Section 68-B. Issuance of bonds and notes

1. (a) Authorized issuers shall
  have the power and are hereby authorized from  time  to  time  to  issue
  revenue   bonds,  in  such  principal  amount  or  amounts,  subject  to
  subdivision eight of this section and as  the  director  of  the  budget
  shall  determine  to  be  necessary,  to  provide  sufficient  funds for
  authorized purposes,  the  establishment  of  reserves  to  secure  such
  revenue  bonds,  the  payment of amounts required under revenue bonds or
  agreements relating thereto, and the payment of all costs of issuance of
  their revenue bonds.
    (b) The authorized  issuers  shall  have  the  power  and  are  hereby
  authorized  from time to time to issue (i) revenue bonds to renew notes,
  (ii) revenue bonds to pay notes, and (iii) whenever it  deems  refunding
  expedient,  to  refund any bonds, notes, or other obligations issued for
  an authorized purpose or purposes, by the issuance of new revenue bonds,
  including bonds, notes, or other obligations that were issued  prior  to
  the  enactment  of  this  article,  whether  the  bonds, notes, or other
  obligations to be refunded have  or  have  not  matured,  and  to  issue
  revenue  bonds in part to refund bonds, notes, or other obligations then
  outstanding and in part for any of its other  authorized  purposes.  The
  refunding  revenue  bonds  may  be  exchanged for bonds, notes, or other
  obligations to be refunded, or sold and  the  proceeds  applied  to  the
  purchase,   redemption  or  payment  of  such  bonds,  notes,  or  other
  obligations.
    (c) Except as may otherwise be expressly  provided  by  an  authorized
  issuer, every issue of revenue bonds of an authorized issuer pursuant to
  this  section  shall  be  special  obligations  of the authorized issuer
  payable solely out of any revenues paid over to such  authorized  issuer
  from  the  revenue  bond  tax  fund,  established  pursuant  to  section
  ninety-two-z of this chapter.
    (d) All of the provisions of  the  enabling  acts  of  the  authorized
  issuers relating to bonds and notes, which are not inconsistent with the
  provisions  of  this  section,  may, at the discretion of the authorized
  issuer, apply to revenue bonds authorized by this section.
    (e) The revenue bonds of the authorized  issuers  authorized  by  this
  section  shall  not  be  a  debt of the state and the state shall not be
  liable thereon, nor shall they be payable out of any  funds  other  than
  those of the authorized issuers pledged therefor; and such revenue bonds
  shall  contain  on  the  face  thereof  a  statement  to such effect. In
  addition, any agreements entered into by any entity pursuant to sections
  sixty-eight-c and ninety-two-z of this chapter on behalf of the state to
  effect the implementation of any of the activities financed in whole  or
  in  part  with  proceeds  of the revenue bonds of the authorized issuers
  authorized in this section do not constitute or create  a  debt  of  the
  state,   nor   a   contractual  obligation  in  excess  of  the  amounts
  appropriated therefor, and the state has no continuing  legal  or  moral
  obligation  to  appropriate  money  for  payments  due  under  any  such
  agreement.
    (f) (i) Revenue  bonds  shall  be  authorized  by  resolution  of  the
  authorized  issuers,  be  in such denominations, bear such date or dates
  and mature at such time or times, as such resolution or other  agreement
  may provide.
    (ii)  Revenue bonds shall be subject to such terms of redemption, bear
  interest at such rate or rates, be payable at such  times,  be  in  such
  form,   either  coupon,  registered  or  book  entry  form,  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
  and conditions as such resolution may provide.

    (g) Revenue bonds authorized hereunder shall  be  sold  by  authorized
  issuers,  at  public  or  private  sale,  at such price or prices as the
  authorized issuers  may  determine.  Revenue  bonds  of  the  authorized
  issuers  shall  not  be  sold by the authorized issuers at private sales
  unless  such  sale and the terms thereof have been approved by the state
  comptroller.
    2. Consistent with the provisions of this article, and subject to  the
  approval  of  the  director  of  the  budget,  any  resolution  or other
  agreement authorizing revenue 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  any  part  of  the  revenues  received  by  the
  authorized  issuers pursuant to section sixty-eight-c of this article to
  secure the payment of the bonds  or  notes  or  of  any  issue  thereof,
  subject  to  such  agreements  with holders of revenue bonds as may then
  exist;
    (b) pledging all or any part of the assets of the  authorized  issuers
  to  secure  the  payment of the revenue bonds or of any issue of revenue
  bonds subject to such agreements with holders of revenue  bonds  as  may
  then exist;
    (c)  the setting aside of reserves or sinking funds and the regulation
  and disposition thereof;
    (d) limitations on the purposes to  which  the  proceeds  of  sale  of
  revenue  bonds,  may be applied and pledging such proceeds to secure the
  payment of the revenue bonds or of any issue thereof;
    (e) limitations on the issuance of additional revenue bonds the  terms
  upon  which  additional  revenue bonds may be issued and secured and the
  refunding of outstanding or other revenue bonds;
    (f) the procedure, if any, by which the terms  of  any  contract  with
  holders  of  revenue  bonds  may  be amended or abrogated, the amount of
  revenue bonds the holders of which must consent thereto and  the  manner
  in which such consent may be given;
    (g)  vesting  in  a  trustee,  as described in subdivision six of this
  section, such property, rights,  powers  and  duties  in  trust  as  the
  authorized  issuers  may  determine, which may include any or all of the
  rights, powers and duties of the trustee appointed  by  the  holders  of
  revenue  bonds  of  the  respective  authorized issuers pursuant to this
  article, and limiting or abrogating  the  right  of  such  revenue  bond
  holders  to  appoint  a trustee under this title or limiting the rights,
  powers, and duties of such trustee;
    (h) the acts or omissions to act which shall constitute a  default  in
  the  obligations  and duties of the authorized issuers to the holders of
  the revenue bonds and providing for  the  rights  and  remedies  of  the
  holders  of  the  revenue  bonds in event of such default, including the
  right to appointment of a receiver; provided, however, that such  rights
  and remedies shall not be inconsistent with the other provisions of this
  article;
    (i)  any  other  matters, of like or different character, which in any
  way affect the security or protection of  the  holders  of  the  revenue
  bonds; and
    (j) the application of any of the foregoing provisions to any provider
  of any applicable bond, note or other financial facility.
    Notwithstanding  the  foregoing,  the  authorized issuers shall not be
  authorized  to  make  any  covenant,  pledge,  promise,   or   agreement
  purporting to bind the state except as otherwise specifically authorized
  by this article.
    3. Any pledge made by the respective authorized issuers shall be valid
  and  binding  from  the  time  when  the pledge is made. The revenues or

  property so pledged and thereafter received by the respective authorized
  issuers 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  respective
  authorized  issuers,  irrespective  of  whether such parties have notice
  thereof. Neither the resolution nor any  other  instrument  by  which  a
  pledge is created need be recorded or filed to protect such pledge.
    4.  Neither the directors or members of the authorized issuers nor any
  other person executing the revenue bonds of the authorized issuers shall
  be liable personally thereon or be subject to any personal liability  or
  accountability solely by reason of the issuance thereof.
    5.  The authorized issuers, subject to such agreements with holders of
  revenue bonds as may then exist, or with the providers of any applicable
  bond or note or other financial or agreement facility, shall have  power
  out  of  any  funds  available therefor to purchase revenue bonds of the
  authorized issuers, which may or may not thereupon  be  canceled,  at  a
  price not exceeding:
    (a)  if  the  revenue  bonds are then redeemable, the redemption price
  then applicable, including any accrued interest;
    (b) if the revenue bonds are not then redeemable, the redemption price
  and accrued interest applicable on the first date  after  such  purchase
  upon which the revenue bonds become subject to redemption.
    6.  In the discretion of the authorized issuers, the revenue bonds may
  be secured by a trust indenture by and between  the  authorized  issuers
  and  a  corporate trustee, or a corporate trustee may be appointed under
  the resolution as provided in subdivision two of this section.
    7. Whether or not the revenue bonds are of such form and character  as
  to  be  negotiable instruments under the terms of the uniform commercial
  code, the revenue 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 revenue bonds for registration  or
  any book-entry-only system.
    8.  Revenue  bonds  may  only  be  issued  for authorized purposes, as
  defined in section sixty-eight-a of this  article.  Notwithstanding  the
  foregoing,  the  dormitory  authority  of  the state of New York and the
  urban development corporation may issue revenue bonds for any authorized
  purpose of any other such authorized issuer through March  thirty-first,
  two  thousand  ten.  The  authorized issuers shall not issue any revenue
  bonds in an amount  in  excess  of  statutory  authorizations  for  such
  authorized  purposes.  Authorizations for such authorized purposes shall
  be reduced in an amount equal to the amount of revenue bonds issued  for
  such authorized purposes under this article. Such reduction shall not be
  made  in relation to revenue bonds issued to fund reserve funds, if any,
  and costs of issuance, if these items are  not  counted  under  existing
  authorizations,  nor  shall  revenue bonds issued to refund bonds issued
  under existing authorizations reduce the amount of such authorizations.
    9. Except upon the  amendment  of  the  New  York  state  constitution
  allowing the issuance or assumption of bonds, notes or other obligations
  secured  by  revenues,  which  may include the revenues securing revenue
  bonds of authorized issuers, and  the  affirmative  assumption  of  such
  bonds, notes or other obligations by the state, the revenue bonds of the
  authorized issuers authorized by this section shall not be a debt of the
  state  and  the  state  shall  not  be liable thereon, nor shall they be
  payable out of any funds other than  those  of  the  authorized  issuers
  pledged  therefor;  and  such  revenue  bonds  shall contain on the face
  thereof a statement to such effect. In addition, any agreements  entered
  into  by  any entity pursuant to sections sixty-eight-c and ninety-two-z

  of this chapter on behalf of the state to effect the  implementation  of
  any  of the activities financed in whole or in part with proceeds of the
  obligations of the authorized issuers authorized in this section do  not
  constitute  or  create a debt of the state, nor a contractual obligation
  in excess of the amounts appropriated therefor  and  the  state  has  no
  continuing  legal  or moral obligation to appropriate money for payments
  due under any such agreement.
    10. Nothing in this article shall affect the authority of each of  the
  authorized  issuers  to  issue  or  incur  indebtedness for any purposes
  otherwise authorized by law and nothing in this article shall be  deemed
  to  alter or affect the rights of outstanding bondholders or noteholders
  of any authorized issuer.
    11. The authorization, sale and issuance of revenue bonds pursuant  to
  this  section  shall  not be deemed an action as such term is defined in
  article eight of the environmental conservation law for the purposes  of
  such   article.   Such  exemption  shall  be  strictly  limited  in  its
  application to such  financing  activities  of  the  authorized  issuers
  hereunder and does not exempt any other entity from compliance with such
  article.