Section 1694. Termination of authority

1. The authority shall continue to
  operate  and  manage  each  such  dormitory  until  such  time  as   its
  liabilities thereon have been met and the bonds outstanding against such
  dormitory  have  been  paid  in  full  or such liabilities or bonds have
  otherwise been discharged. Thereupon, the jurisdiction of the  authority
  over  such  dormitory shall cease and all the real and personal property
  and the title to all of the real and personal property of such dormitory
  vested in the authority shall pass to the state  of  New  York  and  the
  management and authority shall thereafter be under rules and regulations
  of the commissioner of education approved by the regents.
    2.  The  authority  and  its  corporate existence shall continue until
  terminated by law, provided, however, that no such law shall take effect
  so long as the authority shall have bonds, notes and  other  obligations
  outstanding,  unless  adequate  provision  has been made for the payment
  thereof. Upon termination of the existence of the authority, all of  its
  rights and properties shall pass to and be vested in the state.