New York Laws
Title 2 - Buffalo Fiscal Stability Authority
3862 - Bonds, Notes or Other Obligations of the Authority.

§ 3862. Bonds, notes or other obligations of the authority. 1. The
authority shall have the power and is hereby authorized from time to
time to issue bonds, notes or other obligations in such principal
amounts as it may determine to be necessary pursuant to section
thirty-eight hundred sixty-one of this title to pay any financeable
costs and to fund reserves to secure such bonds, notes or other
obligations, including incidental expenses in connection therewith;
provided, however, the aggregate principal amounts of such bonds, notes
or other obligations outstanding at any one time shall not exceed one
hundred seventy-five million dollars, and such bonds shall be tax exempt
to the maximum extent practicable, as provided by section thirty-eight
hundred sixty-nine of this title. Bonds, notes or other obligations
issued by the authority (a) to pay reasonable costs of issuance, as
determined by the authority, (b) to establish debt service reserve
funds, (c) to refund or advance refund any outstanding bonds or notes of
the city or the authority, or (d) as cash flow borrowings shall not
count against the above limit on outstanding bonds, notes or other
obligations of the authority, nor shall any accretion of principal of
bonds that would constitute interest under the Internal Revenue Code of
1986, as amended, count against such limit; provided, however, that the
aggregate principal amount of cash flow borrowings outstanding at any
one time shall not exceed one hundred forty-five million dollars.

2. The authority may issue bonds, notes or other obligations to refund
bonds, notes or other obligations previously issued, but in no event
shall the final maturity of any bonds, notes or other obligations of the
authority be later than June thirtieth, two thousand thirty-seven. No
bond of the authority shall mature more than thirty years from the date
of its issue, or after June thirtieth, two thousand thirty-seven,
whichever date is earlier.

3. Bonds, notes or other obligations of the authority may be issued,
amortized, redeemed and refunded without regard to the provisions of the
local finance law.

4. The directors may delegate to the chairperson or other director or
officer of the authority the power to set the financial terms of bonds,
notes or other obligations.

5. The authority in its sole discretion shall determine that the
issuance of its bonds, notes or other obligations is appropriate. Bonds,
notes or other obligations shall be authorized by resolution of the
authority. Bonds shall bear interest at such fixed or variable rates and
shall be in such denominations, be in such form, either coupon or
registered, be sold at such public or private sale, be executed in such
manner, be denominated in United States currency, be payable in such
medium of payment, at such place and be subject to such terms of
redemption as the authority may provide in such resolution. No bonds,
notes or other obligations of the authority may be sold at private sale
unless such sale and the terms thereof have been approved in writing by
(a) the state comptroller where such sale is not to the state
comptroller, or (b) the director of the budget, where such sale is to
the state comptroller.

6. Any resolution or resolutions authorizing bonds, notes or other
obligations or any issue of bonds, notes or other obligations may
contain provisions which may be a part of the contract with the holders
of the bonds, notes or other obligations thereby authorized as to: (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, notes or other obligations, 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, notes or other obligations may be applied; (d) limitations on the
issuance of additional bonds, notes or other obligations, the terms upon
which additional bonds, notes or other obligations may be issued and
secured and the refunding of bonds, notes or other obligations; (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-eight hundred
sixty-three 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 of the authority 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 of the authority 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.

7. In addition to the powers conferred upon the authority in this
section to secure its bonds, notes or other obligations, the authority
shall have power in connection with the issuance of bonds, notes or
other obligations 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, notes or other obligations of
the authority.

7-a. Whenever a series of bonds, notes or other obligations of the
authority is issued pursuant to this section for purposes other than
deficit financing authorized by section thirty-eight hundred fifty-seven
of this title, the payment of the proceeds of such series of bonds,
notes or other obligations to the city may be, at the request of the
authority, evidenced by obligations of the city issued in accordance
with applicable provisions of the state constitution and local finance
law then in effect at the time any such obligations are issued, provided
that the principal amount of the authority's bonds, notes or other
obligations issued in connection with any such exchange shall not exceed
the principal amount of such obligations of the city and accrued
interest thereon at the stated rate to the date of such exchange, and
provided further, however, that the principal payments on any such issue
of city obligations shall in no event be scheduled to fall on a date
later than the date on which falls a corresponding amount of scheduled
principal payments on the series of bonds, notes or other obligations of
the authority originally issued to provide such proceeds or issued to
refund bonds, notes or other obligations issued to provide such
proceeds.

8. 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 to be valid and binding.

9. Whether or not the bonds, notes or other obligations of the
authority are of such form and character as to be negotiable instruments
under the terms of the uniform commercial code, the bonds, notes or
other obligations 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.

10. Neither the directors of the authority nor any person executing
bonds, notes or other obligations shall be liable personally thereon or
be subject to any personal liability or accountability solely by reason
of the issuance thereof. The bonds, notes or other obligations of the
authority shall not be a debt of either the state or the city, and
neither the state nor the city shall be liable thereon, nor shall they
be payable out of any funds other than those of the authority; and such
bonds, notes or other obligations shall contain on the face thereof a
statement to such effect.

11. The authority, subject to such agreements with bondholders as then
may exist, shall have power to purchase bonds, notes or other
obligations of the authority out of any moneys available therefor, which
shall thereupon be canceled.