Section 3236. Bonds and notes of the corporation

1. (a) The corporation
  shall have power and is hereby authorized from time to time to issue its
  bonds and  notes  in  such  principal  amount  or  amounts,  subject  to
  subdivision eight of this section, as the corporation shall determine to
  be  necessary,  to  provide sufficient funds for achieving its corporate
  purposes, including the making of payments  pursuant  to  section  three
  thousand two hundred thirty-eight of this title, the payment of interest
  on  bonds and notes of the corporation, the establishment of reserves to
  secure such bonds and notes, the payment of amounts required under  bond
  or  note  facilities  or agreements relating thereto, and the payment of
  all costs of issuance of its bonds and notes.
    (b) The corporation shall have the power and is hereby authorized from
  time to time to issue (i) notes to renew notes and  (ii)  bonds  to  pay
  notes,  including  the interest thereon and, whenever it deems refunding
  expedient, to refund any bonds by the issuance of new bonds, whether the
  bonds to be refunded have or have not matured, and to issue bonds partly
  to refund bonds then  outstanding  and  partly  for  any  of  its  other
  corporate  purposes.  The refunding bonds may be exchanged for the bonds
  to be refunded or  sold  and  the  proceeds  applied  to  the  purchase,
  redemption or payment of such bonds.
    (c)  Except as may otherwise be expressly provided by the corporation,
  every issue of its bonds and notes shall be general obligations  of  the
  corporation payable out of any revenues of the corporation, subject only
  to any agreements with the holders of particular bonds or notes pledging
  any particular revenues.
    (d)  (i)  Bonds  and  notes  shall  be authorized by resolution of the
  corporation, 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 notes and renewals or refundings thereof shall mature  on
  a  date  not  later than December thirty-first, two thousand twenty-five
  nor more than thirty years from the date of original issuance.
    (ii) Bonds and notes 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, registered or  book  entry  form,  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.
    (e)  Such  bonds  shall  be  sold  to  the  bidder offering the lowest
  interest cost to the corporation, taking into consideration any  premium
  or  discount  and, in the case of refunding bonds, the bona fide initial
  public offering price, not less than four nor more  than  fifteen  days,
  Sundays  excepted,  after  a  notice  of such sale has been published at
  least once in a definitive  trade  publication  of  the  municipal  bond
  industry  published  on each business day in the state of New York which
  is generally available to participants in the municipal  bond  industry,
  which  notice shall state the terms of the sale. The corporation may not
  change the terms of the sale unless notice of such change is sent via  a
  definitive  trade  wire service of the municipal bond industry which, in
  general, makes available information regarding  activity  and  sales  of
  municipal  bonds  and  is  generally  available  to  participants in the
  municipal bond industry, at least one day prior to the date of the  sale
  as set forth in the original notice of sale. In so changing the terms or
  conditions  of  a  sale  the  corporation  may  send notice by such wire
  service that the sale will be delayed by up  to  thirty  days,  provided
  that  wire  notice  of  the  new  sale  date  will be given at least one
  business day prior to the new time when bids will be accepted.  In  such
  event,  no  new  notice  of  sale  shall  be  required  to be published.
  Advertisements  shall  contain  a  provision  to  the  effect  that  the

  corporation,  in  its  discretion,  may  reject  any or all bids made in
  pursuance of such advertisements, and in the event  of  such  rejection,
  the corporation is authorized to negotiate a private sale or readvertise
  for bids in the form and manner above described as many times as, in its
  judgment,   may   be   necessary   to   effect   a   satisfactory  sale.
  Notwithstanding the foregoing provisions of this paragraph, whenever  in
  the judgment of the corporation the interests of the corporation will be
  served  thereby,  the  corporation  may  sell bonds at private sale. The
  corporation  shall  promulgate  regulations  governing  the  terms   and
  conditions  of any such private sales, which regulations shall include a
  provision that it give notice to the governor, the  temporary  president
  of  the  senate,  and  the  speaker  of the assembly of its intention to
  conduct a private sale of obligations pursuant to this section not  less
  than  five  days  prior  to  such  sale  or the execution of any binding
  agreement to effect such sale.
    (f) The corporation shall enter into an agreement with the comptroller
  pursuant to which the comptroller shall be the exclusive  agent  of  the
  corporation for the sale of its bonds and notes.
    2.  Consistent  with  the  provisions  of  this  title, any resolution
  authorizing any  bonds  or  notes  or  any  issue  thereof  may  contain
  provisions,  which  shall  be  a  part  of the contract with the holders
  thereof, as to:
    (a) pledging all or any part of the revenues to secure the payment  of
  the  bonds  or notes or of any issue thereof, subject to such agreements
  with bondholders or noteholders as may then exist;
    (b) pledging all or any part of  the  assets  of  the  corporation  to
  secure  the  payment  of  the bonds or notes or of any issue of bonds or
  notes, subject to such agreements with bondholders or noteholders as may
  then exist;
    (c) the setting aside of reserves or sinking funds and the  regulation
  and disposition thereof;
    (d) limitations on the purposes to which the proceeds of sale of bonds
  or notes may be applied and pledging such proceeds to secure the payment
  of the bonds or notes or of any issue thereof;
    (e)  limitations  on  the  issuance  of additional bonds or notes; the
  terms upon which additional bonds or notes may be  issued  and  secured;
  and the refunding of outstanding or other bonds or notes;
    (f)  the  procedure,  if  any, by which the terms of any contract with
  bondholders or noteholders may be amended or abrogated,  the  amount  of
  bonds or notes the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (g)  limitations  on  the  amount  of  moneys  to  be  expended by the
  corporation for operating expenses of the corporation;
    (h) vesting in a trustee, as described  in  subdivision  six  of  this
  section,  such  property,  rights,  powers  and  duties  in trust as the
  corporation may determine, which may include any or all of  the  rights,
  powers  and  duties of the trustee appointed by the bondholders pursuant
  to this title, and limiting or abrogating the right of  the  bondholders
  to  appoint  a  trustee under this title or limiting the rights, powers,
  and duties of such trustee;
    (i) the acts or omissions to act which shall constitute a  default  in
  the  obligations  and  duties  of  the corporation to the holders of the
  bonds or notes and providing for the rights and remedies of the  holders
  of  the  bonds or notes in event of such default, including the right to
  appointment of a receiver; providing,  however,  that  such  rights  and
  remedies  shall  not  be inconsistent with the general laws of the state
  and the other provisions of this title;

    (j) any other matters, of like or different character,  which  in  any
  way  affect  the  security  or protection of the holders of the bonds or
  notes; and
    (k) the application of any of the foregoing provisions to any provider
  of any applicable bond or note facility.
    Notwithstanding the foregoing, the corporation shall not be authorized
  to  make  any covenant, pledge, promise, or agreement purporting to bind
  the state except as otherwise specifically authorized by this title.
    3. Any pledge made by the corporation shall be valid and binding  from
  the  time  when  the pledge is made. The revenues or property so pledged
  and thereafter received by the corporation shall immediately be  subject
  to  the  lien  of  such  pledge without any physical delivery thereof or
  further act, and 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 corporation, 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  to  protect  such
  pledge.
    4.  Neither  the  directors  of  the  corporation nor any other person
  executing the bonds or notes of the corporation shall be subject to  any
  personal liability or accountability by reason of the issuance thereof.
    5.  The  corporation,  subject  to such agreements with bondholders or
  noteholders as may then exist, or with the providers of  any  applicable
  bond  or  note  facility,  shall  have  power out of any funds available
  therefor to purchase bonds or notes of the corporation, which may or may
  not thereupon be cancelled, at a price not substantially exceeding:
    (a) if the bonds or notes are then redeemable,  the  redemption  price
  then applicable, including any accrued interest;
    (b)  if  the  bonds  or  notes are not then redeemable, the redemption
  price and accrued interest applicable  on  the  first  date  after  such
  purchase upon which the bonds or notes become subject to redemption.
    6.  In  the  discretion of the directors of the corporation, the bonds
  and notes may be secured  by  a  trust  indenture  by  and  between  the
  corporation  and  a  corporate  trustee,  or  a corporate trustee may be
  appointed under the resolution as provided in subdivision  two  of  this
  section.
    7.  Whether  or not the bonds and notes are of such form and character
  as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
  commercial  code,  the  bonds  and  notes  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 and
  notes for registration or any book-entry-only system.
    8. (a) The corporation shall not issue any bonds or notes in an amount
  in  excess  of  four  billion  seven  hundred  million  dollars,  plus a
  principal amount of bonds or notes:
    (i) to fund any capital reserve fund in accordance  with  the  capital
  reserve fund requirement,
    (ii)  to  provide  capitalized interest for a period not to exceed six
  months, and
    (iii) to provide for  the  payment  of  fees  and  other  charges  and
  expenses,  including  underwriters' discount, related to the issuance of
  such bonds or notes, or related to the provision of any applicable  bond
  or note facilities.
    (b)  In  computing  for  the  purposes  of this section, the aggregate
  amount of indebtedness evidenced by bonds and notes of  the  corporation
  issued pursuant to this title, there shall be excluded (i) the amount of
  bonds  or  notes issued that would constitute interest under the Code as
  amended to the effective date of this title, and (ii) the amount of such

  indebtedness represented by such bonds or  notes  issued  to  refund  or
  otherwise  repay  bonds  or  notes, provided that the amount so excluded
  under this subparagraph (ii) may exceed the  principal  amount  of  such
  bonds or notes that were issued to refund or otherwise repay only if the
  present  value  of  the  aggregate  debt  service  on  the  refunding or
  repayment bonds or notes shall not have at the time  of  their  issuance
  exceeded the present value of the aggregate debt service of the bonds or
  notes  they  were  issued to refund or repay, such present value in each
  case being calculated by  using  the  effective  interest  rate  of  the
  refunding  or repayment bonds or notes, 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 bonds or notes from the payment date thereof to  the  date  of
  issue  of the refunding or repayment bonds or notes and to the price bid
  therefor, or to the proceeds received by the corporation from  the  sale
  thereof, in each case including estimated accrued interest.
    9.  Each  issuance  of bonds by the corporation under this title shall
  provide for  the  retirement  thereof  so  that  debt  service  thereon,
  calculated  in  accordance with reasonably assumed interest rates to the
  extent not then determinable, shall  be  on  a  substantially  level  or
  decreasing  debt-service  payment  basis no later than one year from the
  date of their issuance to the date of  retirement  of  the  latest  bond
  within  such  issue  to retire. Each issuance of notes shall provide for
  annual reductions of the aggregate outstanding  principal  in  equal  or
  increasing  amounts of such reduction. Notwithstanding the foregoing, if
  the corporation shall issue refunding bonds, the  debt  service  thereon
  shall  be  structured  on any basis that the corporation deems is in its
  best interest, provided that debt  service  on  all  outstanding  bonds,
  notes  and  other  financial  obligations is not increased in any future
  fiscal year after giving effect to such refunding.