1621-M. BONDS AND NOTES LEGAL INVESTMENTS FOR PUBLIC OFFICERS
AND FIDUCIARIES.
1621-N. TAX EXEMPTIONS.
1621-O. TAX CONTRACT BY THE STATE.
1621-P. REMEDIES OF BONDHOLDERS.
1621-Q. ACTIONS AGAINST THE AUTHORITY.
1621-R. TERMINATION OF THE AUTHORITY.
1621-S. SEVERABILITY.
1621-T. INCONSISTENT PROVISIONS IN OTHER ACTS SUPERSEDED.
§ 1621-A. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS
THE "MIDDLETOWN PARKING AUTHORITY ACT."
§ 1621-B. DEFINITIONS. AS USED OR REFERRED TO IN THIS TITLE, UNLESS A
DIFFERENT MEANING CLEARLY APPEARS FROM THE CONTEXT:
1. THE TERM "AUTHORITY" SHALL MEAN THE CORPORATION CREATED BY SECTION
SIXTEEN HUNDRED TWENTY-ONE-C OF THIS TITLE;
2. THE TERM "CITY" SHALL MEAN THE CITY OF MIDDLETOWN;
3. THE TERM "BONDS" AND "NOTES" SHALL MEAN THE BONDS AND NOTES,
RESPECTIVELY, AUTHORIZED IN THIS TITLE;
4. THE TERM "BOARD" SHALL MEAN THE BOARD ESTABLISHED PURSUANT TO
SECTION SIXTEEN HUNDRED TWENTY-ONE-C OF THIS TITLE;
5. THE TERM "REAL PROPERTY" SHALL MEAN LANDS, STRUCTURES, FRANCHISES,
AND INTEREST IN LANDS, AND ANY AND ALL THINGS USUALLY INCLUDED WITHIN
THE SAID TERM, AND INCLUDES NOT ONLY FEES SIMPLE ABSOLUTE BUT ALSO ANY
AND ALL LESSER INTERESTS, SUCH AS EASEMENTS, RIGHTS OF WAY, AND RIGHTS,
SUB-SURFACE RIGHTS, USES, LEASES, LICENSES, AND ALL OTHER INCORPOREAL
HEREDITAMENTS AND EVERY ESTATE, INTEREST OR RIGHT, LEGAL OR EQUITABLE,
INCLUDING TERMS OF YEARS, AND LIENS THEREON BY WAY OF JUDGMENTS, MORT-
GAGES OR OTHERWISE, AND ALSO CLAIMS FOR DAMAGE TO REAL ESTATE, IN THE
AREA OF THE CITY; AND
6. THE TERM "PROJECT" OR "PROJECTS" SHALL MEAN ANY AREA OR PLACE OPER-
ATED OR TO BE OPERATED BY THE AUTHORITY FOR THE PARKING OR STORING OF
MOTOR AND OTHER VEHICLES AND SHALL, WITHOUT LIMITING THE FOREGOING,
INCLUDE ALL REAL AND PERSONAL PROPERTY, DRIVEWAYS, ROADS, APPROACHES,
STRUCTURES, TERMINALS OF ALL KINDS, GARAGES, METERS, MECHANICAL EQUIP-
MENT, AND ALL APPURTENANCES AND FACILITIES EITHER ON, ABOVE OR UNDER THE
GROUND WHICH ARE USED OR USABLE IN CONNECTION WITH SUCH PARKING OR STOR-
ING OF SUCH VEHICLES IN THE AREA OF THE CITY.
§ 1621-C. MIDDLETOWN PARKING AUTHORITY. 1. A BOARD TO BE KNOWN AS THE
"MIDDLETOWN PARKING AUTHORITY" IS HEREBY CREATED. THE BOARD SHALL BE A
BODY CORPORATE AND POLITIC, CONSTITUTING A PUBLIC BENEFIT CORPORATION,
AND ITS EXISTENCE SHALL COMMENCE UPON THE APPOINTMENT OF THE MEMBERS AS
PROVIDED IN THIS SECTION.
2. (A) THE BOARD SHALL CONSIST OF A CHAIRPERSON AND FOUR OTHER
MEMBERS, ALL OF WHOM SHALL BE APPOINTED BY THE MAYOR WITH THE APPROVAL
OF THE COMMON COUNCIL OF THE CITY. THE APPOINTMENT OF THE CHAIRPERSON
SHALL BE FOR A TERM OF FOUR YEARS. OF THE OTHER MEMBERS FIRST APPOINTED,
ONE SHALL BE APPOINTED FOR A PERIOD OF ONE YEAR, ONE FOR A PERIOD OF TWO
YEARS, ONE FOR A PERIOD OF THREE YEARS, AND ONE FOR A PERIOD OF FOUR
YEARS. AT THE EXPIRATION OF SUCH TERMS, THE TERMS OF OFFICE OF THE
SUCCESSORS OF THE BOARD MEMBERS SHALL BE FOUR YEARS. EACH MEMBER SHALL
CONTINUE TO SERVE UNTIL THE APPOINTMENT AND QUALIFICATION OF HIS OR HER
SUCCESSOR. A BOARD MEMBER MAY BE APPOINTED FOR ADDITIONAL TERMS.
(B) VACANCIES ON THE BOARD OCCURRING OTHERWISE THAN BY THE EXPIRATION
OF TERM, SHALL BE FILLED FOR THE UNEXPIRED TERM BY THE MAYOR WITH THE
APPROVAL OF THE COMMON COUNCIL.
S. 6552 3
(C) THE MEMBERS OF THE BOARD SHALL CHOOSE FROM THEIR NUMBER A VICE-
CHAIRPERSON AND SUCH OTHER OFFICERS DEEMED DESIRABLE BY THE BOARD.
3. THE COMMON COUNCIL MAY REMOVE ANY MEMBER OF THE BOARD FOR INEFFI-
CIENCY, NEGLECT OF DUTY OR MISCONDUCT IN OFFICE, GIVING THE BOARD MEMBER
A COPY OF THE CHARGES AGAINST THE BOARD MEMBER AND AN OPPORTUNITY OF
BEING HEARD IN PERSON, OR BY COUNSEL, IN HIS OR HER DEFENSE, UPON NOT
LESS THAN TEN DAYS' NOTICE.
4. THE MEMBERS OF THE BOARD SHALL BE ENTITLED TO NO COMPENSATION FOR
THEIR SERVICES BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR THEIR ACTUAL
AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL
DUTIES.
5. THE POWERS OF THE AUTHORITY SHALL BE VESTED IN AND EXERCISED BY A
MAJORITY OF THE MEMBERS OF THE BOARD THEN IN OFFICE.
6. THE BOARD MAY DELEGATE TO ONE OR MORE OF ITS MEMBERS OR TO ITS
OFFICERS, AGENTS AND EMPLOYEES SUCH POWERS AND DUTIES AS IT MAY DEEM
PROPER.
§ 1621-D. PURPOSE AND POWERS OF THE AUTHORITY. THE PURPOSE OF THE
AUTHORITY SHALL BE TO PROVIDE, OPERATE OR MAINTAIN, OR ANY COMBINATION
THEREOF, ONE OR MORE PROJECTS IN THE CITY. TO CARRY OUT SAID PURPOSE,
THE AUTHORITY SHALL HAVE POWER:
1. TO SUE AND BE SUED;
2. TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
3. TO ACQUIRE, HOLD AND DISPOSE OF PERSONAL PROPERTY FOR ITS CORPORATE
PURPOSES, INCLUDING THE POWER TO PURCHASE PROSPECTIVE OR TENTATIVE
AWARDS IN CONNECTION WITH THE CONDEMNATION OF REAL PROPERTY;
4. TO ACQUIRE REAL PROPERTY SUBJECT TO THE APPROVAL OF AT LEAST FOUR
MEMBERS OF THE COMMON COUNCIL IN THE NAME OF THE CITY BY PURCHASE OR
CONDEMNATION OR GIFT, AND USE NECESSARY REAL PROPERTY. ALL REAL PROPERTY
ACQUIRED BY THE AUTHORITY BY CONDEMNATION SHALL BE ACQUIRED IN THE
MANNER PROVIDED IN THE EMINENT DOMAIN PROCEDURE LAW, AND FURTHER
PROVIDED, THAT THE AUTHORITY SHALL GIVE THE COMMON COUNCIL OF THE CITY
WRITTEN NOTICE OF ITS INTENT TO ACQUIRE ANY LAND BY CONDEMNATION, WHERE-
UPON SAID COMMON COUNCIL, WITHIN A PERIOD OF FORTY-FIVE DAYS AFTER THE
GIVING OF SUCH NOTICE, BY RESOLUTION VOTED UPON AFFIRMATIVELY BY AT
LEAST TWO MEMBERS OF SUCH COMMON COUNCIL, MAY DETERMINE THAT SUCH LAND
SHALL NOT BE SO ACQUIRED, IN WHICH EVENT THE AUTHORITY SHALL BE WITHOUT
FURTHER POWER TO SO ACQUIRE THE SAME BY CONDEMNATION;
5. TO MAKE BY-LAWS FOR THE MANAGEMENT AND REGULATION OF ITS AFFAIRS,
AND, SUBJECT TO AGREEMENTS WITH BONDHOLDERS, FOR THE REGULATION OF THE
PROJECT;
6. WITH THE CONSENT OF THE CITY TO USE AGENTS, EMPLOYEES, AND FACILI-
TIES OF THE CITY, INCLUDING THE CORPORATION COUNSEL, PAYING TO THE CITY
ITS AGREED PROPORTION OF THE COMPENSATION OR COSTS;
7. TO APPOINT AN ATTORNEY, AND TO FIX HIS OR HER COMPENSATION;
8. TO APPOINT OFFICERS, AGENTS, EMPLOYEES, AND CONSULTANTS, TO
PRESCRIBE THEIR QUALIFICATIONS AND TO FIX THEIR COMPENSATION; SUBJECT,
HOWEVER, TO THE PROVISIONS OF THE CIVIL SERVICE LAW, AS PROVIDED IN THIS
SECTION;
9. TO DESIGNATE OFFICERS AND EMPLOYEES, APPOINTED OR USED BY THE
AUTHORITY, AS SPECIFIED IN THIS SECTION, WHO SHALL BE EMPOWERED TO ISSUE
APPEARANCE TICKETS AS PROVIDED FOR IN ARTICLE ONE HUNDRED FIFTY OF THE
CRIMINAL PROCEDURE LAW. PERSONS SO DESIGNATED ARE HEREBY AUTHORIZED TO
ISSUE AND SERVE SUCH TICKETS FOR TRAFFIC INFRACTIONS RELATING TO PARKING
WITHIN "PROJECT" AREAS AS DEFINED HEREIN, IN ACCORDANCE WITH LAW AND
WHEN AUTHORIZED BY LOCAL LAW OF THE CITY TO ISSUE AND SERVE SUCH TICKETS
S. 6552 4
FOR TRAFFIC INFRACTIONS COMMITTED ANYWHERE IN SUCH CITY INCLUDING AT
PARKING SPACES CONTROLLED BY PARKING METERS;
10. TO MAKE CONTRACTS, LEASES, AS LESSOR OR LESSEE, AND ANY OPERATING
AGREEMENT, AND TO EXECUTE ALL INSTRUMENTS NECESSARY OR CONVENIENT;
11. TO ACQUIRE, CONSTRUCT, RECONSTRUCT, IMPROVE, EQUIP AND FURNISH ANY
PROJECT AS MAY BE NECESSARY OR CONVENIENT;
12. TO MAINTAIN AND OPERATE ANY PROJECTS;
13. TO ACCEPT GRANTS, LOANS OR CONTRIBUTIONS FROM THE UNITED STATES,
THE STATE OF NEW YORK, OR ANY AGENCY OR INSTRUMENTALITY OF EITHER OF
THEM, OR THE CITY, OR ANY PERSON, BY BEQUEST OR OTHERWISE, AND TO EXPEND
THE PROCEEDS FOR ANY PURPOSES OF THE AUTHORITY;
14. TO FIX AND COLLECT RENTALS, FEES AND OTHER CHARGES FOR THE USE OF
ANY PROJECT AND TO PLEDGE THE SAME, ALL SUBJECT TO AND IN ACCORDANCE
WITH SUCH AGREEMENTS WITH BONDHOLDERS AS MAY BE MADE AS HEREINAFTER
PROVIDED;
15. TO CONSTRUCT, OPERATE OR MAINTAIN IN THE PROJECTS ALL FACILITIES
AND EQUIPMENT NECESSARY OR CONVENIENT IN CONNECTION THEREWITH; AND TO
CONTRACT FOR THE PROVIDING, OPERATION OR MAINTENANCE OF ANY PARTS THERE-
OF OR FOR SERVICES TO BE PERFORMED; TO RENT PARTS THEREOF, AND GRANT
CONCESSIONS, ALL ON SUCH TERMS AND CONDITIONS AS IT MAY DETERMINE;
PROVIDED, HOWEVER, THAT NEITHER THE AUTHORITY, THE CITY, OR ANY AGENCY
OF THE AUTHORITY OR CITY, OR ANY OTHER PERSON, FIRM OR CORPORATION
SHALL, WITHIN OR ON ANY PROPERTY COMPRISING A PART OF ANY PROJECT
AUTHORIZED BY THIS TITLE, SELL, DISPENSE OR OTHERWISE HANDLE ANY PRODUCT
USED IN OR FOR THE SERVICING OF ANY MOTOR VEHICLE USING ANY PROJECT OR
FACILITIES AUTHORIZED BY THIS TITLE.
§ 1621-E. CIVIL SERVICE STATUS OF OFFICERS AND EMPLOYEES. OFFICERS AND
EMPLOYEES OF ANY BOARD, COMMISSION OR DEPARTMENT OF THE CITY MAY BE
TRANSFERRED TO THE AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF THE
CIVIL SERVICE LAW AND SHALL BE ELIGIBLE FOR SUCH TRANSFER AND APPOINT-
MENT WITHOUT EXAMINATION TO OFFICES AND POSITIONS UNDER THE AUTHORITY.
OFFICERS AND EMPLOYEES OF THE CITY WHO ARE MEMBERS OR BENEFICIARIES OF
ANY EXISTING PENSION OR RETIREMENT SYSTEM SHALL CONTINUE TO HAVE THE
RIGHTS, PRIVILEGES, OBLIGATIONS AND STATUS WITH RESPECT TO SUCH SYSTEM
OR SYSTEMS AS ARE NOW PRESCRIBED BY LAW, AND ALL SUCH EMPLOYEES WHO HAVE
BEEN APPOINTED TO POSITIONS IN THE SERVICE OF THE CITY UNDER THE RULES
OF THE MUNICIPAL CIVIL SERVICE COMMISSION OF THE CITY SHALL HAVE THE
SAME STATUS WITH RESPECT THERETO AFTER TRANSFER TO THE AUTHORITY AS THEY
HAD UNDER THEIR ORIGINAL APPOINTMENTS. THE APPOINTMENT AND PROMOTION OF
ALL EMPLOYEES OF THE AUTHORITY SHALL BE MADE IN ACCORDANCE WITH THE
PROVISIONS OF THE CIVIL SERVICE LAW AND ALL EMPLOYEES OF THE AUTHORITY
SHALL HAVE THE SAME RIGHTS AND BENEFITS AS CITY EMPLOYEES.
§ 1621-F. CONVEYANCE OF PROPERTY BY THE CITY TO THE AUTHORITY; ACQUI-
SITION OF PROPERTY BY THE CITY OR BY THE AUTHORITY. 1. THE CITY MAY, BY
RESOLUTION OR RESOLUTIONS OF THE COMMON COUNCIL OR BY INSTRUMENTS
AUTHORIZED BY SUCH RESOLUTIONS, CONVEY, WITH OR WITHOUT CONSIDERATION,
TO THE AUTHORITY REAL AND PERSONAL PROPERTY OWNED BY THE CITY FOR USE BY
THE AUTHORITY AS A PROJECT OR PROJECTS OR A PART THEREOF OR IN
CONNECTION THEREWITH AND PLEDGE AND PAY TO THE AUTHORITY, AS SECURITY
FOR ITS BONDS, NOTES OR OTHER LIABILITIES, CERTAIN REVENUES AND INCOME
OF THE CITY FROM PARKING FACILITIES OWNED OR OPERATED BY THE CITY. IN
CASE OF REAL PROPERTY SO CONVEYED, THE TITLE THERETO SHALL REMAIN IN THE
CITY BUT THE AUTHORITY SHALL HAVE THE USE AND OCCUPANCY THEREOF FOR SO
LONG AS ITS CORPORATE EXISTENCE SHALL CONTINUE, UNLESS OTHERWISE
PROVIDED FOR BY THE AUTHORITY AND THE CITY. IN THE CASE OF PERSONAL
PROPERTY SO CONVEYED, THE TITLE SHALL PASS TO THE AUTHORITY.
S. 6552 5
2. THE CITY MAY ACQUIRE BY GIFT, PURCHASE OR CONDEMNATION REAL PROPER-
TY IN THE NAME OF THE CITY FOR ANY OF THE PROJECTS OR FOR THE WIDENING
OF EXISTING ROADS, STREETS, PARKWAYS, AVENUES OR HIGHWAYS OR FOR NEW
ROADS, STREETS, PARKWAYS, AVENUES OR HIGHWAYS TO ANY OF THE PROJECTS, OR
PARTLY FOR SUCH PURPOSES AND PARTLY FOR OTHER CITY PURPOSES, BY GIFT,
PURCHASE OR CONDEMNATION IN THE MANNER PROVIDED BY LAW FOR THE ACQUISI-
TION OF REAL PROPERTY BY THE CITY. FOR LIKE PURPOSES, THE CITY MAY
CLOSE SUCH STREETS, ROADS, PARKWAYS, AVENUES, OR HIGHWAYS AS MAY BE
NECESSARY OR CONVENIENT, EXCEPT AS TO STATE HIGHWAYS AND ARTERIAL WAYS
WHICH MAY NOT BE CLOSED WITHOUT THE CONSENT OF THE STATE COMMISSIONER OF
TRANSPORTATION.
3. CONTRACTS MAY BE ENTERED INTO BETWEEN THE CITY AND THE AUTHORITY
PROVIDING FOR THE PROPERTY TO BE CONVEYED OR PLEDGED OR PAID BY THE CITY
TO THE AUTHORITY, THE ADDITIONAL PROPERTY TO BE ACQUIRED BY THE CITY AND
SO CONVEYED, THE STREETS, ROADS, PARKWAYS, AVENUES, AND HIGHWAYS TO BE
CLOSED BY THE CITY AND THE AMOUNTS, TERMS AND CONDITIONS OF PAYMENT TO
BE MADE BY THE AUTHORITY. SUCH CONTRACTS MAY ALSO CONTAIN COVENANTS BY
THE CITY AS TO THE ROAD, STREET, PARKWAY, AVENUE AND HIGHWAY IMPROVE-
MENTS TO BE MADE BY THE CITY AND AS TO SUCH MATTERS WHICH PERTAIN TO ANY
CONVEYANCE OR PLEDGE AND PAYMENT OF MONEYS OR PROPERTY TO THE AUTHORITY.
ANY SUCH CONTRACTS BETWEEN THE CITY AND THE AUTHORITY MAY BE PLEDGED BY
THE AUTHORITY TO SECURE ITS BONDS AND NOTES AND MAY NOT BE MODIFIED
THEREAFTER EXCEPT AS PROVIDED BY THE TERMS OF SUCH CONTRACT AND SUCH
PLEDGE. THE COMMON COUNCIL MAY AUTHORIZE SUCH CONTRACTS BETWEEN THE CITY
AND THE AUTHORITY AND NO OTHER AUTHORIZATION ON THE PART OF THE CITY FOR
SUCH CONTRACTS SHALL BE NECESSARY. ANY SUCH CONTRACTS MAY BE SO AUTHOR-
IZED AND ENTERED INTO BY THE CITY AND IN SUCH MANNER AS THE COMMON COUN-
CIL MAY DETERMINE, AND THE PAYMENTS REQUIRED TO BE MADE BY THE CITY MAY
BE MADE AND FINANCED NOTWITHSTANDING THAT NO PROVISION THEREFOR SHALL
HAVE FIRST BEEN MADE IN THE CAPITAL BUDGET OF THE CITY. ALL CONTRACTUAL
OR OTHER OBLIGATIONS OF THE CITY INCURRED IN CARRYING OUT THE PROVISIONS
OF THIS TITLE SHALL BE INCLUDED IN AND PROVIDED FOR BY EACH CAPITAL
BUDGET OF THE CITY THEREAFTER MADE, IF AND TO THE EXTENT THAT THEY MAY
APPROPRIATELY BE INCLUDED THEREIN.
4. SUBJECT TO SUBDIVISION FOUR OF SECTION SIXTEEN HUNDRED TWENTY-ONE-D
OF THIS TITLE, THE AUTHORITY MAY ITSELF, SUBJECT TO PRIOR APPROVAL OF
THE COMMON COUNCIL, ACQUIRE, IN THE NAME OF THE CITY, REAL PROPERTY
NECESSARY OR CONVENIENT IN CONNECTION WITH ANY PROJECT AT THE COST AND
EXPENSE OF THE AUTHORITY BY PURCHASE OR CONDEMNATION PURSUANT TO THE
EMINENT DOMAIN PROCEDURE LAW. THE AUTHORITY SHALL HAVE THE USE AND
OCCUPANCY OF SUCH REAL PROPERTY SO LONG AS ITS CORPORATE EXISTENCE SHALL
CONTINUE.
5. IN CASE THE AUTHORITY SHALL HAVE THE USE AND OCCUPANCY OF ANY REAL
PROPERTY WHICH IT SHALL DETERMINE IS NO LONGER REQUIRED FOR A PROJECT,
THEN, IF SUCH REAL PROPERTY WAS ACQUIRED AT THE COST AND EXPENSE OF THE
CITY, THE AUTHORITY SHALL HAVE POWER TO SURRENDER ITS USE AND OCCUPANCY
THEREOF TO THE CITY, OR, IF SUCH REAL PROPERTY WAS ACQUIRED AT THE COST
AND EXPENSE OF THE AUTHORITY, THEN THE AUTHORITY SHALL HAVE POWER TO
SELL, LEASE OR OTHERWISE DISPOSE OF SAID REAL PROPERTY AT PUBLIC SALE,
AND SHALL RETAIN AND HAVE THE POWER TO USE THE PROCEEDS OF SALE, RENTALS
OR OTHER MONEYS DERIVED FROM THE DISPOSITION THEREOF FOR ITS PURPOSES.
§ 1621-G. CONSTRUCTION AND PURCHASE CONTRACTS. 1. THE AUTHORITY SHALL
LET CONTRACTS FOR CONSTRUCTION IN THE SAME MANNER, SO FAR AS PRACTICA-
BLE, AS IS PROVIDED BY LAW FOR CONTRACTS FOR THE CITY, EXCEPT THAT WHERE
THE ESTIMATED EXPENSE OF A CONTRACT DOES NOT EXCEED FIVE THOUSAND
DOLLARS SUCH CONTRACT MAY BE ENTERED INTO WITHOUT PUBLIC LETTING. NOTH-
S. 6552 6
ING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE POWER OF THE AUTHOR-
ITY TO DO ANY CONSTRUCTION DIRECTLY BY THE OFFICERS, AGENTS AND EMPLOY-
EES OF THE AUTHORITY. CONTRACTS FOR THE PURCHASE OF SUPPLIES, MATERIALS
AND EQUIPMENT SHALL BE LET IN THE SAME MANNER AS IS PROVIDED BY LAW FOR
CONTRACTS OF THE CITY.
2. FOR THE PURPOSES OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW ONLY,
THE AUTHORITY SHALL BE DEEMED A STATE AGENCY, AS THE TERM IS USED IN
SUCH ARTICLE, AND ITS CONTRACTS FOR DESIGN, CONSTRUCTION, SERVICES AND
MATERIALS SHALL BE DEEMED STATE CONTRACTS WITHIN THE MEANING OF THAT
TERM AS SET FORTH IN SUCH ARTICLE.
§ 1621-H. MONEYS OF THE AUTHORITY. ALL MONEYS OF THE AUTHORITY SHALL
BE PAID TO THE CITY TREASURER OF THE CITY AS AGENT OF THE AUTHORITY, WHO
SHALL NOT COMMINGLE SUCH MONEYS WITH ANY OTHER MONEYS. SUCH MONEYS SHALL
BE DEPOSITED IN A SEPARATE BANK ACCOUNT OR ACCOUNTS. THE MONEYS IN SUCH
ACCOUNTS SHALL BE PAID OUT BY THE CITY TREASURER OF THE CITY ON REQUISI-
TION OF THE CHAIRPERSON OF THE AUTHORITY OR OF SUCH OTHER PERSON OR
PERSONS AS THE AUTHORITY MAY AUTHORIZE TO MAKE SUCH REQUISITIONS AFTER
AUDIT BY THE CITY TREASURER OF THE CITY. ALL DEPOSITS OF SUCH MONEYS
SHALL BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE OF
NEW YORK OF A MARKET VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE
DEPOSIT, AND ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH
SECURITY FOR SUCH DEPOSITS. THE TREASURER OF THE CITY AND HIS OR HER
LEGALLY AUTHORIZED REPRESENTATIVES ARE AUTHORIZED AND EMPOWERED FROM
TIME TO TIME TO EXAMINE THE ACCOUNTS AND BOOKS OF THE AUTHORITY, INCLUD-
ING ITS RECEIPTS, DISBURSEMENTS, CONTRACTS, LEASES, SINKING FUNDS,
INVESTMENTS AND ANY OTHER RECORDS AND PAPERS RELATING TO ITS FINANCIAL
STANDING. THE AUTHORITY SHALL HAVE POWER, NOTWITHSTANDING THE
PROVISIONS OF THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY OF ITS
BONDS OR NOTES AS TO THE CUSTODY, COLLECTION, SECURING, INVESTMENT AND
PAYMENT OF ANY MONEYS OF THE AUTHORITY OR ANY MONEYS HELD IN TRUST OR
OTHERWISE FOR THE PAYMENT OF BONDS OR NOTES OR IN ANY WAY TO SECURE
BONDS OR NOTES, AND TO CARRY OUT ANY SUCH CONTRACT NOTWITHSTANDING THAT
SUCH CONTRACT MAY BE INCONSISTENT WITH THE PREVIOUS PROVISIONS OF THIS
SECTION. MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF BONDS OR
IN ANY WAY TO SECURE BONDS AND DEPOSITS OF SUCH MONEYS MAY BE SECURED IN
THE SAME MANNER AS MONEYS OF THE AUTHORITY, AND ALL BANKS AND TRUST
COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOSITS. THE
ACCOUNTS OF THE AUTHORITY SHALL BE SUBJECT TO THE SUPERVISION OF THE
STATE COMPTROLLER. THE AUTHORITY SHALL RENDER A COMPLETE ACCOUNT OF ITS
PROCEEDINGS TO THE COMMON COUNCIL AT ITS FIRST MEETING OF EACH YEAR AND
AT SUCH OTHER TIMES AS MAY REASONABLY BE REQUESTED BY THE COMMON COUN-
CIL.
§ 1621-I. BONDS OF THE AUTHORITY. 1. THE AUTHORITY SHALL HAVE THE
POWER AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE ITS NEGOTIABLE
BONDS FOR ANY OF ITS CORPORATE PURPOSES AND TO PAY SUCH EXPENSES, COSTS
AND PAYMENTS AS MAY BE DEEMED BY THE BOARD NECESSARY OR DESIRABLE TO OR
IN CONNECTION WITH THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION,
IMPROVING, EQUIPPING AND FURNISHING OF ANY PROJECT AND THE FINANCING
THEREOF, INCLUDING SURVEYS, PLANNING, PROVISIONS FOR CAPITALIZED INTER-
EST, RESERVE FUNDS AND APPROPRIATE FEASIBILITY STUDIES, AND FOR THE
PLACING OF THE PROJECT OR PROJECTS IN OPERATION. THE AGGREGATE PRINCIPAL
AMOUNT OF SUCH BONDS OUTSTANDING AT ANY ONE TIME SHALL NOT EXCEED TWEN-
TY-FIVE PERCENT OF THE BONDED INDEBTEDNESS LIMITATION FROM TIME TO TIME
IMPOSED BY SECTION 104.00 OF THE LOCAL FINANCE LAW. THE AUTHORITY SHALL
HAVE POWER FROM TIME TO TIME AND WHENEVER IT DEEMS REFUNDING EXPEDIENT,
TO REFUND ANY BONDS BY THE ISSUANCE OF NEW BONDS, WHETHER THE BONDS TO
S. 6552 7
BE REFUNDED HAVE OR HAVE NOT MATURED AND MAY ISSUE BONDS PARTLY TO
REFUND BONDS THEN OUTSTANDING AND PARTLY FOR ANY OTHER PURPOSE DESCRIBED
IN THIS SUBDIVISION. THE REFUNDING BONDS MAY BE EXCHANGED FOR THE BONDS
TO BE REFUNDED WITH SUCH CASH ADJUSTMENTS AS MAY BE AGREED, OR MAY BE
SOLD AND THE PROCEEDS APPLIED TO THE PURCHASE, PAYMENT OR REDEMPTION OF
THE BONDS TO BE REFUNDED. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED
BY THE AUTHORITY, THE BONDS OF EVERY ISSUE SHALL BE GENERAL OBLIGATIONS
OF THE AUTHORITY PAYABLE OUT OF ANY MONEYS OR REVENUES OF THE AUTHORITY,
SUBJECT ONLY TO ANY AGREEMENTS WITH THE HOLDERS OF PARTICULAR BONDS
PLEDGING ANY PARTICULAR MONEYS OR REVENUES. WHETHER OR NOT THE BONDS ARE
OF SUCH FORM AND CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER ARTICLE
EIGHT OF THE UNIFORM COMMERCIAL CODE, THE BONDS SHALL BE, AND 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.
2. THE BONDS SHALL BE AUTHORIZED BY RESOLUTION OF THE BOARD AND SHALL
BEAR SUCH DATE OR DATES, MATURE AT SUCH TIME OR TIMES, NOT EXCEEDING
THIRTY YEARS FROM THEIR RESPECTIVE DATES, BEAR INTEREST AT SUCH RATE OR
RATES, PAYABLE ANNUALLY OR SEMI-ANNUALLY, BE IN SUCH DENOMINATIONS, BE
IN SUCH FORM, EITHER COUPON OR REGISTERED, CARRY SUCH REGISTRATION PRIV-
ILEGES, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN LAWFUL MONEY OF THE
UNITED STATES OF AMERICA AT SUCH PLACE OR PLACES, AND BE SUBJECT TO SUCH
TERMS OF REDEMPTION, AS SUCH RESOLUTION OR RESOLUTIONS MAY PROVIDE. THE
BONDS MAY BE SOLD AT PUBLIC OR PRIVATE SALE FOR SUCH PRICE OR PRICES AS
THE AUTHORITY SHALL DETERMINE; PROVIDED, HOWEVER, THAT ANY PRIVATE SALE
SHALL BE SUBJECT TO THE APPROVAL OF THE STATE COMPTROLLER WHERE SUCH
SALE IS NOT TO THE COMPTROLLER, OR THE DIRECTOR OF THE BUDGET WHERE SUCH
SALE IS TO THE COMPTROLLER.
3. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS OR ANY ISSUE OF
BONDS MAY CONTAIN PROVISIONS, WHICH SHALL 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 A PROJECT OR PROJECTS
AND REVENUES AND INCOME OF THE AUTHORITY TO SECURE THE PAYMENT OF THE
BONDS, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY THEN EXIST;
(B) THE RENTALS, FEES AND OTHER CHARGES TO BE CHARGED, AND THE AMOUNTS
TO BE RAISED IN EACH YEAR THEREBY, AND THE USE AND DISPOSITION OF THE
REVENUES;
(C) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS, AND THE REGULATION
AND DISPOSITION THEREOF;
(D) LIMITATIONS ON THE RIGHT OF THE AUTHORITY TO RESTRICT AND REGULATE
THE USE OF A PROJECT;
(E) LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS OF SALE OF ANY
ISSUE OF BONDS THEN OR THEREAFTER TO BE ISSUED MAY BE APPLIED AND PLEDG-
ING SUCH PROCEEDS TO SECURE THE PAYMENT OF THE BONDS OR OF ANY ISSUE OF
THE BONDS;
(F) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS; THE TERMS UPON
WHICH ADDITIONAL BONDS MAY BE ISSUED AND SECURED; 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, THE AMOUNT OF BONDS THE HOLDERS
OF WHICH MUST CONSENT THERETO, AND THE MANNER IN WHICH SUCH CONSENT MAY
BE GIVEN;
(H) LIMITATIONS ON THE AMOUNT OF MONEYS DERIVED FROM A PROJECT TO BE
EXPENDED FOR OPERATING, ADMINISTRATIVE OR OTHER EXPENSES OF THE AUTHORI-
TY;
S. 6552 8
(I) VESTING IN A TRUSTEE OR TRUSTEES SUCH PROPERTY, RIGHTS, POWERS AND
DUTIES IN TRUST AS THE AUTHORITY MAY DETERMINE WHICH MAY INCLUDE ANY OR
ALL, THE RIGHTS, POWERS AND DUTIES OF THE TRUSTEE APPOINTED BY THE BOND-
HOLDERS PURSUANT TO SECTION SIXTEEN HUNDRED TWENTY-ONE-P OF THIS TITLE,
AND LIMITING OR ABROGATING THE RIGHT OF THE BONDHOLDERS TO APPOINT A
TRUSTEE UNDER SAID SECTION OR LIMITING THE RIGHTS, DUTIES AND POWERS OF
SUCH TRUSTEE;
(J) ANY OTHER MATTERS, OF LIKE OR DIFFERENT CHARACTER, WHICH IN ANY
WAY AFFECT THE SECURITY OR PROTECTION OF THE BONDS.
4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, IT IS THE INTENTION
HEREOF THAT ANY PLEDGE OF REVENUES OR OTHER MONEYS MADE BY THE AUTHORITY
SHALL BE VALID AND BINDING FROM THE TIME WHEN THE PLEDGE IS MADE; THAT
THE REVENUES OR OTHER MONEYS SO PLEDGED AND THEREAFTER RECEIVED BY THE
AUTHORITY SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF SUCH PLEDGE WITH-
OUT ANY PHYSICAL DELIVERY THEREOF OR FURTHER ACT; AND THAT THE LIEN OF
ANY SUCH PLEDGE SHALL BE VALID AND BINDING AS AGAINST ALL PARTIES HAVING
CLAIMS OF ANY KIND IN TORT, CONTRACT OR OTHERWISE AGAINST THE AUTHORITY
IRRESPECTIVE OF WHETHER SUCH PARTIES HAVE NOTICE THEREOF. NEITHER THE
RESOLUTION NOR ANY OTHER INSTRUMENT BY WHICH A PLEDGE IS CREATED NEED BE
RECORDED OR FILED IN ORDER TO PROTECT THE SECURITY INTEREST GRANTED.
5. NEITHER THE MEMBERS OF THE AUTHORITY NOR ANY PERSON EXECUTING THE
BONDS SHALL BE LIABLE PERSONALLY ON THE BONDS OR BE SUBJECT TO ANY
PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE THEREOF.
6. THE AUTHORITY SHALL HAVE POWER OUT OF ANY FUNDS AVAILABLE THEREFOR
TO PURCHASE BONDS UPON SUCH TERMS AND CONDITIONS AS THE AUTHORITY MAY
DETERMINE. THE AUTHORITY MAY HOLD, CANCEL OR RESELL SUCH BONDS, SUBJECT
TO AND IN ACCORDANCE WITH AGREEMENTS WITH BONDHOLDERS.
7. IN THE DISCRETION OF THE AUTHORITY, THE BONDS MAY BE SECURED BY A
TRUST INDENTURE BY AND BETWEEN THE AUTHORITY AND A CORPORATE TRUSTEE,
WHICH MAY BE ANY TRUST COMPANY, BANK OR NATIONAL BANKING ASSOCIATION
HAVING THE POWERS OF A TRUST COMPANY IN THE STATE OF NEW YORK. SUCH
TRUST INDENTURE MAY CONTAIN SUCH PROVISIONS FOR PROTECTING AND ENFORCING
THE RIGHTS AND REMEDIES OF THE BONDHOLDERS AS MAY BE REASONABLE AND
PROPER AND NOT IN VIOLATION OF LAW, INCLUDING COVENANTS SETTING FORTH
THE DUTIES OF THE AUTHORITY IN RELATION TO THE CONSTRUCTION, MAINTE-
NANCE, OPERATION, REPAIR AND INSURANCE OF THE PROJECT OR PROJECTS, AND
THE CUSTODY, SAFEGUARDING AND APPLICATION OF ALL MONEYS, AND MAY PROVIDE
THAT THE PROJECT OR PROJECTS SHALL BE CONSTRUCTED AND PAID FOR UNDER THE
SUPERVISION AND APPROVAL OF CONSULTING ENGINEERS. THE AUTHORITY MAY
PROVIDE BY SUCH TRUST INDENTURE FOR THE PAYMENT OF THE PROCEEDS OF THE
BONDS AND THE REVENUES OF THE PROJECT OR PROJECTS OR OTHER REVENUES OF
THE AUTHORITY TO THE TRUSTEE UNDER SUCH TRUST INDENTURE OR OTHER DEPOSI-
TORY, AND FOR THE METHOD OF DISBURSEMENT THEREOF, WITH SUCH SAFEGUARDS
AND RESTRICTIONS AS IT MAY DETERMINE. ALL EXPENSES INCURRED IN CARRYING
OUT SUCH TRUST INDENTURE MAY BE TREATED AS A PART OF THE COST OF MAINTE-
NANCE, OPERATION, AND REPAIRS OF THE PROJECT OR PROJECTS. IF THE BONDS
SHALL BE SECURED BY A TRUST INDENTURE, THE BONDHOLDERS SHALL HAVE NO
AUTHORITY TO APPOINT A SEPARATE TRUSTEE TO REPRESENT THEM, AND THE TRUS-
TEE UNDER SUCH TRUST INDENTURE SHALL HAVE AND POSSESS ALL OF THE POWERS
WHICH ARE CONFERRED BY SECTION SIXTEEN HUNDRED TWENTY-ONE-P OF THIS
TITLE UPON A TRUSTEE APPOINTED BY BONDHOLDERS.
§ 1621-J. NOTES OF THE AUTHORITY. THE AUTHORITY SHALL HAVE POWER FROM
TIME TO TIME TO ISSUE NOTES AND FROM TIME TO TIME TO ISSUE RENEWAL NOTES
(HEREAFTER "NOTES"), MATURING NOT LATER THAN FIVE YEARS FROM THEIR
RESPECTIVE ORIGINAL DATES IN AN AMOUNT NOT EXCEEDING AT ANY ONE TIME ONE
HUNDRED THOUSAND DOLLARS, OVER AND ABOVE THE AMOUNT OF BONDS AUTHORIZED
S. 6552 9
BY SUBDIVISION ONE OF SECTION SIXTEEN HUNDRED TWENTY-ONE-I OF THIS
TITLE, FOR ANY PURPOSE OR PURPOSES FOR WHICH BONDS MAY BE ISSUED, WHEN-
EVER THE AUTHORITY SHALL DETERMINE THAT PAYMENT THEREOF CAN BE MADE IN
FULL FROM ANY MONEYS OR REVENUES WHICH THE AUTHORITY EXPECTS TO RECEIVE
FROM ANY SOURCE. THE AUTHORITY MAY PLEDGE SUCH MONEYS OR REVENUES OR
SOURCE THEREOF (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. THE NOTES SHALL BE
SOLD AND ISSUED IN THE SAME MANNER AS BONDS. THE AUTHORITY SHALL HAVE
POWER TO MAKE CONTRACTS FOR THE FUTURE SALE FROM TIME TO TIME OF THE
NOTES, BY WHICH THE PURCHASER SHALL BE COMMITTED TO PURCHASE THE NOTES
FROM TIME TO TIME ON TERMS AND CONDITIONS STATED IN SUCH CONTRACTS, AND
THE AUTHORITY SHALL HAVE POWER TO PAY SUCH CONSIDERATION AS IT SHALL
DEEM PROPER FOR SUCH COMMITMENTS. 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 BOND-
HOLDERS. SUCH NOTES SHALL BE AS FULLY NEGOTIABLE AS THE BONDS OF THE
AUTHORITY.
§ 1621-K. AGREEMENTS OF THE CITY AND THE STATE. 1. THE CITY IS AUTHOR-
IZED TO, AND THE STATE OF NEW YORK DOES HEREBY PLEDGE TO AND AGREE WITH
THE HOLDERS OF THE BONDS OR NOTES THAT NEITHER THE CITY NOR THE STATE,
RESPECTIVELY, WILL LIMIT OR ALTER THE RIGHTS HEREBY VESTED IN THE
AUTHORITY TO ACQUIRE, CONSTRUCT, RECONSTRUCT, IMPROVE, EQUIP, FURNISH,
MAINTAIN OR OPERATE ANY PROJECT OR PROJECTS, TO ESTABLISH AND COLLECT
RENTALS, FEES AND OTHER CHARGES AND TO FULFILL THE TERMS OF ANY AGREE-
MENTS MADE WITH THE HOLDERS OF THE BONDS OR NOTES, OR IN ANY WAY IMPAIR
THE RIGHTS AND REMEDIES OF THE BONDHOLDERS OR NOTEHOLDERS, UNTIL THE
BONDS OR NOTES, TOGETHER WITH INTEREST THEREON, WITH INTEREST ON ANY
UNPAID INSTALLMENTS OF INTEREST AND ALL COSTS AND EXPENSES IN CONNECTION
WITH ANY ACTION OR PROCEEDING BY OR ON BEHALF OF THE BONDHOLDERS OR
NOTEHOLDERS, ARE FULLY MET AND DISCHARGED.
2. THE AUTHORITY IS HEREBY AUTHORIZED, IN ITS DISCRETION, FOR AND ON
BEHALF OF ITSELF AND, SUBJECT TO APPROVAL BY THE COMMON COUNCIL AND THE
MAYOR OF THE CITY OF MIDDLETOWN, TO COVENANT AND AGREE WITH THE HOLDERS
OF THE BONDS OR NOTES, WITH SUCH EXCEPTIONS AND LIMITATIONS AS IT MAY
DEEM IN THE PUBLIC INTEREST AND IN THE INTERESTS OF THE AUTHORITY'S
BONDHOLDERS AND NOTEHOLDERS, THAT NO PUBLIC PARKING AREAS OR SPACES,
INCLUDING THE INSTALLATION AND OPERATION OF PARKING METERS ON THE PUBLIC
STREETS OF THE CITY, EXCEPT THOSE ACQUIRED AND OPERATED BY THE AUTHORITY
WILL BE CONSTRUCTED OR OPERATED IN THE CITY BY THE CITY (EXCEPT AS HERE-
INAFTER PROVIDED), OR BY ANY PUBLIC BENEFIT OR OTHER CORPORATION, THE
MEMBERS OF WHICH ARE ELECTED OR APPOINTED BY CITY OFFICIALS, UNTIL
EITHER: (A) THE BONDS OR NOTES, TOGETHER WITH INTEREST THEREON, INTEREST
ON ANY UNPAID INSTALLMENTS OF INTEREST AND ALL COSTS AND EXPENSES IN
CONNECTION WITH ANY ACTION OR PROCEEDING BY OR ON BEHALF OF THE BOND-
HOLDERS OR NOTEHOLDERS ARE FULLY MET AND DISCHARGED; OR (B) PRINCIPAL OR
INTEREST OF ANY OF THE BONDS OR NOTES SHALL BE OVERDUE AND UNPAID FOR A
PERIOD OF THREE YEARS OR MORE; PROVIDED, HOWEVER, NOTHING CONTAINED IN
THIS SECTION SHALL BE DEEMED TO IMPAIR THE RIGHT OF THE CITY TO CONTINUE
TO OPERATE THE PRESENTLY EXISTING MUNICIPAL PARKING FACILITIES AND ANY
REPLACEMENTS THEREOF.
§ 1621-L. STATE AND CITY NOT LIABLE ON BONDS. THE BONDS, NOTES AND
OTHER OBLIGATIONS OF THE AUTHORITY SHALL NOT BE A DEBT OF THE STATE OF
NEW YORK OR OF 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.
S. 6552 10
§ 1621-M. BONDS AND NOTES LEGAL INVESTMENTS FOR PUBLIC OFFICERS AND
FIDUCIARIES. THE BONDS AND NOTES ARE HEREBY MADE SECURITIES IN WHICH ALL
PUBLIC OFFICERS, AND BODIES OF THE STATE AND ALL MUNICIPALITIES AND
MUNICIPAL SUBDIVISIONS, ALL INSURANCE COMPANIES AND ASSOCIATIONS AND
OTHER PERSONS CARRYING ON AN INSURANCE BUSINESS, ALL BANKS, BANKERS,
TRUST COMPANIES, SAVINGS BANKS AND SAVINGS ASSOCIATIONS, INCLUDING
SAVINGS AND LOAN ASSOCIATIONS, BUILDING AND LOAN ASSOCIATIONS, INVEST-
MENT COMPANIES AND OTHER PERSONS CARRYING ON A BANKING BUSINESS, ALL
ADMINISTRATORS, GUARDIANS, EXECUTORS, TRUSTEES AND OTHER FIDUCIARIES AND
ALL OTHER PERSONS WHATSOEVER WHO ARE NOW OR MAY HEREAFTER BE AUTHORIZED
TO INVEST IN BONDS OR OTHER OBLIGATIONS OF THE STATE, MAY PROPERLY AND
LEGALLY INVEST FUNDS INCLUDING CAPITAL IN THEIR CONTROL OR BELONGING TO
THEM. THE BONDS AND NOTES ARE ALSO HEREBY MADE SECURITIES WHICH MAY BE
DEPOSITED WITH AND SHALL BE RECEIVED BY ALL PUBLIC OFFICERS AND BODIES
OF THIS STATE AND ALL MUNICIPALITIES AND MUNICIPAL SUBDIVISIONS FOR ANY
PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OTHER OBLIGATIONS OF THIS
STATE IS NOW OR MAY HEREAFTER BE AUTHORIZED.
§ 1621-N. TAX EXEMPTIONS. 1. IT IS HEREBY DETERMINED THAT THE CREATION
OF THE AUTHORITY AND THE CARRYING OUT OF ITS CORPORATE PURPOSES IS IN
ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THE CITY OF MIDDLETOWN AND
ITS ENVIRONS, AND IS A PUBLIC PURPOSE, AND THE AUTHORITY SHALL BE
REGARDED AS PERFORMING AN ESSENTIAL GOVERNMENTAL FUNCTION IN THE EXER-
CISE OF THE POWERS CONFERRED UPON IT BY THIS TITLE AND SHALL BE REQUIRED
TO PAY NO TAXES OR ASSESSMENTS UPON ANY OF THE PROPERTY ACQUIRED BY IT
OR UNDER ITS JURISDICTION OR CONTROL OR SUPERVISION OR UPON ITS ACTIV-
ITIES.
2. ANY BONDS OR NOTES ISSUED PURSUANT TO THIS TITLE, TOGETHER WITH THE
INCOME THEREFROM, AS WELL AS THE PROPERTY OF THE AUTHORITY, SHALL BE
EXEMPT FROM TAXATION, EXCEPT FOR TRANSFER AND ESTATE TAXES.
§ 1621-O. TAX CONTRACT BY THE STATE. THE STATE OF NEW YORK COVENANTS
WITH THE PURCHASERS AND WITH ALL SUBSEQUENT HOLDERS AND TRANSFEREES OF
BONDS OR NOTES ISSUED BY THE AUTHORITY PURSUANT TO THIS TITLE, IN
CONSIDERATION OF THE ACCEPTANCE OF AND PAYMENT FOR THE BONDS OR NOTES,
THAT THE BONDS OR NOTES OF THE AUTHORITY ISSUED PURSUANT TO THIS TITLE
AND THE INCOME THEREFROM, AND ALL MONEYS, FUNDS AND REVENUES PLEDGED TO
PAY OR SECURE THE PAYMENT OF SUCH BONDS OR NOTES, SHALL AT ALL TIMES BE
FREE FROM TAXATION EXCEPT FOR ESTATE TAXES AND TAXES ON TRANSFERS BY OR
IN CONTEMPLATION OF DEATH.
§ 1621-P. REMEDIES OF BONDHOLDERS. 1. IN THE EVENT THAT THE AUTHORITY
SHALL DEFAULT IN THE PAYMENT OF PRINCIPAL OF OR INTEREST ON ANY ISSUE OF
THE BONDS AFTER THE SAME SHALL BECOME DUE, WHETHER AT MATURITY OR UPON
CALL FOR REDEMPTION, AND SUCH DEFAULT SHALL CONTINUE FOR A PERIOD OF
THIRTY DAYS, OR IN THE EVENT THAT THE AUTHORITY SHALL FAIL OR REFUSE TO
COMPLY WITH THE PROVISIONS OF THIS TITLE, OR SHALL DEFAULT IN ANY AGREE-
MENT MADE WITH THE HOLDERS OF ANY ISSUE OF THE BONDS, THE HOLDERS OF
TWENTY-FIVE PER CENTUM IN AGGREGATE PRINCIPAL AMOUNT OF THE BONDS OF
SUCH ISSUE THEN OUTSTANDING, BY INSTRUMENT OR INSTRUMENTS FILED IN THE
OFFICE OF THE CLERK OF THE COUNTY OF ORANGE AND PROVED OR ACKNOWLEDGED
IN THE SAME MANNER AS A DEED TO BE RECORDED, MAY APPOINT A TRUSTEE TO
REPRESENT THE HOLDERS OF SUCH BONDS FOR THE PURPOSES PROVIDED IN THIS
SECTION.
2. SUCH TRUSTEE MAY, AND UPON WRITTEN REQUEST OF THE HOLDERS OF TWEN-
TY-FIVE PER CENTUM IN PRINCIPAL AMOUNT OF SUCH BONDS THEN OUTSTANDING
SHALL, IN THE TRUSTEE'S OWN NAME:
(A) BY MANDAMUS OR OTHER SUIT, ACTION OR PROCEEDING, AT LAW OR IN
EQUITY, ENFORCE ALL RIGHTS OF THE BONDHOLDERS, INCLUDING THE RIGHT TO
S. 6552 11
REQUIRE THE AUTHORITY TO COLLECT REVENUES ADEQUATE TO CARRY OUT BY ANY
AGREEMENT AS TO, OR PLEDGE OF, SUCH REVENUES, AND TO REQUIRE THE AUTHOR-
ITY TO CARRY OUT ANY OTHER AGREEMENTS WITH THE HOLDERS OF SUCH BONDS AND
TO PERFORM ITS DUTIES UNDER THIS TITLE;
(B) BRING SUIT UPON SUCH BONDS;
(C) BY ACTION OR SUIT IN EQUITY, REQUIRE THE AUTHORITY TO ACCOUNT AS
IF IT WERE THE TRUSTEE OF AN EXPRESS TRUST FOR THE HOLDERS OF SUCH
BONDS;
(D) BY ACTION OR SUIT IN EQUITY, ENJOIN ANY ACTS OR THINGS WHICH MAY
BE UNLAWFUL OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH BONDS;
(E) DECLARE ALL SUCH BONDS DUE AND PAYABLE, AND IF ALL DEFAULTS SHALL
BE MADE GOOD THEN WITH THE CONSENT OF THE HOLDERS OF TWENTY-FIVE PER
CENTUM OF THE PRINCIPAL AMOUNT OF SUCH BONDS THEN OUTSTANDING, TO ANNUL
SUCH DECLARATION AND ITS CONSEQUENCES.
3. THE SUPREME COURT SHALL HAVE JURISDICTION OF ANY SUIT, ACTION OR
PROCEEDING BY THE TRUSTEE ON BEHALF OF BONDHOLDERS. THE VENUE OF ANY
SUCH SUIT, ACTION OR PROCEEDING SHALL BE LAID IN THE COUNTY OF ORANGE.
4. BEFORE DECLARING THE PRINCIPAL OF ALL SUCH BONDS DUE AND PAYABLE,
THE TRUSTEE SHALL FIRST GIVE THIRTY DAYS' NOTICE IN WRITING TO THE
AUTHORITY.
5. ANY SUCH TRUSTEE, WHETHER OR NOT THE ISSUE OF BONDS REPRESENTED BY
SUCH TRUSTEE HAS BEEN DECLARED DUE AND PAYABLE, SHALL BE ENTITLED AS OF
RIGHT TO THE APPOINTMENT OF A RECEIVER OF ANY PART OR PARTS OF THE
PROJECT THE REVENUES OF WHICH ARE PLEDGED FOR THE SECURITY OF THE BONDS
OF SUCH ISSUE, AND SUCH RECEIVER MAY ENTER AND TAKE POSSESSION OF SUCH
PART OR PARTS OF THE PROJECT AND, SUBJECT TO ANY PLEDGE OR AGREEMENT
WITH BONDHOLDERS, SHALL TAKE POSSESSION OF ALL MONEYS AND OTHER PROPERTY
DERIVED FROM OR APPLICABLE TO THE ACQUISITION, CONSTRUCTION, OPERATION,
MAINTENANCE AND RECONSTRUCTION OF SUCH PART OR PARTS OF THE PROJECT AND
PROCEED WITH THE ACQUISITION OF ANY REAL PROPERTY NECESSARY OR CONVEN-
IENT IN CONNECTION WITH THE PROJECT THAT THE AUTHORITY HAS COVENANTED TO
CONSTRUCT, AND WITH ANY CONSTRUCTION WHICH THE AUTHORITY IS UNDER OBLI-
GATION TO DO AND TO OPERATE, MAINTAIN AND RECONSTRUCT SUCH PART OR PARTS
OF THE PROJECT AND COLLECT AND RECEIVE ALL REVENUES THEREAFTER ARISING
THEREFROM SUBJECT TO ANY PLEDGE THEREOF OR AGREEMENT WITH BONDHOLDERS
RELATING THERETO AND PERFORM THE PUBLIC DUTIES AND CARRY OUT THE AGREE-
MENTS AND OBLIGATIONS OF THE AUTHORITY UNDER THE DIRECTION OF THE COURT.
IN ANY SUIT, ACTION OR PROCEEDING BY THE TRUSTEE, THE FEE, COUNSEL FEES
AND EXPENSES OF THE TRUSTEE AND OF THE RECEIVER, IF ANY, SHALL CONSTI-
TUTE TAXABLE DISBURSEMENTS AND ALL COSTS AND DISBURSEMENTS ALLOWED BY
THE COURT SHALL BE A FIRST CHARGE ON ANY REVENUES DERIVED FROM SUCH
PROJECT.
6. SUCH TRUSTEE SHALL, IN ADDITION TO THE FOREGOING, HAVE AND POSSESS
ALL OF THE POWERS NECESSARY OR APPROPRIATE FOR THE EXERCISE OF ANY FUNC-
TIONS SPECIFICALLY SET FORTH IN THIS SECTION OR INCIDENT TO THE GENERAL
REPRESENTATION OF BONDHOLDERS IN THE ENFORCEMENT AND PROTECTION OF THEIR
RIGHTS.
§ 1621-Q. ACTIONS AGAINST THE AUTHORITY. 1. IN EVERY ACTION AGAINST
THE AUTHORITY FOR DAMAGES, FOR INJURIES TO REAL OR PERSONAL PROPERTY, OR
FOR THE DESTRUCTION THEREOF, OR FOR PERSONAL INJURIES OR DEATH, THE
COMPLAINT SHALL CONTAIN AN ALLEGATION THAT AT LEAST NINETY DAYS HAVE
ELAPSED SINCE THE DEMAND, CLAIM OR CLAIMS UPON WHICH SUCH ACTION IS
FOUNDED WERE PRESENTED TO A MEMBER OF THE AUTHORITY, OR TO ITS SECRE-
TARY, OR TO ITS CHIEF EXECUTIVE OFFICER AND THAT THE AUTHORITY HAS
NEGLECTED OR REFUSED TO MAKE AN ADJUSTMENT OR PAYMENT THEREOF FOR NINETY
DAYS AFTER SUCH PRESENTMENT.
S. 6552 12
2. EXCEPT IN AN ACTION FOR WRONGFUL DEATH, AN ACTION AGAINST THE
AUTHORITY FOR DAMAGES FOR INJURIES TO REAL OR PERSONAL PROPERTY, OR FOR
THE DESTRUCTION THEREOF, OR FOR PERSONAL INJURIES, ALLEGED TO HAVE BEEN
SUSTAINED, SHALL NOT BE COMMENCED MORE THAN ONE YEAR AND NINETY DAYS
AFTER THE CAUSE OF ACTION THEREFOR SHALL HAVE ACCRUED, NOR UNLESS A
NOTICE OF CLAIM SHALL HAVE BEEN SERVED ON THE AUTHORITY WITHIN THE TIME
LIMIT ESTABLISHED BY AND IN COMPLIANCE WITH ALL REQUIREMENTS OF SECTION
FIFTY-E OF THE GENERAL MUNICIPAL LAW. AN ACTION AGAINST THE AUTHORITY
FOR WRONGFUL DEATH SHALL BE COMMENCED IN ACCORDANCE WITH THE NOTICE OF
CLAIM AND TIME LIMITATION PROVISIONS OF TITLE ELEVEN OF ARTICLE NINE OF
THIS CHAPTER.
§ 1621-R. TERMINATION OF THE AUTHORITY. WHENEVER ALL OF THE BONDS AND
NOTES ISSUED BY THE AUTHORITY SHALL HAVE BEEN REDEEMED OR CANCELLED, AND
ALL ITS LIABILITIES AND DUTIES MET OR DISCHARGED, THE AUTHORITY SHALL
CEASE TO EXIST AND ALL RIGHTS, TITLE AND INTERESTS AND ALL OBLIGATIONS
AND LIABILITIES THEREOF VESTED IN OR POSSESSED BY THE AUTHORITY SHALL
THEREUPON VEST IN AND BE POSSESSED BY THE CITY OF MIDDLETOWN.
§ 1621-S. SEVERABILITY. IF ANY CLAUSE, SENTENCE, PARAGRAPH, SUBDIVI-
SION, SECTION OR PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF
COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT,
IMPAIR, OR INVALIDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN
ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH, SUBDIVISION, SECTION
OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDG-
MENT SHALL HAVE BEEN RENDERED. IT IS HEREBY DECLARED TO BE THE INTENT
OF THE LEGISLATURE THAT THIS ARTICLE WOULD HAVE BEEN ENACTED EVEN IF
SUCH INVALID PROVISIONS HAD NOT BEEN INCLUDED HEREIN.
§ 1621-T. INCONSISTENT PROVISIONS IN OTHER ACTS SUPERSEDED. INSOFAR AS
THE PROVISIONS OF THIS TITLE ARE INCONSISTENT WITH THE PROVISIONS OF ANY
OTHER ACT, GENERAL OR SPECIAL, OR OF ANY LOCAL LAW OF THE CITY, THE
PROVISIONS OF THIS TITLE SHALL BE CONTROLLING.
§ 2. This act shall take effect immediately and shall expire and be
deemed repealed upon the occurrence of the events set forth in section
1621-r of title 21 of article 7 of the public authorities law, as added
by section one of this act. Upon such occurrence, the mayor of the city
of Middletown shall notify the legislative bill drafting commission in
order that the commission may maintain an accurate and timely effective
data base of the official text of the laws of the state of New York in
furtherance of effectuating the provisions of section 44 of the legisla-
tive law and section 70-b of the public officers law.
