Section 1771. Bonds of the authority

1. The authority shall have the power,
  and  is  hereby  authorized,  from time to time, to issue its negotiable
  bonds in conformity with applicable provisions of the uniform commercial
  code for any corporate purpose, including the payment of any outstanding
  notes of the authority, but the aggregate principal amount of bonds  and
  notes  issued  by  the  authority  shall not exceed five million dollars
  outstanding at any one time. The authority shall have  the  power,  from
  time  to  time  and whenever it deems refunding expedient, 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
  outstanding and partly for any other corporate purpose or  purposes.  In
  computing  the  total  amount  of  bonds  which  may  at any one time be
  outstanding the amount of the outstanding bonds to be refunded from  the
  proceeds  of  the  sale  of  the new bonds or by exchange for said bonds
  shall be excluded. Except as may otherwise be expressly provided by  the
  authority, each issue of 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  particular
  moneys or revenues.
    2.   Each  issue  of  bonds  shall  be  authorized  by  resolution  or
  resolutions of the authority and shall bear the date or dates, mature at
  the time or times, not exceeding  thirty  years  from  their  respective
  dates,  bear  interest at the rate or rates, be in the denominations, be
  in the  form,  either  coupon  or  registered,  carry  the  registration
  privileges,  be  executed  in  the  manner,  be payable in the medium of
  payment, at the place  or  places,  and  be  subject  to  the  terms  of
  redemption, as the resolution or resolutions shall provide. The bonds of
  the  authority  may  be sold at public or private sale for such price or
  prices as the authority shall determine. When such  bonds  are  sold  at
  public  sale,  the  notice of sale shall be published in accordance with
  the provisions of paragraph two of section 58.00 of  the  local  finance
  law.
    3.  The  resolution or resolutions authorizing bonds or an issuance of
  bonds may contain provisions which shall be a part of the contract  with
  the holders of the bonds thereby authorized as to:
    (a)  The  pledging  of  all  or  any part of the fees, charges, gifts,
  grants, revenues or other moneys received  or  to  be  received  by  the
  authority to secure the payment of the bonds;
    (b)  The  fees, revenues and other charges to be fixed, the amounts to
  be raised in each year thereby and the use and disposition of the  fees,
  charges,  gifts,  grants,  revenues,  or  other moneys received or to be
  received from any source;
    (c) The setting aside of reserves or sinking funds and the  regulation
  and dispositions thereof;
    (d)  Limitations  on  the  purpose to which the proceeds of sale of an
  issue of bonds then or thereafter to be issued may be  applied,  and  on
  the  pledging  of such proceeds to secure the payment of the bonds or of
  an issue of bonds;
    (e) Limitations on the issuance of additional bonds, on the terms upon
  which additional bonds may be issued and secured, and on  the  refunding
  of outstanding or other bonds;
    (f)  The  procedure,  if  any,  by  which the terms of a contract with
  bondholders may be amended  or  abrogated,  the  amount  of  bonds,  the
  holders  of  which  consent thereto, and the manner in which the consent
  may be given;
    (g) Limitations on  the  amount  of  moneys  to  be  expended  by  the
  authority  for  management,  administrative  or  other  expenses  of the
  authority;

    (h) 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  pursuant  to  section seventeen hundred seventy-two hereof,
  and  limiting  or  abrogating  the right of the bondholders to appoint a
  trustee under said section or limiting the rights, powers and duties  of
  the trustees; and
    (i)  Any other matters of like or different character which in any way
  affect the security or protection of the bonds.
    4. It is the intention hereof that any pledge made  by  the  authority
  shall  be valid and binding from the time when said pledge is made; that
  the revenues or other moneys so pledged and thereafter received  by  the
  authority shall immediately be subject to the lien of the pledge without
  physical  delivery  thereof  or  further  act;  and that the lien of the
  pledge 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 the parties have  notice  thereof.  Neither  the
  resolution nor any other instrument by which a pledge is created need be
  recorded.
    5.  Neither  the members of the authority nor a person executing bonds
  shall be liable personally on  the  bonds  or  be  subject  to  personal
  liability or accountability by any reason of the issuance thereof.
    6.  For  the  purpose  of refunding or reducing its debt the authority
  shall have power, out of any funds available therefor, to  purchase  any
  of  its  bonds  (a)  if  the  bonds  are then redeemable, at a price not
  exceeding the redemption price then applicable plus accrued interest  to
  the next interest payment date thereon, or (b) if the bonds are not then
  redeemable,  at  such  price  and  on  such  terms and conditions as the
  authority may determine, plus accrued interest to the date of  purchase.
  The bonds so purchased shall be canceled.
    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  a  trust  company  or  bank having the powers of a trust
  company in the state. The 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 a  project
  or  projects,  and  the  custody,  safeguarding  and  application of all
  moneys, and may provide that a project or projects shall be  constructed
  and paid for under the supervision and approval of consulting engineers.
  Notwithstanding  the  provisions of section seventeen hundred sixty-nine
  hereof, the authority may provide by trust indenture for the payment  of
  the proceeds of the bonds and the revenues of the project or projects to
  the  trustee  or  other  depository,  and for the method of disbursement
  thereof, with such safeguards and restrictions as it may determine.  The
  expenses  incurred in carrying out the trust indenture may be treated as
  a part of the cost of maintenance, operation and repairs of the  project
  or  projects.  If  the  bonds shall be secured by a trust indenture, the
  bondholders shall have no authority to appoint  a  separate  trustee  to
  represent them, and the trustee under the trust indenture shall have and
  possess  all the powers which are conferred by section seventeen hundred
  seventy-two hereof upon a trustee appointed by the bondholders.
    8. Notwithstanding any other provisions of this title, the  resolution
  or resolutions authorizing bonds or notes of the authority may contain a
  covenant by authority that it will at all times maintain rates, fees and
  other  charges  sufficient to pay, the cost of operation and maintenance
  of the project or projects,  the  principal  of,  and  interest  on  any

  obligations issued pursuant to the resolution or resolutions as the same
  severally  become due and payable, and to maintain the reserves or other
  funds required by the terms of the resolution or resolutions.