Section 1860. Bonds and notes

1. The authority shall have the power and is
  hereby authorized to issue at one time or in series from  time  to  time
  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
  moneys for achieving the authority's corporate purposes,  including  the
  establishment  of reserves to secure the bonds and notes and the payment
  of interest on bonds and notes.
    2. The authority shall have power from time to time to renew bonds  or
  notes  or  to  issue  renewal  bonds or notes for such purpose, to issue
  bonds or notes to pay bonds or notes, and, whenever it  deems  refunding
  expedient,  to  refund  any bond or note by the issuance of new bonds or
  notes, whether the bonds or notes  to  be  refunded  have  or  have  not
  matured,  and  may  issue bonds or notes partly to refund bonds or notes
  then outstanding and partly for  any  other  corporate  purpose  of  the
  authority.  Bonds  or  notes issued for refunding purposes shall be sold
  and the proceeds applied to the purchase, redemption or payment  of  the
  bonds or notes to be refunded.
    3.  Except  as  may  otherwise be expressly provided by the authority,
  every issue of bonds or notes shall be general obligations  payable  out
  of  any  moneys  or  revenues  of  the  authority,  subject  only to any
  agreements with the holders of bonds or notes pledging any  receipts  or
  revenues.
    4.  The  bonds  and  notes  shall  be  authorized by resolution of the
  authority, shall bear such date or dates and  mature  at  such  time  or
  times  as  such  resolution  shall  provide,  except  that notes and any
  renewals thereof shall mature within five years  from  their  respective
  dates of issuance or renewal, as the case may be, and bonds shall mature
  within  forty  years from their respective dates of issuance or renewal,
  as the case may be. The bonds and notes shall bear interest at such rate
  or rates, be in such denomination, 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.
    5. Bonds and notes shall be  sold  by  the  authority,  at  public  or
  private  sale,  at  such price or prices as the authority may determine.
  Bonds and notes of the authority 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.
    6.  In  the discretion of the authority any bonds or issue of bonds or
  notes or issue of notes may be secured by such resolution 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.  Such
  resolution, trust indenture, loan  agreement  or  other  instrument  may
  contain  any usual or customary provisions, covenants or limitations for
  bonds or notes of similar nature which shall be a part of  the  contract
  with  the  holders thereof, including such provisions for protecting and
  enforcing the rights and remedies of bondholders and noteholders as  may
  be reasonable and proper and not in violation of law.
    7. Any resolution or resolutions authorizing any notes or bonds or any
  issue  thereof  may  contain  provisions,  which  shall be a part of the
  contract with the holders thereof, as to:
    (a) pledging all or part of the fees, charges, gifts,  grants,  rents,
  revenues  or  other  moneys  received  or  to  be received and leases or

  agreements to secure the payment of the notes or bonds or of  any  issue
  thereof subject to such agreements with bondholders as may then exist;
    (b)  the  rates  of  the  fees  or  charges to be established, and the
  amounts to be raised in each year thereby and the use and disposition of
  the fees, charges,  gifts,  grants,  rents,  revenues  or  other  moneys
  received or to be received;
    (c) the setting aside of reserves or sinking funds, and the regulation
  and disposition thereof;
    (d)  limitations  on  the purpose to which the proceeds of sale of any
  issue of notes or bonds then or thereafter to be issued may  be  applied
  and  pledging  such proceeds to secure the payment of the notes or bonds
  or of any issue thereof;
    (e) limitations on the issuance of  additional  notes  or  bonds;  the
  terms  upon  which  additional notes or bonds may be issued and secured;
  the refunding of outstanding or other notes or bonds;
    (f) the procedure, if any, by which the terms  of  any  contract  with
  bondholders  or  noteholders  may be amended or abrogated, the amount of
  notes or bonds the holders of which must consent thereto, and the manner
  in which such consent may be given;
    (g) any other matters, of like or different character,  which  in  any
  way affect the security or protection of the notes or bonds.
    8.  It  is  the intention hereof that any pledge made by the authority
  shall be valid and binding from the time when the pledge is  made,  that
  the  moneys  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  nor
  any other instrument by which a pledge is created need be recorded.
    9.  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.
    10. Subject to such agreements with bondholders or noteholders as  may
  then  exist,  the  authority shall have power out of any funds available
  therefor to purchase bonds or notes at a price not exceeding (a) if  the
  notes or bonds are then redeemable, the redemption price then applicable
  plus  accrued interest to the next interest payment date thereon, or (b)
  if the notes or bonds are not  then  redeemable,  the  redemption  price
  applicable on the first date after such purchase upon which the notes or
  bonds  become  subject to redemption plus accrued interest to said date.
  Bonds and notes so purchased shall thereupon be cancelled.
    11. The state does hereby pledge to and agree with the holders of  any
  bonds  or  notes  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 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, in any contract with such holders.