New York Laws
Title 9 - New York City Transit Authority
1207-B - Issuance of Bonds and Notes by the Authority.

(a) pledging all or any part of the revenues or other monies of the
authority to secure the payment of the bonds or notes or of any issue of
the bonds or notes, subject to such agreements with bondholders or
noteholders as may then exist;
(b) the rate or rates of fare to be charged and the amounts to be
raised in each year from revenues 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 rights of the authority with respect to the use
and disposition of the cars for which such bonds or notes are issued and
with respect to all other transit facilities of the authority;
(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 applied
and pledging such proceeds to secure the payment of the bonds or notes
or of any issue of the bonds or notes;
(f) limitations on the issuance of additional bonds and notes; the
terms upon which additional bonds and notes may be issued and secured,
and the funding or refunding of outstanding or other bonds and 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 of the rights, powers and duties of the trustee appointed by the
bondholders or noteholders pursuant to section twelve hundred seven-h
hereof, and limiting or abrogating the right of the bondholders to
appoint a trustee under section twelve hundred seven-h hereof, or
limiting the rights, duties and powers of such trustee;
(i) defining the acts or omissions to act which shall constitute a
default in the duties of the authority to the holders of its bonds and
notes and providing the rights and remedies of such holders in the event
of default;
(j) any other matters, of like or different character, which in any
way affect the security or protection of the bonds and notes.

6. It is the intention hereof that any pledge of revenues or other
moneys made by the authority shall be valid and binding from the time
when the pledge is made; that the 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.
7. Neither the members of the board 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.
8. Subject to such agreements with bondholders or noteholders as may
then exist, the authority shall have power out of any funds available
therefor to purchase bonds or notes. The authority may hold, cancel or
resell such bonds and notes, subject to and in accordance with
agreements with bondholders and noteholders.

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