Section 1600-KK. Agreements of the village and the state

1. The village is
  authorized to, and the state of New York does hereby pledge to and agree
  with the holders of the bonds or notes that neither the village nor  the
  state, respectively, will limit or alter the rights hereby vested in the
  authority  to  acquire, construct, reconstruct, improve, equip, furnish,
  maintain or operate any project or projects, to  establish  and  collect
  rentals,  fees  and  other  charges  and  to  fulfill  the  terms of any
  agreements made with the holders of the bonds or notes, or  in  any  way
  impair  the rights and remedies of the bondholders or noteholders, until
  the bonds or notes, together with interest thereon, with interest on any
  unpaid installments of interest and all costs and expenses in connection
  with any action or proceeding by or on  behalf  of  the  bondholders  or
  noteholders, are fully met and discharged.
    2.  The  authority is hereby authorized, in its discretion, for and on
  behalf of itself and, subject  to  approval  by  the  village  board  of
  trustees  and mayor, the village of Sleepy Hollow, to covenant and agree
  with the holders of  the  bonds  or  notes,  with  such  exceptions  and
  limitations  as  it may deem in the public interest and in the interests
  of the authority's bondholders and noteholders, that no  public  parking
  areas  or  spaces,  including  the installation and operation of parking
  meters on the public streets of the village, except those  acquired  and
  operated by the authority will be constructed or operated in the village
  by  the  village  (except  as  hereinafter  provided),  or by any public
  benefit or other corporation,  the  members  of  which  are  elected  or
  appointed  by  village  officials,  until either (a) the bonds or notes,
  together with interest thereon, interest on any unpaid  installments  of
  interest  and  all  costs  and expenses in connection with any action or
  proceeding by or on behalf of the bondholders or noteholders  are  fully
  met  and discharged; or (b) principal or interest of any of the bonds or
  notes shall be overdue and unpaid for a period of three years  or  more;
  provided,  however,  nothing  herein contained shall be deemed to impair
  the right of the village to continue to operate the  presently  existing
  municipal parking facilities and any replacements thereof.