New York Laws
Title 1 - Nassau County Interim Finance Authority
3656 - Bonds of the Authority.

(a) pledging all or part of the authority's revenues, together with
any other moneys, securities or contracts, to secure the payment of the
bonds, subject to such agreements with bondholders as may then exist;
(b) the setting aside of reserves and the creation of sinking funds
and the regulation and disposition thereof;
(c) limitations on the purposes to which the proceeds from the sale of
bonds may be applied;
(d) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured and the refunding of
bonds;
(e) the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, including the proportion of
bondholders which must consent thereto and the manner in which such
consent may be given;
(f) vesting in a trustee or trustees such properties, 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 pursuant to section thirty-six hundred sixty-four of
this title and limiting or abrogating the rights of the bondholders to
appoint a trustee under such section or limiting the rights, duties and
powers of such trustee; and
(g) defining the acts or omissions to act which may constitute a
default in the obligations and duties of the authority to the
bondholders and providing for 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 acts or
omissions to act which may constitute a default and such rights and
remedies shall not be inconsistent with the general laws of the state
and other provisions of this title.
8. In addition to the powers herein conferred upon the authority to
secure its bonds, the authority shall have power in connection with the
issuance of bonds to enter into such agreements for the benefit of the
bondholders as the authority may deem necessary, convenient or desirable
concerning the use or disposition of its revenues or other moneys,
including the entrusting, pledging or creation of any other security
interest in any such revenues, moneys 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 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 of the authority.
9. Notwithstanding any provision of the uniform commercial code to the
contrary, any pledge of or other security interest in revenues, moneys,
accounts, contract rights, general intangibles or other personal
property made or created by the authority 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 authority
irrespective of whether 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.
10. Whether or not the bonds of the authority 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.
11. Neither the directors of the authority nor any person executing
bonds shall be liable personally thereon or be subject to any personal
liability or accountability solely by reason of the issuance thereof.
The bonds or other obligations of the authority shall not be a debt of
either the state or the county, and neither the state nor the county
shall be liable thereon, nor shall they be payable out of any funds
other than those of the authority; and such bonds shall contain on the
face thereof a statement to such effect.
12. The authority, subject to such agreements with bondholders as then
may exist, shall have power to purchase bonds of the authority out of
any moneys available therefor, which shall thereupon be cancelled.