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This entry was published on 2014-09-22
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Bond and note authorization
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 25
* § 2509. Bond and note authorization. 1. The authority shall have the
power and is hereby authorized to issue from time to time its negotiable
bonds and notes in conformity with applicable provisions of the uniform
commercial code in such principal amounts as the authority shall
determine to be necessary to provide sufficient funds for achieving any
of its corporate purposes, including the payment of all or any part of
the cost of acquiring, constructing, reconstructing, constructing
additions to, improving, maintaining and operating sports facilities,
including but not limited to buildings, structures, parking and other
facilities for such sports facilities, the payment of interest on bonds
and notes of the authority, the establishment of reserves to secure such
bonds and notes of the authority and the payment of all other
expenditures, including operating expenses, of the authority incident to
or necessary or convenient to carry out its corporate purposes and

2. The authority shall have the power to issue from time to time (i)
notes to renew notes and (ii) bonds to pay notes, including the interest
thereon and redemption premium, if any, and, whenever it deems refunding
expedient, to refund any bonds of the authority then outstanding,
whether the bonds to be refunded have or have not matured, including the
payment of any redemption premium thereon and any interest accrued or to
accrue to the earliest or subsequent date of redemption, purchase or
maturity of such bonds, by the issuance of new bonds, and, if deemed
advisable by the authority, to issue bonds partly to refund bonds then
outstanding and partly for any of its corporate purposes. The refunding
bonds may be exchanged for the bonds to be refunded or sold and the
proceeds applied to the purchase, redemption or payment of such bonds.
Pending such purchase, redemption or payment, such proceeds may be
invested and reinvested in obligations of or guaranteed by the United
States of America, or in obligations of agencies of the United States of
America, secured in such manner as the authority shall determine,
maturing at such time or times as shall be appropriate to assure the
prompt payment, as to principal, interest and redemption premium, if any
on the outstanding bonds to be refunded. The interest and earned
increment, if any, resulting from any such investment, may also be
applied to the purchase, redemption or payment of the outstanding bonds
to be so refunded and any balance remaining upon completion of the
purchase, redemption or payment of all such outstanding bonds shall be
returned to the authority for use by it in any lawful manner.

3. No bonds or notes of the authority shall be issued if upon such
issuance the aggregate principal amount of bonds and notes of the
authority then outstanding exceeds one hundred million dollars, provided
that such statutory maximum principal amount shall not be construed as
constituting a contract between the authority and the holders of its
bonds or notes that additional bonds or notes may not be issued
subsequently by the authority in the event that such statutory maximum
shall be increased subsequently by law and provided further that, in
determining such aggregate principal amount there shall be deducted (i)
all sums then available for the payment of such bonds or notes either at
maturity or through the operation of a sinking fund; (ii) the aggregate
principal amount of outstanding bonds issued (a) to refund notes and (b)
to refund bonds theretofore issued and then outstanding; and (iii) the
aggregate principal amount of outstanding notes issued to renew notes
theretofore issued and then outstanding.

4. The issuance of bonds and notes by the authority shall be
authorized by resolution or resolutions of the authority without further
authorization or approval, which resolution or resolutions shall be a
part of the contract with the holders of the bonds or notes thereby
authorized and may contain provisions as to:

(a) pledging all or any part of the moneys, earnings, income and
revenues derived from the project to secure the payment of the bonds or
of any issue of the bonds, subject to such agreements with bondholders
as may then exist;

(b) the payments, fees or other charges to be fixed, established and
collected and the amounts to be raised in each year thereby, and the use
and disposition of the moneys, earnings, income and other revenues;

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

(d) limitations on the right of the authority to restrict and regulate
the use of a sports facility or sports facilities;

(e) limitations on the purposes to which and the manner in which the
proceeds of sale of any bonds or any issue of bonds may be applied;

(f) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured; and the refunding of
outstanding bonds 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) the creation of special funds into which any earnings or revenues
of the authority may be deposited;

(i) the terms and provisions of any mortgage or trust deed or
indenture securing the bonds or 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 twenty-five hundred thirteen of this
title, and limiting or abrogating the right of the bondholders to
appoint a trustee under such section or limiting the rights, powers and
duties of such trustee;

(k) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the authority to the
bondholders and providing 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 this state
and other provisions of this title;

(l) limitations on the power of the authority to sell or otherwise
dispose of its properties;

(m) limitations on the amount of moneys derived from a sports facility
or sports facilities to be expended for operating, administrative and
other expenses of the authority;

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

(o) the obligations of the authority in relation to a sports facility
or sports facilities and the safeguarding and application of all moneys;

(p) the payment of the proceeds of bonds and revenue of a sports
facility or sports facilities to a trustee or other depository, and for
the method of disbursement thereof and such safeguards and restrictions
as the authority may determine;

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

* NB (Discontinued-Board of Directors never appointed)