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This entry was published on 2014-09-22
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Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 4
§ 1080. Bonds. 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. Such bonds
shall be authorized by resolution of the authority and shall bear such
date or dates, mature at such time or times in not exceeding forty years
from their respective date or dates, subject to such option or options
of redemption, as may be provided in the resolution authorizing such
bonds, at par or at a price not exceeding one hundred five per centum of
their face value, together with accrued interest, bear interest at such
rate or rates that the cost to maturity of the money for any issue of
such bonds shall not exceed six per centum per annum, payable annually
or semi-annually, be in such denominations, and in such form, either
coupon or registered, and be executed in such manner, and be payable in
such medium of payment, at such place or places, and be subject to such
terms and conditions as such resolution or resolutions may provide.

2. All bonds of the authority shall be sold at public sale upon sealed
bids to the bidder who shall offer the lowest interest cost to the
authority to be determined by the authority. The notice of sale shall be
published at least once not less than ten nor more than forty days
before the date of sale in a newspaper designated by the authority and
shall call for the receipt of sealed bids and shall fix the date, time
and place of sale.

3. Notwithstanding the foregoing provisions requiring public sale, any
bonds of the authority may be sold by the authority within two years of
the effective date of this title at private sale at such price or prices
as the authority shall determine not exceeding the interest cost herein
provided, and the authority also may sell at private sale for such price
or prices as the authority shall determine not exceeding the interest
cost herein provided, any bonds authorized for the purpose of paying the
cost of acquiring by condemnation a privately owned public water supply
and distribution system provided such bonds are sold within one year of
the date of completion of such condemnation and the proceedings for such
condemnation were commenced prior to or not more than two years from the
effective date of this title.

4. Any bonds of the authority, whether sold at public or private sale,
shall be sold for a price not less than ninety-six per centum of the par
value thereof, plus accrued interest provided always that the interest
cost to maturity of the money for any issue of such bonds shall not
exceed six per centum per annum. Such bonds may be issued for any
corporate purpose of the authority.

5. Any resolution or resolutions authorizing any bonds may contain
provisions, which shall be a part of the contract with the holders of
the bonds, as to (a) pledging the revenue or water rents charged by the
authority to secure the payment of the bonds;

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

(c) limitations on the right of the authority to restrict and regulate
the use of water and to alter or reduce rates or charges for the use of

(d) limitations on the issuance of additional bonds;

(e) the application of funds and the safeguarding of funds on hand or
on deposit, including the requiring of the giving of security for
deposit of such funds by depository banks or trust companies. Unless
otherwise provided in said resolution, all deposits of funds of the
authority shall be secured in the manner provided by law for securing
deposits of county moneys. All banks and trust companies are authorized
to give such security for such deposits;

(f) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the authority to the
bondholders and providing 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 be not inconsistent with the general laws of this state.

6. 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. Refunding bonds may be delivered by the authority to
the purchasers thereof at any time prior to the date of maturity or
redemption date of the bonds proposed to be refunded, if the authority
shall determine that such action shall be financially sound and
advantageous to the authority. The rate or rates of interest of the
refunding bonds shall not be limited by the rate or rates of interest
borne by any of the bonds to be refunded by such bonds, but all of the
provisions of this section with reference to the sale of bonds of the
authority, and the interest cost of the money raised by the sale
thereof, shall apply to such refunding bonds.

7. 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.

8. Neither the members of the authority nor any person executing the
bonds shall be personally liable on the bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.
The authority shall have power, out of any funds available therefor, to
purchase (as distinguished from the power of redemption hereinabove
provided) any bonds issued by it at a price of not more than the
principal amount thereof or the redemption price at which the bonds may
be redeemed at the next ensuing redemption date and accrued interest.
All bonds so purchased shall be cancelled.

9. 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
irrespective of whether or not such parties have notice thereof. No
instrument by which such a pledge or security interest is created nor
any financing statement need be recorded or filed.