Section 1290. Notes and bonds of the corporation

1. (a) The corporation
  shall have power and is hereby authorized from time to time to issue its
  negotiable  or  non-negotiable  bonds  and  notes  in  conformity   with
  applicable  provisions  of the uniform commercial code in such principal
  amount, as, in the opinion of the corporation,  shall  be  necessary  to
  provide  sufficient  funds  for  achieving  its  purposes, including the
  acquisition  and  construction,  operation  and  maintenance  of  sewage
  treatment   works,  sewage  collecting  systems,  solid  waste  disposal
  facilities, storm water collecting systems, water management facilities,
  air pollution control facilities, the removal, disposal and  remediation
  of  petroleum storage tanks and the remediation of the sites thereof and
  any other project or projects authorized pursuant to the  provisions  of
  this  title, and paying the cost thereof; the making of loans to persons
  and, for purposes  of  sections  twelve  hundred  eighty-five-j,  twelve
  hundred  eighty-five-m  and  twelve  hundred eighty-five-o of this title
  only, to any municipality or recipient for such purposes; the making  of
  loans,  providing of financing or extension of credit to or on behalf of
  beginning farmers for purposes of section twelve  hundred  eighty-five-r
  of   this   title  only;  the  financing  of  the  design,  acquisition,
  construction, improvement and installation of  all  or  any  portion  of
  Riverbank Park, provided however, that any such bonds or notes issued to
  finance  Riverbank Park shall only be issued in such principal amount as
  shall be necessary to provide sufficient  funds  for  the  repayment  of
  amounts  disbursed  pursuant to appropriations or reappropriations under
  chapter fifty-four of the laws of nineteen hundred ninety-one  including
  any  subsequent  reappropriation  of  the  unexpended  balance  of  such
  appropriations or reappropriations for the purpose  of  Riverbank  Park,
  plus  an  amount  sufficient  to  fund  any  debt  service  reserve fund
  established by the corporation for the purpose of Riverbank Park and  to
  provide  for  the  payment of fees and other charges and expenses of the
  corporation in connection with such bonds  and  notes,  which  principal
  amount shall constitute the statutory ceiling on the amount of bonds and
  notes  that  can be issued for such purpose; the financing of all or any
  portion of any state park infrastructure project or reimbursement of the
  state for expenditures relating thereto, plus an amount to  provide  for
  the payment of fees and other charges and expenses of the corporation in
  connection  with  such  bonds  and  notes; the provision of funds to the
  state for any amounts contributed or to  be  contributed  to  the  water
  pollution  control  revolving  fund,  the  pipeline for jobs fund or the
  drinking water revolving fund provided, however, that any such bonds  or
  notes  issued  to provide funds to the water pollution control revolving
  fund, the pipeline for jobs fund or the drinking  water  revolving  fund
  shall  only  be issued in such principal amount as shall be necessary to
  provide sufficient funds for the repayment of amounts disbursed pursuant
  to any appropriation or reappropriation enacted  for  the  pipeline  for
  jobs   fund   or  for  the  payment  of  the  state  match  for  federal
  capitalization grants for the water pollution control revolving fund  or
  the drinking water revolving fund, plus an amount sufficient to fund any
  debt  service  reserve  fund  and to provide for fees, charges and other
  costs of issuance, which principal amount shall constitute the statutory
  ceiling on the amount of bonds and notes that can  be  issued  for  such
  purpose;  the  financing  of  any  environmental infrastructure projects
  authorized by section twelve hundred eighty-five-p of  this  title;  the
  purchase  of  municipal  bonds and notes, and bonds and notes of a state
  agency, the payment of the cost of any project, the payment of  interest
  on  bonds and notes of the corporation, the establishment of reserves to
  secure such bonds and notes; the provision of working  capital  and  all

  other  expenditures  of  the  corporation  incident  to and necessary or
  convenient to carry out its purposes and powers;
    (b)  The  corporation  shall  have  power, from time to time, to issue
  renewal notes, to issue  bonds  to  pay  notes  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 other
  purpose. The refunding bonds shall be sold and the proceeds  applied  to
  the  purchase,  redemption  or  payment  of  the  bonds  to be refunded.
  Notwithstanding  any  statutory  ceiling  on  outstanding   bonds,   any
  refunding  bonds  shall  be sold in the amount required to pay or redeem
  outstanding bonds, to fund any reserve, escrow or payment fund,  and  to
  provide  for  the  payment  of  all fees and other charges and expenses,
  including costs of issuance, incurred in connection with the issuance of
  such refunding bonds, provided that the present value of  the  aggregate
  debt service on the refunding bonds does not exceed the present value of
  the aggregate debt service on the bonds refunded thereby.
    (c)  Except as may otherwise be expressly provided by the corporation,
  every issue of its notes or bonds shall be (i)  general  obligations  of
  the   corporation   payable  out  of  any  revenues  or  monies  of  the
  corporation,  subject  only  to  any  agreements  with  the  holders  of
  particular  notes or bonds pledging any particular receipts or revenues,
  (ii) special obligations of the  corporation  payable  solely  from  the
  revenues,  service  charges,  rentals,  proceeds or other payments to be
  received on account of  the  mortgage,  loan  or  other  agreements  and
  payments,  reserve  and  insurance funds or accounts issuance of special
  obligations, and fees, charges or other monies to  be  received  by  the
  corporation  in  respect  to  loans  pursuant  to section twelve hundred
  eighty-five-b or twelve hundred eighty-five-j of  this  title,  or  from
  amounts  received  by  the  corporation pursuant to any contract, lease,
  easement, license or other instrument entered into  by  the  corporation
  pursuant  to  sections  twelve  hundred eighty-five-k and twelve hundred
  eighty-five-l of  this  title  or,  (iii)  special  obligations  of  the
  corporation   payable  solely  from  amounts  received  pursuant  to  an
  agreement with the commissioner of environmental  conservation  pursuant
  to  subdivision  twelve  of section twelve hundred eighty-five-j of this
  title, and may, but need not, be secured by  mortgages,  assignments  or
  pledges  of  such  revenues,  service  charges, rentals, proceeds, other
  payments, funds and accounts, fees, charges and  other  monies,  and  by
  mortgages or assignments thereof in respect to projects, and may include
  pooled  financings  subject  only  to any agreements with the holders of
  particular special obligation notes or bonds issued to finance the  cost
  of,  or  loans for, a project or projects; no general obligations of the
  corporation shall be issued to finance the cost  of,  or  loans  for,  a
  project  or  projects  authorized  to be constructed pursuant to section
  twelve hundred eighty-five-b or twelve  hundred  eighty-five-j  of  this
  title  or  to  finance  (A)  the  contribution of the state to the water
  pollution  control  revolving  fund,  (B)   the   design,   acquisition,
  construction,  improvement  and  installation  of  all or any portion of
  Riverbank Park or (C) state park infrastructure projects and  no  funds,
  monies,  revenues  or  other assets of the corporation shall be used for
  loans authorized pursuant to section  twelve  hundred  eighty-five-b  or
  twelve  hundred  eighty-five-j of this title, except as may be available
  with respect to a project and a contract with a person as aforesaid,  or
  for the payment to the state for amounts contributed by the state to the
  water   pollution   control  revolving  fund,  to  finance  the  design,
  acquisition, construction, improvement and installation of  all  or  any
  portion  of  Riverbank  Park  or state park infrastructure projects. Nor

  shall any special obligation authorized pursuant hereto be payable  from
  or  secured by any debt service reserve fund created pursuant to section
  twelve hundred ninety-one of this title, and  the  state  shall  not  be
  entitled  to require the redemption of such special obligations pursuant
  to section twelve hundred ninety-three of this title; and  such  special
  obligation  and  the  security  therefor  shall  not  be  subject to the
  provisions of section twelve hundred ninety-four of this title  but  the
  remedies  of the holders thereof shall be set forth in the terms of such
  special obligations and the instruments constituting such security;  the
  making  of loans, providing of financial or extension of credit to or on
  behalf of beginning farmers  for  purposes  of  section  twelve  hundred
  eighty-five-r of this title only;
    (d)  Any  bonds  or  notes issued for the purpose of financing amounts
  deposited or to be deposited by the state in the water pollution control
  revolving fund may be issued in an aggregate principal amount sufficient
  to finance the amount to be paid or reimbursed  to  the  state  plus  an
  amount  sufficient  to fund any debt service reserve fund established by
  the corporation and to provide for the payment of fees and other charges
  and expenses of the corporation in connection with such bonds and notes.
    (e) Notwithstanding any other law to  the  contrary,  the  corporation
  shall  not issue any notes or bonds on behalf of any state department or
  agency to fund  the  removal,  disposal  and  remediation  of  petroleum
  storage  tanks  and the remediation of the sites thereof or on behalf of
  the office  of  mental  health  to  finance  the  pilgrim  state  sewage
  treatment project, after the thirty-first day of March, nineteen hundred
  ninety-six. This limitation shall not apply to bonds and notes issued to
  refund bonds issued for such purposes.
    2.  The  notes  and  bonds  shall  be  authorized by resolution of the
  directors of the corporation, shall bear such date or dates,  and  shall
  mature  at  such  time  or  times,  in  the case of any such note or any
  renewals thereof not exceeding twelve years from the date  of  issue  of
  such original note, and in the case of any such bond not exceeding forty
  years  from  the  date  of  issue, as such resolution or resolutions may
  provide; provided, however, that the final maturity of any  bond  issued
  for the purpose of financing any amounts deposited or to be deposited by
  the state in the water pollution control revolving fund shall not exceed
  thirty  years  from  the date of issue of such bond. The notes and bonds
  shall bear interest at such rate or rates which may vary  from  time  to
  time,  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 notes and bonds of the corporation may be
  sold by the corporation, at public or private sale,  at  such  price  or
  prices  as  the  corporation  shall  determine. No notes or bonds of the
  corporation may be sold by the corporation  at  private  sale,  however,
  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.
    3. Any resolution or resolutions 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 rentals, rates, charges and  other
  fees made or received by the corporation and other monies received or to
  be  received  from the ownership or operation or otherwise in connection
  with any project or projects and all or any part of the monies  received
  in  payment  of  principal  or  interest  on bonds or notes of any state
  agency and municipal bonds or notes  acquired  by  the  corporation,  to

  secure  the  payment  of  the  notes  or  bonds 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
  including municipal bonds and notes acquired by the corporation  in  the
  issuance  of  general  obligations,  and  in  the  issuance  of  special
  obligations, notes or other evidences  of  indebtedness  of  any  person
  acquired by the corporation, and assigning and pledging any mortgages or
  other security interests acquired by the corporation or any interests of
  the  corporation  in properties or revenues or other sums payable to the
  corporation and any reserve and insurance funds  or  accounts  or  other
  funds  and  accounts  established  in  connection  with  the issuance of
  special obligations to secure the payment of the notes or  bonds  or  of
  any   issue  of  notes  or  bonds  of  general  obligations  or  special
  obligations, as the  case  may  be,  subject  to  such  agreements  with
  noteholders or bondholders as may then exist;
    (c)  the use and disposition of rentals, rates, charges and other fees
  made or received by the corporation;
    (d) the setting aside of reserves or sinking funds and the  regulation
  and  disposition thereof from the ownership or operation or otherwise in
  connection with any project or projects and of  the  gross  income  from
  municipal  bonds and notes and bonds and notes of any state agency owned
  by the corporation;
    (e) limitations on the purpose 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 or of any issue thereof;
    (f)  limitations  on  the  issuance  of additional notes or bonds; the
  terms upon which additional notes or bonds may be  issued  and  secured;
  the refunding of outstanding or other notes or bonds;
    (g)  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;
    (h)  limitations  on  the  amount  of  monies  to  be  expended by the
  corporation for operating,  administrative  or  other  expenses  of  the
  corporation;
    (i) 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 article or limiting
  the rights, powers and duties of such trustee;
    (j) any other matters, of like or different character,  which  in  any
  way affect the security or protection of the notes or bonds.
    4.  In addition to the powers herein conferred upon the corporation to
  secure its  notes  and  bonds,  the  corporation  shall  have  power  in
  connection  with  the  issuance  of  notes  and bonds to enter into such
  agreements  as  the  corporation  may  deem  necessary,  convenient   or
  desirable  concerning  the  use or disposition of its monies or property
  including the mortgaging  of  any  such  property  and  the  entrusting,
  pledging  or  creation of any other security interest in any such monies
  or property and the doing of any act (including  refraining  from  doing
  any act) which the corporation would have the right to do in the absence
  of  such  agreements.  The  corporation  shall  have power to enter into
  amendments of any such agreements  within  the  powers  granted  to  the
  corporation by this title and to perform such agreements. The provisions
  of  any  such  agreements  may  be  made a part of the contract with the
  holders of the notes and bonds of the corporation.

    5. It is the intention hereof that any pledge,  mortgage  or  security
  instrument  made  by the corporation shall be valid and binding from the
  time when the pledge, mortgage or security instrument is made; that  the
  monies  or  property  so pledged, mortgaged and entrusted and thereafter
  received  by the corporation shall immediately be subject to the lien of
  such pledge,  mortgage  or  security  instrument  without  any  physical
  delivery  thereof  or further act; and that the lien of any such pledge,
  mortgage or security instrument 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  mortgage, security
  instrument or other instrument by which a pledge, mortgage lien or other
  security is created need be recorded or filed and the corporation  shall
  not  be  required  to  comply  with any of the provisions of the uniform
  commercial code.
    6. Neither the directors of the corporation nor any  person  executing
  the  notes  or bonds shall be liable personally on the notes or bonds or
  be subject to any personal liability or accountability by reason of  the
  issuance thereof.
    7.  The  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 the corporation, which
  shall thereupon be cancelled, at a price not exceeding (a) if the  notes
  or  bonds are then redeemable, the redemption price then applicable plus
  accrued interest to the next interest payment thereon,  or  (b)  if  the
  notes  or bonds are not then redeemable, the redemption price applicable
  on the first date after such purchase upon  which  the  notes  or  bonds
  become subject to redemption plus accrued interest to such date.
    8.  Neither the state nor any municipality shall be liable on notes or
  bonds issued as general obligations of the corporation  and  such  notes
  and bonds shall not be a debt of the state or any municipality, and such
  notes  and  bonds  shall contain on the face thereof a statement to such
  effect. The state shall not be  liable  on  notes  or  bonds  issued  as
  special  obligations  of the corporation, and such notes and bonds shall
  not be a debt of  the  state  and  shall  be  payable  solely  from  the
  revenues,  service  charges,  rentals,  proceeds or other payments to be
  derived from the extension of credit or the loan  for  the  project  for
  which  such  notes and bonds were issued, and such notes and bonds shall
  contain on the face thereof a statement to such effect.