New York Laws
Title 5 - Monroe County Water Authority
1098 - Bonds of the Authority.

(a) pledging all or any part of the moneys, earnings, income and
revenues derived from all or any part of the properties of the authority
to secure the payment of the bonds or of any issue of the bonds subject
to such agreements with bondholders as may then exist;
(b) the rates, rentals, fees and other charges to be fixed and
collected and the amounts to be raised in each year thereby, and the use
and disposition of the earnings and other revenues;
(c) the setting aside of reserves and the creation of sinking funds
and the regulation and disposition thereof;
(d) limitations on the right of the authority to restrict and regulate
the use of the properties in connection with which such bonds are
issued;
(e) limitations on the purposes to which and the manner in which the
proceeds of sale of any issue of bonds may be applied;
(f) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured; the refunding of
outstanding or other 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) the creation of special funds into which any earnings or revenues
of the authority may be deposited;
(i) the terms and provisions of any trust deed or indenture securing
the bonds or under which bonds may be issued;
(j) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the authority to the
bondholders and providing the rights and remedies of the bondholders in
the event of such default, including as a matter of right the
appointment of a receiver, provided, however, that such rights and
remedies shall not be inconsistent with the general laws of this state;
(k) limitations on the power of the authority to sell or otherwise
dispose of its properties;
(l) any other matters, of like or different character which in any way
affect the security or protection of the bonds;
(m) limitations on the amount of moneys derived from the properties to
be expended for operating, administrative or other expenses of the
authority.
4. It is the intention of the legislature that any pledge of earnings,
revenues or other moneys made by the authority shall be valid and
binding from the time when the pledge is made; that the earnings,
revenues or other moneys 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.
5. Neither the members of the authority nor any person executing the
bonds shall be liable personally on the bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.
6. The authority shall have power out of any funds available therefor
to purchase (as distinguished from the power of redemption hereinabove
provided) any bonds issued by it at a price of not more than the
principal amount thereof and accrued interest, and all such bonds shall
be cancelled.
7. In the discretion of the authority, the bonds may be secured by a
trust indenture by and between the authority and a corporate trustee,
which may be any trust company or bank having the powers of a trust
company in the state of New York. Such trust indenture may contain such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority in
relation to the construction, maintenance, operation, repair and
insurance of the properties, and the custody, safeguarding and
application of all moneys, and may provide that the properties shall be
constructed and paid for under the supervision and approval of
consulting engineers. The authority may provide by such trust indenture
for the payment of the proceeds of the bonds and the revenues of the

properties to the trustee under such trust indenture or other
depository, and for the method of disbursement thereof, with such
safeguards and restrictions as it may determine. All expenses incurred
in carrying out such trust indenture may be treated as a part of the
cost of maintenance, operation and repairs of the properties. If the
bonds shall be secured by a trust indenture the bondholders shall have
no authority to appoint a separate trustee to represent them.
Notwithstanding any other provisions of this title, any resolution or
resolutions authorizing bonds or notes of the authority shall contain a
covenant by the authority that it will at all times maintain rates,
fees, rentals or other charges sufficient to pay, and that any contracts
entered into by the authority for the sale or distribution of water
shall contain rates, fees, rentals or other charges sufficient to pay,
the cost of operation and maintenance of the properties, the principal
of and interest on any obligation issued pursuant to such resolution or
resolutions as the same severally become due and payable, and to
maintain any reserves or other funds required by the terms of such
resolution or resolutions.