Section 1080. Bonds

1.  The  authority  shall  have  power and is hereby
  authorized from time to time to issue its negotiable bonds in conformity
  with applicable provisions of the uniform commercial  code.  Such  bonds
  shall  be  authorized by resolution of the authority and shall bear such
  date or dates, mature at such time or times in not exceeding forty years
  from their respective date or dates, subject to such option  or  options
  of  redemption,  as  may  be provided in the resolution authorizing such
  bonds, at par or at a price not exceeding one hundred five per centum of
  their face value, together with accrued interest, bear interest at  such
  rate  or  rates  that the cost to maturity of the money for any issue of
  such bonds shall not exceed six per centum per annum,  payable  annually
  or  semi-annually,  be  in  such denominations, and in such form, either
  coupon or registered, and be executed in such manner, and be payable  in
  such  medium of payment, at such place or places, and be subject to such
  terms and conditions as such resolution or resolutions may provide.
    2. All bonds of the authority shall be sold at public sale upon sealed
  bids to the bidder who shall offer  the  lowest  interest  cost  to  the
  authority to be determined by the authority. The notice of sale shall be
  published  at  least  once  not  less  than ten nor more than forty days
  before the date of sale in a newspaper designated by the  authority  and
  shall  call  for the receipt of sealed bids and shall fix the date, time
  and place of sale.
    3. Notwithstanding the foregoing provisions requiring public sale, any
  bonds of the authority may be sold by the authority within two years  of
  the effective date of this title at private sale at such price or prices
  as  the authority shall determine not exceeding the interest cost herein
  provided, and the authority also may sell at private sale for such price
  or prices as the authority shall determine not  exceeding  the  interest
  cost herein provided, any bonds authorized for the purpose of paying the
  cost  of acquiring by condemnation a privately owned public water supply
  and distribution system provided such bonds are sold within one year  of
  the date of completion of such condemnation and the proceedings for such
  condemnation were commenced prior to or not more than two years from the
  effective date of this title.
    4. Any bonds of the authority, whether sold at public or private sale,
  shall be sold for a price not less than ninety-six per centum of the par
  value  thereof,  plus accrued interest provided always that the interest
  cost to maturity of the money for any issue  of  such  bonds  shall  not
  exceed  six  per  centum  per  annum.  Such  bonds may be issued for any
  corporate purpose of the authority.
    5. Any resolution or resolutions authorizing  any  bonds  may  contain
  provisions,  which  shall  be a part of the contract with the holders of
  the bonds, as to (a) pledging the revenue or water rents charged by  the
  authority to secure the payment of the bonds;
    (b) the setting aside of reserves or sinking funds, and the regulation
  and disposition thereof;
    (c) limitations on the right of the authority to restrict and regulate
  the  use of water and to alter or reduce rates or charges for the use of
  water;
    (d) limitations on the issuance of additional bonds;
    (e) the application of funds and the safeguarding of funds on hand  or
  on  deposit,  including  the  requiring  of  the  giving of security for
  deposit of such funds by depository banks  or  trust  companies.  Unless
  otherwise  provided  in  said  resolution,  all deposits of funds of the
  authority shall be secured in the manner provided by  law  for  securing
  deposits  of county moneys. All banks and trust companies are authorized
  to give such security for such deposits;

    (f) defining the acts or omissions to act  which  shall  constitute  a
  default   in  the  obligations  and  duties  of  the  authority  to  the
  bondholders and providing 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 be not inconsistent with the general laws of this state.
    6. The authority shall have power from time to time 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 may issue
  bonds partly to refund bonds then outstanding and partly for any of  its
  corporate purposes. Refunding bonds may be delivered by the authority to
  the  purchasers  thereof  at  any  time prior to the date of maturity or
  redemption date of the bonds proposed to be refunded, if  the  authority
  shall  determine  that  such  action  shall  be  financially  sound  and
  advantageous to the authority. The rate or  rates  of  interest  of  the
  refunding  bonds  shall  not be limited by the rate or rates of interest
  borne by any of the bonds to be refunded by such bonds, but all  of  the
  provisions  of  this  section with reference to the sale of bonds of the
  authority, and the interest  cost  of  the  money  raised  by  the  sale
  thereof, shall apply to such refunding bonds.
    7.  Except  as  may  be otherwise expressly provided by the authority,
  every issue of bonds by  the  authority  shall  be  general  obligations
  payable  out  of  any  moneys,  earnings  or  revenues of the authority,
  subject only to any agreements with  the  holders  of  particular  bonds
  pledging any particular moneys, earnings or revenues.
    8.  Neither  the members of the authority nor any person executing the
  bonds shall be personally liable on the  bonds  or  be  subject  to  any
  personal  liability or accountability by reason of the issuance thereof.
  The authority shall have power, out of any funds available therefor,  to
  purchase  (as  distinguished  from  the  power of redemption hereinabove
  provided) any bonds issued by it  at  a  price  of  not  more  than  the
  principal  amount thereof or the redemption price at which the bonds may
  be redeemed at the next ensuing redemption date  and  accrued  interest.
  All bonds so purchased shall be cancelled.
    9.  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.