Section 1048-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. Whenever the authority shall determine that  the  issuance  of  its
  bonds  is appropriate, the comptroller shall make a 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  he  deems
  appropriate. 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  bond  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  bond
  resolution  and  the  minutes  of the authority related thereto shall be
  transmitted to the comptroller for his approval or disapproval  thereof.
  Approval  of such bond resolution shall be indicated by the execution of
  the bond resolution by the comptroller whereupon  such  bond  resolution
  shall come into full force and effect in accordance with its terms.
    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-eight-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.