New York Laws
Title 13-C - Town of Islip Resource Recovery Agency
2046-G - Bonds and Notes.

(a) pledging all or any part of the moneys or revenues derived by the
agency from the ownership or operation of, or otherwise in connection
with, any project or projects or any part or parts thereof 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 amount, use and disposition of the rates, rentals, fees and
other charges to be fixed and collected by the agency;
(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 agency to restrict and regulate
the use of the properties in connection with which such bonds or notes
are issued;
(e) limitations on the purpose to which the proceeds of sale of bonds
or notes may be applied;
(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) the creation of special funds into which any moneys or revenues of
the agency may be deposited;
(i) the terms and provisions of any mortgage or trust deed or
indenture securing the bonds or notes or under which the bonds or notes
may be issued;
(j) vesting in a trustee or trustees such property, rights, powers and
duties in trust as the agency 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 this title, and limiting or
abrogating the right of the bondholders or noteholders to appoint a
trustee under this title or limiting the rights, powers and duties of
such trustee;
(k) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the agency to the bondholders
or noteholders and providing the rights and remedies of the bondholders
or noteholders 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 the
state and other provisions of this title;
(l) limitations on the power of the agency to sell or otherwise
dispose of its properties;
(m) limitations on the amount of money derived from the properties to
be expended for operating, administrative or other expenses of the
agency;
(n) the protection and enforcement of the rights and remedies of the
bondholders or noteholders;
(o) the obligations of the agency in relation to the construction,
maintenance, operation, repairs and insurance of the properties of the
agency, the safeguarding and application of all moneys and the
requirements for the supervision and approval of consulting engineers in
connection with construction, maintenance and operation of such
properties;
(p) the payment of the proceeds of bonds and notes and other moneys
and revenues of the agency to a trustee or other depositary, and for the
method of disbursement thereof with such safeguards and restrictions as
the agency may determine;
(q) any other matters, of like or different character which in any way
affect the security or protection of the bonds and notes.
4. In addition to the powers herein conferred upon the agency to
secure its bonds and notes, the agency shall have power in connection
with the issuance of bonds and notes to enter into such agreements as
the agency may deem necessary, convenient or desirable concerning the
use or disposition of its moneys or property including the mortgaging of
only such property and the entrusting, pledging or creation of any other
security interest in any such moneys or property and the doing of any
act, including refraining from doing any act, which the agency would
have the right to do in the absence of such agreements. The agency shall
have power to enter into amendments of any such agreements within the
powers granted to the agency 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 the bonds and notes of the agency.
5. Any provision of the uniform commercial code to the contrary
notwithstanding, any pledge of or other security interest in revenues,
moneys, accounts, contract rights, general intangibles or other personal
property made or created by the agency shall be valid, binding and
perfected from the time when such pledge is made or other security
interest attaches without any physical delivery of the collateral or
further act, and the lien of any such pledge or other security interest
shall be valid, binding and perfected against all parties having claims
of any kind in tort, contract or otherwise against the agency
irrespective of whether or not such parties have notice thereof. No
instrument by which such a pledge or security interest is created nor
any financing statement need be recorded or filed.
6. Whether or not the bonds or notes are of such form and character as
to be negotiable instruments under the terms of the uniform commercial
code, the bonds and notes are hereby made negotiable instruments within
the meaning of and for all the purposes of the uniform commercial code,
subject only to the provisions of the bonds and notes for registration.
7. Neither the directors of the agency 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. The agency, subject to such agreements with bondholders or
noteholders as may then exist, shall have power out of any funds
available therefor to purchase bonds or notes of the agency, which shall
thereupon be cancelled, at a price not exceeding (a) if the bonds or
notes are then redeemable, the redemption price then applicable plus
accrued interest to the next interest payment thereon, or (b) if the
bonds or notes are not then redeemable, the redemption price applicable
on the first date after such purchase upon which the bonds or notes
become subject to redemption plus accrued interest to such date.