New York Laws
Title 29 - Development Authority of the North Country Act
2711 - Bonds of the Authority.

(b) The authority shall have power, from time to time, to issue
renewal notes, to issue bonds or other obligations to pay notes and
whenever it deems refunding expedient, to refund any bonds by the
issuance of new bonds, whether the bonds to be refunded have or have not
matured, and to issue bonds partly to refund bonds then outstanding and
partly for any other purpose. The refunding bonds shall be sold and the
proceeds applied to the purchase, redemption or payment of the bonds,
including any interest thereon, to be refunded.
2. Except as may otherwise be expressly provided by the authority,
every issue of its bonds shall be general obligations of the authority
payable out of any moneys, assets or revenues of the authority, subject
as to priority only to any agreements with the holders of particular
bonds theretofore or thereafter made pledging, assigning or creating a
lien upon any particular moneys, assets or revenues. The authority may
provide by agreement with the holders of its bonds that such bonds shall
be payable solely from and secured by particular revenues and property
of the authority.
3. The bonds shall be authorized by a resolution or resolutions of the
authority adopted as provided by this title; provided, however, that any
such resolution authorizing the issuance of bonds may delegate to one or
more members or to an officer of the authority the power to issue such
bonds from time to time and to fix the details of any such issue of
bonds by an appropriate certificate of such member, members or officer.
4. The bonds of the authority shall bear such date or dates, mature at
such time or times, bear interest at such rate or rates (simple or
compounded), if any, be of such denominations, be in such form, be
executed in such manner, be payable in such medium of payment, at such
place or places within or without the state, and be subject to such
terms of redemption prior to maturity, as may be provided by such
resolution or resolutions or such certificate with respect to such
bonds, as the case may be; provided, however, that no bond or other
obligations shall mature more than forty years after the date of issue
thereof and no notes or renewal thereof shall mature more than five
years after the date of issue of the original notes.
5. The bonds of the authority may be sold by the authority at such
price or prices, at public or private sale, provided that no issue of
bonds may be sold at private sale unless the terms of such sale shall
have been approved in writing by (i) the state comptroller, where such

sale is not to such comptroller, or (ii) the director of the state
division of the budget, where such sale is to such comptroller, in such
manner and from time to time as may be determined by the authority, and
the authority may pay all expenses, premiums and commissions which it
may deem necessary or advantageous in connection with the issuance and
sale thereof.
6. Whether or not the bonds are of such form and character as to be
negotiable instruments under the terms of the uniform commercial code,
the bonds 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 for registration.
7. Any resolution or resolutions authorizing any bonds or any issue
thereof or any trust indenture or indentures relating to such bonds may
contain provisions, which shall be a part of the contract with the
holders thereof, as to:
(a) pledging, assigning or creating a lien on all or any part of the
rates, rentals, fees and charges made or received by the authority, and
all or any part of the moneys received or to be received as repayment of
loans, to secure the payment of the bonds or of any issue thereof,
subject to such agreement with the holders of the authority's bonds as
may then exist;
(b) pledging, assigning or creating a lien on all or any part of the
assets of the authority, including mortgages and obligations securing
the same, to secure the payment of the bonds, subject to such agreements
with the holders of the authority's bonds as may then exist;
(c) the establishment and maintenance of reserves or sinking funds and
the regulation and disposition thereof;
(d) 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 thereof;
(e) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured and the refunding of
outstanding bonds;
(f) the procedure, if any, by which the terms of any contract with the
holders of bonds 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;
(g) limitations on the amount of moneys to be expended by the
authority for operating, administrative or other expenses of the
authority;
(h) the creation of special funds into which any moneys of the
authority may be deposited;
(i) 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
holders of bonds pursuant to this title, and limiting or abrogating the
right of the holders of bonds to appoint a trustee pursuant to this
title or limiting the rights, powers and duties of such trustee;
(j) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the authority and providing for
the rights and remedies of the holders of bonds in the event of such
default, providing, however, that such rights and remedies shall not be
inconsistent with the general laws of this state and other provisions of
this title; and
(k) any other matters, of like or different character, which in any
way affect the security or protection of the bonds and the rights of the
holders thereof.

8. Any pledge or assignment made or lien created by the authority
shall be valid and binding from the time when the pledge or assignment
is made or the lien is created; the moneys or property so pledged,
assigned or encumbered by the authority shall immediately be subject to
such pledge, assignment or lien without any physical delivery thereof or
further act; and such pledge, assignment or lien 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, assignment or lien is made or created need
be recorded or filed.
9. 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.
10. The authority, subject to such agreements with the holders of the
authority's bonds as may then exist, shall have power out of any funds
available therefor to purchase bonds of the authority.
11. The state shall not be liable on bonds of the authority and such
bonds shall not be a debt of the state, and such bonds shall contain on
the face thereof a statement to such effect.