* § 2350-g. Bonds of the agency. 1. The agency shall have the power and is hereby authorized from time to time to issue bonds, notes or other obligations in conformity with applicable provisions of the uniform commercial code to pay the cost of any project, the establishment of reserves to secure the bonds, the payment of principal of, premium, if any, and interest on the bonds and the payment of incidental expenses in connection therewith.

(a) The aggregate principal amount of such bonds, notes or other obligations for the John P. Cohalen court complex shall not exceed one hundred thirty-five million dollars ($135,000,000), excluding bonds, notes or other obligations issued to refund or repay bonds, notes or other obligations therefore issued for such purposes; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstanding bonds, notes or other obligations may be greater than one hundred thirty-five million dollars ($135,000,000), only if the present value of the aggregate debt service of the refunding or repayment of bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes, or other obligations so to be refunded or repaid.

(b) The aggregate principal amount of such bonds, notes or other obligations for the new replacement correctional facility at Yaphank shall not exceed two hundred thirty million dollars ($230,000,000), excluding bonds, notes or other obligations issued to refund or repay bonds, notes or other obligations theretofore issued for such purposes; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstanding bonds, notes and other obligations may be greater than two hundred thirty million dollars ($230,000,000), only if the present value of the aggregate debt service of the refunding or repayment of bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes, or other obligations so to be refunded or repaid.

(c) The aggregate principal amount of such bonds, notes or other obligations for the H. Lee Dennison building and the North County Complex shall not exceed seventy million dollars ($70,000,000), excluding bonds, notes or other obligations issued to refund or repay bonds, notes or other obligations theretofore issued for such purposes; provided, however, that upon any such refunding or repayment the total aggregate principal amount of outstanding bonds, notes and other obligations may be greater than seventy million dollars ($70,000,000), only if the present value of the aggregate debt service of the refunding or repayment of bonds, notes or other obligations to be issued shall not exceed the present value of the aggregate debt service of the bonds, notes, or other obligations so to be refunded or repaid.

For the purpose of this section, the present value of the aggregate debt service of the refunding or repayment bonds, notes or other obligations and the aggregate debt service of the bonds, notes or other obligations refunded or repaid shall be calculated by utilizing the effective interest rate of the refunding or repayment of bonds, notes or other obligations, which shall be that rate arrived at by doubling the semi-annual interest rate (compounded semi-annually) necessary to discount the debt service payments on the refunding or repayment of bonds, notes or other obligations from payment of dates thereof to the date of issue of the refunding or repayment of bonds, notes or other obligations and to the price bid including estimated accrued interest from the sale thereof. The agency shall have the power and is hereby authorized to enter into such agreements and perform such acts as may be required under any applicable federal legislation to secure a federal guarantee to any bonds.

2. The agency shall have the power from time to time to renew bonds or to issue renewal bonds for such purpose, to issue bonds to pay bonds, and, whenever it deems refunding expedient, to refund any bond by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and may issue bonds, partly to refund bonds then outstanding and partly for any other purpose of the agency. Bonds issued for refunding purposes shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds or notes to be refunded.

3. Bonds issued by the agency may be general obligations secured by the faith and credit of the agency or may be special obligations payable solely out of particular revenues or other monies as may be designated in the proceedings of the agency under which the bonds shall be authorized to be issued, subject as to priority only to any agreements with the holders of outstanding bonds pledging any particular property, revenues or monies. The agency may also enter into loan agreements, lines of credit and other security agreements and obtain for or on its behalf letters of credit, insurance, guarantees or other credit enhancements to the extent now or hereafter available, in each case for securing its bonds or to provide direct payment of any costs which the agency is authorized to pay.

4. (a) Bonds shall be authorized by resolution of the agency, be in such denominations and bear such date or dates and mature at such time or times, as such resolution may provide, provided that bonds and renewals thereof issued for the John P. Cohalen court complex shall mature no later than December thirty-first, two thousand sixteen; and bonds and renewals thereof for the new replacement correctional facility at Yaphank shall mature no later than December thirty-first, two thousand thirty-five; and bonds and renewals thereof for the H. Lee Dennison building and the North County Complex shall mature no later than December thirty-first, two thousand thirty-three.

(b) Bonds shall be subject to such terms of redemption, bear interest at such rate or rates, be payable at such times, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment at such place or places, and be subject to such terms and conditions as such resolution may provide. Notwithstanding any other provision of law, the bonds of the agency issued pursuant to this section shall be sold to the bidder offering the lowest true interest cost, taking into consideration any premium or discount not less than four nor more than fifteen days, Sunday excepted, after a notice of such sale has been published at least once in a newspaper of general circulation in the area served by the agency, which shall state the terms of the circulation in the area served by the agency, which shall state the terms of the sale. The terms of the sale may not change unless notice of such change is published in such newspaper at least one day prior to the date of the sale as set forth in the original notice of sale. Advertisements shall contain a provision to the effect that the agency, in its discretion, may reject any or all bids made pursuant to such advertisements, and in the event of such rejection, the agency is authorized to negotiate a private or public sale or readvertise for bids in the form and manner above described as many times as, in its judgment, may be necessary to effect satisfactory sale.

(c) Notwithstanding the provisions of paragraph (b) of this subdivision, whenever in the judgment of the agency the interests of the agency will be served thereby, the members of the agency, on the written recommendation of the chairperson may authorize the sale of such bonds at private or public sale on a negotiated basis or on either a competitive or negotiated basis. The agency shall set guidelines governing the terms and conditions of any such private or public sales. The private or public bond sale guidelines set by the agency shall include, but not be limited to, a requirement that where the interests of the agency will be served by a private or public sale of bonds, the agency shall select underwriters taking into account, among other things, qualifications of underwriters as to experience, their ability to structure and sell agency bond issues, anticipated costs to the agency, the prior experience of the agency with the firm, if any, the capitalization of such firms, participation of qualified minority and women-owned business enterprise firms in such private or public sales of bonds of the agency and the experience and ability of firms under consideration to work with minority and women-owned business enterprises so as to promote and assist participation by such enterprises.

(d) The agency shall have the power from time to time to amend such private bond sale guidelines in accordance with the provisions of this subdivision.

(e) No private or public bond sale on a negotiated basis shall be conducted by the agency without prior approval of the state comptroller. The agency shall annually prepare and approve a bond sale report which shall include the private or public bond sale guidelines as specified in this subdivision, amendments to such guidelines since the last private or public bond sale report, an explanation of the bond sale guidelines and amendments, and the results of any sale of bonds conducted during the fiscal year. Such bond sale report may be a part of any other annual report that the agency is required to make.

(f) The agency shall annually submit its bond sale report to the state comptroller and copies thereof to the senate finance committee and the assembly ways and means committee.

(g) The agency shall make available to the public copies of its bond sale report upon reasonable request thereof.

(h) Nothing contained in this subdivision shall be deemed to alter, affect the validity of, modify the terms of, or impair any contract or agreement made or entered into in violation of, or without compliance with, the provisions of this subdivision.

5. Any resolution or resolutions authorizing bonds or any issue of bonds may contain provisions which may be a part of the contract with the holders of the bonds thereby authorized as to:

(a) pledging all or any part of the revenues of the agency, together with any other moneys or property of the agency, to secure the payment of the bonds, subject to such agreements with bond holders 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 purpose to which the proceeds from the sale of bonds may be applied;

(d) the rents, fees and other charges to be fixed and collected by the agency and the amount to be raised in each year thereby, and the use and disposition of revenues;

(e) limitations on the right of the agency to restrict and regulate the use of any project or part hereof in connection with which bonds are issued;

(f) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured and the refunding of outstanding or other bonds;

(g) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, including the portion of bondholders which must consent thereto, and the manner in which such consent may be given;

(h) the creation of special funds into which any revenues or moneys may be deposited;

(i) the terms and provisions of any trust, deed, mortgage or indenture securing the bonds under which the bonds may be issued;

(j) vesting in a trustee or trustees such properties, 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 pursuant to section twenty-three hundred fifty-h 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;

(k) defining the acts or omissions to act which may constitute a default in the obligations and duties of the agency 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 rights and remedies shall not be inconsistent with the general laws of the state and other provisions of this title;

(1) limitations on the power of the agency to sell or otherwise dispose of any project or any part thereof;

(m) limitations on the amount of revenues and other moneys to be expended for operating, administrative or other expenses of the agency;

(n) the payment of the proceeds of bonds, revenues and other moneys to a trustee or other depository, and for the method of disbursement thereof with such safeguards and restrictions as the agency may determine; and

(o) any other matters of like or different character which may in any way affect the security or protection of the bonds or the rights and remedies of bondholders.

6. In addition to the powers herein conferred upon the agency to secure its bonds, the agency shall have power in connection with the issuance of bonds to enter into such agreements as the agency may deem necessary, convenient or desirable concerning the use or disposition of its revenues or other moneys or property, including the mortgaging of any of its properties and the entrusting, pledging or creation of any other security interest in any such revenues, moneys or properties and the doing of any act (including refraining from doing any act) which the agency would have 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 bonds of the agency.

7. 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 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.

8. 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.

9. Neither the members of the agency nor any person executing bonds shall be liable personally thereon or be subject to any personal liability or accountability by reason of the issuance thereof.

10. The agency, subject to such agreements with bondholders as then may exist, shall have power out of any moneys available therefor to purchase bonds of the agency, which shall thereupon be canceled at a price not exceeding; (a) if the bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date, or (b) if the bonds are not then immediately redeemable then the redemption price applicable on the first date after such purchase upon which the bonds become subject to redemption, plus accrued interest to be the next interest payment date.

11. The agency shall have power and is hereby authorized to issue negotiable bond anticipation notes in conformity with applicable provisions of the uniform commercial code and may renew the same from time to time but the maximum maturity of any such note, including renewals thereof, shall not exceed two years from the date of issue of such original note.

* NB Repealed December 31, 2023