Section 1098. 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  of  its  corporate  purposes, including incidental expenses in
  connection therewith, and to secure the payment of the same by a lien or
  pledge covering all or part  of  its  contracts,  earnings  or  revenues
  except that no resolution or other action of the authority providing for
  the issuance of bonds may be adopted or otherwise made effective without
  the  prior  approval  of  the  Monroe  county  legislature.  The  powers
  conferred by this section on such Monroe  county  legislature  shall  be
  exercised  with due regard for the rights of the holders of bonds of the
  authority at any time outstanding, and nothing in, or done pursuant  to,
  this section shall in any way limit, restrict or alter the obligation or
  powers   of   the   authority   or  any  member,  director,  officer  or
  representative of the authority to carry out and perform in every detail
  each and every covenant, agreement or  contract  at  any  time  made  or
  entered  into by or on behalf of the authority with respect to its bonds
  or for the benefit, protection, or security of the holders thereof.  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. 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.
    2. The bonds shall be authorized by resolution of  the  authority  and
  shall  bear  such  date  or  dates,  mature  at  such  time or times not
  exceeding forty years from their respective dates, bear interest at such
  rates per annum not exceeding six per centum per annum payable  at  such
  times  within  the limitations as to interest cost hereinafter provided,
  be in such denominations, be in such form either coupon  or  registered,
  carry  such  registration  privileges,  be  executed  in such manner, be
  payable in lawful money of the United States of America, at  such  place
  or  places  and  be  subject to such terms of redemption, at par or at a
  price not exceeding one hundred five per centum of their face value,  as
  such resolution or resolutions may provide.
    All bonds of the authority may be sold at public or private sale. Such
  bonds  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 monies realized from the sale of such
  bonds shall not exceed six per centum per annum.
    3. 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  moneys,  earnings,  income  and
  revenues derived from all or any part of the properties of the authority
  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, rentals,  fees  and  other  charges  to  be  fixed  and
  collected and the amounts to be raised in each year thereby, and the use
  and disposition of the earnings and other revenues;
    (c)  the  setting  aside of reserves and the creation of sinking funds
  and the regulation and disposition thereof;
    (d) limitations on the right of the authority to restrict and regulate
  the use of the properties  in  connection  with  which  such  bonds  are
  issued;

    (e)  limitations  on the purposes to which and the manner in which the
  proceeds of sale of any issue of bonds may be applied;
    (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)  the creation of special funds into which any earnings or revenues
  of the authority may be deposited;
    (i) the terms and provisions of any trust deed or  indenture  securing
  the bonds or under which bonds may be issued;
    (j)  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 not be inconsistent with the general laws of this state;
    (k) limitations on the power of the authority  to  sell  or  otherwise
  dispose of its properties;
    (l) any other matters, of like or different character which in any way
  affect the security or protection of the bonds;
    (m) limitations on the amount of moneys derived from the properties to
  be  expended  for  operating,  administrative  or  other expenses of the
  authority.
    4. It is the intention of the legislature that any pledge of earnings,
  revenues or other moneys made  by  the  authority  shall  be  valid  and
  binding  from  the  time  when  the  pledge  is made; that the earnings,
  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 authority 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 (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 and accrued interest, and all such bonds  shall
  be cancelled.
    7.  In  the discretion of the authority, the bonds may be secured by a
  trust indenture by and between the authority and  a  corporate  trustee,
  which  may  be  any  trust  company or bank having the powers of a trust
  company in the state of New York. Such trust indenture may contain  such
  provisions  for  protecting and enforcing the rights and remedies of the
  bondholders as may be reasonable and proper and not in violation of law,
  including covenants  setting  forth  the  duties  of  the  authority  in
  relation   to  the  construction,  maintenance,  operation,  repair  and
  insurance  of  the  properties,  and  the  custody,   safeguarding   and
  application  of all moneys, and may provide that the properties shall be
  constructed  and  paid  for  under  the  supervision  and  approval   of
  consulting  engineers. The authority may provide by such trust indenture
  for the payment of the proceeds of the bonds and  the  revenues  of  the

  properties   to   the  trustee  under  such  trust  indenture  or  other
  depository, and for  the  method  of  disbursement  thereof,  with  such
  safeguards  and  restrictions as it may determine. All expenses incurred
  in  carrying  out  such  trust indenture may be treated as a part of the
  cost of maintenance, operation and repairs of  the  properties.  If  the
  bonds  shall  be secured by a trust indenture the bondholders shall have
  no authority to appoint a separate trustee to represent them.
    Notwithstanding any other provisions of this title, any resolution  or
  resolutions  authorizing bonds or notes of the authority shall contain a
  covenant by the authority that it will  at  all  times  maintain  rates,
  fees, rentals or other charges sufficient to pay, and that any contracts
  entered  into  by  the  authority  for the sale or distribution of water
  shall contain rates, fees, rentals or other charges sufficient  to  pay,
  the  cost  of operation and maintenance of the properties, the principal
  of and interest on any obligation issued pursuant to such resolution  or
  resolutions  as  the  same  severally  become  due  and  payable, and to
  maintain any reserves or other funds  required  by  the  terms  of  such
  resolution or resolutions.