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This entry was published on 2024-05-03
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SECTION 69-N
Issuance of bonds and notes
State Finance (STF) CHAPTER 56, ARTICLE 5-F
³ 69-n. Issuance of bonds and notes. 1. (a) Authorized issuers shall
have the power and are hereby authorized from time to time to issue
revenue bonds, in such principal amount or amounts, subject to
subdivision eight of this section and as the director of the budget
shall determine to be necessary, to provide sufficient funds for
authorized purposes, the establishment of reserves to secure such
revenue bonds, the payment of amounts required under revenue bonds or
agreements relating thereto, and the payment of all costs of issuance of
their revenue bonds.

(b) The authorized issuers shall have the power and are hereby
authorized from time to time to issue (i) revenue bonds to renew notes,
(ii) revenue bonds to pay notes, and (iii) whenever it deems refunding
expedient, to refund any bonds, notes or other obligations issued for an
authorized purpose or purposes, including bonds, notes or other
obligations that were issued prior to the effective date of this
article, by the issuance of new revenue bonds, whether the bonds, notes,
or other obligations to be refunded have or have not matured, and to
issue revenue bonds in part to refund bonds, notes, or other obligations
then outstanding and in part for any of its other authorized purposes.
The refunding revenue bonds may be exchanged for bonds, notes, or other
obligations to be refunded, or sold and the proceeds applied to the
purchase, redemption or payment of such bonds, notes, or other
obligations.

(c) Except as may otherwise be expressly provided by an authorized
issuer, every issue of revenue bonds of an authorized issuer pursuant to
this section shall be special obligations of the authorized issuer
payable solely out of any revenues paid over to such authorized issuer
from the sales tax revenue bond tax fund, established pursuant to
section ninety-two-h of this chapter.

(d) All of the provisions of the enabling acts of the authorized
issuers relating to bonds and notes, which are not inconsistent with the
provisions of this section, may, at the discretion of the authorized
issuer, apply to revenue bonds authorized by this section.

(e) The revenue bonds of the authorized issuers authorized by this
section shall not be a debt of the state and the state shall not be
liable thereon, nor shall they be payable out of any funds other than
those of the authorized issuers pledged therefor; and such revenue bonds
shall contain on the face thereof a statement to such effect. In
addition, any agreements entered into by any entity pursuant to sections
sixty-nine-o and ninety-two-h of this chapter on behalf of the state to
effect the implementation of any of the activities financed in whole or
in part with proceeds of the revenue bonds of the authorized issuers,
authorized in this section do not constitute or create a debt of the
state, nor a contractual obligation in excess of the amounts
appropriated therefor, and the state has no continuing legal or moral
obligation to appropriate money for payments due under any such
agreement.

(f) (i) Revenue bonds shall be authorized by resolution of the
authorized issuers, be in such denominations, bear such date or dates
and mature at such time or times, as such resolution or other agreement
may provide.

(ii) Revenue 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, registered or book entry form, 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.

(g) Revenue bonds authorized hereunder shall be sold by authorized
issuers, at public or private sale, at such price or prices as the
authorized issuers may determine. Revenue bonds of the authorized
issuers shall not be sold by the authorized issuers at private sales
unless such sale and the terms thereof have been approved by the state
comptroller.

2. Consistent with the provisions of this article, and subject to the
approval of the director of the budget, any resolution or other
agreement authorizing revenue bonds or any issue thereof may contain
provisions, which shall be a part of the contract with the holders
thereof, as to:

(a) pledging all or any part of the revenues received by the
authorized issuers pursuant to section sixty-nine-o of this article to
secure the payment of the bonds or notes or of any issue thereof,
subject to such agreements with holders of revenue bonds as may then
exist;

(b) pledging all or any part of the assets of the authorized issuers
to secure the payment of the revenue bonds or of any issue of revenue
bonds subject to such agreements with holders of revenue bonds as may
then exist;

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

(d) limitations on the purposes to which the proceeds of sale of
revenue bonds, may be applied and pledging such proceeds to secure the
payment of the revenue bonds or of any issue thereof;

(e) limitations on the issuance of additional revenue bonds, the terms
upon which additional revenue bonds may be issued and secured and the
refunding of outstanding or other revenue bonds;

(f) the procedure, if any, by which the terms of any contract with
holders of revenue bonds may be amended or abrogated, the amount of
revenue bonds the holders of which must consent thereto and the manner
in which such consent may be given;

(g) vesting in a trustee, as described in subdivision six of this
section, such property, rights, powers and duties in trust as the
authorized issuers may determine, which may include any or all of the
rights, powers and duties of the trustee appointed by the holders of
revenue bonds of the respective authorized issuers pursuant to this
article, and limiting or abrogating the right of such revenue bond
holders to appoint a trustee under this title or limiting the rights,
powers, and duties of such trustee;

(h) the acts or omissions to act which shall constitute a default in
the obligations and duties of the authorized issuers to the holders of
the revenue bonds and providing for the rights and remedies of the
holders of the revenue bonds in event of such default, including the
right to appointment of a receiver; provided, however, that such rights
and remedies shall not be inconsistent with the other provisions of this
article;

(i) any other matters, of like or different character, which in any
way affect the security or protection of the holders of the revenue
bonds; and

(j) the application of any of the foregoing provisions to any provider
of any applicable bond, note or other financial facility.

Notwithstanding the foregoing, the authorized issuers shall not be
authorized to make any covenant, pledge, promise, or agreement
purporting to bind the state except as otherwise specifically authorized
by this article.

3. Any pledge made by the respective authorized issuers shall be valid
and binding from the time when the pledge is made. The revenues or
property so pledged and thereafter received by the respective authorized
issuers 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 respective
authorized issuers, irrespective of whether such parties have notice
thereof. Neither the resolution nor any other instrument by which a
pledge is created need be recorded or filed to protect such pledge.

4. Neither the directors or members of the authorized issuers nor any
other person executing the revenue bonds of the authorized issuers shall
be liable personally thereon or be subject to any personal liability or
accountability solely by reason of the issuance thereof.

5. The authorized issuers, subject to such agreements with holders of
revenue bonds as may then exist, or with the providers of any applicable
bond or note or other financial or agreement facility, shall have power
out of any funds available therefor to purchase revenue bonds of the
authorized issuers, which may or may not thereupon be canceled, at a
price not exceeding:

(a) If the revenue bonds are then redeemable, the redemption price
then applicable, including any accrued interest; or

(b) If the revenue bonds are not then redeemable, the redemption price
and accrued interest applicable on the first date after such purchase
upon which the revenue bonds become subject to redemption; or

(c) Whether or not the revenue bonds are then redeemable, at a
redemption price that provides present value savings to the state, as
certified in writing by an independent financial advisor.

No later than seven days after a redemption pursuant to paragraph (c)
of this subdivision, the director of the budget shall provide such
written certification to the chair of the senate finance committee and
the chair of the assembly ways and means committee.

6. In the discretion of authorized issuers, the revenue bonds may be
secured by a trust indenture by and between the authorized issuers and a
corporate trustee, or a corporate trustee may be appointed under the
resolution as provided in subdivision two of this section.

7. Whether or not the revenue bonds are of such form and character as
to be negotiable instruments under the terms of the uniform commercial
code, the revenue bonds are hereby made negotiable instruments within
the meaning of and for all purposes of the uniform commercial code,
subject only to the provisions of the revenue bonds for registration or
any book-entry-only system.

8. Revenue bonds may only be issued for authorized purposes, as
defined in section sixty-nine-m of this article. Notwithstanding the
foregoing, any authorized issuer may issue revenue bonds for any
authorized purpose. Any such revenue bonds issued by the New York state
thruway authority shall be subject to the approval of the New York state
public authorities control board, pursuant to section fifty-one of the
public authorities law. The authorized issuers shall not issue any
revenue bonds in an amount in excess of statutory authorizations for
such authorized purposes. Authorizations for such authorized purposes
shall be reduced in an amount equal to the amount of revenue bonds
issued for such authorized purposes under this article. Such reduction
shall not be made in relation to revenue bonds issued to fund reserve
funds, if any, and costs of issuance, if these items are not counted
under existing authorizations, nor shall revenue bonds issued to refund
bonds issued under existing authorizations reduce the amount of such
authorizations.

9. Except upon the amendment of the New York state constitution
allowing the issuance or assumption of bonds, notes or other obligations
secured by revenues, which may include the revenues securing revenue
bonds of authorized issuers, and the affirmative assumption of such
bonds, notes or other obligations by the state, the revenue bonds of the
authorized issuers authorized by this section shall not be a debt of the
state and the state shall not be liable thereon, nor shall they be
payable out of any funds other than those of the authorized issuers
pledged therefor; and such revenue bonds shall contain on the face
thereof a statement to such effect. In addition, any agreements entered
into by any entity pursuant to sections sixty-nine-o and ninety-two-h of
this chapter on behalf of the state to effect the implementation of any
of the activities financed in whole or in part with proceeds of the
obligations of the authorized issuers authorized in this section do not
constitute or create a debt of the state, nor a contractual obligation
in excess of the amounts appropriated therefor and the state has no
continuing legal or moral obligation to appropriate money for payments
due under any such agreement.

10. Nothing in this article shall affect the authority of each of the
authorized issuers to issue or incur indebtedness for any purposes
otherwise authorized by law and nothing in this article shall be deemed
to alter or affect the rights of outstanding bondholders or noteholders
of any authorized issuer.

11. The authorization, sale and issuance of revenue bonds pursuant to
this section shall not be deemed an action as such term is defined in
article eight of the environmental conservation law for the purposes of
such article. Such exemption shall be strictly limited in its
application to such financing activities of the authorized issuers
hereunder and does not exempt any other entity from compliance with such
article.

12. The comptroller is hereby authorized to receive from the
authorized issuers any portion of bond proceeds paid to provide funds
for or reimburse the state for its costs associated with such authorized
purposes and to credit such amounts to the capital projects fund or any
other appropriate fund.