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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 7, TITLE 2
§ 1433. Bonds of the authority. 1. The authority shall have the power
and is hereby authorized from time to time to issue its bonds in
conformity with applicable provisions of the uniform commercial code in
such principal amounts as may be determined by the authority to be
necessary to pay all or part of the cost of any project or any other
corporate purpose. The authority shall have power from time to time 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 may issue bonds partly to refund bonds then outstanding and
partly for any other corporate purpose. The refunding bonds may be
exchanged for the bonds to be refunded, with such cash adjustments as
may be agreed, or may be sold and the proceeds applied to the purchase
or payment of the bonds to be refunded. Except as may otherwise be
expressly provided by the authority, the bonds 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 pledging any particular moneys or revenues.

2. The bonds shall be authorized by resolution of the board and shall
bear such date or dates, mature at such time or times, not exceeding
thirty years from their respective dates, 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 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. The bonds may be sold at
private sale subject to the approval of the state comptroller or at a
public sale for such price or prices as the authority shall determine.

3. 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 thereby authorized, as to

(a) pledging all or any part of the revenues derived by the authority
from the ownership or operation of, or otherwise in connection with, any
project or projects or any part or parts thereof to secure the payment
of the bonds, or of any issue thereof, subject to such agreements with
bondholders as may then exist;

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

(c) the creation and 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 a 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 or other 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) 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 section one thousand four hundred thirty-nine
hereof, and limiting or abrogating the right of the bondholders to
appoint a trustee under said section or limiting the rights, duties and
powers of such trustee;

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

4. It is the intention hereof that any pledge of revenues or other
moneys made by the authority shall be valid and binding from the time
when the pledge is made; that the revenues or other moneys 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 security
instrument by which a pledge is created need be recorded or filed.

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

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

7. In the discretion of the authority, the bonds may be secured by a
trust indenture by and between the authority and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company in the state of New York. Such trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority in
relation to the construction, maintenance, operation, repair and
insurance of the project or projects, and the custody, safeguarding and
application of all moneys, and may provide that the project or projects
shall be constructed and paid for under the supervision and approval of
consulting engineers. Notwithstanding the provisions of section one
thousand four hundred thirty-two, the authority may provide by such
trust indenture for the payment of the proceeds of the bonds and the
revenues of the project or projects to the trustee under such trust
indenture or other depository, and for the method of disbursement
thereof, with such safeguards and restrictions as it may determine. All
expenses incurred in carrying out such trust indenture may be treated as
a part of the cost of maintenance, operation, and repairs of the project
or projects. If the bonds shall be secured by a trust indenture, the
bondholders shall have no authority to appoint a separate trustee to
represent them, and the trustee under such trust indenture shall have
and possess all of the powers which are conferred by section one
thousand four hundred thirty-nine upon a trustee appointed by