Assembly Bill A4308

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4308

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2009
                               ___________

Introduced  by M. of A. CANESTRARI, McENENY, ORTIZ -- Multi-Sponsored by
  -- M. of A. COOK, MAGNARELLI, TOWNS -- read once and referred  to  the
  Committee on Corporations, Authorities and Commissions

AN  ACT  to amend the public authorities law, in relation to authorizing
  regional transportation authorities to borrow lines of credit

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section 1299-i of the public authorities law, as added by
chapter 717 of the laws of 1967,  paragraph  (a)  of  subdivision  1  as
amended  by  chapter  972  of  the  laws  of 1969, is amended to read as
follows:
  S 1299-i. Notes [and], bonds AND OTHER OBLIGATIONS of  the  authority.
1. (a) The authority shall have power and is hereby authorized from time
to time to issue its negotiable bonds [and], notes AND OTHER OBLIGATIONS
OF THE AUTHORITY in conformity with applicable provisions of the uniform
commercial  code  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,  REHABILITATION or repair of any transportation facility, the
payment of PRINCIPAL, REDEMPTION PREMIUM AND interest  on  bonds  [and],
notes  AND OTHER OBLIGATIONS 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  REFUND,  REDEEM  OR  OTHERWISE  pay,
INCLUDING  BY PURCHASE OR TENDER, notes OF THE AUTHORITY and whenever it
deems refunding, REDEMPTION OR PAYMENT expedient, to refund,  REDEEM  OR
OTHERWISE PAY, INCLUDING BY PURCHASE OR TENDER, any bonds OF THE AUTHOR-
ITY  by  the  issuance  of  new bonds, whether the bonds to be refunded,
REDEEMED OR OTHERWISE PAID have or have not matured, and to issue  bonds
partly  [to  refund  bonds then outstanding] FOR SUCH PURPOSE and partly

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02533-01-9

A. 4308                             2

for any other purpose.  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  OR  OTHER  OBLIGATIONS  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  OR  OTHER  OBLIGATIONS  pledging  any
particular receipts or revenues;
  2. The notes [and], bonds AND OTHER OBLIGATIONS 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, in the case of any such note or
any renewals thereof not exceeding five years from the date of issue  of
such original note, 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 AND OTHER OBLIGATIONS shall bear  inter-
est  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 AND OTHER
OBLIGATIONS 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 OR OTHER OBLIGATIONS 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, OR ANY OTHER OBLIGATION OF  THE  AUTHORITY,  may  contain
provisions, which shall be a part of the contract with the holders ther-
eof, 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, OR ANY
OTHER  OBLIGATION OF THE AUTHORITY subject to such agreements with bond-
holders [or], noteholders OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY, 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, OR ANY OTHER OBLIGATION OF  THE
AUTHORITY, subject to such agreements with noteholders [or], bondholders
OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHORITY as may then exist;
  (c)  the  use,  and  disposition  of REVENUES, INCLUDING 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 OR ANY OTHER OBLIGATION OF THE AUTHORITY may be applied  and
pledging such proceeds to secure the payment of the notes or bonds or of
any issue thereof OR OF ANY OTHER OBLIGATIONS;
  (f)  limitations  on  the  issuance of additional notes [or], bonds OR
OTHER OBLIGATIONS OF THE AUTHORITY;  the  terms  upon  which  additional

A. 4308                             3

notes  [or],  bonds    OR  ANY  OTHER OBLIGATION OF THE AUTHORITY may be
issued and secured; the refunding of outstanding or  other  notes  [or],
bonds OR OTHER OBLIGATIONS OF THE AUTHORITY;
  (g)  the  procedure,  if  any, by which the terms of any contract with
noteholders [or], bondholders OR HOLDERS OF  OTHER  OBLIGATIONS  OF  THE
AUTHORITY  may  be amended or abrogated, the amount of notes [or], bonds
OR ANY OTHER OBLIGATION OF THE  AUTHORITY  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 authori-
ty  or  any of its subsidiary corporations for operating, administrative
or other expenses of the authority  or  any  of  its  subsidiary  corpo-
rations;
  (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, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY pursuant to this title, and limiting or abrogating the right of  the
bondholders, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY  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 OR OTHER
OBLIGATIONS OF THE AUTHORITY.
  4. In addition to the powers herein conferred upon  the  authority  to
secure its notes [and], bonds AND OTHER OBLIGATIONS, the authority shall
have  power  in  connection  with the issuance of notes [and], bonds AND
OTHER OBLIGATIONS to enter into such agreements  as  the  authority  may
deem  necessary,  convenient or desirable concerning the use or disposi-
tion of its monies or property or the monies 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  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 agreements. The authority shall have power
to enter into amendments of any such agreements within the powers grant-
ed 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 AND ANY OTHER OBLIGATIONS  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
monies 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 deliv-
ery thereof or further act; and that the lien of any such pledge,  mort-
gage  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,  OR OTHER OBLIGATIONS shall be liable personally on

A. 4308                             4

the notes [or], bonds OR OTHER OBLIGATIONS 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 OR HOLDERS OF OTHER OBLIGATIONS as  may  then  exist,  shall
have  power  out of any funds available therefor to purchase notes [or],
bonds OR OTHER OBLIGATIONS 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]. THE AUTHORITY MAY HOLD,
CANCEL OR SELL SUCH BONDS, NOTES AND OTHER OBLIGATIONS, SUBJECT  TO  AND
IN ACCORDANCE WITH AGREEMENTS WITH SUCH HOLDERS.
  8.  The  state shall not be liable on notes [or], bonds OR OTHER OBLI-
GATIONS of the authority and such notes [and],  bonds  AND  OTHER  OBLI-
GATIONS  shall  not  be a debt of the state, and such notes [and], bonds
AND OTHER OBLIGATIONS shall contain on the face thereof, OR IN AN EQUAL-
LY PROMINENT PLACE, a statement to such effect.
  S 2. Section 1299-kk of the public authorities law, as added by  chap-
ter  1124  of the laws of 1969, subdivision 2 as amended by chapter 1115
of the laws of 1971, is amended to read as follows:
  S 1299-kk. Notes [and], bonds AND OTHER OBLIGATIONS 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 AND
OTHER  OBLIGATIONS  OF  THE  AUTHORITY  IN  CONFORMITY  WITH  APPLICABLE
PROVISIONS  OF THE UNIFORM COMMERCIAL CODE in such principal amount, as,
in the opinion of the authority, shall be necessary  to  provide  suffi-
cient  funds  for  achieving  its  purposes,  including the acquisition,
establishment, construction, effectuation, operation, maintenance, reno-
vation, improvement, extension, REHABILITATION or repair of  any  trans-
portation  facility,  the  payment  of PRINCIPAL, REDEMPTION PREMIUM AND
interest on bonds [and], notes AND OTHER OBLIGATIONS 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  REFUND,  REDEEM  OR  OTHERWISE  pay,
INCLUDING  BY PURCHASE OR TENDER, notes OF THE AUTHORITY and whenever it
deems refunding, REDEMPTION OR PAYMENT expedient, to refund,  REDEEM  OR
OTHERWISE PAY, INCLUDING BY PURCHASE OR TENDER, any bonds OF THE AUTHOR-
ITY  by  the  issuance  of  new bonds, whether the bonds to be refunded,
REDEEMED OR OTHERWISE PAID have or have not matured, and to issue  bonds
partly  [to  refund  bonds then outstanding] FOR SUCH PURPOSE and partly
for any other purpose.  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 OR OTHER OBLIGATIONS 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  OR  OTHER  OBLIGATIONS 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

A. 4308                             5

commercial code, the notes or bonds shall be and hereby are made negoti-
able instruments within the meaning of and for all the purposes of arti-
cle eight of the uniform commercial code, subject only to the provisions
of the notes or bonds for registration.
  2. The notes [and], bonds AND OTHER OBLIGATIONS shall be authorized by
resolution  approved  by not less than a majority vote of the authority,
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 AND OTHER OBLIGATIONS 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 AND  OTHER
OBLIGATIONS  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 OR OTHER OBLIGATIONS 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,  OR  ANY  OTHER OBLIGATION OF THE AUTHORITY, may contain
provisions, which shall be a part of the contract with the holders ther-
eof, 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, OR ANY
OTHER OBLIGATION OF THE AUTHORITY subject to such agreements with  bond-
holders [or], noteholders OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY, 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 ANY OTHER OBLIGATION OF THE AUTHORITY or of any issue of notes
[or], bonds OR ANY OTHER OBLIGATION OF THE AUTHORITY,  subject  to  such
agreements  with noteholders [or], bondholders OR HOLDERS OF OTHER OBLI-
GATIONS OF THE AUTHORITY, as may then exist;
  (c) the use, and disposition  of  REVENUES,  INCLUDING  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 OR ANY OTHER OBLIGATION OF THE AUTHORITY may be applied and
pledging such proceeds to secure the payment of the notes or bonds or of
any issue thereof OR OF ANY OTHER OBLIGATIONS;
  (f) limitations on the issuance of additional  notes  [or],  bonds  OR
OTHER  OBLIGATIONS  OF  THE  AUTHORITY;  the terms upon which additional
notes [or], bonds OR ANY OTHER OBLIGATION OF THE AUTHORITY may be issued
and secured; the refunding of outstanding or other notes [or], bonds  OR
OTHER OBLIGATIONS OF THE AUTHORITY;
  (g)  the  procedure,  if  any, by which the terms of any contract with
noteholders [or], bondholders OR HOLDERS OF  OTHER  OBLIGATIONS  OF  THE
AUTHORITY  may  be amended or abrogated, the amount of notes [or], bonds

A. 4308                             6

OR ANY OTHER OBLIGATION OF THE  AUTHORITY  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 authori-
ty  or  any of its subsidiary corporations for operating, administrative
or other expenses of the authority  or  any  of  its  subsidiary  corpo-
rations;
  (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, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY pursuant to this title, and limiting or abrogating the right of  the
bondholders, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY  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 OR OTHER
OBLIGATIONS OF THE AUTHORITY.
  4. In addition to the powers herein conferred upon  the  authority  to
secure its notes [and], bonds AND OTHER OBLIGATIONS, the authority shall
have  power  in  connection  with the issuance of notes [and], bonds AND
OTHER OBLIGATIONS to enter into such agreements  as  the  authority  may
deem  necessary,  convenient or desirable concerning the use or disposi-
tion of its monies or property or the monies 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  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 agreements. The authority shall have power
to enter into amendments of any such agreements within the powers grant-
ed 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 AND ANY OTHER OBLIGATIONS  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
monies 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 deliv-
ery thereof or further act; and that the lien of any such pledge,  mort-
gage  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
OTHER OBLIGATIONS or be subject to any personal  liability  or  account-
ability by reason of the issuance thereof.
  7.  The  authority,  subject to such agreements with noteholders [or],
bondholders OR HOLDERS OF OTHER OBLIGATIONS as  may  then  exist,  shall
have  power  out of any funds available therefor to purchase notes [or],
bonds OR OTHER OBLIGATIONS of the authority[, which shall  thereupon  be
cancelled,  at  a price not exceeding (a) if the notes or bonds are then

A. 4308                             7

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]. THE AUTHORITY MAY HOLD,
CANCEL OR SELL SUCH BONDS, NOTES AND OTHER OBLIGATIONS, SUBJECT  TO  AND
IN ACCORDANCE WITH AGREEMENTS WITH SUCH HOLDERS.
  8.  The  state shall not be liable on notes [or], bonds OR OTHER OBLI-
GATIONS of the authority and such notes [and],  bonds  AND  OTHER  OBLI-
GATIONS  shall  not  be a debt of the state, and such notes [and], bonds
AND OTHER OBLIGATIONS shall contain on the face thereof, OR IN AN EQUAL-
LY PROMINENT PLACE, a statement to such effect.
  S 3. Section 1310 of the public authorities law, as added  by  chapter
460 of the laws of 1970, is amended to read as follows:
  S  1310. Notes [and], bonds AND OTHER OBLIGATIONS 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  AND
OTHER  OBLIGATIONS  OF  THE  AUTHORITY  IN  CONFORMITY  WITH  APPLICABLE
PROVISIONS OF THE UNIFORM COMMERCIAL CODE in such principal amount,  as,
in  the  opinion  of the authority, shall be necessary to provide suffi-
cient funds for  achieving  its  purposes,  including  the  acquisition,
establishment, construction, effectuation, operation, maintenance, reno-
vation,  improvement,  extension, REHABILITATION or repair of any trans-
portation facility, the payment of  PRINCIPAL,  REDEMPTION  PREMIUM  AND
interest  on  bonds [and], notes AND OTHER OBLIGATIONS of the authority,
establishment of reserves to secure such bonds [and],  notes  AND  OTHER
OBLIGATIONS, the provision of working capital and all other expenditures
of  the authority and its subsidiary corporations incident to and neces-
sary 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  REFUND,  REDEEM OR OTHERWISE pay,
INCLUDING BY PURCHASE OR TENDER, notes OF THE AUTHORITY and whenever  it
deems  refunding,  REDEMPTION OR PAYMENT expedient, to refund, REDEEM OR
OTHERWISE PAY, INCLUDING BY PURCHASE OR TENDER, any bonds OF THE AUTHOR-
ITY by the issuance of new bonds, whether  the  bonds  to  be  refunded,
REDEEMED  OR OTHERWISE PAID have or have not matured, and to issue bonds
partly [to refund bonds then outstanding] FOR SUCH  PURPOSE  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  OR  OTHER  OBLIGATIONS  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  OR  OTHER  OBLIGATIONS  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 negoti-
able instruments within the meaning of and for all the purposes of arti-
cle eight of the uniform commercial code, subject only to the provisions
of the notes or bonds for registration.
  2. The notes [and], bonds AND OTHER OBLIGATIONS 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

A. 4308                             8

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
AND OTHER OBLIGATIONS 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 AND OTHER OBLIGATIONS 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 OR OTHER OBLIGATIONS 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,  OR  ANY  OTHER OBLIGATION OF THE AUTHORITY, may contain
provisions, which shall be a part of the contract with the holders ther-
eof, 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, OR ANY
OTHER OBLIGATION OF THE AUTHORITY subject to such agreements with  bond-
holders [or], noteholders OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY, 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 OR ANY OTHER OBLIGATION OF THE
AUTHORITY, subject to such agreements with noteholders [or], bondholders
OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHORITY as may then exist;
  (c) the use, and disposition  of  REVENUES,  INCLUDING  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 OR ANY OTHER OBLIGATION OF THE AUTHORITY may be applied and
pledging such proceeds to secure the payment of the notes or bonds or of
any issue thereof OR OF ANY OTHER OBLIGATIONS;
  (f) limitations on the issuance of additional  notes  [or],  bonds  OR
OTHER  OBLIGATIONS  OF  THE  AUTHORITY;  the terms upon which additional
notes [or], bonds OR ANY OTHER OBLIGATION OF THE AUTHORITY may be issued
and secured; the refunding of outstanding or other notes [or], bonds  OR
OTHER OBLIGATIONS OF THE AUTHORITY;
  (g)  the  procedure,  if  any, by which the terms of any contract with
noteholders [or], bondholders OR HOLDERS OF  OTHER  OBLIGATIONS  OF  THE
AUTHORITY  may  be amended or abrogated, the amount of notes [or], bonds
OR ANY OTHER OBLIGATION OF THE  AUTHORITY  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 authori-
ty  or  any of its subsidiary corporations for operating, administrative
or other expenses of the authority  or  any  of  its  subsidiary  corpo-
rations;
  (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

A. 4308                             9

bondholders, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY pursuant to this title, and limiting or abrogating the right of  the
bondholders, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY  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 OR OTHER
OBLIGATIONS OF THE AUTHORITY.
  4. In addition to the powers herein conferred upon  the  authority  to
secure its notes [and], bonds AND OTHER OBLIGATIONS, the authority shall
have  power  in  connection  with the issuance of notes [and], bonds AND
OTHER OBLIGATIONS to enter into such agreements  as  the  authority  may
deem  necessary,  convenient or desirable concerning the use or disposi-
tion 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 grant-
ed 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 AND ANY OTHER OBLIGATIONS  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 deliv-
ery thereof or further act; and that the lien of any such pledge,  mort-
gage  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
OTHER OBLIGATIONS or be subject to any personal  liability  or  account-
ability by reason of the issuance thereof.
  7.  The  authority,  subject to such agreements with noteholders [or],
bondholders OR HOLDERS OF OTHER OBLIGATIONS as  may  then  exist,  shall
have  power  out of any funds available therefor to purchase notes [or],
bonds OR OTHER OBLIGATIONS 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]. THE AUTHORITY MAY HOLD,
CANCEL OR SELL SUCH BONDS, NOTES AND OTHER OBLIGATIONS, SUBJECT  TO  AND
IN ACCORDANCE WITH AGREEMENTS WITH SUCH HOLDERS.
  8.  The  state shall not be liable on notes [or], bonds OR OTHER OBLI-
GATIONS of the authority and such notes [and],  bonds  AND  OTHER  OBLI-

A. 4308                            10

GATIONS  shall  not  be a debt of the state, and such notes [and], bonds
AND OTHER OBLIGATIONS shall contain on the face thereof, OR IN AN EQUAL-
LY PROMINENT PLACE, a statement to such effect.
  S  4.  Section 1335 of the public authorities law, as added by chapter
714 of the laws of 1970, is amended to read as follows:
  S 1335. Notes [and], bonds AND OTHER OBLIGATIONS 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 AND
OTHER  OBLIGATIONS  OF  THE  AUTHORITY  IN  CONFORMITY  WITH  APPLICABLE
PROVISIONS  OF THE UNIFORM COMMERCIAL CODE in such principal amount, as,
in the opinion of the authority, shall be necessary  to  provide  suffi-
cient  funds  for  achieving  its  purposes,  including the acquisition,
establishment, construction, effectuation, operation, maintenance, reno-
vation, improvement, extension, REHABILITATION or repair of  any  trans-
portation  facility,  the  payment  of PRINCIPAL, REDEMPTION PREMIUM AND
interest on bonds [and], notes AND OTHER OBLIGATIONS of  the  authority,
establishment  of  reserves  to  secure such bonds [and], notes OR OTHER
OBLIGATIONS, the provision of working capital and all other expenditures
of the authority and its subsidiary corporations incident to and  neces-
sary 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  REFUND,  REDEEM  OR  OTHERWISE  pay,
INCLUDING  BY PURCHASE OR TENDER, notes OF THE AUTHORITY and whenever it
deems refunding, REDEMPTION OR PAYMENT expedient, to refund,  REDEEM  OR
OTHERWISE PAY, INCLUDING BY PURCHASE OR TENDER, any bonds OF THE AUTHOR-
ITY  by  the  issuance  of  new bonds, whether the bonds to be refunded,
REDEEMED OR OTHERWISE PAID have or have not matured, and to issue  bonds
partly  [to  refund  bonds then outstanding] FOR SUCH PURPOSE 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 OR OTHER OBLIGATIONS 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  OR  OTHER  OBLIGATIONS 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 negoti-
able instruments within the meaning of and for all the purposes of arti-
cle eight of the uniform commercial code, subject only to the provisions
of the notes or bonds for registration.
  2. The notes [and], bonds AND OTHER OBLIGATIONS 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
AND  OTHER  OBLIGATIONS 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 AND OTHER OBLIGATIONS of the authority may be sold by
the authority, at public or private sale, at such price or prices as the

A. 4308                            11

authority shall determine.  No notes [or], bonds OR OTHER OBLIGATIONS 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, OR ANY OTHER OBLIGATION OF  THE  AUTHORITY,  may  contain
provisions, which shall be a part of the contract with the holders ther-
eof,  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, OR ANY OTHER OBLIGATION OF THE AUTHORITY subject to such agree-
ments with bondholders [or], noteholders OR HOLDERS OF OTHER OBLIGATIONS
OF THE AUTHORITY, 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 OR ANY OTHER OBLIGATION OF THE
AUTHORITY, subject to such agreements with noteholders [or], bondholders
OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHORITY as may then exist;
  (c) the use, and disposition  of  REVENUES,  INCLUDING  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 OR ANY OTHER OBLIGATION OF THE AUTHORITY may be applied and
pledging such proceeds to secure the payment of the notes or bonds or of
any issue thereof OR OF ANY OTHER OBLIGATIONS;
  (f) limitations on the issuance of additional  notes  [or],  bonds  OR
OTHER  OBLIGATIONS  OF  THE  AUTHORITY;  the terms upon which additional
notes [or], bonds OR ANY OTHER OBLIGATION OF THE AUTHORITY may be issued
and secured; the refunding of outstanding or other notes [or], bonds  OR
OTHER OBLIGATIONS OF THE AUTHORITY;
  (g)  the  procedure,  if  any, by which the terms of any contract with
noteholders [or], bondholders OR HOLDERS OF  OTHER  OBLIGATIONS  OF  THE
AUTHORITY  may  be amended or abrogated, the amount of notes [or], bonds
OR ANY OTHER OBLIGATION OF THE  AUTHORITY  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 authori-
ty  or  any of its subsidiary corporations for operating, administrative
or other expenses of the authority  or  any  of  its  subsidiary  corpo-
rations;
  (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, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY pursuant to this title, and limiting or abrogating the right of  the
bondholders, NOTEHOLDERS, OR HOLDERS OF OTHER OBLIGATIONS OF THE AUTHOR-
ITY  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 OR OBLI-
GATIONS OF THE AUTHORITY.
  4. In addition to the powers herein conferred upon  the  authority  to
secure its notes [and], bonds AND OTHER OBLIGATIONS, the authority shall

A. 4308                            12

have  power  in  connection  with the issuance of notes [and], bonds AND
OTHER OBLIGATIONS to enter into such agreements  as  the  authority  may
deem  necessary,  convenient or desirable concerning the use or disposi-
tion  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 grant-
ed  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 AND ANY OTHER OBLIGATIONS 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 deliv-
ery  thereof or further act; and that the lien of any such pledge, mort-
gage 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 OR OTHER OBLIGATIONS shall be liable personally on the
notes [or], bonds OR OTHER OBLIGATIONS 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 OR HOLDERS OF OTHER OBLIGATIONS as  may  then  exist,  shall
have  power  out of any funds available therefor to purchase notes [or],
bonds OR OTHER OBLIGATIONS 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]. THE AUTHORITY MAY HOLD,
CANCEL OR SELL SUCH BONDS, NOTES AND OTHER OBLIGATIONS, SUBJECT  TO  AND
IN ACCORDANCE WITH AGREEMENTS WITH SUCH HOLDERS.
  8.  The  state shall not be liable on notes [or], bonds OR OTHER OBLI-
GATIONS of the authority and such notes [and],  bonds  AND  OTHER  OBLI-
GATIONS  shall  not  be a debt of the state, and such notes [and], bonds
AND OTHER OBLIGATIONS shall contain on the face thereof, OR IN AN EQUAL-
LY PROMINENT PLACE, a statement to such effect.
  S 5. This act shall take effect immediately.