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This entry was published on 2014-09-22
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Bonds of the authority
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 1
§ 1010. Bonds of the authority. 1. The authority shall have 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
the purpose of financing any project authorized by this title, including
the acquisition of any real or personal property or facilities deemed
necessary by the authority.

2. In anticipation of the sale of such bonds the authority may 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 notes. Such notes shall be paid from any moneys of the
authority available therefor and not otherwise pledged, or from the
proceeds of sale of the bonds of the authority in anticipation of which
they were issued. Such notes shall not be issued in an amount in excess
of the amount of bonds which the authority is authorized to issue, less
the amount of any bonds or other notes theretofore issued and
outstanding. The notes shall be issued in the same manner as the bonds.
Such notes and the resolution or resolutions authorizing the same may
contain any provisions, conditions or limitations which a bond
resolution of the authority may contain.

3. Except as may be otherwise expressly provided by the authority, the
bonds and notes of every issue shall be general obligations of the
authority payable out of any moneys or revenues of the authority,
subject only to any agreements with the holders of particular bonds or
notes pledging any particular moneys or revenues.

4. 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 other
purpose hereinbefore described. Refunding bonds may be exchanged for the
bonds to be refunded, with such cash adjustments as may be agreed, or
may be sold with the proceeds applied to the purchase or payment of the
bonds to be refunded.

5. The bonds may be issued payable in annual installments or may be
issued as term bonds or the authority, in its discretion, may issue
bonds of both types. The bonds shall be authorized by resolution of the
trustees of the authority and shall bear such date or dates, mature at
such time or times, not exceeding fifty years from their respective
dates, bear interest at such rate or rates, payable annually or
semi-annually, 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. In the event that term
bonds are issued, the resolution authorizing the same may make such
provisions for the establishment and management of adequate sinking
funds for the payment thereof, as the authority may deem necessary. The
bonds or notes may be sold at public or private sale for such price or
prices as the authority shall determine. Pending preparation of the
definite bonds, the authority may issue interim receipts which shall be
exchanged for such bonds.

6. 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 to be authorized as to

(a) pledging all or any part of the revenues of the project or any
revenue producing contract or contracts made by the authority with any
individual, partnership, corporation or association to secure the
payment of the bonds or of any particular issue of bonds, subject to
such agreements with bondholders as may then exist;

(b) the rentals, fees and other charges to be charged, and the amounts
to be raised in each year thereby, and the use and disposition of the

(c) the setting aside of reserves or sinking funds, and the regulation
and disposition thereof;

(d) limitations on the right of the authority to restrict and regulate
the use of any project;

(e) limitations on the purpose to which the proceeds of sale of any
issue of bonds then or thereafter to be issued may be applied and
pledging such proceeds to secure the payment of the bonds or of 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 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) limitations on the amount of moneys derived from a project to be
expended for operating, administrative or other expenses of the

(i) defining the acts or omissions to act which shall constitute a
default in the duties of the authority to holders of its obligations and
providing the rights and remedies of such holders in the event of a

7. Notwithstanding any other provisions of this title, any such
resolution or resolutions shall contain a covenant by the authority that
it will at all times maintain rates, fees or charges sufficient to pay,
and that any contracts entered into by the authority for the sale,
transmission or distribution of power shall contain rates, fees or
charges sufficient to pay the costs of operation and maintenance of the
project, the principal of and interest on any obligations issued
pursuant to such resolution as the same severally become due and
payable, and to maintain any reserves required by the terms of such
resolution or resolutions.

8. It is the intention hereof that any pledge of revenues or other
moneys or of a revenue producing contract or contracts made by the
authority shall be valid and binding from the time when the pledge is
made; that the revenues or other moneys or proceeds of any contract or
contracts 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.

9. Neither the members of the authority nor any person executing the
bonds or notes shall be liable personally on the bonds or notes or be
subject to any personal liability or accountability by reason of the
issuance thereof.

10. The authority shall have power out of any funds available therefor
to purchase bonds or notes. The authority may hold, pledge, cancel or
resell such bonds, subject to and in accordance with agreements with

11. Any bonds or notes issued by the authority are hereby made
securities in which all public officers and bodies of this state and all
municipalities and municipal subdivisions, all insurance companies and
associations and other persons carrying on an insurance business, all
banks, bankers, trust companies, savings banks and savings associations,
including savings and loan associations, building and loan associations,
investment companies and other persons carrying on a banking business,
and all other persons whatsoever, except as hereinafter provided, who
are now or may hereafter be authorized to invest in bonds or other
obligations of the state, may properly and legally invest funds
including capital in their control or belonging to them; provided that,
notwithstanding the provisions of any other general or special law to
the contrary, such bonds and notes shall not be eligible for the
investment of funds, including capital, of trusts, estates or
guardianships under the control of individual administrators, guardians,
executors, trustees and other individual fiduciaries except when any
such individual fiduciary shall be acting in such capacity with one or
more corporate co-fiduciaries. The bonds and notes are also hereby made
securities which may be deposited with and shall be received by all
public officers and bodies of this state and all municipalities and
municipal subdivisions for any purpose for which the deposit of bonds or
other obligations of this state is now or may hereafter be authorized.