2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 11-C - Capital District Transportation Authority › 1310 - Notes and Bonds of the Authority.

§  1310.  Notes and bonds of the authority. 1. (a) The authority shall
have power and is hereby authorized from time to time  to  borrow  money
and  issue  its negotiable bonds and notes in such principal amount, as,
in  the  opinion  of  the  authority,  shall  be  necessary  to  provide
sufficient  funds for achieving its purposes, including the acquisition,
establishment,  construction,  effectuation,   operation,   maintenance,
renovation,  improvement,  extension  or  repair  of  any transportation
facility, the payment of interest on bonds and notes of  the  authority,
establishment  of reserves to secure such bonds and notes, the provision
of working capital and all other expenditures of the authority  and  its
subsidiary corporations incident to and necessary or convenient to carry
out their purposes and powers;
(b)  The  authority  shall  have  power,  from  time to time, to issue
renewal notes, to issue  bonds  to  pay  notes  and  whenever  it  deems
refunding  expedient,  to refund any bonds by the issuance of new bonds,
whether the bonds to be refunded have or have not matured, and to  issue
bonds  partly  to refund bonds then outstanding and partly for any other
purposes. The refunding bonds shall be sold and the proceeds applied  to
the purchase, redemption or payment of the bonds to be refunded;
(c)  Except  as  may otherwise be expressly provided by the authority,
every issue of its notes or bonds shall be general  obligations  of  the
authority  payable  out  of  any  revenues  or  moneys of the authority,
subject only to any agreements with the holders of particular  notes  or
bonds pledging any particular receipts or revenues;
(d)  Whether  or not the notes or bonds are of such form and character
as to be negotiable instruments  under  article  eight  of  the  uniform
commercial  code,  the  notes  or  bonds  shall  be  and hereby are made
negotiable instruments within the meaning of and for all the purposes of
article eight of the  uniform  commercial  code,  subject  only  to  the
provisions of the notes or bonds for registration.
2.  The  notes and bonds shall be authorized by resolution approved by
not less than a majority of the whole number of members of the authority
then in office, shall bear such date or dates, and shall mature at  such
time or times, as specified therein and in the case of any such bond not
exceeding  fifty  years  from  the  date of issue, as such resolution or
resolutions may provide. The notes and bonds 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  as such resolution or
resolutions may provide. The notes and bonds of  the  authority  may  be
sold  by  the  authority,  at  public  or private sale, at such price or
prices as the authority shall  determine.  No  notes  or  bonds  of  the
authority  may be sold by the authority at private sale, however, unless
such sale and the terms thereof have been approved in writing by (a) the
comptroller, where such sale is not  to  the  comptroller,  or  (b)  the
director of the budget, where such sale is to the comptroller.
3. Any resolution or resolutions authorizing any notes or bonds or any
issue  thereof  may  contain  provisions,  which  shall be a part of the
contract with the holders thereof, as to:
(a) pledging all or any part of  the  fares,  tolls,  rentals,  rates,
charges  and  other fees made or received by the authority or any of its
subsidiary corporations, and other moneys received or to be received, to
secure the payment of the notes  or  bonds  or  of  any  issue  thereof,
subject  to  such agreements with bondholders or noteholders as may then
exist;
(b) pledging all or any part of the assets of the authority or of  any
of  its  subsidiary  corporations  to secure the payment of the notes or

bonds or of any issue of notes or bonds, subject to such agreements with
noteholders or bondholders as may then exist;
(c)  the use, and disposition of fares, tolls, rentals, rates, charges
and other fees  made  or  received  by  the  authority  or  any  of  its
subsidiary corporations;
(d)  the setting aside of reserves or sinking funds and the regulation
and disposition thereof;
(e) limitations on the purpose to which the proceeds of sale of  notes
or bonds may be applied and pledging such proceeds to secure the payment
of the notes or bonds or of any issue thereof;
(f)  limitations  on  the  issuance  of additional notes or bonds; the
terms upon which additional notes or bonds may be  issued  and  secured;
the refunding of outstanding or other notes or bonds;
(g)  the  procedure,  if  any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated,  the  amount  of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;
(h)  limitations  on  the  amount  of  moneys  to  be  expended by the
authority  or  any  of  its  subsidiary  corporations   for   operating,
administrative  or  other  expenses  of  the  authority  or  any  of its
subsidiary corporations;
(i) 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 pursuant to this title, and limiting or abrogating the right
of  the  bondholders to appoint a trustee under this article or limiting
the rights, powers and duties of such trustee;
(j) any other matters, of like or different character,  which  in  any
way affect the security or protection of the notes or bonds.
4.  In  addition  to the powers herein conferred upon the authority to
secure its notes and bonds, the authority shall have power in connection
with the issuance of notes and bonds to enter into  such  agreements  as
the authority may deem necessary, convenient or desirable concerning the
use  or  disposition of its moneys or property or the moneys or property
of any of its subsidiary corporations, including the mortgaging  of  any
such  property  and  the  entrusting,  pledging or creation of any other
security interest in any such 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 the notes and bonds of the authority.
5. It is the intention hereof that any pledge,  mortgage  or  security
instrument  made  by  the  authority shall be valid and binding from the
time when the pledge, mortgage or security instrument is made; that  the
moneys  or  property  so pledged, mortgaged and entrusted and thereafter
received by the authority shall immediately be subject to  the  lien  of
such  pledge,  mortgage  or  security  instrument  without  any physical
delivery thereof or further act; and that the lien of any  such  pledge,
mortgage  or  security  instrument 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 mortgage, security instrument or
other instrument by which a pledge, mortgage lien or other  security  is
created  need  be  recorded  or  filed  and  the  authority shall not be
required to comply with any of the provisions of the uniform  commercial
code.
6.  Neither  the members of the authority nor any person executing the
notes or bonds shall be liable personally on the notes or  bonds  or  be
subject  to  any  personal  liability or accountability by reason of the
issuance thereof.
7.  The  authority,  subject  to  such  agreements with noteholders or
bondholders as may then  exist,  shall  have  power  out  of  any  funds
available  therefor  to  purchase notes or bonds of the authority, which
shall thereupon be cancelled, at a price not exceeding (a) if the  notes
or  bonds are then redeemable, the redemption price then applicable plus
accrued interest to the next interest payment date thereon,  or  (b)  if
the  notes  or  bonds  are  not  then  redeemable,  the redemption price
applicable on the first date after such purchase upon which the notes or
bonds become subject to redemption plus accrued interest to such date.
8. The state shall not be liable on notes or bonds  of  the  authority
and  such  notes  and  bonds  shall not be a debt of the state, and such
notes and bonds shall contain on the face thereof a  statement  to  such
effect.