Section 561. Bonds of the authority

1. The authority shall have the power
  and is hereby authorized from time to time to issue its negotiable bonds
  in conformity with applicable provisions of the uniform commercial  code
  for  any corporate purpose or power. The authority shall have power from
  time to time and whenever it deems refunding advantageous or  desirable,
  to  refund, redeem or otherwise pay, including by purchase or tender any
  bonds 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 corporate  purpose  or  power.
  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  or  payment of the bonds to be refunded. The
  authority may issue general or special obligation bonds. Every issue  of
  general  obligation bonds shall be payable out of any moneys or revenues
  of the authority, subject only to any agreements  with  the  holders  of
  particular  bonds pledging any particular tolls or revenues. Every issue
  of special obligation bonds  shall  be  payable  out  of  any  revenues,
  receipts,   monies   or   assets  of  the  authority,  the  metropolitan
  transportation authority and its subsidiary  corporations  and  the  New
  York  city  transit authority and its subsidiary corporations identified
  for such purposes in accordance with  agreements  with  the  holders  of
  particular bonds.
    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
  fifty  years  from their respective dates, bear interest at such rate or
  rates, be payable at such time or times, be in such denominations, 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  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.  Notwithstanding  the  foregoing  provisions,
  such bonds as may be authorized by resolution of the board and issued on
  or  before  June  thirtieth,  nineteen  hundred  sixty-five,  shall bear
  interest at such rate or rates as such resolution may provide.
    3. The bonds may be issued for any corporate purpose of the authority.
    4. 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 tolls and revenues of the  project
  or  of all or any part of any or all such projects to secure the payment
  of the bonds or of any issue of the bonds  subject  to  such  agreements
  with bondholders as may then exist;
    (b) the rates of the tolls to be charged, and the amounts to be raised
  in  each  year  by  tolls,  and the use and disposition of the tolls and
  other 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 the project in connection with which such bonds are issued;
    (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
  pledging 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 any project to be
  expended   for  operating,  administrative  or  other  expenses  of  the
  authority;
    (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  of  the  rights,  powers and duties of the trustee appointed by the
  bondholders pursuant to section five  hundred  sixty-seven  hereof,  and
  limiting or abrogating the right of the bondholders to appoint a trustee
  under  section  five  hundred sixty-seven hereof 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-a.  Any resolution or resolutions authorizing any bonds or any issue
  of bonds maturing in not exceeding ten years from their date  (hereafter
  in  this subdivision four-a referred to as "short term obligations") may
  contain, in addition to all other provisions authorized by  this  title,
  provisions,  which  shall  be a part of the contract with the holders of
  the short term obligations thereby authorized, as to (a)  refunding  the
  short  term  obligations  and,  if so provided, outstanding bonds by the
  issuance of bonds of the authority either by the sale of bonds  and  the
  application of the proceeds to the payment of the short term obligations
  and  outstanding  bonds  or  by the exchange of bonds for the short term
  obligations and outstanding bonds; provided, however, that the authority
  shall make no covenant to refund which shall require it to issue  bonds,
  the  aggregate  principal  amount of which shall exceed by more than ten
  per centum the aggregate principal amount of the short term  obligations
  and outstanding bonds to be refunded thereby;
    (b)  satisfying,  paying or discharging the short term obligations, at
  the election of the authority, by the tender or delivery of bonds of the
  authority in exchange therefor; provided, however,  that  the  aggregate
  principal  amount  of bonds shall not exceed by more than ten per centum
  the aggregate principal amount of the short term obligations to satisfy,
  pay or discharge which the bonds are tendered or delivered;
    (c) exchanging or  converting  the  short  term  obligations,  at  the
  election  of  the  holder  thereof,  for or into bonds of the authority;
  provided, however, that the aggregate  principal  amount  of  the  bonds
  shall  not  exceed  by  more than ten per centum the aggregate principal
  amount of the short term obligations to be exchanged  for  or  converted
  into bonds;
    (d) pledging bonds of the authority as collateral to secure payment of
  the short term obligations and providing for the terms and conditions of
  the  pledge  and  manner  of  enforcing  the  pledge,  which  terms  and
  conditions may provide for the delivery of the bonds in satisfaction  of
  the  short  term  obligations;  provided,  however,  that  the aggregate
  principal amount of the bonds pledged shall not exceed by more than  ten
  per  centum the aggregate principal amount of the short term obligations
  to secure which they are pledged;
    (e) depositing bonds in escrow or in trust with a  trustee  or  fiscal
  agent  or  otherwise  providing  for the issuance and disposition of the
  bonds as security for carrying out  any  provisions  in  any  resolution
  adopted  pursuant  to  the  foregoing  paragraphs  (a), (b), (c) and (d)
  hereof and providing for the powers and duties of the trustee or  fiscal
  agent  or  other  depositary  and  the terms and conditions on which the
  bonds are to be issued, held and disposed of;

    (f) any other matters of like or different character which  relate  to
  any  provision  or  provisions of any resolution adopted pursuant to the
  foregoing paragraphs (a), (b), (c), (d) and (e) hereof.
    In  computing  the  amount  of  bonds  of  the  authority which may be
  outstanding at any one time, short term obligations shall be excluded to
  the extent that the resolution authorizing the issuance  of  such  short
  term  obligations  shall  provide  for the issuance of bonds pursuant to
  paragraphs (a), (b), (c) or (d) of this section, but the bonds  provided
  to  be  issued  by  such  resolution  shall  be  included in making such
  computation whether or not such bonds are outstanding.
    The authority shall have power to make contracts for the  future  sale
  from  time  to  time  of short term obligations, by which the purchasers
  shall be committed to purchase short term obligations from time to  time
  on  the 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.
    4-b.  The  authority shall have power from time to time to issue notes
  (herein referred to as notes) for any corporate  purpose  or  power  and
  from  time  to  time to issue renewal notes maturing not later than five
  years,  from  their  respective  dates  whenever  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 (subject to any other
  pledge thereof) for the payment of the notes and may in addition  secure
  the  notes in the same manner as herein provided for bonds or otherwise.
  The notes shall be 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 purchasers 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.
    4-c.  It  is  the  intention  hereof that any pledge of tolls or other
  revenues or other moneys made  by  the  authority  shall  be  valid  and
  binding  from  the time when the pledge is made; that the tolls or other
  revenues or other moneys so  pledged  and  thereafter  received  by  the
  authority  shall  immediately  be  subject  to  the  lien of such pledge
  without 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.
    5. Neither the members of the board 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. The authority may hold, cancel or resell such bonds,
  subject to and in accordance with agreements with bondholders.