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This entry was published on 2023-09-22
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SECTION 2350-G
Bonds of the agency
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 16
* § 2350-g. Bonds of the agency. 1. The agency shall have the power
and is hereby authorized from time to time to issue bonds, notes or
other obligations in conformity with applicable provisions of the
uniform commercial code to pay the cost of any project, the
establishment of reserves to secure the bonds, the payment of principal
of, premium, if any, and interest on the bonds and the payment of
incidental expenses in connection therewith.

(a) The aggregate principal amount of such bonds, notes or other
obligations for the John P. Cohalen court complex shall not exceed one
hundred thirty-five million dollars ($135,000,000), excluding bonds,
notes or other obligations issued to refund or repay bonds, notes or
other obligations therefore issued for such purposes; provided, however,
that upon any such refunding or repayment the total aggregate principal
amount of outstanding bonds, notes or other obligations may be greater
than one hundred thirty-five million dollars ($135,000,000), only if the
present value of the aggregate debt service of the refunding or
repayment of bonds, notes or other obligations to be issued shall not
exceed the present value of the aggregate debt service of the bonds,
notes, or other obligations so to be refunded or repaid.

(b) The aggregate principal amount of such bonds, notes or other
obligations for the new replacement correctional facility at Yaphank
shall not exceed two hundred thirty million dollars ($230,000,000),
excluding bonds, notes or other obligations issued to refund or repay
bonds, notes or other obligations theretofore issued for such purposes;
provided, however, that upon any such refunding or repayment the total
aggregate principal amount of outstanding bonds, notes and other
obligations may be greater than two hundred thirty million dollars
($230,000,000), only if the present value of the aggregate debt service
of the refunding or repayment of bonds, notes or other obligations to be
issued shall not exceed the present value of the aggregate debt service
of the bonds, notes, or other obligations so to be refunded or repaid.

(c) The aggregate principal amount of such bonds, notes or other
obligations for the H. Lee Dennison building and the North County
Complex shall not exceed seventy million dollars ($70,000,000),
excluding bonds, notes or other obligations issued to refund or repay
bonds, notes or other obligations theretofore issued for such purposes;
provided, however, that upon any such refunding or repayment the total
aggregate principal amount of outstanding bonds, notes and other
obligations may be greater than seventy million dollars ($70,000,000),
only if the present value of the aggregate debt service of the refunding
or repayment of bonds, notes or other obligations to be issued shall not
exceed the present value of the aggregate debt service of the bonds,
notes, or other obligations so to be refunded or repaid.

For the purpose of this section, the present value of the aggregate
debt service of the refunding or repayment bonds, notes or other
obligations and the aggregate debt service of the bonds, notes or other
obligations refunded or repaid shall be calculated by utilizing the
effective interest rate of the refunding or repayment of bonds, notes or
other obligations, which shall be that rate arrived at by doubling the
semi-annual interest rate (compounded semi-annually) necessary to
discount the debt service payments on the refunding or repayment of
bonds, notes or other obligations from payment of dates thereof to the
date of issue of the refunding or repayment of bonds, notes or other
obligations and to the price bid including estimated accrued interest
from the sale thereof. The agency shall have the power and is hereby
authorized to enter into such agreements and perform such acts as may be
required under any applicable federal legislation to secure a federal
guarantee to any bonds.

2. The agency shall have the power from time to time to renew bonds or
to issue renewal bonds for such purpose, to issue bonds to pay bonds,
and, whenever it deems refunding expedient, to refund any bond 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 purpose of the agency. Bonds issued for
refunding purposes shall be sold and the proceeds applied to the
purchase, redemption or payment of the bonds or notes to be refunded.

3. Bonds issued by the agency may be general obligations secured by
the faith and credit of the agency or may be special obligations payable
solely out of particular revenues or other monies as may be designated
in the proceedings of the agency under which the bonds shall be
authorized to be issued, subject as to priority only to any agreements
with the holders of outstanding bonds pledging any particular property,
revenues or monies. The agency may also enter into loan agreements,
lines of credit and other security agreements and obtain for or on its
behalf letters of credit, insurance, guarantees or other credit
enhancements to the extent now or hereafter available, in each case for
securing its bonds or to provide direct payment of any costs which the
agency is authorized to pay.

4. (a) Bonds shall be authorized by resolution of the agency, be in
such denominations and bear such date or dates and mature at such time
or times, as such resolution may provide, provided that bonds and
renewals thereof issued for the John P. Cohalen court complex shall
mature no later than December thirty-first, two thousand sixteen; and
bonds and renewals thereof for the new replacement correctional facility
at Yaphank shall mature no later than December thirty-first, two
thousand thirty-five; and bonds and renewals thereof for the H. Lee
Dennison building and the North County Complex shall mature no later
than December thirty-first, two thousand thirty-three.

(b) Bonds shall be subject to such terms of redemption, bear interest
at such rate or rates, be payable at such times, 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 and conditions as such resolution
may provide. Notwithstanding any other provision of law, the bonds of
the agency issued pursuant to this section shall be sold to the bidder
offering the lowest true interest cost, taking into consideration any
premium or discount not less than four nor more than fifteen days,
Sunday excepted, after a notice of such sale has been published at least
once in a newspaper of general circulation in the area served by the
agency, which shall state the terms of the circulation in the area
served by the agency, which shall state the terms of the sale. The terms
of the sale may not change unless notice of such change is published in
such newspaper at least one day prior to the date of the sale as set
forth in the original notice of sale. Advertisements shall contain a
provision to the effect that the agency, in its discretion, may reject
any or all bids made pursuant to such advertisements, and in the event
of such rejection, the agency is authorized to negotiate a private or
public sale or readvertise for bids in the form and manner above
described as many times as, in its judgment, may be necessary to effect
satisfactory sale.

(c) Notwithstanding the provisions of paragraph (b) of this
subdivision, whenever in the judgment of the agency the interests of the
agency will be served thereby, the members of the agency, on the written
recommendation of the chairperson may authorize the sale of such bonds
at private or public sale on a negotiated basis or on either a
competitive or negotiated basis. The agency shall set guidelines
governing the terms and conditions of any such private or public sales.
The private or public bond sale guidelines set by the agency shall
include, but not be limited to, a requirement that where the interests
of the agency will be served by a private or public sale of bonds, the
agency shall select underwriters taking into account, among other
things, qualifications of underwriters as to experience, their ability
to structure and sell agency bond issues, anticipated costs to the
agency, the prior experience of the agency with the firm, if any, the
capitalization of such firms, participation of qualified minority and
women-owned business enterprise firms in such private or public sales of
bonds of the agency and the experience and ability of firms under
consideration to work with minority and women-owned business enterprises
so as to promote and assist participation by such enterprises.

(d) The agency shall have the power from time to time to amend such
private bond sale guidelines in accordance with the provisions of this
subdivision.

(e) No private or public bond sale on a negotiated basis shall be
conducted by the agency without prior approval of the state comptroller.
The agency shall annually prepare and approve a bond sale report which
shall include the private or public bond sale guidelines as specified in
this subdivision, amendments to such guidelines since the last private
or public bond sale report, an explanation of the bond sale guidelines
and amendments, and the results of any sale of bonds conducted during
the fiscal year. Such bond sale report may be a part of any other annual
report that the agency is required to make.

(f) The agency shall annually submit its bond sale report to the state
comptroller and copies thereof to the senate finance committee and the
assembly ways and means committee.

(g) The agency shall make available to the public copies of its bond
sale report upon reasonable request thereof.

(h) Nothing contained in this subdivision shall be deemed to alter,
affect the validity of, modify the terms of, or impair any contract or
agreement made or entered into in violation of, or without compliance
with, the provisions of this subdivision.

5. 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 any part of the revenues of the agency, together
with any other moneys or property of the agency, to secure the payment
of the bonds, subject to such agreements with bond holders 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) the rents, fees and other charges to be fixed and collected by the
agency and the amount to be raised in each year thereby, and the use and
disposition of revenues;

(e) limitations on the right of the agency to restrict and regulate
the use of any project or part hereof 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 portion 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 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 agency may determine which may include any or
all of the rights, powers and duties of the trustee appointed by the
bondholders pursuant to section twenty-three hundred fifty-h 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 agency 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;

(1) limitations on the power of the agency to sell or otherwise
dispose of any project or any part thereof;

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

(n) 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 agency may
determine; and

(o) 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.

6. In addition to the powers herein conferred upon the agency to
secure its bonds, the agency shall have power in connection with the
issuance of bonds to enter into such agreements as the agency may deem
necessary, convenient or desirable concerning the use or disposition of
its revenues or other moneys or property, including the mortgaging of
any of its properties 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
agency would have to do in the absence of such agreements. The agency
shall have power to enter into amendments of any such agreements within
the powers granted to the agency 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 agency.

7. 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 agency shall be valid, binding and
perfected from the time 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 agency 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.

8. 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.

9. Neither the members of the agency 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.

10. The agency, subject to such agreements with bondholders as then
may exist, shall have power out of any moneys available therefor to
purchase bonds of the agency, which shall thereupon be canceled 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 immediately
redeemable then the redemption price applicable on the first date after
such purchase upon which the bonds become subject to redemption, plus
accrued interest to be the next interest payment date.

11. The agency 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 two years from the date of issue of
such original note.

* NB Repealed December 31, 2023