N.Y. Public Authorities Law 1389 – Notes of the authority
§ 1389. Notes of the authority. The authority shall have power from time to time to issue its negotiable notes in conformity with applicable provisions of the uniform commercial code whenever the board shall determine that payment thereof can be made in full from any moneys or revenues which the authority expects to receive from any source. Such notes may, among other things, be issued to provide moneys to pay preliminary costs of surveys, plans or other matters relating to any proposed project. The authority may pledge such moneys or revenues (subject to any other pledge thereof) for the payment of the notes and may in addition secure the notes in the same manner and with the same effect as herein provided for bonds. Such notes may be renewed from time to time but such notes, including the renewals thereof, shall mature not later than five years from the date upon which such notes are issued. Such notes shall be issued in the same manner and subject to the same restrictions as to price and interest rate as bonds, except that the board may determine the manner in which such notes shall be sold. In case of default on its notes, or violation of any of the obligations of the authority to the noteholders, the noteholders shall have all the remedies provided herein for bondholders.
Terms Used In N.Y. Public Authorities Law 1389
- authority: shall mean the corporation created by section thirteen hundred seventy-eight of this title. See N.Y. Public Authorities Law 1376
- board: shall mean the members of the authority. See N.Y. Public Authorities Law 1376
- bonds: shall mean bonds issued by the authority pursuant to this title. See N.Y. Public Authorities Law 1376
- Industrial Project: shall mean a project designed and intended for the purpose of providing facilities for manufacturing, warehousing, research, business or other industrial or commercial purposes, including but not limited to machinery and equipment deemed necessary for the operation thereof (excluding raw materials, work in process or stock in trade), on land acquired or to be acquired by the authority for the establishment of an industrial park. See N.Y. Public Authorities Law 1376
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
Issuance by the authority of one or more series of notes for one or more purposes in connection with any industrial project shall not preclude it from issuing other notes in connection with the same industrial project or any other industrial project, but the proceedings whereunder any subsequent notes may be issued shall recognize and protect any prior pledge or mortgage made for any prior issue of notes unless in the proceedings authorizing such prior issue the right is reserved to issue subsequent notes on a parity with such prior issue.