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This entry was published on 2014-09-22
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SECTION 1199-HHH
Bonds of the authority
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 8-F
§ 1199-hhh. 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 the applicable provisions of the uniform commercial
code in such principal amounts as it may determine to be necessary to
pay the cost of any water project or projects or for any other corporate
purposes, 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 of the authority as may be designated in the proceedings
of the authority under which the bonds shall be authorized to be issued,
subject to any agreements with the holders of outstanding bonds pledging
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 nongovernmental insurer
or financial institution any insurance, guaranty, or other credit
enhancement arrangement, 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 or notes issued by the authority and
to enter into any agreement or contract with respect to any such
insurance, guaranty or credit enhancement arrangement, 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 the bonds or notes of the authority.

3. Bonds shall be authorized by resolution of the authority, and may
be in such denominations and 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 renewals 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, which may vary from time to time, as may be necessary to effect
the sale thereof and shall be 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 sale or at 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 the comptroller, where
such sale is not to the comptroller, or 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 by the authority may contain provisions which may be 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 of the authority, to secure
the payment of the bonds, including but not limited to any contracts,
earnings or proceeds of any grant to the authority received from any
private or public source, subject to such agreements with bondholders as
may then exist;

(b) the rates, rentals, fees and other charges to be fixed and
collected by the authority and the amounts to be raised in each year
thereby, and the use and disposition of revenues;

(c) the setting aside of reserves and the creation of sinking funds
and the regulation and disposition of revenues;

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

(e) limitations on the right of the authority to restrict and regulate
the use of any water 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, including the proportion of
bondholders 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 other
moneys may be deposited;

(i) the terms and provisions of any trust, deed, mortgage 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 and duties of the trustee appointed by
the bondholders pursuant to section one thousand one hundred
ninety-nine-iii 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;

(k) 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;

(l) limitations on the power of the authority to sell or otherwise
dispose of any water facility or any part thereof or other property;

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

(n) the protection and enforcement of the rights and remedies of the
bondholders;

(o) the obligations of the authority in relation to the construction,
maintenance, operation, repairs and insurance of its properties, the
safeguarding and application of all moneys and as to the requirements
for the supervision and approval of consulting engineers in connection
with construction, reconstruction and operation;

(p) 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

(q) any other matters of like or different character which 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
remarketing agreements or other similar agreements for the bonds, 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
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 of the authority 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 purposes of the uniform commercial code,
subject only to the provisions of the bonds for registration.

8. Neither the members nor the officers 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 in lieu of redemption, at a price not
exceeding:

(a) if the bonds are then redeemable, the redemption price then
applicable, plus accrued interest to the next interest payment date; or

(b) if the bonds are not then redeemable, the redemption price then
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.

10. The authority shall have power and is hereby authorized to 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 note. 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. The notes shall be issued in the same manner as bonds
and such notes and the resolution or resolutions authorizing the same
may contain any provisions, conditions or limitations which the bonds or
bond resolution of the authority may contain. Such notes may be sold at
public sale or, upon the approval of the comptroller of the terms
thereof, at private sale. Such notes shall be as fully negotiable as the
bonds of the authority.