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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 6
§ 1115-n. Bonds of the authority. 1. The authority shall have the
power and is hereby authorized from time to time to issue bonds in
conformance with applicable provisions of the uniform commercial code in
such principal amounts as it may determine to be necessary to pay the
cost of any project or projects, or for any other corporate purpose,
including incidental expenses in connection therewith. The authority
shall have power from time to time 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 corporate purpose. Bonds issued by the authority shall 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 to any
agreements entered into between the authority and the city, and the
authority, the water board and the city, and subject to any agreements
with the holders of outstanding bonds pledging any particular revenues
or moneys.

2. The authority is authorized to obtain from any department or agency
of the United States of America or the state or any non-governmental
insurer or financial institution any insurance, guaranty or other credit
support device, to the extent now or hereafter available, as to, or for
the payment or repayment of interest or principal, or both, or any part
thereof, on any bonds issued by the authority and to enter into any
agreement or contract with respect to any such insurance or guaranty,
except to the extent that the same would in any way impair or interfere
with the ability of the authority to perform and fulfill the terms of
any agreement made with the holders of bonds or notes of the authority
as may then exist.

3. Bonds shall be authorized by resolution of the authority, be in
such denominations, bear such date or dates and mature at such time or
times as such resolution may provide, except that bonds and any renewals
thereof shall mature within forty years of the date of their original
issuance and notes and any renewal thereof shall mature within five
years of the date of their original issuance. Such bonds shall be
subject to such terms of redemption, bear interest at such rate or rates
payable at such times, be in such form, 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 and
conditions as such resolution may provide. Bonds may be sold at public
or private sale for such price or prices as the authority shall
determine provided that no issue of bonds may be sold by the authority
at private sale unless such sale and the terms thereof have been
approved in writing by (i) the comptroller, where such sale is not to
such comptroller, or (ii) by the state director of the budget, where
such sale is to be to the comptroller.

4. 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 part of its revenues, together with any other
moneys, securities, contracts or property, to secure the payment of the
bonds, subject to such agreements with holders of bonds or notes of the
authority as may then exist;

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

(c) limitations on the purpose to which the proceeds from the sale of
bonds may be applied;

(d) 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;

(e) 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;

(f) the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, including the proportion of
bondholders which must consent thereto, and the manner in which such
consent may be given;

(g) the creation of special funds into which any revenues or moneys
may be deposited;

(h) the terms and provisions of any trust, deed, mortgage or indenture
securing the bonds under which the bonds may be issued;

(i) 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 and duties of the trustee appointed by the
bondholders pursuant to section one thousand one hundred fifteen-o of
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;

(j) defining the acts or omissions to act which may constitute a
default in the obligations and duties of the authority to the
bondholders 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;

(k) limitations on the amount of revenues and other moneys to be
expended for operating, administrative or other expenses of the

(l) the payment of the proceeds of bonds, revenues and other moneys to
a trustee or other depository, and for the method of disbursement
thereof with such safeguards and restrictions as the authority may
determine; and

(m) any other matters of like or different character which may in any
way affect the security or protection of the bonds or the rights and
remedies of bondholders.

5. 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 enter into such agreements as the authority may
deem necessary, 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 properties
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 granted 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 bonds
of the authority.

6. 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.

7. 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.

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

9. The authority, subject to such agreements with bondholders as then
may exist, shall have power out of any moneys available therefor to
purchase bonds of the authority, which shall thereupon be cancelled at a
price not exceeding (i) if the bonds are then redeemable, the redemption
price then applicable plus accrued interest to the next interest payment
date, or (ii) if the bonds are not redeemable then redemption price
applicable on the first date after such purchase upon which the bonds
become subject to redemption, plus accrued interest to interest payment