2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 7-A - Water Authority of Southeastern Nassau County › 1174-H - Bonds of the Authority.

§  1174-h.  Bonds  of  the  authority. 1. The authority shall have the
power and is hereby authorized from time to  time  to  issue  bonds,  in
conformity with applicable provisions of the uniform commercial code, in
such  principal  amounts  as it may determine to be necessary to pay the
cost of any water  project  or  projects  or  for  any  other  corporate
purposes,  including  incidental  expenses  in connection therewith. 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. Bonds issued  by  the  authority
may  be  general  obligations  secured  by  the  faith and credit of the
authority or may be special obligations 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 with the holders of  outstanding
bonds pledging particular revenues or moneys.
2. The authority is authorized to obtain from any department or agency
of the United States of America or nongovernmental insurer any insurance
or  guaranty,  or any other credit enhancement arrangement with any bank
or other financial institution to the extent now or hereafter available,
as to, or for the payment or repayment  of  interest  or  principal,  or
both,  or  any part thereof, on any bonds 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 the bonds of the
authority.
3. Bonds shall be authorized by resolution of the authority,  and  may
be  in such denominations and bear such date or dates and mature at such
time or times as such resolution may provide except that bonds  and  any
renewal  thereof  shall  mature  within forty years of the date of their
original issuance and notes and any renewal thereof shall mature  within
five  years  of the date of their original issuance. Such bonds shall be
subject to such terms of redemption,  bear  interest  at  such  rate  or
rates,  which  may vary from time to time, as may be necessary to effect
the sale thereof and shall be payable at such times, be  in  such  form,
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  and conditions as such resolution may provide.
Bonds may be sold at public sale or at private sale for  such  price  or
prices as the authority shall determine, provided that no issue of bonds
may  be  sold  at  private sale unless the terms of such sale shall have
been approved in writing by:
(a) the comptroller, where such sale is not to the comptroller, or
(b) the director of the division of the budget  of  the  state,  where
such sale is to the comptroller.
4.  Any  resolution  or  resolutions authorizing bonds or any issue of
bonds by the authority may contain provisions which may be part  of  the
contract with the holders of the bonds thereby authorized as to:
(a)  pledging  all  or  part  of its revenues, together with any other
moneys, securities, contracts or property, to secure the payment of  the
bonds, subject to such agreements with bondholders as may then exist;
(b)  the  rates,  rentals,  fees  and  other  charges  to be fixed and
collected and the amounts to be raised in each year thereby, and the use
and disposition of the earnings and other revenues;
(c) the setting aside of reserves and the creation  of  sinking  funds
and the regulation and disposition thereof;
(d)  limitations on the purpose to which the proceeds from the sale of
bonds may be applied;
(e) limitations on the right of the authority to restrict and regulate
the  use  of  any project or part thereof in connection with which bonds
are issued;
(f) limitations on the issuance of additional bonds,  the  terms  upon
which additional bonds may be issued and the refunding of outstanding or
other bonds;
(g)  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;
(h) the creation of special funds into which  any  revenues  or  other
moneys may be deposited;
(i)  the  terms and provisions of any trust deed or indenture securing
the bonds under which the bonds may be issued;
(j) 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 eleven hundred seventy-four-i 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;
(k) 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 rights and
remedies shall not be inconsistent with the general laws  of  the  state
and other provisions of this title;
(1)  limitations  on  the  power of the authority to sell or otherwise
dispose of any system or any part thereof or other property;
(m) limitations on the amount of  revenues  and  other  moneys  to  be
expended   for  operating,  administrative  or  other  expenses  of  the
authority;
(n) the protection and enforcement of the rights and remedies  of  the
bondholders;
(o)  the obligations of the authority in relation to the construction,
maintenance, operation, repairs and insurance  of  the  properties,  the
safeguarding  and  application  of all moneys and as to the requirements
for the supervision and approval of consulting engineers  in  connection
with construction, reconstruction and operation;
(p) the payment of the proceeds of bonds, revenues and other moneys to
a  trustee  or  other  depository,  and  for  the method of disbursement
thereof with such safeguards  and  restrictions  as  the  authority  may
determine; and
(q)  any other matters of like or different character which in any way
affect the security or  protection  of  the  bonds  or  the  rights  and
remedies of bondholders.
5.  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 as the authority may
deem  necessary,  consistent  or  desirable  concerning   the   use   or
disposition  of  its  revenues  or  other  moneys or property, including
remarketing agreements or other similar agreements for  the  bonds,  the
mortgaging  of  any property and the entrusting, pledging or creation of
any other security interest in any such revenues,  moneys,  or  property
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.
6.  Any  provision  of  the  uniform  commercial  code to the contrary
notwithstanding, 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  or  not  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.
7.  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 purposes  of  the  uniform  commercial  code,
subject only to the provisions of the bonds for registration.
8.  Neither  the members of the board of directors nor the officers 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.
9.  The authority, subject to such agreements with bondholders as then
may exist, shall have power out of  any  moneys  available  therefor  to
purchase  bonds  of  the authority in lieu of redemption, at a price not
exceeding:
(a) if the bonds  are  then  redeemable,  the  redemption  price  then
applicable, plus accrued interest to the next interest payment date,
(b)  if  the  bonds are not then redeemable, the redemption price then
applicable on the first date after such purchase upon  which  the  bonds
become  subject to redemption plus accrued interest to the next interest
payment date.
10. The authority shall have power and is hereby authorized  to  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  note.  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. The notes shall be issued in the same  manner  as  the
bonds  and  such notes and the resolution or resolutions authorizing the
same may contain any provisions, conditions  or  limitations  which  the
bonds or bond resolution of the authority may contain. Such notes may be
sold  at  public  sale  or,  upon the approval of the comptroller of the
terms thereof, at private sale. Such notes shall be as fully  negotiable
as the bonds of the authority.