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SECTION 20.17
Bonds and notes of a trust
Arts and Cultural Affairs (ACA) CHAPTER 11-C, TITLE E, ARTICLE 20
§ 20.17. Bonds and notes of a trust. 1. A trust shall have the power
and is hereby authorized to issue from time to time its bonds and notes
in such principal amounts as the trust shall determine to be necessary
for achieving any of its corporate purposes, including: (a) the payment
of all or any part of the cost of developing cultural facilities or the
institutional portion of combined-use facilities; (b) developing
facilities for not-for-profit cultural organizations; (c) the making of
loans pursuant to this article to not-for-profit cultural organizations
and to participating cultural institutions; (d) the payment of interest
on bonds and notes of the trust; (e) the establishment of reserves to
secure such bonds and notes of the trust; (f) the payment of expenses
incurred in connection with the issuance of the bonds and notes of the
trust; and (g) during the period of development of a combined-use
facility or a cultural facility or other facility authorized by this
article, the payment of other expenses but, except in the case of a
trust created prior to the effective date of this section, such expenses
shall not include operating expenses of the participating cultural
institution. All bonds or notes and the interest coupons applicable
thereto whether or not in negotiable form are hereby made and shall be
construed to be negotiable instruments and investment securities under
article eight of the uniform commercial code.

2. A trust shall have the power to issue from time to time (a) notes
to renew notes, (b) bonds to pay notes, including the interest thereon
and redemption premium, if any, (c) bonds to refund any bonds of the
trust then outstanding, including the payment of any redemption premium
thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds. The
refunding bonds may be exchanged for the bonds to be refunded or sold
and the proceeds applied to the purchase, redemption or payment of such
bonds, and pending such purchase, redemption or payment, such proceeds
may be invested and reinvested in obligations of or guaranteed by the
United States, the state, or any political subdivision of the state, or
any agency or instrumentality of any of them, secured in such manner as
the trust shall determine, maturing at such time or times as shall be
appropriate to assure the prompt payment, as to the principal, interest
and redemption premium, if any, on the outstanding bonds to be refunded.
A trust shall have power out of any funds available therefor to purchase
(as distinguished from the power of redemption herein provided) any
bonds or notes of the trust, and all bonds so purchased shall be
cancelled.

3. With respect to notes or bonds issued or renewed on and after the
effective date of this title, no note or renewal thereof shall mature
more than five years from and after the date of the original issue of
such note, and no bond or bond issued to refund such bond shall mature
more than thirty years from and after the date of the original issue of
such bond, provided, however, no bond issued to refund bonds issued
prior to the effective date of this section shall mature more than fifty
years from and after the date of the original issue of any such bond.
Notwithstanding the foregoing, notes issued by a trust for the purpose
of repaying advances from a participating cultural institution which
uses or occupies the institutional portion of a combined-use facility
the cost of development of which was paid with the proceeds of bonds of
the trust which were issued prior to September first, nineteen hundred
ninety-one, shall mature no later than seven years from and after the
date of original issue of such note, and bonds issued by a trust for
such purpose, including bonds issued to refund such notes, shall mature
no later than fifty years from and after the date of original issue of
such bonds.

4. The issuance of bonds and notes by a trust shall be authorized by
resolution of the trust without further authorization or approval, which
resolution shall be a part of the contract with the holders of the bonds
or notes thereby authorized. Such resolution may provide that such bonds
and notes may be registered or registrable as to principal and interest
or as to interest alone and that such bonds and notes may be payable at
such place or places, within or without the state, may bear interest at
such rate or rates, may be payable and mature at such time or times, may
be in such form and evidenced in such manner, may be in such
denominations, and may contain such other provisions not inconsistent
with this article, including provisions as to reserve or sinking funds,
payment, redemption or refunding of bonds or notes, security therefor,
events of default, remedies of bondholders or noteholders, appointment
of trustees, as distinguished from members of the board of trustees of a
trust for cultural resources, or fiscal agents, custody, collection,
securing, investment and payment of any money and amendment or
abrogation of such provisions, all as the trust may determine; provided
that such resolution may provide for the manner of determining any or
all of the foregoing provisions for such bonds and notes in lieu of
determining such provisions.

5. Bonds may be issued in one or more series as serial bonds, or as
term bonds, or as a combination thereof. Any signature, manual or
facsimile, of an officer of the trust appearing on bonds or notes or
coupons shall be valid and sufficient for all purposes whether or not
such officer shall then be in office. The trust may also provide for the
authentication of the bonds or notes by a trustee (as distinguished from
a member of the board of trustees of a trust for cultural resources) or
fiscal agent.

6. The bonds or notes of a trust may be sold at such prices at a
public or private sale, in such manner and from time to time, as may be
determined by the trust, and the trust may pay all expenses, premiums
and commissions which it may deem necessary or advantageous in
connection with the issuance and sale thereof. No bonds or notes of a
trust may be sold at a private sale unless such sale and the terms
thereof have been approved in writing by the comptroller of the state
and the chief fiscal officer of the municipality or county in which the
combined-use facility or cultural facility for which such bonds or notes
are issued is located.

7. Neither the trustees, officers or employees of a trust, nor any
participating cultural institution or the members, directors, trustees,
officers or employees of such institution, nor any person executing or
authenticating the bonds or notes of the trust shall be liable on the
bonds or notes or be subject to any personal or other liability or
accountability by reason of the issuance thereof.