Section 1199-GGGG. Bonds of the authority

1. The authority shall have the
  power  and  is hereby authorized from time to time to issue bonds, notes
  or other obligations to pay the cost of any project  or  for  any  other
  corporate purpose, including the establishment of reserves to secure the
  bonds, the payment of principal of, premium, if any, and interest on the
  bonds  and  the  payment of incidental expenses in connection therewith.
  The aggregate principal amount of such bonds, notes or other obligations
  shall not exceed  forty-two  million  dollars  ($42,000,000),  excluding
  bonds,  notes  or  other obligations issued to refund or otherwise repay
  bonds, notes or other obligations theretofore issued for  such  purposes
  provided,  however,  that upon any such refunding or repayment the total
  aggregate  principal  amount  of  outstanding  bonds,  notes  or   other
  obligations  may be greater than forty-two million dollars ($42,000,000)
  only if the present value of the aggregate debt service of the refunding
  or repayment bonds, notes or other obligations to be  issued  shall  not
  exceed  the  present  value  of the aggregate debt service of the bonds,
  notes or other obligations so to be refunded  or  repaid.  For  purposes
  hereof,  the  present  values  of  the  aggregate  debt  service  of the
  refunding or repayment bonds, notes or  other  obligations  and  of  the
  aggregate  debt  service of the bonds, notes or other obligations and of
  the aggregate debt service of the bonds, notes or other  obligations  so
  refunded  or  repaid,  shall  be  calculated  by utilizing the effective
  interest rate of the  refunding  or  repayment  bonds,  notes  or  other
  obligations,  which  shall  be  that  rate  arrived  at  by doubling the
  semi-annual  interest  rate  (compounded  semi-annually)  necessary   to
  discount  the debt service payments on the refunding or repayment bonds,
  notes or other obligations from the payment dates thereof to the date of
  issue of the refunding or repayment bonds, notes  or  other  obligations
  and  to  the  price bid including estimated accrued interest or proceeds
  received by the authority including estimated accrued interest from  the
  sale  thereof.  The  authority  shall  have  the  power  and  is  hereby
  authorized to enter into such agreements and perform such acts as may be
  required under any applicable federal legislation to  secure  a  federal
  guarantee of any bonds.
    2.  The authority shall have power from time to time to renew bonds or
  to issue renewal bonds for such purpose, to issue bonds  to  pay  bonds,
  and,  whenever  it  deems refunding expedient, to refund any bond 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 of the  authority.  Bonds  (other
  than  notes  or  other  evidence  of  indebtedness) issued for refunding
  purposes, which have a final maturity date longer than the  maturity  of
  the bonds being refunded, shall be approved by a resolution of the board
  of  supervisors  adopted  by  a majority vote and approved by the county
  treasurer. Bonds issued for refunding purposes shall  be  sold  and  the
  proceeds  applied to the purchase, redemption or payment of the bonds or
  notes to be refunded.
    3. Bonds issued by the authority may be general obligations secured by
  the faith and credit of the authority  or  may  be  special  obligations
  payable  solely  out  of  particular  revenues or other moneys as may be
  designated in the proceedings of the authority  under  which  the  bonds
  shall  be  authorized  to  be issued, subject as to priority only to any
  agreements with the holders of outstanding bonds pledging any particular
  property, revenues or moneys. The authority may  also  enter  into  loan
  agreements, lines of credit and other security agreements and obtain for
  or  on  its  behalf  letters  of  credit, insurance, guarantees or other
  credit enhancements to the extent not or hereafter  available,  in  each

  case  for  securing its bonds or to provided direct payment of any costs
  which the authority is authorized to pay.
    4.  Bonds  shall  be  authorized by resolution of the authority, be in
  such denominations and bear such date or dates and mature at  such  time
  or  times,  as  such  resolution  may  provide,  provided that bonds and
  renewals thereof shall mature  within  forty  years  from  the  date  of
  original issuance of any such bonds.
    Bonds  shall  be subject to such terms of redemption, bear interest at
  such rate or rates, be payable at such times, 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 and conditions as  such  resolution
  may  provide.  Notwithstanding  any other provision of law, the bonds of
  the authority issued pursuant to this  section  shall  be  sold  to  the
  bidder offering the lowest true interest cost, taking into consideration
  any  premium  or discount not less than four nor more than fifteen days,
  Sundays excepted, after a notice of such  sale  has  been  published  at
  least  once  in a newspaper of general circulation in the area served by
  the authority, which shall state the terms of the sale. The terms of the
  sale may not change unless notice of such change is  published  in  such
  newspaper at least one day prior to the date of the sale as set forth in
  the original notice of sale. Advertisements shall contain a provision to
  the  effect that the authority, in its discretion, may reject any or all
  bids made in pursuance of such advertisements, and in the event of  such
  rejection,  the authority is authorized to negotiate a private or public
  sale or readvertise for bids in the form and manner above  described  as
  many  times as, in its judgment, may be necessary to effect satisfactory
  sale.
    Notwithstanding the provisions of the preceding paragraph, whenever in
  the judgment of the authority the interests of  the  authority  will  be
  served   thereby,   the   members  of  the  authority,  on  the  written
  recommendation of the chairperson, may authorize the sale of such  bonds
  at  private  or  public  sale  on  a  negotiated  basis  or  on either a
  competitive or negotiated basis.  The  authority  shall  set  guidelines
  governing  the terms and conditions of any such private or public sales.
  The private or public bond sale guidelines set by  the  authority  shall
  include,  but  not be limited to, a requirement that where the interests
  of the authority will be served by a private or public  sale  of  bonds,
  the  authority shall select underwriters for each private or public bond
  sale  conducted  pursuant  to  a  request  for  proposal   process   and
  consideration  of  proposals  from  qualified  underwriters  taking into
  account, among  other  things,  qualifications  of  underwriters  as  to
  experience,  their  ability to structure and sell authority bond issues,
  anticipated  costs  to  the  authority,  the  prior  experience  of  the
  authority  with  the  firm,  if  any,  the capitalization of such firms,
  participation of qualified minority and women-owned business  enterprise
  firms  in such private or public sales of bonds of the authority and the
  experience and  ability  of  firms  under  consideration  to  work  with
  minority  and  women-owned  business  enterprises  so  as to promote and
  assist participation by such enterprises.
    The authority shall have the power from time to  time  to  amend  such
  private  bond  sale guidelines in accordance with the provisions of this
  subdivision.
    No private or  public  bond  sale  on  a  negotiated  basis  shall  be
  conducted   by  the  authority  without  prior  approval  of  the  state
  comptroller. The authority shall annually prepare  and  approve  a  bond
  sale  report  which  shall  include  the  private  or  public  bond sale
  guidelines  as  specified  in  this  subdivision,  amendments  to   such

  guidelines  since  the  last  private  or  public  bond  sale report, an
  explanation of the bond sale guidelines and amendments, and the  results
  of  any  sale  of bonds conducted during the fiscal year. Such bond sale
  report  may  be  a part of any other annual report that the authority is
  required to make.
    The authority shall annually submit its bond sale report to the  state
  comptroller  and  copies thereof to the senate finance committee and the
  assembly ways and means committee.
    The authority shall make available to the public copies  of  its  bond
  sale report upon reasonable request thereof.
    Nothing contained in this subdivision shall be deemed to alter, affect
  the validity of, modify the terms of or impair any contract or agreement
  made  or  entered  into in violation of, or without compliance with, the
  provisions of this subdivision.
    5. Any resolution or resolutions authorizing bonds  or  any  issue  of
  bonds  by  the authority may contain provisions which may be 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, or property of the authority, to secure the payment of the bonds
  or  any  costs  of  issuance  thereof,  including but not limited to any
  contracts, earnings or proceeds of any grant to the  authority  received
  from  any  private  or  public  source,  subject to such agreements with
  bondholders as may then exist;
    (b) the rates, rentals,  fees  and  other  charges  to  be  fixed  and
  collected  by  the  authority  and the amounts to be raised in each year
  thereby, and the use and disposition of revenues;
    (c) the setting aside of reserves and the creation  of  sinking  funds
  and the regulation and disposition thereof;
    (d)  limitations on the purpose to which the proceeds from the sale of
  bonds may be applied;
    (e) limitations on the right of the authority to restrict and regulate
  the use of any water project or part thereof in  connection  with  which
  bonds are issued;
    (f)  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;
    (g)  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;
    (h) the creation of special funds into which  any  revenues  or  other
  moneys may be deposited;
    (i) the terms and provisions of any trust, deed, mortgage or indenture
  securing the bonds under which the bonds may be issued;
    (j)  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 eleven hundred  ninety-nine-hhhh  of
  this title or limiting the rights, duties and powers of such trustee;
    (k)  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;
    (l) limitations on the power of the authority  to  sell  or  otherwise
  dispose of any water facility or any part thereof or other property;

    (m)  limitations  on  the  amount  of  revenues and other moneys to be
  expended  for  operating,  administrative  or  other  expenses  of   the
  authority;
    (n) 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
    (o)  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.
    6.  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 adopt resolutions and enter into trust indentures,
  agreements, or other instruments as the authority  may  deem  necessary,
  convenient  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.
    7. 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.
    8. 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 purposes of the uniform commercial code,
  subject only to the provisions of the bonds for registration.
    9. Neither the members nor the  officers  of  the  authority  nor  any
  person  executing bonds shall be liable personally thereon or be subject
  to any personal liability or accountability by reason  of  the  issuance
  thereof.
    10. 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 in lieu of redemption, at  a  price  not
  exceeding:
    (a)  if  the  bonds  are  then  redeemable,  the redemption price then
  applicable, plus accrued interest to the next interest payment date;
    (b) if the bonds are not then redeemable, the  redemption  price  then
  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. Bonds so purchased shall thereupon be cancelled.
    11.  The  authority shall have power and is hereby authorized to issue
  negotiable  bond  anticipation  notes  in  conformity  with   applicable
  provisions  of  the  uniform commercial code and may renew the same from

  time to time but the  maximum  maturity  of  any  such  note,  including
  renewals  thereof, shall not exceed five years from the date of issue of
  such original note.
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