Section 1682. Bonds of the authority

1. The authority shall have power as
  hereby authorized from  time  to  time  to  issue  negotiable  bonds  in
  conformity  with  applicable  provisions of the uniform commercial code.
  The authority shall have power from time to time 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  corporate  purpose. 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, every
  issue of the bonds shall be  general  obligations  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. Such bonds shall be authorized by resolution of the  board,  be  in
  such  denominations  and  shall  bear such date or dates, mature at such
  time or times not exceeding forty years  from  their  respective  dates,
  bear  interest  at  such rate or rates payable at such times, 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. Such bonds may be sold at  public
  or  private  sale  for  such  price  or  prices  as  the authority shall
  determine.
    3. Such bonds  may  be  issued  for  any  corporate  purposes  of  the
  authority.
    4.  Any  resolution  or  resolutions authorizing any bonds may contain
  provisions which may be a part of the contract with the holders  of  the
  bonds, as to
    (a)  pledging  all  or  any  part  of  the  moneys  or property of the
  authority to secure the payment of its bonds, including, but not limited
  to, the revenues of designated dormitories, the proceeds of any grant in
  aid of the authority received from any private  or  public  source,  any
  federally guaranteed security and moneys received therefrom whether such
  security  is  initially  acquired  by  the  authority  or an educational
  institution, any moneys received under the terms of any lease,  loan  or
  other   agreement   executed   pursuant   to   section  sixteen  hundred
  seventy-eight,  section  sixteen  hundred  eighty  or  sixteen   hundred
  eighty-a  of  this  chapter  or  any  other  revenues,  state aid, local
  assistance payments,  user  charges  or  surcharges  made  available  in
  accordance with law for such purpose;
    (b)  the setting aside of reserves or sinking funds and the regulation
  or disposition thereof;
    (c) the purpose and limitations thereon to which the proceeds of  sale
  of  any  issue  of bonds then or thereafter to be issued may be applied,
  including as authorized purposes, all costs and  expenses  necessary  or
  incidental to the issuance of bonds, to the acquisition of or commitment
  to  acquire  any  federally  guaranteed security and to the issuance and
  obtaining of any federally insured mortgage note;
    (d) 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;
    (e) 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;

    (f) the creation of  special  funds  into  which  any  moneys  of  the
  authority may be deposited;
    (g)  vesting  in a trustee or trustees such properties, 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  pursuant  to  section  sixteen  hundred  eighty-six of this
  chapter, and limiting or abrogating the  right  of  the  bondholders  to
  appoint  a trustee under such section or limiting the rights, duties and
  powers of such trustee;
    (h) defining the acts or omissions to act  which  shall  constitute  a
  default   in  the  obligations  and  duties  of  the  authority  to  the
  bondholders and providing for the rights and remedies of the bondholders
  in the event of such  default,  including  as  a  matter  of  right  the
  appointment  of  a  receiver,  providing,  that such rights and remedies
  shall not be inconsistent with the general laws of this state and  other
  provisions of this title;
    (i)  any  other  matters, of like or different character, which in any
  way affect the security and protection of the bonds.
    4-a. Any pledge of or other security  interest  in  moneys,  earnings,
  income,  revenues,  accounts,  contract  rights,  general intangibles or
  other personal property made or created by the authority shall be valid,
  binding and perfected from the time when such pledge or  other  security
  interest  attaches,  without  any physical delivery of the collateral or
  further act. The lien of any such  pledge  or  other  security  interest
  shall  be  valid,  binding  and  perfected as against all parties having
  claims of any kind in tort, contract or otherwise against the  authority
  irrespective  of  whether  or  not  such parties have notice thereof. No
  instrument by which such a pledge or other security interest is  created
  nor  any financing statement need be recorded or filed. This subdivision
  shall apply notwithstanding the provisions  of  the  uniform  commercial
  code. Any moneys, earnings, income, revenues, accounts, contract rights,
  general  intangibles  or other personal property held or received by the
  authority or on  behalf  of  the  authority  by  any  lender,  servicer,
  trustee, custodian, collection agent or institution of higher education,
  pursuant   to   any  resolution,  trust  agreement  or  other  agreement
  authorized  by,  or  entered  into  in  connection  with,  the   program
  established  pursuant  to section sixteen hundred seventy nine-c of this
  title and pledged by the  authority  pursuant  to  a  resolution,  trust
  agreement  or  such other agreement for the benefit of bondholders shall
  constitute  moneys,  earnings,  income,  revenues,  accounts,   contract
  rights,  general  intangibles  or other personal property pledged by the
  authority for all purposes of this subdivision.
    4-b. Any resolution authorizing the issuance of bonds for the  purpose
  of  providing  facilities  for  the city university pursuant to a lease,
  sublease  or  other  agreement  entered  into  by  the  city  university
  construction  fund  and  the dormitory authority on or after July first,
  nineteen hundred eighty-five, refunding any such bonds, or  establishing
  or  funding  reserves for such bonds shall state the principal amount of
  bonds being issued in connection with senior college facilities and  the
  principal  amount  of  bonds  being  issued in connection with community
  college facilities. The proceeds of such bonds  to  be  applied  to  the
  payment  of  the  costs  of providing senior college facilities shall be
  held separate and apart from the proceeds of such bonds to be applied to
  the payment of the costs of providing community college facilities.  The
  proceeds  to  be applied to the payment of the costs of providing senior
  college facilities shall not be applied to the payment of the  costs  of
  providing community college facilities and the proceeds to be applied to
  the payment of the costs of providing community college facilities shall

  not  be  applied to the payment of the costs of providing senior college
  facilities.
    5.  Neither  the  members  of  the board nor any person executing such
  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 any bonds  issued  by  it  at  a  price  not  exceeding  the
  redemption price thereof. All bonds so purchased shall be cancelled.
    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 dormitories or  of  any  dormitory,  and  the  custody,
  safeguarding  and  application  of  all moneys, and may provide that any
  dormitory shall be constructed and paid for under  the  supervision  and
  approval  of  consulting  engineers.  The  authority may provide by such
  trust indenture for the payment of the proceeds of  the  bonds  and  the
  revenues  of  any  dormitory  or  moneys received under the terms of any
  lease or loan executed pursuant to section  sixteen  hundred  eighty  of
  this chapter, as the case may be, to the trustee of such trust indenture
  or  other  depository,  and for the method of disbursement thereof, with
  such safeguards and restrictions as it  may  determine.  Notwithstanding
  the provisions of section sixteen hundred eighty-six of this chapter, if
  the bonds shall be secured by trust indenture the bondholders shall have
  no authority to appoint a separate trustee to represent them.