Section 1207-B. Issuance of bonds and notes by the authority

1.
  Notwithstanding the provisions of sections twelve hundred through twelve
  hundred twenty-one, inclusive, of this title or of any other  provisions
  of  law to the contrary, but subject to the provisions of section twelve
  hundred seven-j of this title, the authority shall have the power and is
  hereby authorized to borrow money and  to  issue  negotiable  bonds  and
  notes  therefor  in conformity with applicable provisions of the uniform
  commercial code in such principal amount  as,  in  the  opinion  of  the
  authority,  shall  be  necessary  to provide funds sufficient to pay the
  purchase price of no more than seven hundred twenty-four  cars  for  the
  rapid  transit  lines  under the jurisdiction of the authority purchased
  pursuant to section  twelve  hundred  seven-a  of  this  title,  to  pay
  interest  on the bonds and notes of the authority, to establish reserves
  to secure such bonds and notes, and to pay all other expenditures of the
  authority incident to or incurred in connection  with  the  purchase  of
  such  cars  and  the  authorization, issuance and sale of said bonds and
  notes. In no event shall there be outstanding at any one time more  than
  ninety-two million dollars ($92,000,000) in such bonds and notes.
    1-a.   The  authority  may  also  issue  its  bonds,  notes  or  other
  obligations in such principal amounts as shall be necessary  to  finance
  the  construction,  purchase,  lease  or  acquisition  of,  or an equity
  interest in, an office building located or  to  be  constructed  in  the
  borough  of  Brooklyn in the city, provided that (i) all or a portion of
  such building is intended to be occupied by the authority and  that  the
  board  shall,  by  resolution,  have  made  findings that the sum of the
  capitalized value of all payments due  from  the  authority  under  such
  bonds,   notes   or   other   obligations  (not  including  any  amounts
  attributable to principal repayment) together with any rent payments for
  the space in such building to be occupied by the authority  and  of  all
  payments  required of the authority under any related agreement does not
  exceed the capitalized value of those payments which would be made in  a
  conventional  commercial  lease transaction for comparable space with an
  unrelated party and (ii) not more than an insubstantial portion  of  any
  real  property  so  financed with the proceeds of bonds, notes, or other
  obligations is  utilized  by  other  than  the  New  York  city  transit
  authority or its designated subsidiary. The term "capitalized value" for
  the  purposes  of  this  subdivision shall be computed in the manner set
  forth in subdivision four of section  twelve  hundred  seven-m  of  this
  title.  The metropolitan transportation authority is hereby additionally
  authorized from time  to  time  to  issue  bonds  for  the  purposes  of
  refunding,  redeeming  or otherwise paying, including paying by purchase
  or tender, bonds issued by the authority for such purposes and to secure
  such bonds in the manner set forth in section twelve hundred  sixty-nine
  of this article.
    2. The authority shall have the power from time to time to renew notes
  or to issue renewal notes for such purpose, to issue bonds to pay notes,
  and  whenever  it  deems  refunding  expedient,  to  refund bonds by the
  issuance of new bonds and to issue bonds  partly  to  refund  bonds  and
  notes  then  outstanding  and  partly  for  the  purposes  authorized by
  subdivision one of this section. The refunding bonds  may  be  exchanged
  for  bonds  to be refunded, with such cash adjustments as may be agreed,
  or may be sold and the proceeds applied to the purchase  or  payment  of
  the  bonds  to  be  refunded. In no event shall the maturity date of the
  refunding bonds be a date beyond thirty-five years  from  the  date  the
  first bond was issued.
    3.  Every  issue  of bonds and notes of the authority shall be special
  obligations of the authority payable solely from the moneys and revenues
  of the authority derived from the operation of  the  transit  facilities

  under  its  jurisdiction,  subject  to any agreement with the holders of
  particular bonds or notes pledging any particular moneys or revenues.
    4.  The  bonds  and  notes  shall  be  authorized by resolution of the
  authority and shall bear such date or dates and  shall  mature  at  such
  time or times as such resolution or resolutions may provide, except that
  no  note  or any renewal thereof shall mature more than five years after
  the date of issue of the original note and no  bond  shall  mature  more
  than  thirty-five  years  from  the date of issue. Bonds and notes shall
  bear interest at such rate or rates, be in  such  denominations,  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 of
  redemption and to such other terms and conditions as such resolution  or
  resolutions  may  provide.  The bonds and notes may be sold at public or
  private sale for such price or prices as the authority shall  determine.
  Pending preparation of definitive bonds, the authority may issue interim
  receipts which shall be exchanged for such bonds.
    5. Any resolution or resolutions authorizing any bonds or notes or any
  issue of bonds or notes may contain provisions, which shall be a part of
  the contract with the holders of the bonds, or notes thereby authorized,
  as to
    (a)  pledging  all  or any part of the revenues or other monies of the
  authority to secure the payment of the bonds or notes or of any issue of
  the bonds or notes, subject  to  such  agreements  with  bondholders  or
  noteholders as may then exist;
    (b)  the  rate  or  rates  of fare to be charged and the amounts to be
  raised in each year from revenues and the use  and  disposition  of  the
  revenues;
    (c) the setting aside of reserves or sinking funds, and the regulation
  and disposition thereof;
    (d) limitations on the rights of the authority with respect to the use
  and disposition of the cars for which such bonds or notes are issued and
  with respect to all other transit facilities of the authority;
    (e)  limitations  on  the purpose to which the proceeds of sale of any
  issue of bonds or notes then or thereafter to be issued may  be  applied
  and  pledging  such proceeds to secure the payment of the bonds or notes
  or of any issue of the bonds or notes;
    (f) limitations on the issuance of additional  bonds  and  notes;  the
  terms  upon  which additional bonds and notes may be issued and secured,
  and the funding or refunding of outstanding or other bonds and notes;
    (g) the procedure, if any, by which the terms  of  any  contract  with
  bondholders  or  noteholders  may be amended or abrogated, the amount of
  bonds or notes the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (h) vesting in a trustee or trustees such property, 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  or  noteholders  pursuant to section twelve hundred seven-h
  hereof, and limiting or abrogating  the  right  of  the  bondholders  to
  appoint  a  trustee  under  section  twelve  hundred  seven-h hereof, or
  limiting the rights, duties and powers of such trustee;
    (i) defining the acts or omissions to act  which  shall  constitute  a
  default  in  the duties of the authority to the holders of its bonds and
  notes and providing the rights and remedies of such holders in the event
  of default;
    (j) any other matters, of like or different character,  which  in  any
  way affect the security or protection of the bonds and notes.

    6.  It  is  the  intention hereof that any pledge of revenues or other
  moneys made by the authority shall be valid and binding  from  the  time
  when  the  pledge  is made; that the 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.
    7. Neither the members of the board nor any person executing the bonds
  or  notes shall be liable personally on the bonds or notes or be subject
  to any personal liability or accountability by reason  of  the  issuance
  thereof.
    8.  Subject  to such agreements with bondholders or noteholders as may
  then exist, the authority shall have power out of  any  funds  available
  therefor  to  purchase bonds or notes. The authority may hold, cancel or
  resell  such  bonds  and  notes,  subject  to  and  in  accordance  with
  agreements with bondholders and noteholders.