to  purchase  bonds, notes or other obligations. The authority
may  hold,  pledge,  cancel  or  resell  such  bonds,  notes  or   other
obligations,   subject   to  and  in  accordance  with  agreements  with
bondholders.
11. Any bonds, notes or other obligations 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 who are authorized to
invest  in  bonds, notes or other obligations of the state, may properly
and legally invest funds including capital in their control or belonging
to them; subject to the provisions of any other general or  special  law
to the contrary.
12.  The  authority  is  authorized  to  obtain from any department or
agency  of  the  United  States  of  America  or  the   state   or   any
nongovernmental insurer or financial institution any insurance, guaranty
or  other  credit support device, to the extent available, as to, or for
the payment or repayment of interest or principal, or both, or any  part
thereof,  on  any  bonds,  notes  or  other  obligations  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
outstanding bonds, notes or other obligations of the authority.
13.  In  addition  to  the  powers  conferred in this section upon the
authority to secure its bonds, notes or other obligations, the authority

shall have the power in connection with the issuance of bonds, notes  or
other  obligations  to  enter  into such agreements as the authority may
deem  necessary,  convenient  or  desirable  concerning   the   use   or
disposition  of  its  revenues  or other moneys or property, and for the
acquisition,  alteration  or  disposition  of  its  property,  real  and
personal,  including  the  mortgaging  of  any of its properties and the
entrusting, pledging or creation of any other security interest  in  any
such  revenues, moneys or properties and the doing of any act, including
refraining from doing any act, which the authority would have the  right
to  do  in  the absence of such agreements. The authority shall have the
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, notes or other obligations of the authority.
14. All bonds, notes and other obligations  issued  by  the  authority
under  the  provisions of this title are hereby declared to have all the
qualities and incidents of negotiable instruments under  the  applicable
laws of the state.
15. Nothing in this subdivision shall be deemed to allow the authority
to  exceed  its  one  hundred  twenty-five million dollar aggregate debt
limit.