Section 2406. Bonds and notes of the agency

(1) Subject to the approval of
  the New York public authorities control board  in  accordance  with  the
  provisions  of  chapter  thirty-nine  of  the  laws  of nineteen hundred
  seventy-six, as amended and subject to the  provisions  of  section  two
  thousand  four  hundred  seven  of this title, the agency shall have the
  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  amounts as, in the opinion of the
  agency, shall be necessary to provide sufficient funds for achieving the
  corporate purposes thereof, including the  purchase  of  mortgages  from
  banks,  the  payment  of  interest  on  bonds  and  notes of the agency,
  establishment of reserves to secure such bonds and notes,  the  transfer
  of  money  to  the  state  as  described  in subdivision twenty-seven of
  section  twenty-four  hundred  four  of  this  chapter,  and  all  other
  expenditures  of  the  agency incident to and necessary or convenient to
  carry out its  corporate  purposes  and  powers,  except  the  operating
  expenses of the agency.
    (2)  Except  as may otherwise be expressly provided by the agency, all
  bonds and notes issued by the agency shall be general obligations of the
  agency, secured by the full faith and credit of the agency  and  payable
  out  of  any  moneys, assets, or revenues of the agency, subject only to
  any agreement with bondholders or noteholders  pledging  any  particular
  moneys, assets or revenues.
    (3) Bonds and notes shall be authorized by a resolution or resolutions
  of the agency adopted as provided by this title; provided, however, that
  any  such  resolution  authorizing  the  issuance  of bonds or notes may
  delegate to an officer of the agency the power to issue  such  bonds  or
  notes  from  time  to  time and to fix the details of any such issues of
  bonds or notes by an appropriate certificate of such authorized officer.
    (4) Such bonds or notes shall bear such date or dates, shall mature at
  such time or times, shall bear interest at such rate or rates, shall  be
  of  such  denominations,  shall be in such form, 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 within or without
  the state, be subject to such terms of redemption prior to  maturity  as
  may  be  provided  by such resolution or resolutions or such certificate
  with respect to such bonds or notes,  as  the  case  may  be;  provided,
  however, that the maximum maturity of bonds shall not exceed forty years
  from  the date thereof and the maximum maturity of notes or any renewals
  thereof shall not exceed seven years from the date of the original issue
  of such notes.
    (5) Any bonds or notes of the agency may be  sold  at  such  price  or
  prices,  at public or private sale, in such manner and from time to time
  as may be determined by the agency, and the agency may pay all expenses,
  premiums and commissions which it may deem necessary or advantageous  in
  connection  with the issuance and sale thereof. No bonds or notes of the
  agency may be sold at private sale, however, unless such  sale  and  the
  terms  thereof  have  been approved in writing by (a) the comptroller if
  such sale is not to the comptroller and  the  comptroller  is  not  then
  serving  as  a  director of the agency, or (b) the state director of the
  budget, if such sale is to the comptroller or the  comptroller  is  then
  serving as a director of the agency.
    (6)  The agency is authorized to provide for the issuance of its bonds
  or notes (including bonds, notes or other obligations  the  interest  on
  which  is  includable  under  the United States Internal Revenue Code of
  nineteen hundred eighty-six, as amended, or any subsequent corresponding
  internal revenue law of the United States, in the gross  income  of  the
  holders  of the bonds to the same extent and in the same manner that the

  interest on bills, bonds, notes  or  other  obligations  of  the  United
  States  is  includable  in the gross income of the holders thereof under
  said Internal Revenue Code or any such subsequent law) for  the  purpose
  of  refunding  any  bonds  or  notes  of  the  agency  then outstanding,
  including the  payment  of  any  redemption  premiums  thereon  and  any
  interest accrued or to accrue to the redemption date next succeeding the
  date  of  delivery of such 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 forthwith applied to the purchase or retirement
  of such outstanding bonds or notes or the redemption of such outstanding
  bonds or notes on the  redemption  date  next  succeeding  the  date  of
  delivery  of  such  refunding  bonds  or  notes  and  may,  pending such
  application, 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 in  obligations  of  or
  guaranteed  by  the  state  or  the  United  States  of  America,  or in
  certificates of deposit or time deposits secured in such manner  as  the
  agency  shall determine, or in obligations of any agency of the state or
  the United States of America which may from  time  to  time  be  legally
  purchased  by  savings  banks within the state as an investment of funds
  belonging to them or in their control, or in obligations of the  Federal
  National  Mortgage  Association, maturing 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. 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 agency 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) Whether or not the bonds and notes are of such form and  character
  as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
  commercial  code,  the  bonds  and  notes  are  hereby  made  negotiable
  instruments  within  the  meaning  of  and  for  all the purposes of the
  uniform commercial code, subject only to the provisions of the bonds and
  notes for registration.
    (8) Subject only to the  provisions  of  sections  two  thousand  four
  hundred  seven  and  two  thousand four hundred eight of this title, any
  resolution or resolutions authorizing any bonds or notes of  the  agency
  may  contain  provisions  which  may  be a part of the contract with the
  holders of such bonds or notes, as to: (a) pledging or creating a  lien,
  to  the extent provided by such resolution or resolutions, on all or any
  part of any monies or property of the agency or of any  moneys  held  in
  trust or otherwise by others for the payment of such bonds or notes; (b)
  otherwise  providing  for  the custody, collection, securing, investment
  and payment of any moneys of  the  agency;  (c)  the  setting  aside  of
  reserves or sinking funds and the regulation or disposition thereof; (d)
  limitations on the purpose to which the proceeds of sale of any issue of
  such  bonds or notes then or thereafter to be issued may be applied; (e)
  limitations on the issuance of additional bonds or notes, the terms upon
  which additional bonds or notes may be issued and secured, and upon  the
  refunding  of outstanding or other bonds or notes; (f) the procedure, if
  any, by which the terms of any contract with the  holders  of  bonds  or

  notes  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; (g) the creation of special funds into which any
  moneys  of  the  agency  may  be  deposited; (h) vesting in a trustee or
  trustees such properties, rights, powers and  duties  in  trust  as  the
  agency may determine, which may include any or all of the rights, powers
  and  duties  of  the  trustee appointed pursuant to section two thousand
  four hundred nine of this title, and limiting or abrogating the right of
  the holders of bonds or notes to appoint a trustee under such section or
  limiting the rights, duties and powers of such trustee; (i) defining the
  acts or omissions to  act  which  shall  constitute  a  default  in  the
  obligations  and  duties  of the agency and providing for the rights and
  remedies of the holders of bonds or notes in the event of such  default,
  providing,   however,  that  such  rights  and  remedies  shall  not  be
  inconsistent with the general laws of this state and other provisions of
  this title; and (j) any other matters of like  or  different  character,
  which  in  any  way  affect  the security and protection of the bonds or
  notes and the rights of the holders thereof.
    (9) Any resolution or resolutions or  trust  indenture  or  indentures
  under which bonds or notes of the agency are authorized to be issued may
  contain provisions for vesting in a trustee or trustees such properties,
  rights, powers and duties in trust as the agency may determine which may
  include  any  or  all  of  the  rights, powers and duties of the trustee
  appointed by the holders of any issue of  notes  or  bonds  pursuant  to
  section two thousand four hundred nine of this title, in which event the
  provisions  of  said  section two thousand four hundred nine authorizing
  the appointment of a trustee by such holders of bonds or notes shall not
  apply.
    (10) It is the  intention  of  the  legislature  that  any  pledge  of
  mortgages,  housing  loans, property, earnings, revenues or other moneys
  made by the agency shall be valid and binding from  the  time  when  the
  pledge  is  made; that the mortgages, housing loans, property, earnings,
  revenues or other moneys so  pledged  and  thereafter  received  by  the
  agency  or  its  agent,  including a servicing bank 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  agency  or  its  agent,  including  a
  servicing bank irrespective of whether such parties have notice thereof.
  Neither  the  resolution  nor  any other instrument by which a pledge is
  created need be recorded.
    (11) Neither the members of the agency nor any  person  executing  the
  bonds  or  other  obligations shall be liable personally on the bonds or
  other  obligations  or  be  subject  to  any   personal   liability   or
  accountability by reason of the issuance thereof.