2023 New York Laws › STF - State Finance › Article 5-F - Sales Tax Revenue Bond Financing Program › 69-N - Issuance of Bonds and Notes.

§  69-n.  Issuance of bonds and notes. 1. (a) Authorized issuers shall
have the power and are hereby authorized from  time  to  time  to  issue
revenue   bonds,  in  such  principal  amount  or  amounts,  subject  to
subdivision eight of this section and as  the  director  of  the  budget
shall  determine  to  be  necessary,  to  provide  sufficient  funds for
authorized purposes,  the  establishment  of  reserves  to  secure  such
revenue  bonds,  the  payment of amounts required under revenue bonds or
agreements relating thereto, and the payment of all costs of issuance of
their revenue bonds.
(b) The authorized  issuers  shall  have  the  power  and  are  hereby
authorized  from time to time to issue (i) revenue bonds to renew notes,
(ii) revenue bonds to pay notes, and (iii) whenever it  deems  refunding
expedient, to refund any bonds, notes or other obligations issued for an
authorized   purpose  or  purposes,  including  bonds,  notes  or  other
obligations that were  issued  prior  to  the  effective  date  of  this
article, by the issuance of new revenue bonds, whether the bonds, notes,
or  other  obligations  to  be refunded have or have not matured, and to
issue revenue bonds in part to refund bonds, notes, or other obligations
then outstanding and in part for any of its other  authorized  purposes.
The  refunding revenue bonds may be exchanged for bonds, notes, or other
obligations to be refunded, or sold and  the  proceeds  applied  to  the
purchase,   redemption  or  payment  of  such  bonds,  notes,  or  other
obligations.
(c) Except as may otherwise be expressly  provided  by  an  authorized
issuer, every issue of revenue bonds of an authorized issuer pursuant to
this  section  shall  be  special  obligations  of the authorized issuer
payable solely out of any revenues paid over to such  authorized  issuer
from  the  sales  tax  revenue  bond  tax  fund, established pursuant to
section ninety-two-h of this chapter.
(d) All of the provisions of  the  enabling  acts  of  the  authorized
issuers relating to bonds and notes, which are not inconsistent with the
provisions  of  this  section,  may, at the discretion of the authorized
issuer, apply to revenue bonds authorized by this section.
(e) The revenue bonds of the authorized  issuers  authorized  by  this
section  shall  not  be  a  debt of the state and the state shall not be
liable thereon, nor shall they be payable out of any  funds  other  than
those of the authorized issuers pledged therefor; and such revenue bonds
shall  contain  on  the  face  thereof  a  statement  to such effect. In
addition, any agreements entered into by any entity pursuant to sections
sixty-nine-o and ninety-two-h of this chapter on behalf of the state  to
effect  the implementation of any of the activities financed in whole or
in part with proceeds of the revenue bonds of  the  authorized  issuers,
authorized  in  this  section  do not constitute or create a debt of the
state,  nor  a  contractual  obligation  in  excess   of   the   amounts
appropriated  therefor,  and  the state has no continuing legal or moral
obligation  to  appropriate  money  for  payments  due  under  any  such
agreement.
(f)  (i)  Revenue  bonds  shall  be  authorized  by  resolution of the
authorized issuers, be in such denominations, bear such  date  or  dates
and  mature at such time or times, as such resolution or other agreement
may provide.
(ii) Revenue 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,  registered  or  book  entry  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.
(g)  Revenue  bonds  authorized  hereunder shall be sold by authorized
issuers, at public or private sale, at  such  price  or  prices  as  the
authorized  issuers  may  determine.  Revenue  bonds  of  the authorized
issuers shall not be sold by the authorized  issuers  at  private  sales
unless  such  sale and the terms thereof have been approved by the state
comptroller.
2. Consistent with the provisions of this article, and subject to  the
approval  of  the  director  of  the  budget,  any  resolution  or other
agreement authorizing revenue 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  revenues  received  by  the
authorized  issuers  pursuant to section sixty-nine-o of this article to
secure the payment of the bonds  or  notes  or  of  any  issue  thereof,
subject  to  such  agreements  with holders of revenue bonds as may then
exist;
(b) pledging all or any part of the assets of the  authorized  issuers
to  secure  the  payment of the revenue bonds or of any issue of revenue
bonds subject to such agreements with holders of revenue  bonds  as  may
then exist;
(c)  the setting aside of reserves or sinking funds and the regulation
and disposition thereof;
(d) limitations on the purposes to  which  the  proceeds  of  sale  of
revenue  bonds,  may be applied and pledging such proceeds to secure the
payment of the revenue bonds or of any issue thereof;
(e) limitations on the issuance of additional revenue bonds, the terms
upon which additional revenue bonds may be issued and  secured  and  the
refunding of outstanding or other revenue bonds;
(f)  the  procedure,  if  any, by which the terms of any contract with
holders of revenue bonds may be amended  or  abrogated,  the  amount  of
revenue  bonds  the holders of which must consent thereto and the manner
in which such consent may be given;
(g) vesting in a trustee, as described  in  subdivision  six  of  this
section,  such  property,  rights,  powers  and  duties  in trust as the
authorized issuers may determine, which may include any or  all  of  the
rights,  powers  and  duties  of the trustee appointed by the holders of
revenue bonds of the respective  authorized  issuers  pursuant  to  this
article,  and  limiting  or  abrogating  the  right of such revenue bond
holders to appoint a trustee under this title or  limiting  the  rights,
powers, and duties of such trustee;
(h)  the  acts or omissions to act which shall constitute a default in
the obligations and duties of the authorized issuers to the  holders  of
the  revenue  bonds  and  providing  for  the rights and remedies of the
holders of the revenue bonds in event of  such  default,  including  the
right  to appointment of a receiver; provided, however, that such rights
and remedies shall not be inconsistent with the other provisions of this
article;
(i) any other matters, of like or different character,  which  in  any
way  affect  the  security  or  protection of the holders of the revenue
bonds; and
(j) the application of any of the foregoing provisions to any provider
of any applicable bond, note or other financial facility.
Notwithstanding the foregoing, the authorized  issuers  shall  not  be
authorized   to   make  any  covenant,  pledge,  promise,  or  agreement
purporting to bind the state except as otherwise specifically authorized
by this article.
3. Any pledge made by the respective authorized issuers shall be valid
and binding from the time when the  pledge  is  made.  The  revenues  or

property so pledged and thereafter received by the respective authorized
issuers  shall immediately be subject to the lien of such pledge without
any physical delivery thereof or further act, and 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  respective
authorized  issuers,  irrespective  of  whether such parties have notice
thereof. Neither the resolution nor any  other  instrument  by  which  a
pledge is created need be recorded or filed to protect such pledge.
4.  Neither the directors or members of the authorized issuers nor any
other person executing the revenue bonds of the authorized issuers shall
be liable personally thereon or be subject to any personal liability  or
accountability solely by reason of the issuance thereof.
5.  The authorized issuers, subject to such agreements with holders of
revenue bonds as may then exist, or with the providers of any applicable
bond or note or other financial or agreement facility, shall have  power
out  of  any  funds  available therefor to purchase revenue bonds of the
authorized issuers, which may or may not thereupon  be  canceled,  at  a
price not exceeding:
(a)  If  the  revenue  bonds are then redeemable, the redemption price
then applicable, including any accrued interest; or
(b) If the revenue bonds are not then redeemable, the redemption price
and accrued interest applicable on the first date  after  such  purchase
upon which the revenue bonds become subject to redemption; or
(c)  Whether  or  not  the  revenue  bonds  are  then redeemable, at a
redemption price that provides present value savings to  the  state,  as
certified in writing by an independent financial advisor.
No  later than seven days after a redemption pursuant to paragraph (c)
of this subdivision, the director  of  the  budget  shall  provide  such
written  certification  to the chair of the senate finance committee and
the chair of the assembly ways and means committee.
6. In the discretion of authorized issuers, the revenue bonds  may  be
secured by a trust indenture by and between the authorized issuers and a
corporate  trustee,  or  a  corporate trustee may be appointed under the
resolution as provided in subdivision two of this section.
7. Whether or not the revenue bonds are of such form and character  as
to  be  negotiable instruments under the terms of the uniform commercial
code, the revenue 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 revenue bonds for registration  or
any book-entry-only system.
8.  Revenue  bonds  may  only  be  issued  for authorized purposes, as
defined in section sixty-nine-m of  this  article.  Notwithstanding  the
foregoing,  any  authorized  issuer  may  issue  revenue  bonds  for any
authorized purpose. Any such revenue bonds issued by the New York  state
thruway authority shall be subject to the approval of the New York state
public  authorities  control board, pursuant to section fifty-one of the
public authorities law. The  authorized  issuers  shall  not  issue  any
revenue  bonds  in  an  amount in excess of statutory authorizations for
such authorized purposes. Authorizations for  such  authorized  purposes
shall  be  reduced  in  an  amount  equal to the amount of revenue bonds
issued for such authorized purposes under this article.  Such  reduction
shall  not  be  made in relation to revenue bonds issued to fund reserve
funds, if any, and costs of issuance, if these  items  are  not  counted
under  existing authorizations, nor shall revenue bonds issued to refund
bonds issued under existing authorizations reduce  the  amount  of  such
authorizations.
9.  Except  upon  the  amendment  of  the  New York state constitution
allowing the issuance or assumption of bonds, notes or other obligations

secured by revenues, which may include  the  revenues  securing  revenue
bonds  of  authorized  issuers,  and  the affirmative assumption of such
bonds, notes or other obligations by the state, the revenue bonds of the
authorized issuers authorized by this section shall not be a debt of the
state  and  the  state  shall  not  be liable thereon, nor shall they be
payable out of any funds other than  those  of  the  authorized  issuers
pledged  therefor;  and  such  revenue  bonds  shall contain on the face
thereof a statement to such effect. In addition, any agreements  entered
into by any entity pursuant to sections sixty-nine-o and ninety-two-h of
this  chapter on behalf of the state to effect the implementation of any
of the activities financed in whole or in  part  with  proceeds  of  the
obligations  of the authorized issuers authorized in this section do not
constitute or create a debt of the state, nor a  contractual  obligation
in  excess  of  the  amounts  appropriated therefor and the state has no
continuing legal or moral obligation to appropriate money  for  payments
due under any such agreement.
10.  Nothing in this article shall affect the authority of each of the
authorized issuers to issue  or  incur  indebtedness  for  any  purposes
otherwise  authorized by law and nothing in this article shall be deemed
to alter or affect the rights of outstanding bondholders or  noteholders
of any authorized issuer.
11.  The authorization, sale and issuance of revenue bonds pursuant to
this section shall not be deemed an action as such term  is  defined  in
article  eight of the environmental conservation law for the purposes of
such  article.  Such  exemption  shall  be  strictly  limited   in   its
application  to  such  financing  activities  of  the authorized issuers
hereunder and does not exempt any other entity from compliance with such
article.
12.  The  comptroller  is  hereby  authorized  to  receive  from   the
authorized  issuers  any  portion of bond proceeds paid to provide funds
for or reimburse the state for its costs associated with such authorized
purposes and to credit such amounts to the capital projects fund or  any
other appropriate fund.