New York Laws
Title 1-B - North Country Power Authority
1021-I - Bonds, Notes and Other Obligations of the Authority.

(a) pledging all or any part of the revenues of the authority or its
projects or any revenue producing contract or contracts made by the
authority with any individual, partnership, limited liability company,
corporation or association to secure the payment of the bonds, notes or
other obligations, subject to such agreements with holders of securities
of the authority;
(b) pledging, assigning or creating a lien on all or any part of
assets of the authority, including mortgages and obligations security
mortgages, to secure the payment of the bonds, subject to such
agreements with holders of securities of the authority;
(c) the setting aside of reserves or sinking funds, and the regulation
and disposition thereof;
(d) establishment of special funds for deposit of moneys received from
the proceeds of the issuance of securities as the directors shall
determine, consistent with the authorizing resolution and the provisions
of this title;
(e) limitations on the purpose to which the proceeds of sale of any
issuance of bonds, notes or other obligations then or thereafter to be
issued may be applied and pledging such proceeds to secure the payment
of the bonds, notes or other obligations;
(f) limitations of the issuance of additional bonds, notes or other
obligations; the terms upon which additional bonds, notes or other
obligations may be issued and secured; and the refunding of outstanding
bonds, notes or other obligations;
(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) providing for the appointment and powers of a trustee for holders
of securities, and the rights, powers and duties of such trustee as the
directors may determine;
(i) limitations on the amount of moneys derived from a project to be
expended for operating, administrative or other expenses of the
authority;
(j) 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 provided, however, that such rights and remedies shall not be
inconsistent with the laws of the state and the other provisions of this
article; and provided, further, however, that nothing contained in this
article shall be deemed to restrict the right of the state or of any
municipality to amend, modify or otherwise alter statutes, local laws,
ordinances, resolutions or agreements imposing or relating to taxes or
fees or appropriations relating thereto; and there shall not be included
in any resolution or contract or agreement with the holders of the
bonds, notes or other obligations authorized by this article any
provision which provides that a default shall occur as a result of the
state or of a municipality exercising its right to amend, modify or
otherwise alter laws, ordinances, resolutions or agreements imposing or
relating to taxes or fees or appropriations relating thereto; and
(k) any other provisions not inconsistent with those enumerated in
this subdivision and necessary to effect its issuances of bonds, notes
or other obligations and the rights of the holders of its securities, or
otherwise in furtherance of its corporate purposes.
7. Notwithstanding any other provision 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 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 debt
service coverage ratios and any reserves required by the terms of such
resolution or resolutions. Provided however, that the total rates, fees,
and charges shall not exceed the prevailing electric rate in the North
Country. The prevailing electric rate in the North Country shall mean
the average of the total rates, fees, and charges paid by customers of
National Grid and New York State Electric and Gas, or any successors, in
St. Lawrence, Franklin, and Jefferson counties. Compliance with the
prevailing electric rates in the North Country shall be left to the sole
determination of the public service commission.
8. It is the intent of this title 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 directors of the authority nor any person executing the
bonds, notes or other obligations shall be liable personally on the
bonds, notes or other obligations or be subject to any personal
liability or accountability by reason of the issuance thereof.
10. The authority shall have the power out of any funds available
therefor to purchase bonds, notes or other obligations. The authority
may hold, pledge, cancel or resell such bonds, notes or other
obligations, subject to and in accordance with agreements with
bondholders.
11. Any bonds, notes or other obligations 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 who are authorized to
invest in bonds, notes or other obligations of the state, may properly
and legally invest funds including capital in their control or belonging
to them; subject to the provisions of any other general or special law
to the contrary.
12. The authority is authorized to obtain from any department or
agency of the United States of America or the state or any
nongovernmental insurer or financial institution any insurance, guaranty
or other credit support device, to the extent available, as to, or for
the payment or repayment of interest or principal, or both, or any part
thereof, on any bonds, notes or other obligations issued by the
authority and to enter into any agreement or contract with respect to
any such insurance or guaranty, except to the extent that the same would
in any way impair or interfere with the ability of the authority to
perform and fulfill the terms of any agreement made with the holders of
outstanding bonds, notes or other obligations of the authority.
13. In addition to the powers conferred in this section upon the
authority to secure its bonds, notes or other obligations, the authority

shall have the power in connection with the issuance of bonds, notes or
other obligations to enter into such agreements as the authority may
deem necessary, convenient or desirable concerning the use or
disposition of its revenues or other moneys or property, and for the
acquisition, alteration or disposition of its property, real and
personal, including the mortgaging of any of its properties and the
entrusting, pledging or creation of any other security interest in any
such revenues, moneys or properties and the doing of any act, including
refraining from doing any act, which the authority would have the right
to do in the absence of such agreements. The authority shall have the
power to enter into amendments of any such agreements within the powers
granted to the authority by this title and to perform such agreements.
The provisions of any such agreements may be made a part of the contract
with the holders of bonds, notes or other obligations of the authority.
14. All bonds, notes and other obligations issued by the authority
under the provisions of this title are hereby declared to have all the
qualities and incidents of negotiable instruments under the applicable
laws of the state.
15. Nothing in this subdivision shall be deemed to allow the authority
to exceed its one hundred twenty-five million dollar aggregate debt
limit.