Section 1045-O. Bonds of the authority

1. The authority shall have the
  power and is hereby authorized from time to  time  to  issue  bonds,  in
  conformity with applicable provisions of the uniform commercial code, in
  such  principal  amounts  as it may determine to be necessary to pay the
  cost of any water project or water projects, or for any other  corporate
  purposes,  including  incidental  expenses  in connection therewith. The
  authority shall have power from time to time to refund 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. Bonds issued  by  the  authority
  shall  be  special obligations payable solely out of particular revenues
  or other moneys of the authority as may be designated in the proceedings
  of the authority under which the bonds shall be authorized to be issued,
  subject to any agreements entered into between  the  authority  and  the
  city,  and  the  authority, the water board and the city, and subject to
  any agreements with  the  holders  of  outstanding  bonds  pledging  any
  particular revenues or moneys.
    2. The authority is authorized to obtain from any department or agency
  of  the  United  States  of  America  or  non-governmental  insurer  any
  insurance or guaranty, to the extent now or hereafter available, as  to,
  or  for  the  payment or repayment of interest or principal, or both, or
  any part thereof, on any bonds or notes issued by the authority,  or  on
  any municipal obligations of governmental units purchased or held by the
  authority;  and  to enter into any agreement or contract with respect to
  any such insurance or guaranty, except to the extent that the same would
  in any way impair or interfere with the  ability  of  the  authority  to
  perform  and fulfill the terms of any agreement made with the holders of
  the bonds or notes of the authority.
    * 3. Bonds shall be authorized by resolution of the authority,  be  in
  such  denominations  and bear such date or dates, mature at such time or
  times, except that bonds and any renewal  thereof  shall  mature  within
  forty  years  of  the  date of their original issuance and notes and any
  renewal thereof shall mature within five years  of  the  date  of  their
  original  issuance.  Such  bonds  shall  be  subject  to  such  terms of
  redemption, bear interest at such rate or rates payable at  such  times,
  be in such 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.  Bonds  may be sold at public or private sale for such price or
  prices as the authority shall determine, provided that no issue of bonds
  may be sold at private sale unless the terms of  such  sale  shall  have
  been  approved in writing by (i) the comptroller, where such sale is not
  to such comptroller, or (ii) the  director  of  management  and  budget,
  where such sale is to such comptroller.
    * NB There are 2 sub 3's
    * 3.  Whenever  the authority shall determine that the issuance of its
  bonds is appropriate, the mayor and the comptroller shall make  a  joint
  recommendation  as  to  the  arrangements necessary for the issuance and
  sale of such bonds including the  underwriting  of  such  bonds  through
  negotiated agreement or public letting or the private sale of such bonds
  and such recommendation shall include compensation for services rendered
  as  they deem appropriate. The mayor and the comptroller shall recommend
  to the authority the price or prices, interest rate or rates, maturities
  and other terms and conditions for the issuance  of  the  bonds,  except
  that  bonds  and  any renewal thereof shall mature within forty years of
  the date of their original issuance and notes and  any  renewal  thereof
  shall  mature  within five years of the date of their original issuance.
  Following such recommendation, bonds shall be authorized  by  resolution

  of the authority which shall set forth the arrangements for the issuance
  of  the  bonds,  the  price  or  prices,  the  interest  rate  or rates,
  maturities, terms of redemption, form and other terms of the bonds. Such
  resolution  and  the  minutes  of the authority related thereto shall be
  transmitted to the mayor and  the  comptroller  for  their  approval  or
  disapproval  thereof.  Approval of such resolution shall be indicated by
  the execution of  the  resolution  by  the  mayor  and  the  comptroller
  whereupon  such  resolution  shall  come  into  full force and effect in
  accordance with its terms.
    * NB There are 2 sub 3's
    4. Any resolution or resolutions authorizing bonds  or  any  issue  of
  bonds  may  contain  provisions which may be a part of the contract with
  the holders of the bonds thereby authorized as to:
    (a) pledging all or part of its  revenues,  together  with  any  other
  moneys,  securities, contracts or property, to secure the payment of the
  bonds, subject to such agreements with bondholders as may then exist;
    (b) the setting aside of reserves and the creation  of  sinking  funds
  and the regulation and disposition thereof;
    (c)  limitations on the purpose to which the proceeds from the sale of
  bonds may be applied;
    (d) limitations on the right of the authority to restrict and regulate
  the use of any project or part thereof in connection  with  which  bonds
  are issued;
    (e)  limitations  on  the issuance of additional bonds, the terms upon
  which additional bonds may be issued and secured and  the  refunding  of
  outstanding or other bonds;
    (f)  the  procedure,  if  any, by which the terms of any contract with
  bondholders may be amended or abrogated,  including  the  proportion  of
  bondholders  which  must  consent  thereto  and the manner in which such
  consent may be given;
    (g) the creation of special funds into which  any  revenues  or  other
  moneys may be deposited;
    (h)  the terms and provisions of any trust, deed or indenture securing
  the bonds under which the bonds may be issued;
    (i) vesting in a trustee or trustees such properties,  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 one thousand forty-five-p of this
  title and limiting or  abrogating  the  rights  of  the  bondholders  to
  appoint  a trustee under such section or limiting the rights, duties and
  powers of such trustee;
    (j) defining the acts or omissions  to  act  which  may  constitute  a
  default   in  the  obligations  and  duties  of  the  authority  to  the
  bondholders and providing for the rights and remedies of the bondholders
  in the event of such  default,  including  as  a  matter  of  right  the
  appointment  of  a  receiver,  provided,  however,  that such rights and
  remedies shall not be inconsistent with the general laws  of  the  state
  and other provisions of this title;
    (k)  limitations  on  the  amount  of  revenues and other moneys to be
  expended  for  operating,  administrative  or  other  expenses  of   the
  authority;
    (l) the payment of the proceeds of bonds, revenues and other moneys to
  a  trustee  or  other  depository,  and  for  the method of disbursement
  thereof with such safeguards  and  restrictions  as  the  authority  may
  determine; and
    (m)  any other matters of like or different character which in any way
  affect the security or  protection  of  the  bonds  or  the  rights  and
  remedies of bondholders.

    5.  In  addition  to the powers herein conferred upon the authority to
  secure its bonds, the authority shall have power in connection with  the
  issuance  of  bonds  to  enter into such agreements as the authority may
  deem  necessary,  consistent  or  desirable  concerning   the   use   or
  disposition  of  its revenues or other moneys or property, including the
  mortgaging of any property and the entrusting, pledging or  creation  of
  any other security interest in any such revenues, moneys or property and
  the doing of any act, including refraining from doing any act, which the
  authority  would have the right to do in the absence of such agreements.
  The authority shall have power to enter  into  amendments  of  any  such
  agreements  within the powers granted to the authority 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 bonds of the authority.
    6. Any provision of  the  uniform  commercial  code  to  the  contrary
  notwithstanding,  any  pledge of or other security interest in revenues,
  moneys, accounts, contract rights, general intangibles or other personal
  property made or created by the authority shall be  valid,  binding  and
  perfected  from  the  time  when  such  pledge is made or other security
  interest attaches without any physical delivery  of  the  collateral  or
  further  act, and the lien of any such pledge or other security interest
  shall be valid, binding and perfected against all parties having  claims
  of  any  kind  in  tort,  contract  or  otherwise  against the authority
  irrespective of whether or not such  parties  have  notice  thereof.  No
  instrument  by  which  such a pledge or security interest is created nor
  any financing statement need be recorded or filed.
    7. Whether or not the bonds of the authority  are  of  such  form  and
  character as to be negotiable instruments under the terms of the uniform
  commercial code, the 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 bonds for registration.
    8. Neither the directors of the authority  nor  any  person  executing
  bonds  shall  be liable personally thereon or be subject to any personal
  liability or accountability solely by reason of the issuance thereof.
    9. The authority, subject to such agreements with bondholders as  then
  may  exist,  shall  have  power  out of any moneys available therefor to
  purchase bonds of the authority, which shall thereupon be cancelled,  at
  a  price  not  exceeding  (i)  if  the  bonds  are  then redeemable, the
  redemption price then applicable, plus  accrued  interest  to  the  next
  interest payment date, or (ii) if the bonds are not then redeemable, the
  redemption  price  applicable on the first date after such purchase upon
  which the bonds become subject to redemption, plus accrued  interest  to
  the next interest payment date.