1840-E - Issuance of bonds and notes by the authority.
§ 1840-e. Issuance of bonds and notes by the authority. 1. (a) The authority shall have the power and is hereby authorized to borrow money and to issue its negotiable bonds and notes in such principal amounts as the authority shall determine to be necessary to provide sufficient funds for achieving its corporate purpose, provided, however, that such amounts shall be within any limits of authorized indebtedness prescribed under the provisions of section eighteen hundred forty-h of this title. (b) The authority shall have the power, from time to time to issue renewal notes; bonds to pay notes, including the interest thereon; and, whenever it deems refunding expedient, to refund any bonds by issuance of new bonds, whether the bonds to be refunded have or have not matured, and may issue bonds partly to refund bonds then outstanding and partly for any other purpose hereinafter described. (c) The bonds and notes of every issue, except as may otherwise be expressly provided by the authority, shall be special obligations of the authority payable solely from revenues derived from any loan, lease, sale, or other disposition of a project, subject only to any agreements with the holders of particular bonds or notes pledging any particular moneys or revenues. (d) The bonds and notes of the authority shall be of such form and character as to be negotiable instruments pursuant to article eight of the uniform commercial code. 2. (a) The bonds and notes shall be authorized by resolution of the authority, and shall bear such date and shall mature at such time or times as such resolution may provide, except that no note or any renewal thereof shall mature more than five years after the date of issue of the original note. The bonds may be issued as serial bonds or as term bonds or as a combination thereof. The bonds and notes shall bear interest at such rate or rates, be in such denominations and in such form, either coupon or registered, 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 of redemption as provided by such resolution or resolutions. (b) The bonds and notes may be sold at public or private sale at such price or prices as the authority with the approval of the comptroller or any municipal agency, pursuant to the provision of section eighteen hundred forty-h of this title, may determine. The bonds of the authority shall be sold not less than six nor more than forty days after a notice of such sale has been published at least once in a newspaper of general circulation published in Nassau and Suffolk counties. 3. Any resolution or resolutions authorizing any bonds or notes or any issue thereof may contain provisions, which shall be part of the contract with the holders of bonds or notes issued pursuant to such resolution, relating to: (a) pledging all or any part of the revenues derived from any loan, lease, sale or other disposition of a project or projects, or all or any part of other revenues to secure the payment of the bonds or notes or of any issue thereof, subject to such agreements with bondholders or noteholders as may then exist; (b) the rentals, fees, and other charges to be charged, and the amounts to be raised in each year thereby, and the use and disposition of the revenues; (c) the setting aside of reserves or sinking funds, and the regulation and disposition thereof; (d) limitations on the right of the agency to restrict and regulate the use of a project; (e) limitations on the purpose to which the proceeds of sale of any issue of bonds or notes then or thereafter to be issued may be appliedand pledging such proceeds to secure the payment of the bonds or notes or any issue thereof; (f) limitations on the issuance of additional bonds or notes; the terms upon which additional bonds or notes may be issued and secured; and the refunding of outstanding or other bonds or notes; (g) the procedure, if any, by which the terms of any contract with bondholders or noteholders may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which such consent may be given; (h) vesting in a trustee or trustees such property, rights, powers and duties in trust as the authority may determine which may include any or all the rights, powers and duties of the trustees appointed by the bondholders or noteholders and limiting or abrogating the right of the bondholders or noteholders to appoint a trustee or limiting the rights, duties and powers of trustee; (i) the acts or omissions to act which shall constitute a default in the obligations and duties of the authority to the holders of the bonds or notes and providing for the rights and remedies of the holders of the bonds or notes in event of such default, including the right to appointment of a receiver; providing, however, that such rights and remedies shall not be inconsistent with any provision of law; and (j) any other matters, of like or different character, which in any way affect the security or protection of the holders of the bonds or notes. 4. It is the intention of this title that any pledge made in respect of such bonds or notes shall be valid and binding from the time when the pledge is made; that the money or property 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, trust indenture nor any other instrument by which a pledge is created need be recorded. 5. The authority may make and enter into all such covenants and agreements with respect to accounting for or paying its expenses with holders of any of its bonds and notes, or of any issue thereof, as it may determine to be necessary and desirable. 6. Neither the members of the authority nor any person executing the bonds or notes shall be liable personally on the bonds or notes or be subject to any personal liability or accountability by reason of the issuance thereof.