Section 41. Power to issue authority bonds

1. An authority may from time
  to time for any of the purposes of this chapter borrow money  and  issue
  bonds in conformity with applicable provisions of the uniform commercial
  code in such amounts and upon such terms as it may deem advisable. Bonds
  for  state  projects  and  for  projects,  other  than federal projects,
  financed without a loan from a government may be issued for periods  not
  exceeding  fifty  years and for a period not exceeding the probable life
  of the project which said period shall be calculated from  the  date  of
  the  bonds.  Bonds for projects financed with the aid of municipal loans
  may be issued for  periods  not  exceeding  the  probable  life  of  the
  project.  Bonds  for  federal  projects  may  be issued for a period not
  exceeding sixty years. An authority  shall  also  have  power  to  issue
  refunding  bonds  for the purpose of paying or retiring bonds previously
  issued by it but no such refunding bonds shall  mature  later  than  the
  expiration  of  the  maximum period permitted by this subdivision at the
  time of the issuance of the bonds to be refunded  for  the  project  for
  which  such  bonds  were  issued.    Such  period  shall be construed to
  commence from the date of issuance of the bonds to be refunded.
    2. An authority is authorized  to  issue,  whenever  it  may  deem  it
  necessary  so  to  do, notes in conformity with applicable provisions of
  the uniform commercial code without limitation as to the rate  or  rates
  of  interest  in anticipation of the sale of bonds of which a government
  shall have agreed to purchase at least eighty per centum or which  shall
  have   been  authorized  at  the  time  such  notes  are  issued  or  in
  anticipation of a loan which a government shall have agreed to  make  to
  the authority. Such notes shall mature within a period not to exceed one
  year  from  the date of their issue but may be made subject to the right
  of earlier payment. The proceeds of the sale of such notes shall be used
  only for the purposes for which may be used the proceeds of the sale  of
  bonds or of the loan in anticipation of which the notes were issued. Any
  such notes may be renewed or may be refunded through the sale of similar
  notes  but  no such renewal or refunding notes shall be issued after the
  sale of bonds. Such notes, renewal notes or refunding notes shall,  with
  the  interest  thereon,  if  any, be paid from funds made available by a
  government pursuant to agreement for the purchase of bonds or the making
  of a loan, or from the proceeds of the sale of the bonds in anticipation
  of the sale of which the notes were issued or, in the event of the  sale
  of  the  project  with respect to which such notes were issued, from the
  purchase price paid to the authority by the purchaser of  such  project.
  Such  notes,  renewal  notes  or  refunding  notes shall mature within a
  period not to exceed one year beyond  the  maturity  date  of  the  last
  maturing  notes  outstanding  on  the date when the authority or, in the
  case of state projects, the commissioner, makes the  determination  that
  the  project  has  been  completed  and  that  the project cost has been
  finally determined, which determination shall be conclusive in any suit,
  action or proceeding upon such notes, renewal notes or refunding  notes.
  The   total  amount  of  such  notes  or  renewals  thereof  issued  and
  outstanding shall at no time exceed the total amount of bonds of which a
  government shall have agreed to purchase at least eighty per  centum  or
  which shall have been authorized to be issued or the total amount of the
  loan  which a government shall have agreed to make to the authority. The
  foregoing limitations upon the time of payment of notes shall not at any
  time apply to notes or other obligations  which  may  be  issued  by  an
  authority  to a government in anticipation of the sale of bonds of which
  such government shall have agreed to purchase at least eighty per centum
  or in anticipation of a loan which such government shall have agreed  to
  make  to the authority. Except as in this section expressly provided, an
  authority shall, in addition to its other powers, have the  same  powers

  in  connection  with the issuance and securing the payments of its notes
  as it has in connection with the issuance and securing  payment  of  its
  bonds.
    2-a.   In  connection  with  a  federal  project,  an  authority  may,
  notwithstanding anything to the contrary contained in subdivision two of
  this setcion, issue notes or renewal or refunding  notes  in  conformity
  with applicable provisions of the uniform commercial code after the sale
  of  bonds  for  such project and without regard to the limitations as to
  time of issuance or payment set forth in such subdivision, provided: (a)
  the total amount of such notes or renewal or refunding notes issued  and
  outstanding shall at no time exceed the difference between the estimated
  project  cost  if issued prior to the date of physical completion of the
  project or the project cost  if  issued  thereafter  and  the  principal
  amount  of  the  bonds theretofore issued for such project; and (b) such
  notes or renewal or refunding notes are secured by an agreement  between
  the   authority   and   the   federal   government   or  any  agency  on
  instrumentality thereof pursuant to which the authority agrees to borrow
  from such government or agency  or  instrumentality  thereof,  and  such
  government  or  agency  or instrumentality thereof agrees to lend to the
  authority at or prior to the maturity of such notes, monies in an amount
  which (together with any  other  monies  irrevocably  committed  to  the
  payment of principal of or interest on such notes) will be sufficient to
  pay the principal of such notes with interest thereon to maturity, which
  monies  under the terms of such agreement are required to be used by the
  authority for the purpose of paying the principal  of  and  interest  on
  such  notes  at  their  maturity. Every note issued in connection with a
  federal project which is not refunded and any renewals thereof and every
  refunding note  and  any  renewals  thereof  shall,  with  the  interest
  thereon, if any, be paid either from funds made available by the federal
  government or agency or instrumentality thereof pursuant to an agreement
  for  the  purchase  of  bonds  or the making of a loan or the payment of
  annual contributions, or from the proceeds of the sale of the  bonds  in
  anticipation of the sale of which the notes were issued.
    3.  The  authority  may  issue  its  interim  certificates,  or  other
  temporary obligations, in conformity with applicable provisions  of  the
  uniform   commercial  code,  to  the  purchaser  of  bonds  pending  the
  authorization, preparation, execution or delivery of  definitive  bonds.
  Such  interim  certificates, or other temporary obligations, shall be in
  such form, contain such terms, conditions and provisions, bear such date
  or dates, and evidence such agreements relating to  their  discharge  or
  payment  or  the  delivery  of  definitive bonds as the authority may by
  resolution determine.
    4. Notwithstanding anything to the contrary contained  in  subdivision
  two  of  this section respecting limitations upon the time of payment of
  notes, renewal notes or refunding notes, such notes may be issued during
  the period that negotiations for the sale of a project pursuant  to  the
  provisions  of the public housing law or the private housing finance law
  are pending, but such notes shall not be renewed or refunded beyond  the
  maturity  date  of  the  last  maturing notes outstanding on the date of
  transfer of title to such project by the  authority  to  the  purchaser.
  Negotiations  for the sale of a project shall be deemed to be pending if
  the authority shall have  adopted  a  resolution  determining  that  the
  negotiations   for  the  sale  of  such  project  are  pending.  If  the
  negotiations for such sale are thereafter abandoned, such notes, renewal
  notes or refunding notes shall mature within a period not to exceed  one
  year  beyond the maturity date of the last maturing notes outstanding on
  the date determined by resolution adopted by the authority as  the  date
  when  negotiations for the sale of the project were abandoned, or within

  a period not to exceed one year beyond the maturity  date  of  the  last
  maturing  notes  outstanding  on the date when the determination is made
  pursuant to subdivision two of this section that the  project  has  been
  completed  and  that  the  project  cost  has  been  finally determined,
  whichever period is longer.