Section 3012. Issuance of notes and bonds of a municipal assistance corporation

1. (a) A municipal assistance corporation  shall  have  the  power  and is hereby authorized from time to time to issue its notes and
  bonds in conformity with applicable provisions of the uniform commercial
  code, in such principal amounts as such corporation shall  determine  to
  be  necessary within the limits of authorized indebtedness prescribed in
  the special law creating such corporation, to provide  sufficient  funds
  for  achieving  its corporate purposes, including the making of payments
  to or purchase  of  obligations  of,  the  municipality  for  which  the
  corporation  was  created, to make payments of interest on its notes and
  bonds, to establish reserves to secure such notes and bonds and to  make
  deposits  into  a  fund  or  funds established pursuant to any agreement
  entered into by such corporation  with  the  federal  government  or  an
  agency   or  instumentality  thereof  in  accordance  with  subparagraph
  eighteen of section three thousand ten of this article.
    (b) A municipal assistance corporation shall have the power, 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 a municipal
  assistance corporation, every issue of its  notes  and  bonds  shall  be
  general  obligations of the municipal assistance corporation payable out
  of any revenues of such corporation, subject only to any agreements with
  the holders  of  particular  notes  or  bonds  pledging  any  particular
  revenues.
    (d)  Such  notes  and  bonds  shall  be  authorized by resolution of a
  municipal assistance corporation, shall bear such date and shall  mature
  at  such  time or times as such resolution may provide. The bonds may be
  issued as serial bonds or as term bonds or  as  a  combination  thereof.
  The  notes  and  bonds  shall bear interest at such rate or rates, be in
  such denominations and 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 of redemption as such resolution may provide.
    (e)  The notes or bonds of the municipal assistance corporation may be
  exchanged for obligations of the municipality being assisted or  may  be
  sold  at such price or prices, at public or private sale, in such manner
  and from time to time as may be determined by such corporation, and  the
  corporation  may pay all expenses, premiums and commissions which it may
  deem necessary or advantageous in connection with the issuance and  sale
  thereof.  Subsequent  to  July  first, nineteen hundred seventy-five, no
  notes or bonds of a municipal assistance  corporation  may  be  sold  at
  private  sale  unless such sale and the terms thereof have been approved
  in writing by (a)  the  comptroller  where  such  sale  is  not  to  the
  comptroller,  or  (b)  the director of the budget, where such sale is to
  the comptroller.
    2. Any resolution authorizing any notes or bonds 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  notes  or bonds or of any issue thereof, subject to such agreements
  with noteholders or bondholders as may then exist;

    (b) pledging all or any part of  the  assets  of  the  corporation  to
  secure  the  payment  of  the notes or bonds or of any issue of notes or
  bonds, subject to such agreements with noteholders or bondholders 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 notes
  or bonds may be applied and pledging such proceeds to secure the payment
  of the notes or bonds of any issue thereof;
    (e) limitations on the issuance of  additional  notes  or  bonds;  the
  terms  upon  which  additional notes or bonds may be issued and secured;
  and the refunding of outstanding or other notes or bonds;
    (f) the procedure, if any, by which the terms  of  any  contract  with
  noteholders  or  bondholders  may be amended or abrogated, the amount of
  notes or bonds the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (g) vesting in a trustee or trustees 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;
    (h) the acts or omissions to act which shall constitute a  default  in
  the  obligations  and  duties  of  the corporation to the holders of the
  notes or bonds and providing for the rights and remedies of the  holders
  of  the  notes or bonds 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 laws of the state and the
  other provisions of this article; and (i) any other matters of  like  or
  different  character, which in any way affect the security or protection
  of the holders of the notes or bonds.
    3. Any pledge made by a  municipal  assistance  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 municipal assistance
  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  municipal
  assistance 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
  except in the principal office of the municipal assistance corporation.
    4. Neither the directors of a municipal assistance corporation nor any
  other  person  executing the notes or bonds of such corporation shall be
  subject to any personal liability or accountability  by  reason  of  the
  issuance thereof.
    5.  A municipal assistance corporation subject to such agreements with
  noteholders or bondholders as may then exist, shall have  power  out  of
  any  funds  available  therefor,  to  purchase  notes  or  bonds of such
  corporation, which shall thereupon be cancelled.
    6. Anything in this article ten to the contrary  notwithstanding,  any
  agreement or agreements with the holders of notes or bonds issued by any
  municipal  assistance corporation created by or pursuant to any title of
  this article shall contain  a  clause  stating  in  substance  that  any
  provision  in  this article or in any such agreement or agreements which
  relate to taxes imposed under article twelve or sections eleven  hundred
  seven  or  eleven  hundred  eight  of the tax law of the state or to the
  funds created by sections ninety-two-b, ninety-two-d or ninety-two-e  of

  the  state  finance  law shall be deemed executory only to the extent of
  the moneys available to the state in such funds from time to time and no
  liability on account thereof shall be incurred by the state  beyond  the
  moneys available in such funds.
    7.  In  the  discretion of the directors of a corporation the notes or
  bonds  may  be  secured  by  a  trust  indenture  by  and  between  such
  corporation and a trustee, which may be any trust company or bank having
  the  powers  of  a  trust company in the state. Such trust indenture may
  contain such provisions for protecting  and  enforcing  the  rights  and
  remedies  of  the  noteholders  or  bondholders as may be reasonable and
  proper and not in violation of law, including  covenants  setting  forth
  the  duties  of  the  corporation  in  relation  to  the exercise of its
  corporate powers and the custody, may provide by  such  trust  indenture
  for  the  payment of the proceeds of the notes or bonds and the revenues
  to the trustee under such trust indenture or other depository,  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 operating expenses
  of the corporation.  If the notes or bonds shall be secured by  a  trust
  indenture,  the  noteholders  or  bondholders shall have no authority to
  appoint a separate trustee to represent them.
    8. Whether or not the notes and bonds are of such form  and  character
  as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
  commercial  code,  the  notes  and  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 notes and
  bonds for registration.