Section 1805. Issuance of bonds and notes by the authority

1. Subject to
  the limitations of other provisions of this title, the  authority  shall
  have the power and is hereby authorized to borrow money and 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 authority, shall be necessary to  provide  sufficient  funds  for
  achieving  its  corporate  purposes,  including the making of loans, the
  issuing of loan guarantees, the payment of interest on bonds  and  notes
  of the authority, the establishment of reserves to secure such bonds and
  notes,  and  all  other  expenditures  of  the authority incident to and
  necessary or convenient to carry out its corporate purposes and powers.
    2. Bonds and notes shall be authorized by resolution of the authority,
  and shall be dated and shall mature as such  resolution  or  resolutions
  may  provide,  except  that  no note or any renewal thereof shall mature
  more than seven years after the date of issue of the original  note  and
  no  bond shall mature more than thirty years from the date of its issue.
  Bonds and notes 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.
    3.  Special  purpose  bonds  and notes may be sold by the authority at
  public or private sale in such manner and on  such  terms  and  at  such
  price  or prices as the authority, with the approval of the comptroller,
  shall determine. If special purpose bonds are sold by the  authority  at
  public  sale, such sale shall take place not less than six nor more than
  forty days after a notice of such sale has been published at least  once
  in  a  newspaper  published  in  Albany  and  in  a  financial newspaper
  published and circulating in New York city, which shall state the  terms
  of  sale  as  determined  by  the authority. Pollution control bonds and
  notes of the authority may be  sold  by  the  authority,  at  public  or
  private  sale,  in  such  manner  and on such terms and at such price or
  prices as the authority shall determine but shall not  be  sold  by  the
  authority  at  private  sale unless such sale and the terms thereof have
  been approved in writing by the comptroller where such sale  is  not  to
  the  comptroller, or by the director of the budget where such sale is to
  the comptroller.
    4. In the discretion of the authority any bonds or issue of  bonds  or
  notes  or  issue  of  notes  may  be  secured  under  resolutions of the
  authority or 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 or by a secured loan agreement or
  other instrument. The authority, in connection with any bonds  or  issue
  of  bonds  or notes or issue of notes and for the security or protection
  thereof and as a part of the contract with the holders thereof, by means
  of any  such  resolution,  trust  indenture,  loan  agreement  or  other
  instrument  may  (a)  make and enter into any and all such covenants and
  agreements with the holders of such bonds or notes as the authority  may
  determine  to be necessary or desirable, including without limitation of
  the foregoing, covenants, provisions, limitations and agreements  as  to
  the  application,  use  and  disposition of the proceeds of any bonds or
  notes or of sale or other disposition of any mortgage or other  property
  or of any other receipts, moneys or assets of the authority, or in which
  it  has  an  interest, the exercise by the authority of its powers under
  this title with respect to loans and the revenues  and  receipts  to  be
  derived  by  the authority from such loans, the assignment of any right,
  title and interest in  any  mortgage  in  which  the  authority  has  an
  interest,  the  terms and amount of other bonds or notes to be issued by

  the authority, and the vesting in a trustee  or  trustees  of  funds  or
  other property, rights, powers and duties in trust which may include any
  and all of the rights, powers and duties of a trustee appointed pursuant
  to  section  eighteen  hundred  eighteen  of  this title and limiting or
  abrogating the right of the bondholders  or  noteholders  to  appoint  a
  trustee  under said section or limiting the rights, duties and powers of
  such  trustee,  (b)  pledge  or  assign  any  moneys,  mortgages,   loan
  agreements,  leases  or  agreements  as  to the use of projects or other
  assets of the authority either presently in hand or to  be  received  in
  the  future,  or both, and any right, title and interest in any mortgage
  or evidence of indebtedness secured thereby or other assets or property,
  and (c) provide for any other matters of  like  or  different  character
  which  in  any  way  affect  the  security or protection of the bonds or
  notes, provided, however, that the principal of bonds  and  notes  shall
  not  be  declared due and payable prior to maturity under or pursuant to
  any such resolution, trust indenture, loan agreement or other instrument
  by any trustee or agent for the bondholders or noteholders,  unless  the
  trustee  or agent shall first give notice in writing to the governor, to
  the authority, to the comptroller and to the  attorney  general  of  the
  state,  and if when any such notice is given the legislature shall be in
  session, the trustee or agent shall not declare the principal  of  bonds
  or notes due and payable before the legislature adjourns sine die, or if
  the  legislature  be not then in session, the trustee or agent shall not
  declare the principal of such bonds and notes due and payable until  the
  adjournment  sine die of the next regular session of the legislature. If
  at such session the legislature shall take any action  as  a  result  of
  which  the past due principal and interest on such bonds and notes, with
  interest, together with the fees,  counsel  fees  and  expenses  of  the
  trustee  or agent, and all costs and disbursements allowed by a court of
  competent jurisdiction shall be paid within sixty  days  of  adjournment
  sine die, default in the payment thereof shall thereby be cured.
    5.  It  is  the  intention  of the legislature that any pledge made in
  respect of such bonds or notes shall be valid and binding from the  time
  when  the  pledge  is  made;  that  the money or property so pledged and
  thereafter received by the authority 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  authority  irrespective of whether such parties
  have notice thereof. Neither the resolution,  trust  indenture  nor  any
  other instrument by which a pledge is created need be recorded.
    6.  Neither  the members 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.
    7. Subject to such agreements with bondholders or noteholders  as  may
  then  exist,  the authority shall have power to purchase special purpose
  bonds or notes of  the  authority  out  of  any  special  purpose  funds
  available  therefor  and to purchase pollution control bonds or notes of
  the authority out of any pollution control funds available therefor,  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 due 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  said  date.  Bonds  and  notes so purchased shall
  thereupon be cancelled.

    8. The state does hereby pledge to and agree with the holders  of  any
  bonds or notes issued under this title and with any federal agency which
  loans  or  contributes funds in respect of an assisted project, that the
  state will not limit or alter  the  rights  and  powers  vested  in  the
  authority by this title to fulfill the terms of any contract made by the
  authority  with such holders or federal agency, or in any way impair the
  rights and remedies of such holders until such bonds and notes, together
  with the interest thereon, with interest on any unpaid  installments  of
  interest,  and  all  costs and expenses in connection with any action or
  proceeding  by  or  on  behalf  of  such  holders,  are  fully  met  and
  discharged.  The  authority  is  authorized  to  include this pledge and
  agreement of the state, insofar as it refers to holders of any bonds  or
  notes of the authority, in any contract with such holders and insofar as
  it relates to a federal agency, in any contract with such agency.