2023 New York Laws › PBA - Public Authorities › Article 4 - Market Authorities › Title 5 - Long Island Market Authority › 906 - Bonds of the Authority.

§  906.  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
purpose under this title, 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.    The  aggregate principal amount of such bonds,
notes  or  other  obligations  shall  not  exceed  ten  million  dollars
($10,000,000),  excluding  bonds,  notes  or other obligations issued to
refund or 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 ten million dollars
($10,000,000), only if the present value of the aggregate  debt  service
of the refunding or repayment of 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  of  this section, the present value of the aggregate debt
service  of  the  refunding  or  repayment  of  bonds,  notes  or  other
obligations  and the aggregate debt service of the bonds, notes or other
obligations and of the aggregate debt service of  the  bonds,  notes  or
other  obligations  so  to  be refunded or repaid shall be calculated by
utilizing the effective interest rate of the refunding or  repayment  of
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 of bonds, notes or other obligations  from  payment  of  dates
thereof  to  the  date  of issue of the refunding or repayment of bonds,
notes or other obligations and to  the  price  bid  including  estimated
accrued  interest  from  the sale thereof.  The authority shall have the
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 or other subsidy with respect to any bonds.
2. The authority shall have the power from time to time to renew bonds
or to issue renewal bonds for the purposes authorized under this  title,
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  purpose  of  the
authority. 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 monies 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 monies. 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. (a) Bonds shall be authorized by resolution of the  governing  body
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 thirty
years from the date of original issuance of any such bonds.
(b)  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 than  fifteen  days,
Sunday excepted, after a notice of such sale has been published at least
once  in  a  newspaper of general circulation in the service area of 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  pursuant  to  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.
(c)   Notwithstanding   the   provisions  of  paragraph  (b)  of  this
subdivision, whenever in the judgment of the authority the interests  of
the  authority  will  be  served  thereby,  the  governing  body  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  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.
(d) 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.
(e) In addition to  the  authority  to  sell  notes  at  private  sale
contained in this section.
(f)  No  private  or  public  bond sale on a negotiated basis shall be
conducted  by  the  authority  without  prior  approval  of  the   state
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.
(g) The authority shall annually submit its bond sale  report  to  the
state comptroller and copies thereof to the senate finance committee and
the assembly ways and means committee.
(h)  The  authority  shall  make available to the public copies of its
bond sale report upon reasonable request thereof.
(i) 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 by the authority 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,  together  with  any  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
bondholders as may then exist;
(b)  the  setting  aside  of  reserves and the creation of sinking the
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
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  monies
may be deposited;
(i) the terms and provisions of any trust, mortgage, 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 trustees appointed by the
bondholders 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
bondholders and providing for the rights and remedies of the bondholders
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 or other property;
(m) limitations on the amount of  revenues  and  other  monies  to  be
expended   or   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 the bondholders.
6.  In  addition  to  the powers conferred under this section upon the
authority to secure its bonds, the authority shall  have  the  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  within
the  powers  granted  to the authority by this title and to perform 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 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.
9. Neither the members of the governing body of the authority nor  the
officers  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, in lieu of redemption, at a  price  not
exceeding,  if  the bonds are then redeemable, the redemption price then
applicable plus accrued interest to the next interest payment date,  or,
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 canceled.
11.  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.