Section 2040-G. Bonds and notes

1. (a) The authority shall have power and
  is hereby authorized from time to time to issue its negotiable bonds and
  notes,  in  conformity  with  applicable  provisions  of   the   uniform
  commercial  code,  in  such  principal  amount as, in the opinion of the
  authority, shall  be  necessary  for  any  of  its  corporate  purposes,
  including incidental expenses in connection therewith;
    (b)  Except  as  may otherwise be expressly provided by the authority,
  every issue of its bonds or notes shall be general  obligations  of  the
  authority  payable  out  of any moneys of the authority, subject only to
  any agreements with the holders of particular bonds  or  notes  pledging
  any particular moneys;
    2.  The  bonds  and  notes  shall  be  authorized by resolution of the
  governing body, shall bear such date or dates, shall mature at such time
  or times, 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 as such resolution or resolutions may provide.  The  notes
  and  bonds of the authority may be sold by the authority at private sale
  subject to the approval of the comptroller of the state of New  York  or
  at  a  public  sale  at  such  price  or  prices  as the authority shall
  determine. The authority may pay all expenses, premiums and  commissions
  which  it  may  deem  necessary  or  advantageous in connection with the
  issuance and sale thereof.
    3. Any resolution or resolutions authorizing any bonds or notes or any
  issue thereof may contain provisions, which  shall  be  a  part  of  the
  contract with the holders thereof, as to:
    (a)  pledging all or any part of the moneys or revenues derived by the
  authority from the ownership or operation of, or otherwise in connection
  with, any project or projects or any part or parts thereof to secure the
  payment of the bonds or notes or of any issue thereof, subject  to  such
  agreements with bondholders or noteholders as may then exist;
    (b)  the  amount,  use and disposition of the rates, rentals, fees and
  other charges to be fixed and collected by the authority;
    (c) the setting aside of reserves and the creation  of  sinking  funds
  and the regulation and disposition thereof;
    (d) limitations on the right of the authority to restrict and regulate
  the  use  of the properties in connection with which such bonds or notes
  are issued;
    (e) limitations on the purpose to which the proceeds of sale of  bonds
  or notes may be applied;
    (f)  limitations  on  the  issuance  of additional bonds or notes, the
  terms upon which additional bonds or notes may be  issued  and  secured;
  the refunding of outstanding or other bonds or 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) the creation of special funds into which any moneys or revenues of
  the authority may be deposited;
    (i)  the  terms  and  provisions  of  any  mortgage  or  trust deed or
  indenture securing the bonds or notes or under which the bonds or  notes
  may be issued;
    (j)  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  this  title, and limiting or
  abrogating the right of the bondholders  or  noteholders  to  appoint  a

  trustee  under  this  title or limiting the rights, powers and duties of
  such trustee;
    (k)  defining  the  acts  or omissions to act which shall constitute a
  default  in  the  obligations  and  duties  of  the  authority  to   the
  bondholders  or noteholders and providing the rights and remedies of the
  bondholders or noteholders in the event of such default, including as  a
  matter  of  right the appointment of a receiver, provided, however, that
  such rights and remedies shall not be inconsistent with the general laws
  of this state and other provisions of this title;
    (l) limitations on the power of the authority  to  sell  or  otherwise
  dispose of its properties;
    (m)  limitations on the amount of money derived from the properties to
  be expended for operating,  administrative  or  other  expenses  of  the
  authority;
    (n)  the  protection and enforcement of the rights and remedies of the
  bondholders or noteholders;
    (o) the obligations of the authority in relation to the  construction,
  maintenance,  operation,  repairs and insurance of the properties of the
  authority, the safeguarding  and  application  of  all  moneys  and  the
  requirements for the supervision and approval of consulting engineers in
  connection   with   construction,  maintenance  and  operation  of  such
  properties;
    (p) the payment of the proceeds of bonds and notes  and  other  moneys
  and  revenues of the authority to a trustee or other depositary, and for
  the method of disbursement thereof with such safeguards and restrictions
  as the authority may determine;
    (q) any other matters, of like or different character which in any way
  affect the security of protection of the bonds and notes.
    4. In addition to the powers herein conferred upon  the  authority  to
  secure its bonds and notes, the authority shall have power in connection
  with  the  issuance  of bonds and notes to enter into such agreements as
  the authority may deem necessary, convenient or desirable concerning the
  use or disposition of its moneys or property including the mortgaging of
  any such property and the entrusting, pledging or creation of any  other
  security  interest  in  any such moneys or property and the doing of any
  act (including refraining from doing any act) which the authority  would
  have  the  right  to do in the absence of such agreements. The authority
  shall have power to enter into amendments of any such agreements  within
  the  powers  granted  to the authority by this title and to perform such
  agreements. The provisions of any such agreements may be made a part  of
  the contract with the holders of the bonds and notes of the authority.
    5. It is the intention of the legislature that any pledge, mortgage or
  security  instrument  made  by  the authority shall be valid and binding
  from the time when the pledge, mortgage or security instrument is  made;
  that  the  moneys  or  property  so pledged, mortgaged, or entrusted and
  thereafter received by the authority shall immediately be subject to the
  lien of  such  pledge,  mortgage  or  security  instrument  without  any
  physical  delivery  thereof  or  further  act; and that the lien of such
  pledge, mortgage or security instrument 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 mortgage, security
  instrument or other instrument by which a pledge, mortgage lien or other
  security is created need be recorded or filed and  the  authority  shall
  not  be  required  to  comply  with any of the provisions of the uniform
  commercial code.
    6. The authority shall have power and is hereby authorized, from  time
  to time, to issue its bonds or notes for the purpose of refunding any of

  its  bonds  or  notes  then  outstanding.  The  principal amount of such
  refunding bonds or notes shall not exceed an amount  sufficient  to  pay
  the  sum  of  (i)  the  principal  amount  of  the  bonds or notes to be
  refunded,  outstanding as of the date of issue of the refunding bonds or
  notes, (ii) the aggregate amount of unmatured interest  payable  on  the
  bonds  or notes to be refunded to and including either the date or dates
  such bonds or notes mature or, if such bonds or notes are to  be  called
  for  redemption  prior to such maturity date or dates, the date or dates
  fixed for such redemption in the resolution authorizing  such  refunding
  bonds  or notes, (iii) redemption premiums, if any, payable on the bonds
  or notes to be refunded as of the date or dates  fixed  for  redemption,
  and  (iv) costs and expenses incidental to the issuance of the refunding
  bonds or notes. The proceeds of any such bonds or notes issued  for  the
  purpose  of  so refunding outstanding bonds or notes shall be applied to
  the payment of  such  outstanding  bonds  or  notes  on  the  respective
  maturity  dates  thereof  or upon the date fixed for redemption. Pending
  such application, the proceeds of any  such  bonds  or  notes  shall  be
  placed  in  escrow  to  be  applied  to  such  purchase or retirement or
  redemption on such date. Any such escrowed proceeds, pending  such  use,
  may  be invested and reinvested only in obligations which mature at such
  time or times as shall be appropriate to assure the prompt  payment,  as
  to   principal,   interest  and  redemption  premium,  if  any,  on  the
  outstanding bonds or notes to be so refunded by purchase, retirement  or
  redemption,  as  the  case  may be. The interest, income and profits, if
  any, earned or realized on any such investment may also  be  applied  to
  the  payment  of  the  outstanding  bonds  or notes to be so refunded by
  purchase, retirement or redemption, as the case may be or may be pledged
  to the payment of the principal of and interest on any  bonds  or  notes
  issued  to refund any outstanding bonds or notes. After the terms of the
  escrow have been fully satisfied and carried out, any  balance  of  such
  proceeds  and  interest,  if  any, earned or realized on the investments
  thereof may be returned to the authority for use by  it  in  any  lawful
  manner. All such bonds or notes shall be issued and secured and shall be
  subject  to  the  provisions of this title in the same manner and to the
  same extent as any other bonds or notes issued pursuant to this title.
    7. Neither the directors of the authority 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. The authority, subject  to  such  agreements  with  bondholders  or
  noteholders  as  may  then  exist,  shall  have  power  out of any funds
  available therefor to purchase bonds or notes of  the  authority,  which
  shall  thereupon be cancelled, at a price not exceeding (a) if the bonds
  or notes are then redeemable, the redemption price then applicable  plus
  accrued  interest  to  the  next interest payment thereon, or (b) if the
  bonds or notes are not then redeemable, the redemption price  applicable
  on  the  first  date  after  such purchase upon which the bonds or notes
  become subject to redemption plus accrued interest to such date.