Section 1621-K. Agreements of the city and the state

1. The city 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  city  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 common council and  the
  mayor  of the city of Middletown, 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 city, except those acquired and operated by the authority
  will  be  constructed  or  operated  in  the city by the city (except as
  herinafter provided), or by any public benefit or other corporation, the
  members of which are elected  or  appointed  by  city  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 city to
  continue to operate the presently existing municipal parking  facilities
  and any replacements thereof.