§ 1207-b. Issuance of bonds and notes by the authority. 1.\nNotwithstanding the provisions of sections twelve hundred through twelve\nhundred twenty-one, inclusive, of this title or of any other provisions\nof law to the contrary, but subject to the provisions of section twelve\nhundred seven-j of this title, the authority shall have the power and is\nhereby authorized to borrow money and to issue negotiable bonds and\nnotes therefor in conformity with applicable provisions of the uniform\ncommercial code in such principal amount as, in the opinion of the\nauthority, shall be necessary to provide funds sufficient to pay the\npurchase price of no more than seven hundred twenty-four cars for the\nrapid transit lines under the jurisdiction of the authority purchased\npursuant to section twelve hundred seven-a of this title, to pay\ninterest on the bonds and notes of the authority, to establish reserves\nto secure such bonds and notes, and to pay all other expenditures of the\nauthority incident to or incurred in connection with the purchase of\nsuch cars and the authorization, issuance and sale of said bonds and\nnotes. In no event shall there be outstanding at any one time more than\nninety-two million dollars ($92,000,000) in such bonds and notes.\n 1-a. The authority may also issue its bonds, notes or other\nobligations in such principal amounts as shall be necessary to finance\nthe construction, purchase, lease or acquisition of, or an equity\ninterest in, an office building located or to be constructed in the\nborough of Brooklyn in the city, provided that (i) all or a portion of\nsuch building is intended to be occupied by the authority and that the\nboard shall, by resolution, have made findings that the sum of the\ncapitalized value of all payments due from the authority under such\nbonds, notes or other obligations (not including any amounts\nattributable to principal repayment) together with any rent payments for\nthe space in such building to be occupied by the authority and of all\npayments required of the authority under any related agreement does not\nexceed the capitalized value of those payments which would be made in a\nconventional commercial lease transaction for comparable space with an\nunrelated party and (ii) not more than an insubstantial portion of any\nreal property so financed with the proceeds of bonds, notes, or other\nobligations is utilized by other than the New York city transit\nauthority or its designated subsidiary. The term "capitalized value" for\nthe purposes of this subdivision shall be computed in the manner set\nforth in subdivision four of section twelve hundred seven-m of this\ntitle. The metropolitan transportation authority is hereby additionally\nauthorized from time to time to issue bonds for the purposes of\nrefunding, redeeming or otherwise paying, including paying by purchase\nor tender, bonds issued by the authority for such purposes and to secure\nsuch bonds in the manner set forth in section twelve hundred sixty-nine\nof this article.\n 2. The authority shall have the power from time to time to renew notes\nor to issue renewal notes for such purpose, to issue bonds to pay notes,\nand whenever it deems refunding expedient, to refund bonds by the\nissuance of new bonds and to issue bonds partly to refund bonds and\nnotes then outstanding and partly for the purposes authorized by\nsubdivision one of this section. The refunding bonds may be exchanged\nfor bonds to be refunded, with such cash adjustments as may be agreed,\nor may be sold and the proceeds applied to the purchase or payment of\nthe bonds to be refunded. In no event shall the maturity date of the\nrefunding bonds be a date beyond thirty-five years from the date the\nfirst bond was issued.\n 3. Every issue of bonds and notes of the authority shall be special\nobligations of the authority payable solely from the moneys and revenues\nof the authority derived from the operation of the transit facilities\nunder its juris
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.