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This entry was published on 2014-09-22
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SECTION 1299-I
Notes and bonds of the authority
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 11-A
§ 1299-i. Notes and bonds of the authority. 1. (a) The authority shall
have power and is hereby authorized from time to time to issue its
negotiable bonds and notes in conformity with applicable provisions of
the uniform commercial code in such principal amount as, in the opinion
of the authority, shall be necessary to provide sufficient funds for
achieving its purposes, including the acquisition, establishment,
construction, effectuation, operation, maintenance, renovation,
improvement, extension or repair of any transportation facility, the
payment of interest on bonds and notes of the authority, establishment
of reserves to secure such bonds and notes, the provision of working
capital and all other expenditures of the authority and its subsidiary
corporations incident to and necessary or convenient to carry out their
purposes and powers;

(b) The authority shall have power, from time to time, to issue
renewal notes, to issue bonds to pay notes and 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 to issue
bonds partly to refund bonds then outstanding and partly for any other
purpose. The refunding bonds shall be sold and the proceeds applied to
the purchase, redemption or payment of the bonds to be refunded;

(c) Except as may otherwise be expressly provided by the authority,
every issue of its notes or bonds shall be general obligations of the
authority payable out of any revenues or moneys of the authority,
subject only to any agreements with the holders of particular notes or
bonds pledging any particular receipts or revenues;

2. The notes and bonds shall be authorized by resolution approved by
not less than a majority of the whole number of members of the authority
then in office, shall bear such date or dates, and shall mature at such
time or times, in the case of any such note or any renewals thereof not
exceeding five years from the date of issue of such original note, and
in the case of any such bond not exceeding fifty years from the date of
issue, as such resolution or resolutions may provide. The notes and
bonds shall bear interest at such rate or rates, be in such
denominations, be in such form, either coupon or registered, 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
of redemption as such resolution or resolutions may provide. The notes
and bonds of the authority may be sold by the authority, at public or
private sale, at such price or prices as the authority shall determine.
No notes or bonds of the authority may be sold by the authority at
private sale, however, unless such sale and the terms thereof have been
approved in writing by (a) the comptroller, where such sale is not to
the comptroller, or (b) the director of the budget, where such sale is
to the comptroller.

3. Any resolution or resolutions authorizing any notes or bonds or any
issue thereof may contain provisions, which shall be a part of the
contract with the holders thereof, as to:

(a) pledging all or any part of the fares, tolls, rentals, rates,
charges and other fees made or received by the authority or any of its
subsidiary corporations, and other moneys received or to be received, to
secure the payment of the notes or bonds or of any issue thereof,
subject to such agreements with bondholders or noteholders as may then
exist;

(b) pledging all or any part of the assets of the authority or of any
of its subsidiary corporations to secure the payment of the notes or
bonds or of any issue of notes or bonds, subject to such agreements with
noteholders or bondholders as may then exist;

(c) the use, and disposition of fares, tolls, rentals, rates, charges
and other fees made or received by the authority or any of its
subsidiary corporations;

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

(e) limitations on the purpose to which the proceeds of sale of notes
or bonds may be applied and pledging such proceeds to secure the payment
of the notes or bonds or of any issue thereof;

(f) limitations on the issuance of additional notes or bonds; the
terms upon which additional notes or bonds may be issued and secured;
the refunding of outstanding or other notes or bonds;

(g) the procedure, if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated, the amount of
notes or 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 to be expended by the
authority or any of its subsidiary corporations for operating,
administrative or other expenses of the authority or any of its
subsidiary corporations;

(i) vesting in a trustee or trustees such property, 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 this title, and limiting or abrogating the right
of the bondholders to appoint a trustee under this article or limiting
the rights, powers and duties of such trustee;

(j) any other matters, of like or different character, which in any
way affect the security or protection of the notes or bonds.

4. In addition to the powers herein conferred upon the authority to
secure its notes and bonds, the authority shall have power in connection
with the issuance of notes and bonds to enter into such agreements as
the authority may deem necessary, convenient or desirable concerning the
use or disposition of its monies or property or the monies or property
of any of its subsidiary corporations, including the mortgaging of any
such property and the entrusting, pledging or creation of any other
security interest in any such monies 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 the notes and bonds of the authority.

5. It is the intention hereof that any pledge, mortgage or security
instrument made by the authority shall be valid and binding from the
time when the pledge, mortgage or security instrument is made; that the
monies or property so pledged, mortgaged and entrusted and thereafter
received by the authority shall immediately be subject to the lien of
such pledge, mortgage or security instrument without any physical
delivery thereof or further act; and that the lien of any such pledge,
mortgage or security instrument 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 mortgage, security instrument or
other instrument by which a pledge, mortgage lien or other security is
created need be recorded or filed and the authority shall not be
required to comply with any of the provisions of the uniform commercial
code.

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

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

8. The state shall not be liable on notes or bonds of the authority
and such notes and bonds shall not be a debt of the state, and such
notes and bonds shall contain on the face thereof a statement to such
effect.