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This entry was published on 2014-09-22
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Security for bonds or notes
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 25
* § 2511. Security for bonds or notes. 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 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

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 provision 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 for the time and manner of and the requisites
for disbursements to be made for the cost of a sports facility, and for
all certificates and approvals of construction and disbursements as the
authority shall deem necessary.

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; 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
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 any sports facility 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 any such sports facility 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 any such sports facility.
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 (Discontinued-Board of Directors never appointed)