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This entry was published on 2014-09-22
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SECTION 60
Bond covenants
Transportation (TRA) CHAPTER 61-A, ARTICLE 2-D
§ 60. Bond covenants. 1. In connection with the issuance of bonds or
the incurring of an obligation, and to secure the payment of such bonds
or obligations, the Utica transit authority, in addition to its other
powers, may:

(a) Pledge, covenant to pledge or covenant against pledging, all or
any part of its rents, fares, fees, revenues, subsidies, gifts, grants
or other moneys received or to be received to which its right then
exists or may thereafter come into existence; covenant against
permitting or suffering any lien thereon; it is the intention hereof
that any pledge of revenues or other moneys made by the Utica transit
authority shall be valid and binding from the time when the pledge is
made, that revenues or other moneys so pledged and thereafter received
by the Utica transit 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 Utica transit authority, irrespective of whether such
parties have notice thereof;

(b) Mortgage, covenant to mortgage or covenant against mortgaging, all
or any part of its property, real or personal, then owned or thereafter
acquired; covenant against permitting or suffering any lien thereon;

(c) Covenant with respect to limitations on its right to sell, lease,
or otherwise dispose of any municipal project or part thereof;

(d) Covenant as to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition of
the proceeds thereof; provide for the replacement of lost, destroyed or
mutilated bonds;

(e) Covenant as to what other or additional debts may be incurred by
it;

(f) Covenant that the Utica transit authority warrants the title to
the premises;

(g) Covenant as to the rents, fares and fees to be charged, the amount
to be raised each year or other period of time by rents, fares, fees and
other revenues, and as to the use and disposition to be made thereof;

(h) Covenant as to the use of any or all of its property, real or
personal;

(i) Create or authorize the creation of special funds segregating (1)
the proceeds of any grants, subsidies or contributions; (2) all the
rents, fares, fees and revenues of any municipal project or projects;
(3) any moneys held for the payment of the costs of operation and
maintenance of municipal projects, or as a reserve for the meeting of
contingencies in the operation and maintenance thereof; (4) any moneys
held for the payment of the principal of and interest on its bonds or
the sums due under its leases or as a reserve for such payments; and (5)
any moneys held for any other reserves or contingencies; and covenant as
to the use and disposal of the moneys held in such funds;

(j) Redeem the bonds and covenant for their redemption, and provide
the terms and conditions thereof;

(k) Covenant against extending the time for the payment of its bonds
or interest thereon;

(l) Prescribe 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;

(m) Covenant as to the maintenance of its property, the replacement
thereof, the insurance to be carried thereon, and the use and
disposition of insurance moneys;

(n) Vest in an obligee, in the event of a default by the Utica transit
authority the right to cure any such default and to advance any moneys
necessary for such purpose, and covenant that the money so advanced by
an additional obligation of such authority with such interest, security
and priority as may be provided in any resolutions, trust indenture,
mortgage, lease or contract;

(o) Covenant and prescribe as to the events of default and terms and
conditions upon which any or all of its bonds shall become or may be
declared due before maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived;

(p) Covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition or obligation;

(q) Covenant to surrender possession of a municipal project or
projects or parts thereof upon the happening of an event of default; and
vest in an obligee the right, upon such default, without judicial
proceedings, to take possession and use, operate, manage, and control
such projects or any part thereof, and to collect and receive rents,
fares, fees and revenues arising therefrom in the same manner as such
authority itself might do, and to dispose of the moneys collected in
accordance with the agreement of such obligee with the Utica transit
authority;

(r) Vest in a trustee or trustees the right to enforce any covenant to
secure, or pay the bonds, or otherwise relating to such bonds; provide
for the powers, duties and limitations of liabilities of such trustee or
trustees, or the holders of bonds, or any proportion of them, may
enforce any such covenant;

(s) Vest in a trustee or in other obligee the right, upon any
happening of an event of default, to foreclose through judicial
proceedings or through the exercise of a power of sale without judicial
proceedings, any mortgage as to all or such part or parts of the
property covered thereby as such trustee or other obligee shall elect;
the institution, prosecution and conclusion of any such foreclosure
proceedings or the sale of any such parts of the mortgaged property
shall not affect in any manner or to any extent the lien of the mortgage
on the parts of the mortgaged property not included in such proceedings
or not sold as aforesaid;

(t) Make such other covenants and do any and all such acts and things
as may be necessary or convenient or desirable in order to secure its
bonds or make them more marketable, not withstanding that such
covenants, acts or things may not be enumerated herein; execute all
instruments necessary or convenient in the exercise of the powers herein
granted, or in the performance of its covenants or duties, which may
contain such covenants and provisions, in addition to those above
specified, as the purchaser of the bonds of an authority may require.

2. In case of conflict between this section and article nine of the
uniform commercial code, this section shall control.