senate Bill S7776

2013-2014 Legislative Session

Relates to bonds of the Ogdensburg bridge authority; repealer

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Jun 06, 2014 referred to transportation

S7776 - Bill Details

See Assembly Version of this Bill:
A9629A
Current Committee:
Senate Transportation
Law Section:
Public Authorities Law
Laws Affected:
Add §736, rpld §706, Pub Auth L

S7776 - Bill Texts

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Relates to bonds of the Ogdensburg Bridge Authority.

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BILL NUMBER:S7776

TITLE OF BILL: An act to amend the public authorities law, in relation
to bonds of the Ogdensburg Bridge Authority; and to repeal section 706
of the public authorities law relating thereto

PURPOSE: To update the bonding language for the Ogdensburg Bridge and
Port Authority so that the Authority has the ability to finance capital
projects.

SUMMARY OF PROVISIONS:

Section 1 establishes a new Section 736, which provides the Ogdensburg
Bridge and Port Authority with the ability to issue bonds to finance
capital projects. This section establishes the specifications and the
terms for issuing such bonds.

Section 2 repeals Section 706 of the Public Authorities Law.

Section 3 provides the effective date.

EXISTING LAW:

Section 706 of the Public Authorities Law provides the Ogdensburg Bridge
and Port Authority with the ability to bond. But, the bonding language
contained in Section 706 is out of date and needs to be updated. There-
fore, this bill repeals Section 706 and replaces it with a new, updated
bonding language.

JUSTIFICATION: The Ogdensburg Bridge and Port Authority owns and oper-
ates many important public assets in Northern New York including: the
Ogdensburg-Prescott International Bridge, the Port of Ogdensburg, the
New York and Ogdensburg Railway, the Ogdensburg International Airport,
and two industrial parks. These facilities require regular maintenance
to remain in their best condition. It is the responsibility of the
Authority to conduct such maintenance and ensure the upkeep of all their
facilities. As part of this responsibility, the Authority is looking to
undertake several significant and necessary capital improvements to
their facilities. However, the current bonding language of the Authori-
ty contained in Section 706 of the Public Authorities Law is out of date
and needs to be updated. Therefore, at the request of the Authority,
this bill repeals Section 706 of the Public Authorities Law, which
contains the old bonding language, and adds a new section to the Public
Authorities Law, Section 736, which provides new and up to date bonding
language for the Authority so that the Authority can undertake the
necessary capital improvement projects.

LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately

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

                                  7776

                            I N  S E N A T E

                              June 6, 2014
                               ___________

Introduced  by  Sen. RITCHIE -- read twice and ordered printed, and when
  printed to be committed to the Committee on Transportation

AN ACT to amend the public authorities law, in relation to bonds of  the
  Ogdensburg  Bridge  Authority; and to repeal section 706 of the public
  authorities law relating thereto

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

  Section  1.  The  public  authorities  law  is amended by adding a new
section 736 to read as follows:
  S 736. 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 CORPO-
RATE PURPOSE, INCLUDING THE ESTABLISHMENT OF RESERVES TO  SECURE  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 ONE HUNDRED MILLION DOLLARS, EXCLUDING BONDS, NOTES  OR
OTHER  OBLIGATIONS  ISSUED  TO REFUND OR OTHERWISE REPAY BONDS, NOTES OR
OTHER OBLIGATIONS THEREFORE ISSUED FOR SUCH PURPOSES; PROVIDED, HOWEVER,
THAT UPON ANY SUCH REFUNDING OR REPAYMENT OF THE TOTAL AGGREGATE PRINCI-
PAL AMOUNT OF OUTSTANDING BONDS,  NOTES  OR  OTHER  OBLIGATIONS  MAY  BE
GREATER  THAN  ONE  HUNDRED MILLION DOLLARS ONLY IF THE PRESENT VALUE OF
THE AGGREGATE DEBT SERVICE OF THE FUNDING OR REPAYMENT 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 TO BE
REFUNDED OR REPAID. FOR PURPOSES OF THIS SECTION, THE PRESENT VALUES  OF
THE AGGREGATE DEBT SERVICE OF THE REFUNDING OR REPAYMENT BONDS, NOTES OR
OTHER  OBLIGATIONS AND OF THE AGGREGATE DEBT SERVICE OF THE BONDS, NOTES
OR OTHER OBLIGATIONS SO REFUNDED  OR  REPAID,  SHALL  BE  CALCULATED  BY
UTILIZING  THE  EFFECTIVE  INTEREST  RATE  OF THE REFUNDING OR REPAYMENT
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 BONDS, NOTES OR OTHER OBLIGATIONS FROM THE PAYMENT DATES THER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15502-02-4

S. 7776                             2

EOF  TO  THE DATE OF ISSUE OF THE REFUNDING OR REPAYMENT BONDS, NOTES OR
OTHER OBLIGATIONS AND TO  THE  PRICE  BID  INCLUDING  ESTIMATED  ACCRUED
INTEREST  OR  PROCEEDS  RECEIVED  BY  THE  AUTHORITY INCLUDING ESTIMATED
ACCRUED  INTEREST  FROM THE SALE THEREOF. THE AUTHORITY SHALL HAVE POWER
AND IS HEREBY AUTHORIZED TO ENTER INTO SUCH AGREEMENT AND  PERFORM  SUCH
ACTS  AS  MAY  BE  REQUIRED  UNDER ANY APPLICABLE FEDERAL LEGISLATION TO
SECURE A FEDERAL GUARANTEE OF ANY BONDS.
  2. THE AUTHORITY SHALL HAVE POWER FROM TIME TO TIME TO RENEW BONDS  OR
TO  ISSUE  RENEWAL  BONDS FOR SUCH PURPOSE, 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 CORPORATE 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  MONEYS  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  MONEYS.  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 CRED-
IT 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 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 PLAC-
ES, AND BE SUBJECT TO SUCH TERMS AND CONDITIONS AS SUCH  RESOLUTION  MAY
PROVIDE.
  (C)  NOTWITHSTANDING  ANY  OTHER  PROVISIONS  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,
SUNDAYS  EXCEPTED,  AFTER  A  NOTICE  OF SUCH SALE HAS BEEN PUBLISHED AT
LEAST ONCE IN A NEWSPAPER OF GENERAL CIRCULATION IN THE AREA  SERVED  BY
THE  AUTHORITY AND ON THE AUTHORITY WEBSITE, 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 AND ON THE AUTHORITY WEBSITE 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
IN PURSUANCE OF SUCH ADVERTISEMENTS, AND IN THE EVENT OF SUCH REJECTION,
THE AUTHORITY IS AUTHORIZED TO NEGOTIATE A PRIVATE  OR  PUBLIC  SALE  OR
RE-ADVERTISE  FOR  BIDS  IN  THE FORM AND MANNER ABOVE DESCRIBED AS MANY
TIMES AS, IN ITS JUDGMENT, MAY BE NECESSARY  TO  EFFECT  A  SATISFACTORY
SALE.

S. 7776                             3

  (D) NOTWITHSTANDING THE PROVISIONS OF THE PRECEDING PARAGRAPH, WHENEV-
ER  IN THE JUDGMENT OF THE AUTHORITY THE INTERESTS OF THE AUTHORITY WILL
BE SERVED THEREBY, THE MEMBERS OF THE AUTHORITY, ON THE  WRITTEN  RECOM-
MENDATION  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.
  (E)  THE  PRIVATE  OR PUBLIC BOND SALE GUIDELINES SET BY THE AUTHORITY
SHALL INCLUDE, BUT NOT BE LIMITED TO A REQUIREMENT THAT WHERE THE INTER-
ESTS OF THE AUTHORITY WILL BE SERVED BY A  PRIVATE  OR  PUBLIC  SALE  OF
BONDS,  THE  AUTHORITY  SHALL  SELECT UNDERWRITERS FOR PRIVATE OR PUBLIC
BOND SALES CONDUCTED PURSUANT TO A REQUEST FOR PROPOSAL  PROCESS  UNDER-
TAKEN  AT LEAST ONCE ANNUALLY AND CONSIDERATION OF PROPOSALS FROM QUALI-
FIED UNDERWRITERS TAKING INTO ACCOUNT, AMONG  OTHER  THINGS,  QUALIFICA-
TIONS  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 CAPITALIZA-
TION  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 CONSIDER-
ATION TO WORK WITH MINORITY AND WOMEN-OWNED BUSINESS ENTERPRISES  SO  AS
TO PROMOTE AND ASSIST PARTICIPATION BY SUCH ENTERPRISES.
  (F) 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.
  (G) NO PRIVATE OR PUBLIC BOND SALE ON  A  NEGOTIATED  BASIS  SHALL  BE
CONDUCTED  BY  THE  AUTHORITY  WITHOUT PRIOR APPROVAL OF THE STATE COMP-
TROLLER.
  (H) 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.
  (I)  THE  AUTHORITY  SHALL ANNUALLY SUBMIT ITS BOND SALE REPORT TO THE
STATE COMPTROLLER AND COPIES THEREOF TO THE  SENATE  FINANCE  COMMITTEE,
THE ASSEMBLY WAYS AND MEANS COMMITTEE AND THE AUTHORITY BUDGET OFFICE.
  (J)  THE  AUTHORITY  SHALL  MAKE AVAILABLE TO THE PUBLIC COPIES OF ITS
BOND SALE REPORT UPON REASONABLE REQUEST THEREFORE.
  (K) 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 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 ANY PART OF THE REVENUES, OTHER MONEYS 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 GRANTS 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 FUNDS
AND THE REGULATION AND DISPOSITION THEREOF;

S. 7776                             4

  (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, 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 REVENUES OR MONEYS
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 OR DUTIES OF THE TRUSTEES APPOINTED BY THE
BONDHOLDERS PURSUANT TO THIS TITLE AND LIMITING OR ABROGATING THE RIGHTS
OF THE BONDHOLDERS TO APPOINT A TRUSTEE UNDER SUCH SECTION  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  BONDHOLD-
ERS  AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS IN THE
EVENT OF SUCH DEFAULT, INCLUDING AS A MATTER OF RIGHT THE 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 OF ANY PART THEREOF;
  (M)  LIMITATIONS  ON  THE  AMOUNT  OF  REVENUES AND OTHER MONEYS TO BE
EXPENDED FOR OPERATING, ADMINISTRATIVE OR OTHER EXPENSES OF THE AUTHORI-
TY;
  (N) THE PAYMENT OF THE PROCEED OF BONDS, REVENUES AND OTHER MONEYS  TO
A TRUSTEE OR OTHER DEPOSITORY, AND FOR THE METHOD OF DISBURSEMENT THERE-
OF WITH SUCH SAFEGUARDS AND RESTRICTIONS AS THE AUTHORITY MAY DETERMINE;
AND
  (O)  ANY  OTHER MATTES OF LIKE OR DIFFERENT CHARACTER WHICH IN ANY WAY
AFFECT THE SECURITY OR PROTECTION OF THE BONDS OR THE RIGHTS  AND  REME-
DIES OF BONDHOLDERS.
  6.  IN  ADDITION  TO THE POWERS HEREIN CONFERRED UPON THE AUTHORITY TO
SECURE ITS BONDS, THE AUTHORITY SHALL HAVE POWER IN CONNECTION WITH  THE
ISSUANCE  OF BONDS TO ADOPT RESOLUTIONS AND ENTER INTO SUCH TRUST INDEN-
TURES, AGREEMENTS OR OTHER INSTRUMENTS AS THE AUTHORITY MAY DEEM  NECES-
SARY,  CONVENIENT  OR DESIRABLE CONCERNING THE USE OR DISPOSITION OF ITS
REVENUES OR OTHER MONEYS OR PROPERTY, INCLUDING THE  MORTGAGING  OF  ANY
PROPERTY  AND THE ENTRUSTING, PLEDGING OR CREATION OF ANY OTHER SECURITY
INTEREST IN ANY SUCH REVENUES, 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  RESOLUTIONS,  TRUST  INDEN-
TURES,  AGREEMENTS  OR  OTHER  INSTRUMENTS. THE AUTHORITY SHALL HAVE THE
POWER TO ENTER INTO AMENDMENTS OF ANY  SUCH  RESOLUTIONS,  TRUST  INDEN-

S. 7776                             5

TURES,  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,
MONEYS, 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  IRRE-
SPECTIVE  OF WHETHER OR NOT SUCH PARTIES HAVE NOTICE THEREOF. NO INSTRU-
MENT 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 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 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, WHICH SHALL THEREUPON BE CANCELLED, AT
A PRICE NOT EXCEEDING: (A) IF THE BONDS ARE THEN REDEEMABLE, THE REDEMP-
TION PRICE THEN APPLICABLE PLUS ACCRUED INTEREST TO  THE  NEXT  INTEREST
PAYMENT  DATE;  OR  (B)  IF  THE BONDS ARE NOT THEN REDEEMABLE, THEN 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
CANCELLED.
  S 2.  Section 706 of the public authorities law is REPEALED.
  S 3. This act shall take effect immediately.

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