Section 655. Notes and bonds of the corporation

1. (a) Subject to the
  provisions of  section  six  hundred  fifty-six  of  this  article,  the
  corporation shall have power and is hereby authorized to issue from time
  to  time  its  negotiable  notes and bonds in conformity with applicable
  provisions of the uniform commercial code in such  principal  amount  as
  the  corporation  shall  determine to be necessary to provide sufficient
  funds for achieving its corporate  purposes,  including  the  making  of
  mortgage  loans,  the  payment  of  interest  on  notes and bonds of the
  corporation, the establishment of reserves  to  secure  such  notes  and
  bonds,  and  the  payment  of  all operating expenses of the corporation
  incident to or necessary  or  convenient  to  carry  out  its  corporate
  purposes and powers.
    (b)  The corporation shall have the power, from time to time, to issue
  (i) notes to renew notes and (ii) bonds  to  pay  notes,  including  the
  interest  thereon  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 to issue bonds partly to refund bonds then
  outstanding and partly for any of its corporate purposes. The  refunding
  bonds  may  be  exchanged  for  the bonds to be refunded or sold and the
  proceeds applied to the purchase, redemption or payment of such bonds.
    (c) Except as may otherwise be expressly provided by the  corporation,
  every  issue  of its notes and bonds shall be general obligations of the
  corporation payable out of any revenues of the corporation, subject only
  to any agreements with the holders of particular notes or bonds pledging
  any particular revenues.
    2.  The  notes  and  bonds  shall  be  authorized  by  resolution   or
  resolutions  of the corporation, shall bear such date or dates and shall
  mature at such time or times  as  such  resolution  or  resolutions  may
  provide,  except  that  no note or any renewal thereof shall mature more
  than five years, and in the case of any  note  or  any  renewal  thereof
  issued  for the purposes of making mortgage loans shall mature more than
  nine years, after the date of issue of the original  note  and  no  bond
  shall  mature  more  than  fifty  years from the date of its issue.  The
  bonds may be issued as serial bonds payable in annual installments or as
  term bonds or as a combination thereof. The notes and bonds  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.  The notes and bonds may be  sold
  by the corporation at public or private sale, at such price or prices as
  the corporation shall determine; provided, however, that the corporation
  shall  consult  with  the  comptroller as to the timing of any sale; and
  provided further that no notes or bonds of the corporation may  be  sold
  at  a  private  sale  unless  such  sale and the terms thereof have been
  approved in writing by (a) the comptroller, where such sale  is  not  to
  the  comptroller,  or (b) the director of the budget, where such sale is
  to the comptroller.
    3. Any resolution or resolutions authorizing any notes or bonds or any
  issue thereof may contain provisions, which  shall  be  a  part  of  the
  contract or contracts with the holders thereof, as to:
    (a)  pledging all or any part of the revenues to secure the payment of
  the notes or bonds or of any issue thereof, subject to  such  agreements
  with noteholders or bondholders as may then exist;
    (b)  pledging  all  or  any  part  of  the  assets of the corporation,
  including mortgages and obligations securing the  same,  to  secure  the
  payment of the notes or bonds or of any issue of notes or bonds, subject
  to such agreements with noteholders or bondholders as may then exist;

    (c)  the  use and disposition of the gross income from mortgages owned
  by the corporation and payment of principal of mortgages  owned  by  the
  corporation;
    (d)  the setting aside of reserves or sinking funds and the regulation
  and disposition thereof;
    (e) limitations on the purpose to which the proceeds of sale of  notes
  or bonds may be applied and pledging such proceeds to secure the payment
  of the notes or bonds or of any issue thereof;
    (f)  limitations  on  the  issuance  of additional notes or bonds; the
  terms upon which additional notes or bonds may be  issued  and  secured;
  and the refunding of outstanding or other notes or bonds;
    (g)  the  procedure,  if  any, by which the terms of any contract with
  noteholders or bondholders 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;
    (h)  limitations  on  the  amount  of  moneys  to  be  expended by the
  corporation for operating expenses of the corporation;
    (i) vesting in a trustee or trustees such property, rights, powers and
  duties in trust as the corporation may determine, which may include  any
  or  all of the rights, powers and duties of the trustee appointed by the
  bondholders pursuant to this article, and  limiting  or  abrogating  the
  right  of  the  bondholders  to  appoint a trustee under this article or
  limiting the rights, powers and duties of such trustee;
    (j) the acts or omissions to act which shall constitute a  default  in
  the  obligations  and  duties  of  the corporation to the holders of the
  notes or bonds and providing for the rights and remedies of the  holders
  of  the notes or bonds in the event of such default, including the right
  to appointment of a receiver; providing, however, that such  rights  and
  remedies  shall  not  be inconsistent with the general laws of the state
  and the other provisions of this article;
    (k) any other matters, of like or different character,  which  in  any
  way  affect  the  security  or protection of the holders of the notes or
  bonds.
    3-a. Any resolution or resolutions authorizing any notes or  bonds  or
  any issue thereof shall contain provisions, which shall be a part of the
  contract  or  contracts  with  the  holders  thereof,  ensuring  that no
  mortgage loan shall be made by the corporation from the proceeds of such
  notes or bonds or issue thereof unless the estimated revenues  from  the
  mortgaged  property,  including  any  subsidies,  shall be sufficient in
  amount to secure repayment of the loan and the interest thereon  and  to
  pay  all  other  necessary  expenses  of  the mortgagor relating to such
  property.
    4. Any pledge made by the corporation shall be valid and binding  from
  the  time  when  the pledge is made; the revenues or property so pledged
  and thereafter received by the corporation shall immediately be  subject
  to  the  lien  of  such  pledge without any physical delivery thereof or
  further act, and 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 corporation, irrespective of whether such  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  corporation  nor  any  other  person
  executing such notes or bonds shall be subject to any personal liability
  or accountability by reason of the issuance thereof.
    6.  The  corporation,  subject  to such agreements with noteholders or
  bondholders as may then  exist,  shall  have  power  out  of  any  funds
  available therefor, to purchase notes or bonds of the corporation, which
  shall thereupon be cancelled, 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
  such date.
    7. In the discretion of the corporation, the bonds may be secured by a
  trust indenture by and between the corporation and a corporate  trustee,
  which  may  be  any  trust  company or bank having the powers of a trust
  company in the state.  Such 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 corporation in relation to the
  exercise  of  its  corporate  powers  and  the custody, safeguarding and
  application of all moneys. The corporation may  provide  by  such  trust
  indenture  for the payment of the proceeds of the bonds and the revenues
  to the trustee under such trust indenture or other depository,  and  for
  the   method   of   disbursement   thereof,  with  such  safeguards  and
  restrictions as it may determine.  All expenses incurred in carrying out
  such trust indenture may be treated as a part of the operating  expenses
  of  the corporation. If the bonds shall be secured by a trust indenture,
  the bondholders shall have no authority to appoint a separate trustee to
  represent them.
    8. Whether or not the notes and bonds are of such form  and  character
  as  to  be  negotiable  instruments  under  the  terms  of  the  uniform
  commercial  code,  the  notes  and  bonds  are  hereby  made  negotiable
  instruments  within  the  meaning  of  and  for  all the purposes of the
  uniform commercial code, subject only to the provisions of the notes and
  bonds for registration.