2023 New York Laws › PBA - Public Authorities › Article 10-D - Miscellaneous Authorities › Title 1 - Nassau County Interim Finance Authority › 3656 - Bonds of the Authority.

§  3656. Bonds of the authority. 1. The authority shall have the power
and is hereby authorized from time  to  time  to  issue  bonds  in  such
principal  amounts  as  it  may  determine  to  be necessary pursuant to
section  thirty-six  hundred  fifty-five  of  this  title  to  pay   any
financeable  costs  and to fund reserves to secure such bonds, including
incidental expenses in  connection  therewith.  Provided,  however,  the
aggregate  principal amounts of such bonds issued to pay the financeable
county costs described in paragraph (c) of subdivision twelve of section
thirty-six  hundred  fifty-one  of  this  title,  which  resulted   from
certiorari  proceedings  commenced on or after June first, two thousand,
shall not  exceed  eight  hundred  million  dollars  in  the  aggregate,
excluding  bonds,  notes,  or  other  obligations  issued  to  refund or
otherwise repay bonds, notes, or other  obligations  theretofore  issued
for  such purposes. Effective in the year two thousand six, upon request
of the county, the authority shall issue, in the amount requested, bonds
to pay tax certiorari settlements or judgments of any kind to which  the
county  is a party, not to exceed fifteen million dollars; and effective
in the year  two  thousand  seven,  upon  request  of  the  county,  the
authority  shall  issue,  in  the  amount  requested,  bonds  to pay tax
certiorari settlements or judgments of any kind to which the county is a
party,  not  to  exceed  ten  million  dollars.  Whenever   this   title
establishes  a limit on the principal amount of bonds that the authority
is authorized to issue, there shall not be counted  against  such  limit
(i)  amounts determined by the authority as reasonable to be used to pay
the cost of issuing such bonds, (ii) the  amount  of  bonds  that  would
constitute interest under the Internal Revenue Code of 1986, as amended,
and  (iii) amounts determined by the authority as necessary to establish
any reserves.
The authority shall have the power from time to  time  to  refund  any
bonds  of  the authority 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  of  the  authority then outstanding and partly to pay the
financeable costs pursuant to section thirty-six hundred  fifty-five  of
this title. Bonds issued by the authority shall be 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 entered into
between the authority and the county, and subject to any agreements with
the  holders  of  outstanding  bonds pledging any particular revenues or
moneys; but in no event shall  transitional  state  aid  be  pledged  as
security for or be made available for the payment of bonds.
2.  The authority is authorized to issue its bonds for a period ending
not later than  December  thirty-first,  two  thousand  twenty-one.  The
authority  may  issue  bonds  to  refund bonds previously issued without
regard to the limitation in the first sentence of this subdivision,  but
in  no  event shall any bonds of the authority finally mature later than
January thirty-first, two thousand fifty-one. Notwithstanding any  other
provision of law, no bond of the authority shall mature more than thirty
years from the date of its issue.
3.  Bonds  of  the  authority  may  be issued, amortized, redeemed and
refunded without regard to the provisions  of  the  local  finance  law;
provided, however, that the principal amount of outstanding bonds issued
by the authority shall be deemed to be indebtedness of the county solely
in  ascertaining  the  amount  of  indebtedness  the county may contract
pursuant to the local finance law and the  state  constitution  and  the
authority shall not exceed such limitation.
4.  The directors may delegate to the chairperson or other director or
officer of the authority the power to set the final terms of bonds.
5. The authority in its  sole  discretion  shall  determine  that  the
issuance  of  its  bonds  is  appropriate.  Bonds shall be authorized by
resolution of the authority. Bonds shall bear interest at such fixed  or
variable  rates  and  shall  be  in such denominations, be in such form,
either  coupon or registered, be sold at such public or private sale, be
executed in such manner, be denominated in United  States  currency,  be
payable  in such medium of payment, at such place and be subject to such
terms of redemption as the authority may provide in such resolution.  No
bonds  of the authority may be sold at private sale unless such sale and
the terms thereof have  been  approved  in  writing  by  (a)  the  state
comptroller  where such sale is not to the state comptroller, or (b) the
director of the budget, where such sale is to the state comptroller.
6. As a condition precedent to authorizing the issuance of  any  bonds
hereunder,  the  authority  may include in any agreement with the county
such provisions  as  are  deemed  necessary  and  appropriate  including
express provisions regarding compliance with sections thirty-six hundred
sixty-six   and   thirty-six  hundred  sixty-seven  of  this  title,  as
applicable.
7. Any resolution or resolutions authorizing bonds  or  any  issue  of
bonds  may  contain  provisions which may be a part of the contract with
the holders of the bonds thereby authorized as to:
(a) pledging all or part of the authority's  revenues,  together  with
any  other moneys, securities or contracts, 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 purposes to which the proceeds from the sale of
bonds may be applied;
(d)  limitations  on  the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured and  the  refunding  of
bonds;
(e)  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;
(f) 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 thirty-six hundred sixty-four 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; and
(g) 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  acts  or
omissions to act which may constitute a  default  and  such  rights  and
remedies  shall  not  be inconsistent with the general laws of the state
and other provisions of this title.
8. In addition to the powers herein conferred upon  the  authority  to
secure  its bonds, the authority shall have power in connection with the
issuance of bonds to enter into such agreements for the benefit  of  the
bondholders as the authority may deem necessary, convenient or desirable
concerning  the  use  or  disposition  of  its revenues or other moneys,
including the entrusting, pledging or creation  of  any  other  security
interest  in  any  such  revenues,  moneys  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 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.
9. Notwithstanding any provision of the uniform commercial code to the
contrary, any pledge of or other security interest in revenues,  moneys,
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 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 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.
10.  Whether  or  not  the bonds of the 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.
11.  Neither  the  directors of the 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.
The bonds or other obligations of the authority shall not be a  debt  of
either  the  state  or  the county, and neither the state nor the county
shall be liable thereon, nor shall they be  payable  out  of  any  funds
other  than  those of the authority; and such bonds shall contain on the
face thereof a statement to such effect.
12. The authority, subject to such agreements with bondholders as then
may exist, shall have power to purchase bonds of the  authority  out  of
any moneys available therefor, which shall thereupon be cancelled.