New York Laws
Title 1 - Power Authority of the State of New York
1010 - Bonds of the Authority.

(a) pledging all or any part of the revenues of the project or any
revenue producing contract or contracts made by the authority with any
individual, partnership, corporation or association to secure the

payment of the bonds or of any particular issue of bonds, subject to
such agreements with bondholders 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 authority to restrict and regulate
the use of any project;
(e) limitations on the purpose to which the proceeds of sale of any
issue of bonds then or thereafter to be issued may be applied and
pledging such proceeds to secure the payment of the bonds or of any
issue of the bonds;
(f) limitations on the issuance of additional bonds; the terms upon
which additional bonds may be issued and secured; the refunding of
outstanding 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) limitations on the amount of moneys derived from a project to be
expended for operating, administrative or other expenses of the
authority;
(i) defining the acts or omissions to act which shall constitute a
default in the duties of the authority to holders of its obligations and
providing the rights and remedies of such holders in the event of a
default.
7. Notwithstanding any other provisions of this title, any such
resolution or resolutions shall contain a covenant by the authority that
it will at all times maintain rates, fees or charges sufficient to pay,
and that any contracts entered into by the authority for the sale,
transmission or distribution of power shall contain rates, fees or
charges sufficient to pay the costs of operation and maintenance of the
project, the principal of and interest on any obligations issued
pursuant to such resolution as the same severally become due and
payable, and to maintain any reserves required by the terms of such
resolution or resolutions.
8. It is the intention hereof that any pledge of revenues or other
moneys or of a revenue producing contract or contracts made by the
authority shall be valid and binding from the time when the pledge is
made; that the revenues or other moneys or proceeds of any contract or
contracts 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 nor
any other instrument by which a pledge is created need be recorded.
9. 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.
10. The authority shall have power out of any funds available therefor
to purchase bonds or notes. The authority may hold, pledge, cancel or
resell such bonds, subject to and in accordance with agreements with
bondholders.
11. Any bonds or notes issued by the authority are hereby made
securities in which all public officers and bodies of this state and all

municipalities and municipal subdivisions, all insurance companies and
associations and other persons carrying on an insurance business, all
banks, bankers, trust companies, savings banks and savings associations,
including savings and loan associations, building and loan associations,
investment companies and other persons carrying on a banking business,
and all other persons whatsoever, except as hereinafter provided, who
are now or may hereafter be authorized to invest in bonds or other
obligations of the state, may properly and legally invest funds
including capital in their control or belonging to them; provided that,
notwithstanding the provisions of any other general or special law to
the contrary, such bonds and notes shall not be eligible for the
investment of funds, including capital, of trusts, estates or
guardianships under the control of individual administrators, guardians,
executors, trustees and other individual fiduciaries except when any
such individual fiduciary shall be acting in such capacity with one or
more corporate co-fiduciaries. The bonds and notes are also hereby made
securities which may be deposited with and shall be received by all
public officers and bodies of this state and all municipalities and
municipal subdivisions for any purpose for which the deposit of bonds or
other obligations of this state is now or may hereafter be authorized.