2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 10 - Upper Mohawk Valley Regional Water Finance Authority › 1226-L - Bonds of the Authority.

§  1226-l.  Bonds  of  the  authority. 1. The authority shall have the
power and is hereby authorized from time to time to issue  bonds,  notes
or  other  obligations  to  pay the cost of any project or for any other
corporate purpose, including the establishment of reserves to secure the
bonds, the payment of principal of, premium, if any, and interest on the
bonds and the payment of incidental expenses in connection therewith.
(a) The aggregate principal amount  of  such  bonds,  notes  or  other
obligations   shall   not  exceed  one  hundred  fifty  million  dollars
($150,000,000), excluding bonds, notes or other  obligations  issued  to
refund  or otherwise repay bonds, notes or other obligations theretofore
issued  for  such  purposes;  provided,  however,  that  upon  any  such
refunding   or   repayment  the  total  aggregate  principal  amount  of
outstanding bonds, notes or other obligations may be  greater  than  one
hundred  fifty  million dollars ($150,000,000) only if the present value
of the aggregate debt service of the refunding or repayment bonds, notes
or other obligations to be issued shall not exceed the present value  of
the  aggregate  debt service of the bonds, notes or other obligations so
to be refunded or repaid.
(b) Provided further that no such bonds, notes  or  other  obligations
that  such  board  has  determined to be reasonably necessary to service
manufacturing facilities constructed or to be constructed in the service
area after January first, two thousand fourteen shall be issued if  such
issuance would cause the aggregate principal amount of such bonds, notes
or  other  obligations  outstanding  to exceed one hundred fifty million
dollars. Provided, however, that upon any such  refunding  or  repayment
the  total  aggregate  principal  amount  of outstanding bonds, notes or
other obligations may be greater than one hundred million fifty  dollars
($150,000,000)  only  if the present value of the aggregate debt service
of the refunding or repayment bonds, notes or other  obligations  to  be
issued  shall not exceed the present value of the aggregate debt service
of the bonds, notes or other obligations so to be refunded or repaid.
For purposes hereof, the present values of the aggregate debt  service
of  the  refunding or repayment bonds, notes or other obligations and of
the aggregate debt service of the bonds, notes or other  obligations  so
refunded  or  repaid,  shall  be  calculated  by utilizing the effective
interest rate of the  refunding  or  repayment  bonds,  notes  or  other
obligations,  which  shall  be  that  rate  arrived  at  by doubling the
semi-annual  interest  rate  (compounded  semi-annually)  necessary   to
discount  the debt service payments on the refunding or repayment bonds,
notes or other obligations from the payment dates thereof to the date of
issue of the refunding or repayment bonds, notes  or  other  obligations
and  to  the  price bid including estimated accrued interest or proceeds
received by the authority including estimated accrued interest from  the
sale thereof. The authority shall have power and is hereby authorized to
enter  into  such  agreements  and  perform such acts as may be required
under any applicable federal legislation to secure a  federal  guarantee
of any bonds.
2.  The authority shall have power from time to time to renew bonds or
to issue renewal bonds for such purpose, to issue bonds  to  pay  bonds,
and,  whenever  it  deems refunding expedient, to refund any bond 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 of the  authority.  Bonds  (other
than  notes  or  other  evidence  of  indebtedness) issued for refunding
purposes, which have a final maturity date longer than the  maturity  of
the  bonds  being  refunded,  shall  be  approved by a resolution of the
county legislature adopted by a majority vote and approved by the county
executive. Bonds issued for refunding purposes shall  be  sold  and  the

proceeds  applied to the purchase, redemption or payment of the bonds or
notes to be refunded.
3. 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  as  may  be
designated  in  the  proceedings  of the authority under which the bonds
shall be authorized to be issued, subject as to  priority  only  to  any
agreements with the holders of outstanding bonds pledging any particular
property,  revenues  or  moneys.  The authority may also enter into loan
agreements, lines of credit and other security agreements and obtain for
or on its behalf letters  of  credit,  insurance,  guarantees  or  other
credit  enhancements  to  the extent now or hereafter available, in each
case for securing its bonds or to provide direct payment  of  any  costs
which the authority is authorized to pay.
4.  Bonds  shall  be  authorized by resolution of the authority, be in
such denominations and bear such date or dates and mature at  such  time
or  times,  as  such  resolution  may  provide,  provided that bonds and
renewals thereof shall mature  within  forty  years  from  the  date  of
original issuance of any such bonds.
Bonds  shall  be subject to such terms of redemption, bear interest at
such rate or rates, be payable at such times, 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 and conditions as  such  resolution
may  provide.  Notwithstanding  any other provision of law, the bonds of
the authority issued pursuant to this  section  shall  be  sold  to  the
bidder offering the lowest true interest cost, taking into consideration
any  premium  or discount not less than four nor more that fifteen days,
Sundays excepted, after a notice of such  sale  has  been  published  at
least  once  in a newspaper of general circulation in the area served by
the authority, which shall state the terms of the sale. The terms of the
sale may not change unless notice of such change is  published  in  such
newspaper at least one day prior to the date of the sale as set forth in
the original notice of sale. Advertisements shall contain a provision to
the  effect that the authority, in its discretion, may reject any or all
bids made in pursuance of such advertisements, and in the event of  such
rejection,  the authority is authorized to negotiate a private or public
sale or readvertise for bids in the form and manner above  described  as
many  times as, in its judgment, may be necessary to effect satisfactory
sale.
Notwithstanding the provisions of the preceding paragraph, whenever in
the judgment of the authority the interests of  the  authority  will  be
served   thereby,   the   members  of  the  authority,  on  the  written
recommendation of the chairperson, may authorize the sale of such  bonds
at  private  or  public  sale  on  a  negotiated  basis  or  on either a
competitive or negotiated basis.  The  authority  shall  set  guidelines
governing  the terms and conditions of any such private or public sales.
The private or public bond sale guidelines set by  the  authority  shall
include,  but  not be limited to, a requirement that where the interests
of the authority will be served by a private or public  sale  of  bonds,
the  authority shall select underwriters for each private or public bond
sale  conducted  pursuant  to  a  request  for  proposal   process   and
consideration  of  proposals  from  qualified  underwriters  taking into
account, among  other  things,  qualifications  of  underwriters  as  to
experience,  their  ability to structure and sell authority bond issues,
anticipated  costs  to  the  authority,  the  prior  experience  of  the
authority  with  the  firm,  if  any,  the capitalization of such firms,
participation of qualified minority and women-owned business  enterprise

firms  in such private or public sales of bonds of the authority and the
experience and  ability  of  firms  under  consideration  to  work  with
minority  and  women-owned  business  enterprises  so  as to promote and
assist participation by such enterprises.
The  authority  shall  have  the power from time to time to amend such
private bond sale guidelines in accordance with the provisions  of  this
subdivision.
No  private  or  public  bond  sale  on  a  negotiated  basis shall be
conducted  by  the  authority  without  prior  approval  of  the   state
comptroller  and  the  county  comptroller. The authority shall annually
prepare and approve a bond sale report which shall include  the  private
or  public  bond  sale  guidelines  as  specified  in  this subdivision,
amendments to such guidelines since the last private or public bond sale
report, an explanation of the bond sale guidelines and  amendments,  and
the  results of any sale of bonds conducted during the fiscal year. Such
bond sale report may be a part of  any  other  annual  report  that  the
authority is required to make.
The  authority shall annually submit its bond sale report to the state
comptroller and the county comptroller and copies thereof to the  senate
finance committee and the assembly ways and means committee.
The  authority  shall  make available to the public copies of its bond
sale report upon reasonable request thereof.
Nothing contained in this subdivision shall be deemed to alter, affect
the validity of, modify the terms of or impair any contract or agreement
made or entered into in violation of, or without  compliance  with,  the
provisions of this subdivision.
5.  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 revenues, other monies or property of
the authority to secure the payment  of  the  bonds,  or  any  costs  of
issuance  thereof,  including but not limited to any contracts, earnings
or proceeds of any grant to the authority received from any  private  or
public  source  subject to such agreements with bond holders 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 purpose to which the proceeds from the sale of
bonds may be applied;
(d) the rates, rents, fees and other charges to be fixed and collected
by the authority and the amount to be raised in each  year  thereby  and
the use and disposition of revenues;
(e) limitations on the right of the authority to restrict and regulate
the  use  of  the 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 secured and the refunding of
outstanding or other bonds;
(g) the procedure, if any, by which the terms  of  any  contract  with
bond  holders  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)  the  creation  of special funds into which any revenues or monies
may be deposited;
(i) the terms and provisions of any trust, mortgage, deed or indenture
securing the bonds under which the bond 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 trustees appointed by the
bond holders to appoint a trustee pursuant to this title 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  bond
holders and providing for the rights and remedies of the bond holders in
the event of such default, including as a matter of right 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;
(l)  limitations  on  the  power of the authority to sell or otherwise
dispose of any project or any part thereof;
(m) limitations on the amount of  revenues  and  other  monies  to  be
expended   for  operating,  administrative  or  other  expenses  of  the
authority;
(n) the payment of the proceeds of bonds, revenues and other monies to
a trustee or other  depository,  and  for  the  method  of  disbursement
thereof  with  such  safeguards  and  restrictions  as the authority may
determine; and
(o) 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.
6. 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  adopt  resolutions  and  enter  into  such  trust
indentures,  agreements  or  other instruments as the authority may deem
necessary, convenient or desirable concerning the use or disposition  of
its  revenues  or  other monies or property, including the mortgaging of
any property and the entrusting,  pledging  or  creation  of  any  other
security interest in any such revenues, monies 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  resolutions,  trust
indentures,  agreements  or  other instruments. The authority shall have
power  to  enter  into  amendments  of  any  such   resolutions,   trust
indentures,  agreements or other instruments. The provisions of any such
resolutions, trust indentures, agreements or other  instruments  may  be
made a part of the contract with the holders of bonds of the authority.
7.  Any  provision  of  the  uniform  commercial  code to the contrary
notwithstanding, any pledge of or other security interest  in  revenues,
monies, 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.
8.  Whether  or  not the bonds 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.
9. Neither the members of the authority nor any person  executing  its
bonds  shall  be  liable  personally  on  its bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.
10. Subject to such agreements with bondholders as may then exist, the
authority shall have power  out  of  any  funds  available  therefor  to
purchase  bonds of the authority, which shall thereupon be cancelled, 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, or (b) if the bonds are not then redeemable,  the
redemption  price  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. Bonds so purchased shall thereupon be
cancelled.