Section 1585-K. Agreements of the city

1.  The city of Port Jervis is
  authorized to pledge to and agree with the holders of the bonds that the
  city will not limit or alter the rights hereby vested in  the  authority
  to  acquire, construct, maintain, reconstruct and operate the 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 in any way impair the rights and remedies of the  bondholders,
  until  the  bonds,  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,  are
  fully met and discharged.
    2.  The  authority is hereby authorized, in its discretion, for and on
  behalf of itself and the city of Port Jervis to covenant and agree  with
  the holders of the bonds, with such exceptions and limitations as it may
  deem  in  the public interest, that no public parking areas except those
  acquired and operated by the authority will be constructed  or  operated
  in  the  city by the city, or by any public benefit or other corporation
  the members or some of which  are  elected  or  are  appointed  by  city
  officials,  until  either (a) the bonds, 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 are  fully  met  and  discharged  or  (b)  principal  or
  interest of any of the bonds shall be overdue and unpaid for a period of
  three years or more.