Section 1408. 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  purpose  mentioned  in  section fourteen hundred three hereof,
  including the acquisition, construction, reconstruction  and  repair  of
  personal  and  real  property  of  all  kinds  deemed by the board to be
  necessary or desirable to cary out such purpose, as well as to pay  such
  expenses  as  may  be  deemed by the board necessary or desirable to the
  financing thereof and placing the project or projects  in  operation  in
  the  aggregate  principal  amount  of  not exceeding one million dollars
  outstanding at any one time. The authority shall have power from time to
  time and 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 other purpose hereinabove described. The refunding
  bonds may be exchanged for the 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 computing the
  total amount of bonds  of  the  authority  which  may  at  any  time  be
  outstanding  the amount of the outstanding bonds to be refunded from the
  proceeds of the sale of new bonds or by exchange for new bonds shall  be
  excluded.   Except  as  may  otherwise  be  expressly  provided  by  the
  authority, the bonds of every issue shall be general obligations of  the
  authority  payable  out  of  any  moneys  or  revenues of the authority,
  subject only to any agreements with  the  holders  of  particular  bonds
  pledging any particular moneys or revenues.
    2.  The bonds shall be authorized by resolution of the board and shall
  bear such date or dates, mature at such time  or  times,  not  exceeding
  thirty  years from their respective dates, bear interest at such rate or
  rates, not exceeding five per  centum  per  annum  payable  annually  or
  semi-annually,  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, as such
  resolution or resolutions may provide. The bonds may be sold  at  public
  or  private  sale  for  such  price  or  prices  as  the authority shall
  determine, but which shall not at the time of sale yield more than  five
  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 revenues of a project or projects
  to secure the payment of the bonds,  subject  to  such  agreements  with
  bondholders as may then exist;
    (b) the rentals, fees and other charges to be charged, and the amounts
  to  be  raised  in each year thereby, 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 right of the authority to restrict and regulate
  the use of a project;
    (e) limitations on the purpose to which the proceeds of  sale  of  any
  issue  of  bonds  then  or  thereafter  to  be issued may be applied and
  pledging such proceeds to secure the payment of  the  bonds  or  of  any
  issue of the bonds;
    (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)  limitations  on the amount of moneys derived from a project to be
  expended  for  operating,  administrative  or  other  expenses  of   the
  authority;
    (i) 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 the rights, powers and  duties  of  the  trustee  appointed  by  the
  bondholders pursuant to section fourteen hundred sixty-two-p hereof, and
  limiting or abrogating the right of the bondholders to appoint a trustee
  under  said  section  or  limiting the rights, duties and powers of such
  trustee;
    (j) any other matters, of like or different character,  which  in  any
  way affect the security or protection of the bonds.
    4.  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.
    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 bonds. The authority may hold, cancel or resell such bonds,
  subject to and in accordance with agreements with bondholders.
    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 project or projects and the custody, safeguarding and
  application of all moneys, and may provide that the project or  projects
  shall  be constructed and paid for under the supervision and approval of
  consulting engineers. Notwithstanding the provisions of section fourteen
  hundred sixty-two-h of this title the  authority  may  provide  by  such
  trust  indenture  for  the  payment of the proceeds of the bonds and the
  revenues of the project or projects 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 project
  or  projects.  If  the  bonds shall be secured by a trust indenture, the
  bondholders shall have no authority to appoint  a  separate  trustee  to
  represent  them,  and  the trustee under such trust indenture shall have
  and possess all of the powers which are conferred  by  section  fourteen
  hundred sixty-two-p upon a trustee appointed by bondholders.