Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
Security for bonds or notes; construction and acquisition of sports facilities
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 19
* § 2469. Security for bonds or notes; construction and acquisition of
sports facilities. 1. The principal of and interest on any bonds or
notes issued by the authority may be secured by a pledge of any revenues
and receipts of the authority and may be secured by a lease or other
instrument covering all or any part of a sports facility, including any
additions, improvements, extensions to or enlargements of any sports
facilities thereafter made.

2. Bonds or notes issued for the acquisition, construction,
reconstruction, construction of additions to, rehabilitation, or
improvement of a sports facility may also be secured by an assignment of
any lease of such sports facility and by an assignment of the revenues
and receipts derived by the authority from any such lease.

3. Each pledge, agreement, mortgage or other instrument made for the
benefit or security of any of the bonds or notes of the authority shall
continue effective until the principal of and interest on the bonds or
notes for the benefit of which the same were made shall have been fully
paid, or until provisions shall have been made for such payment in the
manner provided in the resolution or resolutions under which the same
may be authorized.

4. The authority may provide in any proceedings under which bonds or
notes may be authorized that any sports facility or part thereof may be
constructed, reconstructed, rehabilitated or improved by the authority,
or any participating municipality, and may also provide in such
proceedings for the time and manner of and requisites for disbursements
to be made for the cost of such construction, and for all such
certificates and approvals of construction and disbursements as the
authority shall deem necessary and provide for in such proceedings.

5. Any pledge of earnings, revenues or other moneys made by the
authority shall be valid and binding from the time when the pledge is
made; that the earnings, 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 instrument by
which a pledge is created need be recorded.

6. 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 acquisition, construction, reconstruction, construction
of additions to, improvement and maintenance and operation, repair and
insurance of the sports facilities, and the custody, safeguarding and
application of all moneys. The authority may provide by such trust
indenture for the payment of the proceeds of the bonds and the revenues
of the project 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. If the bonds
shall be secured by a trust indenture the bondholders shall have no
authority to appoint a separate trustee to represent them.

* NB (Disbanded March, 1980)