2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 3 - Erie County Water Authority › 1056 - Bonds of the Authority.

§  1056. Bonds of the authority. 1. The authority shall have the power
and is hereby authorized from time to time to issue its negotiable bonds
in conformity with applicable provisions of the uniform commercial  code
for  any  of  its  corporate  purposes, including incidental expenses in
connection therewith, and to secure the payment of the same by  lien  of
the  pledge of the revenues. The authority shall have power from time to
time 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 may issue bonds partly to refund bonds then outstanding and
partly  for  any  of  its corporate purposes. Except as may be otherwise
expressly provided by  the  authority,  every  issue  of  bonds  by  the
authority  shall  be  general  obligations  payable  out  of any moneys,
earnings or revenues of the authority, subject only  to  any  agreements
with  the  holders  of  particular bonds pledging any particular moneys,
earnings or revenues.
2. The bonds shall be authorized by resolution of  the  authority  and
shall  bear  such  date  or  dates,  mature  at  such  time or times not
exceeding forty years from their respective dates, bear interest at such
rate or rates per annum payable at such times, be in such denominations,
be in such form either coupon or  registered,  carry  such  registration
privileges,  be  executed  in such manner, be payable in lawful money of
the United States of America, at such place or places and be subject  to
such terms of redemption, as such resolution or resolutions may provide.
Such  bonds  of  the authority may be sold at public or private sale for
such price or prices as the authority shall determine provided, however,
that any private sale shall be subject to  the  approval  of  the  state
comptroller.  The  foregoing  provisions  shall  be  applicable to bonds
issued by the authority notwithstanding  the  provisions  of  any  other
general, special or local law to the contrary.
3. Any resolution or resolutions authorizing any bonds or any issue of
bonds may contain provisions, which shall be a part of the contract with
the holders of the bonds thereby authorized, as to
(a)  pledging  all  or  any  part  of the moneys, earnings, income and
revenues derived from all or any part of the properties of the authority
to secure the payment of the bonds or of any issue 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 right of the authority to restrict and regulate
the  use  of  the  properties  in  connection  with which such bonds are
issued;
(e) limitations in the purposes to which the proceeds of sale  of  any
issue  of  bonds may be applied and pledging such proceeds to secure the
payment of the bonds or any issue of the bonds;
(f) limitations on the issuance of additional bonds,  the  terms  upon
which  additional  bonds  may  be  issued  and secured; 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, 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 earnings or  revenues
of the authority may be deposited;
(i)  the  terms  and  provisions  of  any  mortgage  or  trust deed or
indenture securing the bonds or under which 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  one  thousand  sixty-six  hereof,  and
limiting or abrogating the right of the bondholders to appoint a trustee
under  such  section  or  limiting the rights, duties and powers of such
trustee;
(k) limitations on the power of the authority  to  sell  or  otherwise
dispose of its properties;
(l) any other matters, of like or different character which in any way
affect the security or protection of the bonds;
(m) limitations on the amount of moneys derived from the properties 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  and  revenues  of the
properties to a trustee or other  depositary,  and  for  the  method  of
disbursement  thereof  with  such  safeguards  and  restrictions  as the
authority may determine.
4. It is the intention of the legislature that any pledge of earnings,
revenues or other moneys made  by  the  authority  shall  be  valid  and
binding  from  the  time  when  the  pledge  is made; that the earnings,
revenues or other moneys so  pledged  and  thereafter  received  by  the
authority  shall  immediately  be  subject  to  the  lien of such pledge
without any physical delivery thereof or further act, and that 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
authority  irrespective  of  whether  such  parties have notice thereof.
Neither the resolution nor any other instrument by  which  a  pledge  is
created need be recorded.
5.  Neither  the members of the authority nor any person executing the
bonds shall be liable personally on the  bonds  or  be  subject  to  any
personal liability or accountability by reason of the issuance thereof.
6.  The authority shall have power out of any funds available therefor
to purchase bonds. The authority shall cancel such bonds, subject to and
in accordance with agreements with bondholders.
7. In the discretion of the authority, the bonds may be secured  by  a
trust  indenture  (instead of a resolution) by and between the authority
and a corporate trustee, which may be any trust company or  bank  having
the  powers  of  a  trust  company  in the state of New York. Such trust
indenture  may  contain  any  of  the  provisions  which  a   resolution
authorizing bonds may contain.
Notwithstanding  any other provisions of this title, any resolution or
resolutions authorizing bonds or notes of the authority shall contain  a
covenant  by  the  authority  that  it will at all times maintain rates,
fees, rentals  and  other  charges  sufficient  to  pay,  and  that  any
contracts  entered into by the authority for the sale or distribution of
water shall contain rates, fees, rentals or other charges sufficient  to
pay,  the  cost  of  operation  and  maintenance  of the properties, the
principal of and interest on any obligations  issued  pursuant  to  such
resolution  or resolutions as the same severally become due and payable,

and to maintain any reserves or other funds required  by  the  terms  of
such resolution or resolutions.