S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6920
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 9, 2023
                                ___________
 
 Introduced  by M. of A. GUNTHER -- read once and referred to the Commit-
   tee on Corporations, Authorities and Commissions
 
 AN ACT to amend the public authorities law, in relation to  establishing
   the  Middletown parking authority and providing for its powers, duties
   and obligations; to repeal certain provisions of the  public  authori-
   ties  law  relating  thereto;  and  providing  for  the repeal of such
   provisions upon expiration thereof
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Title  21  of  article 7 of the public authorities law is
 REPEALED and a new title 21 is added to read as follows:
 
                                 TITLE 21
                       MIDDLETOWN PARKING AUTHORITY
 
 SECTION 1621-A. SHORT TITLE.
         1621-B. DEFINITIONS.
         1621-C. MIDDLETOWN PARKING AUTHORITY.
         1621-D. PURPOSE AND POWERS OF THE AUTHORITY.
         1621-E. CIVIL SERVICE STATUS OF OFFICERS AND EMPLOYEES.
         1621-F. CONVEYANCE OF PROPERTY BY THE  CITY  TO  THE  AUTHORITY;
                   ACQUISITION OF PROPERTY BY THE CITY OR BY THE AUTHORI-
                   TY.
         1621-G. CONSTRUCTION AND PURCHASE CONTRACTS.
         1621-H. MONEYS OF THE AUTHORITY.
         1621-I. BONDS OF THE AUTHORITY.
         1621-J. NOTES OF THE AUTHORITY.
         1621-K. AGREEMENTS OF THE CITY AND THE STATE.
         1621-L. STATE AND CITY NOT LIABLE ON BONDS.
         1621-M. BONDS  AND  NOTES  LEGAL INVESTMENTS FOR PUBLIC OFFICERS
                   AND FIDUCIARIES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10744-01-3
              

 A. 6920                             2
 
         1621-N. TAX EXEMPTIONS.
         1621-O. TAX CONTRACT BY THE STATE.
         1621-P. REMEDIES OF BONDHOLDERS.
         1621-Q. ACTIONS AGAINST THE AUTHORITY.
         1621-R. TERMINATION OF THE AUTHORITY.
         1621-S. SEVERABILITY.
         1621-T. INCONSISTENT PROVISIONS IN OTHER ACTS SUPERSEDED.
   §  1621-A.  SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS
 THE "MIDDLETOWN PARKING AUTHORITY ACT."
   § 1621-B. DEFINITIONS. AS USED OR REFERRED TO IN THIS TITLE, UNLESS  A
 DIFFERENT MEANING CLEARLY APPEARS FROM THE CONTEXT:
   1.  THE TERM "AUTHORITY" SHALL MEAN THE CORPORATION CREATED BY SECTION
 SIXTEEN HUNDRED TWENTY-ONE-C OF THIS TITLE;
   2. THE TERM "CITY" SHALL MEAN THE CITY OF MIDDLETOWN;
   3. THE TERM "BONDS" AND  "NOTES"  SHALL  MEAN  THE  BONDS  AND  NOTES,
 RESPECTIVELY, AUTHORIZED IN THIS TITLE;
   4.  THE  TERM  "BOARD"  SHALL  MEAN  THE BOARD ESTABLISHED PURSUANT TO
 SECTION SIXTEEN HUNDRED TWENTY-ONE-C OF THIS TITLE;
   5. THE TERM "REAL PROPERTY" SHALL MEAN LANDS, STRUCTURES,  FRANCHISES,
 AND  INTEREST  IN  LANDS, AND ANY AND ALL THINGS USUALLY INCLUDED WITHIN
 THE SAID TERM, AND INCLUDES NOT ONLY FEES SIMPLE ABSOLUTE BUT  ALSO  ANY
 AND  ALL LESSER INTERESTS, SUCH AS EASEMENTS, RIGHTS OF WAY, AND RIGHTS,
 SUB-SURFACE RIGHTS, USES, LEASES, LICENSES, AND  ALL  OTHER  INCORPOREAL
 HEREDITAMENTS  AND  EVERY ESTATE, INTEREST OR RIGHT, LEGAL OR EQUITABLE,
 INCLUDING TERMS OF YEARS, AND LIENS THEREON BY WAY OF  JUDGMENTS,  MORT-
 GAGES  OR  OTHERWISE,  AND ALSO CLAIMS FOR DAMAGE TO REAL ESTATE, IN THE
 AREA OF THE CITY; AND
   6. THE TERM "PROJECT" OR "PROJECTS" SHALL MEAN ANY AREA OR PLACE OPER-
 ATED OR TO BE OPERATED BY THE AUTHORITY FOR THE PARKING  OR  STORING  OF
 MOTOR  AND  OTHER  VEHICLES  AND  SHALL, WITHOUT LIMITING THE FOREGOING,
 INCLUDE ALL REAL AND PERSONAL PROPERTY,  DRIVEWAYS,  ROADS,  APPROACHES,
 STRUCTURES,  TERMINALS  OF ALL KINDS, GARAGES, METERS, MECHANICAL EQUIP-
 MENT, AND ALL APPURTENANCES AND FACILITIES EITHER ON, ABOVE OR UNDER THE
 GROUND WHICH ARE USED OR USABLE IN CONNECTION WITH SUCH PARKING OR STOR-
 ING OF SUCH VEHICLES IN THE AREA OF THE CITY.
   § 1621-C. MIDDLETOWN PARKING AUTHORITY. 1. A BOARD TO BE KNOWN AS  THE
 "MIDDLETOWN  PARKING  AUTHORITY" IS HEREBY CREATED. THE BOARD SHALL BE A
 BODY CORPORATE AND POLITIC, CONSTITUTING A PUBLIC  BENEFIT  CORPORATION,
 AND  ITS EXISTENCE SHALL COMMENCE UPON THE APPOINTMENT OF THE MEMBERS AS
 PROVIDED IN THIS SECTION.
   2. (A) THE BOARD  SHALL  CONSIST  OF  A  CHAIRPERSON  AND  FOUR  OTHER
 MEMBERS,  ALL  OF WHOM SHALL BE APPOINTED BY THE MAYOR WITH THE APPROVAL
 OF THE COMMON COUNCIL OF THE CITY. THE APPOINTMENT  OF  THE  CHAIRPERSON
 SHALL BE FOR A TERM OF FOUR YEARS. OF THE OTHER MEMBERS FIRST APPOINTED,
 ONE SHALL BE APPOINTED FOR A PERIOD OF ONE YEAR, ONE FOR A PERIOD OF TWO
 YEARS,  ONE  FOR  A  PERIOD OF THREE YEARS, AND ONE FOR A PERIOD OF FOUR
 YEARS. AT THE EXPIRATION OF SUCH TERMS,  THE  TERMS  OF  OFFICE  OF  THE
 SUCCESSORS  OF THE BOARD MEMBERS SHALL BE FOUR YEARS.  EACH MEMBER SHALL
 CONTINUE TO SERVE UNTIL THE APPOINTMENT AND QUALIFICATION OF HIS OR  HER
 SUCCESSOR. A BOARD MEMBER MAY BE APPOINTED FOR ADDITIONAL TERMS.
   (B)  VACANCIES ON THE BOARD OCCURRING OTHERWISE THAN BY THE EXPIRATION
 OF TERM, SHALL BE FILLED FOR THE UNEXPIRED TERM BY THE  MAYOR  WITH  THE
 APPROVAL OF THE COMMON COUNCIL.
   (C)  THE  MEMBERS  OF THE BOARD SHALL CHOOSE FROM THEIR NUMBER A VICE-
 CHAIRPERSON AND SUCH OTHER OFFICERS DEEMED DESIRABLE BY THE BOARD.
 A. 6920                             3

   3. THE COMMON COUNCIL MAY REMOVE ANY MEMBER OF THE BOARD  FOR  INEFFI-
 CIENCY, NEGLECT OF DUTY OR MISCONDUCT IN OFFICE, GIVING THE BOARD MEMBER
 A  COPY  OF  THE  CHARGES AGAINST THE BOARD MEMBER AND AN OPPORTUNITY OF
 BEING HEARD IN PERSON, OR BY COUNSEL, IN HIS OR HER  DEFENSE,  UPON  NOT
 LESS THAN TEN DAYS' NOTICE.
   4.  THE  MEMBERS OF THE BOARD SHALL BE ENTITLED TO NO COMPENSATION FOR
 THEIR SERVICES BUT SHALL BE ENTITLED TO REIMBURSEMENT FOR  THEIR  ACTUAL
 AND  NECESSARY  EXPENSES  INCURRED  IN THE PERFORMANCE OF THEIR OFFICIAL
 DUTIES.
   5. THE POWERS OF THE AUTHORITY SHALL BE VESTED IN AND EXERCISED  BY  A
 MAJORITY OF THE MEMBERS OF THE BOARD THEN IN OFFICE.
   6.  THE  BOARD  MAY  DELEGATE  TO ONE OR MORE OF ITS MEMBERS OR TO ITS
 OFFICERS, AGENTS AND EMPLOYEES SUCH POWERS AND DUTIES  AS  IT  MAY  DEEM
 PROPER.
   §  1621-D.  PURPOSE  AND  POWERS  OF THE AUTHORITY. THE PURPOSE OF THE
 AUTHORITY SHALL BE TO PROVIDE, OPERATE OR MAINTAIN, OR  ANY  COMBINATION
 THEREOF,  ONE  OR  MORE PROJECTS IN THE CITY. TO CARRY OUT SAID PURPOSE,
 THE AUTHORITY SHALL HAVE POWER:
   1. TO SUE AND BE SUED;
   2. TO HAVE A SEAL AND ALTER THE SAME AT PLEASURE;
   3. TO ACQUIRE, HOLD AND DISPOSE OF PERSONAL PROPERTY FOR ITS CORPORATE
 PURPOSES, INCLUDING THE  POWER  TO  PURCHASE  PROSPECTIVE  OR  TENTATIVE
 AWARDS IN CONNECTION WITH THE CONDEMNATION OF REAL PROPERTY;
   4.  TO  ACQUIRE REAL PROPERTY SUBJECT TO THE APPROVAL OF AT LEAST FOUR
 MEMBERS OF THE COMMON COUNCIL IN THE NAME OF THE  CITY  BY  PURCHASE  OR
 CONDEMNATION OR GIFT, AND USE NECESSARY REAL PROPERTY. ALL REAL PROPERTY
 ACQUIRED  BY  THE  AUTHORITY  BY  CONDEMNATION  SHALL BE ACQUIRED IN THE
 MANNER PROVIDED  IN  THE  EMINENT  DOMAIN  PROCEDURE  LAW,  AND  FURTHER
 PROVIDED,  THAT  THE AUTHORITY SHALL GIVE THE COMMON COUNCIL OF THE CITY
 WRITTEN NOTICE OF ITS INTENT TO ACQUIRE ANY LAND BY CONDEMNATION, WHERE-
 UPON SAID COMMON COUNCIL, WITHIN A PERIOD OF FORTY-FIVE DAYS  AFTER  THE
 GIVING  OF  SUCH  NOTICE,  BY  RESOLUTION VOTED UPON AFFIRMATIVELY BY AT
 LEAST TWO MEMBERS OF SUCH COMMON COUNCIL, MAY DETERMINE THAT  SUCH  LAND
 SHALL  NOT BE SO ACQUIRED, IN WHICH EVENT THE AUTHORITY SHALL BE WITHOUT
 FURTHER POWER TO SO ACQUIRE THE SAME BY CONDEMNATION;
   5. TO MAKE BY-LAWS FOR THE MANAGEMENT AND REGULATION OF  ITS  AFFAIRS,
 AND,  SUBJECT  TO AGREEMENTS WITH BONDHOLDERS, FOR THE REGULATION OF THE
 PROJECT;
   6. WITH THE CONSENT OF THE CITY TO USE AGENTS, EMPLOYEES, AND  FACILI-
 TIES  OF THE CITY, INCLUDING THE CORPORATION COUNSEL, PAYING TO THE CITY
 ITS AGREED PROPORTION OF THE COMPENSATION OR COSTS;
   7. TO APPOINT AN ATTORNEY, AND TO FIX HIS OR HER COMPENSATION;
   8.  TO  APPOINT  OFFICERS,  AGENTS,  EMPLOYEES,  AND  CONSULTANTS,  TO
 PRESCRIBE  THEIR  QUALIFICATIONS AND TO FIX THEIR COMPENSATION; SUBJECT,
 HOWEVER, TO THE PROVISIONS OF THE CIVIL SERVICE LAW, AS PROVIDED IN THIS
 SECTION;
   9. TO DESIGNATE OFFICERS AND  EMPLOYEES,  APPOINTED  OR  USED  BY  THE
 AUTHORITY, AS SPECIFIED IN THIS SECTION, WHO SHALL BE EMPOWERED TO ISSUE
 APPEARANCE  TICKETS  AS PROVIDED FOR IN ARTICLE ONE HUNDRED FIFTY OF THE
 CRIMINAL PROCEDURE LAW. PERSONS SO DESIGNATED ARE HEREBY  AUTHORIZED  TO
 ISSUE AND SERVE SUCH TICKETS FOR TRAFFIC INFRACTIONS RELATING TO PARKING
 WITHIN  "PROJECT"  AREAS  AS  DEFINED HEREIN, IN ACCORDANCE WITH LAW AND
 WHEN AUTHORIZED BY LOCAL LAW OF THE CITY TO ISSUE AND SERVE SUCH TICKETS
 FOR TRAFFIC INFRACTIONS COMMITTED ANYWHERE IN  SUCH  CITY  INCLUDING  AT
 PARKING SPACES CONTROLLED BY PARKING METERS;
 A. 6920                             4
 
   10.  TO MAKE CONTRACTS, LEASES, AS LESSOR OR LESSEE, AND ANY OPERATING
 AGREEMENT, AND TO EXECUTE ALL INSTRUMENTS NECESSARY OR CONVENIENT;
   11. TO ACQUIRE, CONSTRUCT, RECONSTRUCT, IMPROVE, EQUIP AND FURNISH ANY
 PROJECT AS MAY BE NECESSARY OR CONVENIENT;
   12. TO MAINTAIN AND OPERATE ANY PROJECTS;
   13.  TO  ACCEPT GRANTS, LOANS OR CONTRIBUTIONS FROM THE UNITED STATES,
 THE STATE OF NEW YORK, OR ANY AGENCY OR  INSTRUMENTALITY  OF  EITHER  OF
 THEM, OR THE CITY, OR ANY PERSON, BY BEQUEST OR OTHERWISE, AND TO EXPEND
 THE PROCEEDS FOR ANY PURPOSES OF THE AUTHORITY;
   14.  TO FIX AND COLLECT RENTALS, FEES AND OTHER CHARGES FOR THE USE OF
 ANY PROJECT AND TO PLEDGE THE SAME, ALL SUBJECT  TO  AND  IN  ACCORDANCE
 WITH  SUCH  AGREEMENTS  WITH  BONDHOLDERS  AS MAY BE MADE AS HEREINAFTER
 PROVIDED;
   15. TO CONSTRUCT, OPERATE OR MAINTAIN IN THE PROJECTS  ALL  FACILITIES
 AND  EQUIPMENT  NECESSARY  OR CONVENIENT IN CONNECTION THEREWITH; AND TO
 CONTRACT FOR THE PROVIDING, OPERATION OR MAINTENANCE OF ANY PARTS THERE-
 OF OR FOR SERVICES TO BE PERFORMED; TO RENT  PARTS  THEREOF,  AND  GRANT
 CONCESSIONS,  ALL  ON  SUCH  TERMS  AND  CONDITIONS AS IT MAY DETERMINE;
 PROVIDED, HOWEVER, THAT NEITHER THE AUTHORITY, THE CITY, OR  ANY  AGENCY
 OF  THE  AUTHORITY  OR  CITY,  OR  ANY OTHER PERSON, FIRM OR CORPORATION
 SHALL, WITHIN OR ON ANY  PROPERTY  COMPRISING  A  PART  OF  ANY  PROJECT
 AUTHORIZED BY THIS TITLE, SELL, DISPENSE OR OTHERWISE HANDLE ANY PRODUCT
 USED  IN  OR FOR THE SERVICING OF ANY MOTOR VEHICLE USING ANY PROJECT OR
 FACILITIES AUTHORIZED BY THIS TITLE.
   § 1621-E. CIVIL SERVICE STATUS OF OFFICERS AND EMPLOYEES. OFFICERS AND
 EMPLOYEES OF ANY BOARD, COMMISSION OR DEPARTMENT  OF  THE  CITY  MAY  BE
 TRANSFERRED  TO  THE  AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF THE
 CIVIL SERVICE LAW AND SHALL BE ELIGIBLE FOR SUCH TRANSFER  AND  APPOINT-
 MENT  WITHOUT  EXAMINATION TO OFFICES AND POSITIONS UNDER THE AUTHORITY.
 OFFICERS AND EMPLOYEES OF THE CITY WHO ARE MEMBERS OR  BENEFICIARIES  OF
 ANY  EXISTING  PENSION  OR  RETIREMENT SYSTEM SHALL CONTINUE TO HAVE THE
 RIGHTS, PRIVILEGES, OBLIGATIONS AND STATUS WITH RESPECT TO  SUCH  SYSTEM
 OR SYSTEMS AS ARE NOW PRESCRIBED BY LAW, AND ALL SUCH EMPLOYEES WHO HAVE
 BEEN  APPOINTED  TO POSITIONS IN THE SERVICE OF THE CITY UNDER THE RULES
 OF THE MUNICIPAL CIVIL SERVICE COMMISSION OF THE  CITY  SHALL  HAVE  THE
 SAME STATUS WITH RESPECT THERETO AFTER TRANSFER TO THE AUTHORITY AS THEY
 HAD  UNDER THEIR ORIGINAL APPOINTMENTS. THE APPOINTMENT AND PROMOTION OF
 ALL EMPLOYEES OF THE AUTHORITY SHALL BE  MADE  IN  ACCORDANCE  WITH  THE
 PROVISIONS  OF  THE CIVIL SERVICE LAW AND ALL EMPLOYEES OF THE AUTHORITY
 SHALL HAVE THE SAME RIGHTS AND BENEFITS AS CITY EMPLOYEES.
   § 1621-F. CONVEYANCE OF PROPERTY BY THE CITY TO THE AUTHORITY;  ACQUI-
 SITION  OF PROPERTY BY THE CITY OR BY THE AUTHORITY. 1. THE CITY MAY, BY
 RESOLUTION OR RESOLUTIONS  OF  THE  COMMON  COUNCIL  OR  BY  INSTRUMENTS
 AUTHORIZED  BY  SUCH RESOLUTIONS, CONVEY, WITH OR WITHOUT CONSIDERATION,
 TO THE AUTHORITY REAL AND PERSONAL PROPERTY OWNED BY THE CITY FOR USE BY
 THE AUTHORITY AS  A  PROJECT  OR  PROJECTS  OR  A  PART  THEREOF  OR  IN
 CONNECTION  THEREWITH  AND  PLEDGE AND PAY TO THE AUTHORITY, AS SECURITY
 FOR ITS BONDS, NOTES OR OTHER LIABILITIES, CERTAIN REVENUES  AND  INCOME
 OF  THE  CITY  FROM PARKING FACILITIES OWNED OR OPERATED BY THE CITY. IN
 CASE OF REAL PROPERTY SO CONVEYED, THE TITLE THERETO SHALL REMAIN IN THE
 CITY BUT THE AUTHORITY SHALL HAVE THE USE AND OCCUPANCY THEREOF  FOR  SO
 LONG  AS  ITS  CORPORATE  EXISTENCE  SHALL  CONTINUE,  UNLESS  OTHERWISE
 PROVIDED FOR BY THE AUTHORITY AND THE CITY.  IN  THE  CASE  OF  PERSONAL
 PROPERTY SO CONVEYED, THE TITLE SHALL PASS TO THE AUTHORITY.
   2. THE CITY MAY ACQUIRE BY GIFT, PURCHASE OR CONDEMNATION REAL PROPER-
 TY  IN  THE NAME OF THE CITY FOR ANY OF THE PROJECTS OR FOR THE WIDENING
 A. 6920                             5
 
 OF EXISTING ROADS, STREETS, PARKWAYS, AVENUES OR  HIGHWAYS  OR  FOR  NEW
 ROADS, STREETS, PARKWAYS, AVENUES OR HIGHWAYS TO ANY OF THE PROJECTS, OR
 PARTLY  FOR  SUCH  PURPOSES AND PARTLY FOR OTHER CITY PURPOSES, BY GIFT,
 PURCHASE  OR CONDEMNATION IN THE MANNER PROVIDED BY LAW FOR THE ACQUISI-
 TION OF REAL PROPERTY BY THE CITY.   FOR LIKE  PURPOSES,  THE  CITY  MAY
 CLOSE  SUCH  STREETS,  ROADS,  PARKWAYS,  AVENUES, OR HIGHWAYS AS MAY BE
 NECESSARY OR CONVENIENT, EXCEPT AS TO STATE HIGHWAYS AND  ARTERIAL  WAYS
 WHICH MAY NOT BE CLOSED WITHOUT THE CONSENT OF THE STATE COMMISSIONER OF
 TRANSPORTATION.
   3.  CONTRACTS  MAY  BE ENTERED INTO BETWEEN THE CITY AND THE AUTHORITY
 PROVIDING FOR THE PROPERTY TO BE CONVEYED OR PLEDGED OR PAID BY THE CITY
 TO THE AUTHORITY, THE ADDITIONAL PROPERTY TO BE ACQUIRED BY THE CITY AND
 SO CONVEYED, THE STREETS, ROADS, PARKWAYS, AVENUES, AND HIGHWAYS  TO  BE
 CLOSED  BY  THE CITY AND THE AMOUNTS, TERMS AND CONDITIONS OF PAYMENT TO
 BE MADE BY THE AUTHORITY. SUCH CONTRACTS MAY ALSO CONTAIN  COVENANTS  BY
 THE  CITY  AS  TO THE ROAD, STREET, PARKWAY, AVENUE AND HIGHWAY IMPROVE-
 MENTS TO BE MADE BY THE CITY AND AS TO SUCH MATTERS WHICH PERTAIN TO ANY
 CONVEYANCE OR PLEDGE AND PAYMENT OF MONEYS OR PROPERTY TO THE AUTHORITY.
 ANY SUCH CONTRACTS BETWEEN THE CITY AND THE AUTHORITY MAY BE PLEDGED  BY
 THE  AUTHORITY  TO  SECURE  ITS  BONDS AND NOTES AND MAY NOT BE MODIFIED
 THEREAFTER EXCEPT AS PROVIDED BY THE TERMS OF  SUCH  CONTRACT  AND  SUCH
 PLEDGE. THE COMMON COUNCIL MAY AUTHORIZE SUCH CONTRACTS BETWEEN THE CITY
 AND THE AUTHORITY AND NO OTHER AUTHORIZATION ON THE PART OF THE CITY FOR
 SUCH  CONTRACTS SHALL BE NECESSARY. ANY SUCH CONTRACTS MAY BE SO AUTHOR-
 IZED AND ENTERED INTO BY THE CITY AND IN SUCH MANNER AS THE COMMON COUN-
 CIL MAY DETERMINE, AND THE PAYMENTS REQUIRED TO BE MADE BY THE CITY  MAY
 BE  MADE  AND  FINANCED NOTWITHSTANDING THAT NO PROVISION THEREFOR SHALL
 HAVE FIRST BEEN MADE IN THE CAPITAL BUDGET OF THE CITY. ALL  CONTRACTUAL
 OR OTHER OBLIGATIONS OF THE CITY INCURRED IN CARRYING OUT THE PROVISIONS
 OF  THIS  TITLE  SHALL  BE  INCLUDED IN AND PROVIDED FOR BY EACH CAPITAL
 BUDGET OF THE CITY THEREAFTER MADE, IF AND TO THE EXTENT THAT  THEY  MAY
 APPROPRIATELY BE INCLUDED THEREIN.
   4. SUBJECT TO SUBDIVISION FOUR OF SECTION SIXTEEN HUNDRED TWENTY-ONE-D
 OF  THIS  TITLE,  THE AUTHORITY MAY ITSELF, SUBJECT TO PRIOR APPROVAL OF
 THE COMMON COUNCIL, ACQUIRE, IN THE NAME  OF  THE  CITY,  REAL  PROPERTY
 NECESSARY  OR  CONVENIENT IN CONNECTION WITH ANY PROJECT AT THE COST AND
 EXPENSE OF THE AUTHORITY BY PURCHASE OR  CONDEMNATION  PURSUANT  TO  THE
 EMINENT  DOMAIN  PROCEDURE  LAW.    THE AUTHORITY SHALL HAVE THE USE AND
 OCCUPANCY OF SUCH REAL PROPERTY SO LONG AS ITS CORPORATE EXISTENCE SHALL
 CONTINUE.
   5. IN CASE THE AUTHORITY SHALL HAVE THE USE AND OCCUPANCY OF ANY  REAL
 PROPERTY  WHICH  IT SHALL DETERMINE IS NO LONGER REQUIRED FOR A PROJECT,
 THEN, IF SUCH REAL PROPERTY WAS ACQUIRED AT THE COST AND EXPENSE OF  THE
 CITY,  THE AUTHORITY SHALL HAVE POWER TO SURRENDER ITS USE AND OCCUPANCY
 THEREOF TO THE CITY, OR, IF SUCH REAL PROPERTY WAS ACQUIRED AT THE  COST
 AND  EXPENSE  OF  THE  AUTHORITY, THEN THE AUTHORITY SHALL HAVE POWER TO
 SELL, LEASE OR OTHERWISE DISPOSE OF SAID REAL PROPERTY AT  PUBLIC  SALE,
 AND SHALL RETAIN AND HAVE THE POWER TO USE THE PROCEEDS OF SALE, RENTALS
 OR OTHER MONEYS DERIVED FROM THE DISPOSITION THEREOF FOR ITS PURPOSES.
   §  1621-G. CONSTRUCTION AND PURCHASE CONTRACTS. 1. THE AUTHORITY SHALL
 LET CONTRACTS FOR CONSTRUCTION IN THE SAME MANNER, SO FAR  AS  PRACTICA-
 BLE, AS IS PROVIDED BY LAW FOR CONTRACTS FOR THE CITY, EXCEPT THAT WHERE
 THE  ESTIMATED  EXPENSE  OF  A  CONTRACT  DOES  NOT EXCEED FIVE THOUSAND
 DOLLARS SUCH CONTRACT MAY BE ENTERED INTO WITHOUT PUBLIC LETTING.  NOTH-
 ING IN THIS SECTION SHALL BE CONSTRUED TO LIMIT THE POWER OF THE AUTHOR-
 ITY  TO DO ANY CONSTRUCTION DIRECTLY BY THE OFFICERS, AGENTS AND EMPLOY-
 A. 6920                             6
 
 EES OF THE AUTHORITY. CONTRACTS FOR THE PURCHASE OF SUPPLIES,  MATERIALS
 AND  EQUIPMENT SHALL BE LET IN THE SAME MANNER AS IS PROVIDED BY LAW FOR
 CONTRACTS OF THE CITY.
   2.  FOR  THE  PURPOSES OF ARTICLE FIFTEEN-A OF THE EXECUTIVE LAW ONLY,
 THE AUTHORITY SHALL BE DEEMED A STATE AGENCY, AS THE  TERM  IS  USED  IN
 SUCH  ARTICLE,  AND ITS CONTRACTS FOR DESIGN, CONSTRUCTION, SERVICES AND
 MATERIALS SHALL BE DEEMED STATE CONTRACTS WITHIN  THE  MEANING  OF  THAT
 TERM AS SET FORTH IN SUCH ARTICLE.
   §  1621-H.  MONEYS OF THE AUTHORITY. ALL MONEYS OF THE AUTHORITY SHALL
 BE PAID TO THE CITY TREASURER OF THE CITY AS AGENT OF THE AUTHORITY, WHO
 SHALL NOT COMMINGLE SUCH MONEYS WITH ANY OTHER MONEYS. SUCH MONEYS SHALL
 BE DEPOSITED IN A SEPARATE BANK ACCOUNT OR ACCOUNTS. THE MONEYS IN  SUCH
 ACCOUNTS SHALL BE PAID OUT BY THE CITY TREASURER OF THE CITY ON REQUISI-
 TION  OF  THE  CHAIRPERSON  OF  THE AUTHORITY OR OF SUCH OTHER PERSON OR
 PERSONS AS THE AUTHORITY MAY AUTHORIZE TO MAKE SUCH  REQUISITIONS  AFTER
 AUDIT  BY  THE  CITY TREASURER OF THE CITY.  ALL DEPOSITS OF SUCH MONEYS
 SHALL BE SECURED BY OBLIGATIONS OF THE UNITED STATES OR OF THE STATE  OF
 NEW  YORK  OF  A  MARKET  VALUE  EQUAL AT ALL TIMES TO THE AMOUNT OF THE
 DEPOSIT, AND ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED TO  GIVE  SUCH
 SECURITY  FOR  SUCH  DEPOSITS.  THE TREASURER OF THE CITY AND HIS OR HER
 LEGALLY AUTHORIZED REPRESENTATIVES ARE  AUTHORIZED  AND  EMPOWERED  FROM
 TIME TO TIME TO EXAMINE THE ACCOUNTS AND BOOKS OF THE AUTHORITY, INCLUD-
 ING  ITS  RECEIPTS,  DISBURSEMENTS,  CONTRACTS,  LEASES,  SINKING FUNDS,
 INVESTMENTS AND ANY OTHER RECORDS AND PAPERS RELATING TO  ITS  FINANCIAL
 STANDING.      THE  AUTHORITY  SHALL  HAVE  POWER,  NOTWITHSTANDING  THE
 PROVISIONS OF THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY  OF  ITS
 BONDS  OR  NOTES AS TO THE CUSTODY, COLLECTION, SECURING, INVESTMENT AND
 PAYMENT OF ANY MONEYS OF THE AUTHORITY OR ANY MONEYS HELD  IN  TRUST  OR
 OTHERWISE  FOR  THE  PAYMENT  OF  BONDS OR NOTES OR IN ANY WAY TO SECURE
 BONDS OR NOTES, AND TO CARRY OUT ANY SUCH CONTRACT NOTWITHSTANDING  THAT
 SUCH  CONTRACT  MAY BE INCONSISTENT WITH THE PREVIOUS PROVISIONS OF THIS
 SECTION. MONEYS HELD IN TRUST OR OTHERWISE FOR THE PAYMENT OF  BONDS  OR
 IN ANY WAY TO SECURE BONDS AND DEPOSITS OF SUCH MONEYS MAY BE SECURED IN
 THE  SAME  MANNER  AS  MONEYS  OF THE AUTHORITY, AND ALL BANKS AND TRUST
 COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR  SUCH  DEPOSITS.  THE
 ACCOUNTS  OF  THE  AUTHORITY  SHALL BE SUBJECT TO THE SUPERVISION OF THE
 STATE COMPTROLLER. THE AUTHORITY SHALL RENDER A COMPLETE ACCOUNT OF  ITS
 PROCEEDINGS  TO THE COMMON COUNCIL AT ITS FIRST MEETING OF EACH YEAR AND
 AT SUCH OTHER TIMES AS MAY REASONABLY BE REQUESTED BY THE  COMMON  COUN-
 CIL.
   §  1621-I.  BONDS  OF  THE  AUTHORITY. 1. THE AUTHORITY SHALL HAVE THE
 POWER AND IS HEREBY AUTHORIZED FROM TIME TO TIME TO ISSUE ITS NEGOTIABLE
 BONDS FOR ANY OF ITS CORPORATE PURPOSES AND TO PAY SUCH EXPENSES,  COSTS
 AND  PAYMENTS AS MAY BE DEEMED BY THE BOARD NECESSARY OR DESIRABLE TO OR
 IN  CONNECTION  WITH  THE  ACQUISITION,  CONSTRUCTION,   RECONSTRUCTION,
 IMPROVING,  EQUIPPING  AND  FURNISHING  OF ANY PROJECT AND THE FINANCING
 THEREOF, INCLUDING SURVEYS, PLANNING, PROVISIONS FOR CAPITALIZED  INTER-
 EST,  RESERVE  FUNDS  AND  APPROPRIATE  FEASIBILITY STUDIES, AND FOR THE
 PLACING OF THE PROJECT OR PROJECTS IN OPERATION. THE AGGREGATE PRINCIPAL
 AMOUNT OF SUCH BONDS OUTSTANDING AT ANY ONE TIME SHALL NOT EXCEED  TWEN-
 TY-FIVE  PERCENT OF THE BONDED INDEBTEDNESS LIMITATION FROM TIME TO TIME
 IMPOSED BY SECTION 104.00 OF THE LOCAL FINANCE LAW.  THE AUTHORITY SHALL
 HAVE POWER FROM TIME TO TIME 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  MAY  ISSUE  BONDS  PARTLY  TO
 REFUND BONDS THEN OUTSTANDING AND PARTLY FOR ANY OTHER PURPOSE DESCRIBED
 A. 6920                             7
 
 IN  THIS SUBDIVISION. THE REFUNDING BONDS MAY BE EXCHANGED FOR THE BONDS
 TO BE REFUNDED WITH SUCH CASH ADJUSTMENTS AS MAY BE AGREED,  OR  MAY  BE
 SOLD  AND THE PROCEEDS APPLIED TO THE PURCHASE, PAYMENT OR REDEMPTION OF
 THE  BONDS TO BE REFUNDED. EXCEPT AS MAY OTHERWISE BE EXPRESSLY PROVIDED
 BY THE AUTHORITY, THE BONDS OF EVERY ISSUE SHALL BE GENERAL  OBLIGATIONS
 OF THE AUTHORITY PAYABLE OUT OF ANY MONEYS OR REVENUES OF THE AUTHORITY,
 SUBJECT  ONLY  TO  ANY  AGREEMENTS  WITH THE HOLDERS OF PARTICULAR BONDS
 PLEDGING ANY PARTICULAR MONEYS OR REVENUES. WHETHER OR NOT THE BONDS ARE
 OF SUCH FORM AND CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER ARTICLE
 EIGHT OF THE UNIFORM COMMERCIAL CODE, THE BONDS SHALL BE, AND 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 BONDS FOR REGISTRATION.
   2. THE BONDS SHALL BE AUTHORIZED BY RESOLUTION OF THE BOARD AND  SHALL
 BEAR  SUCH  DATE  OR  DATES, MATURE AT SUCH TIME OR TIMES, NOT EXCEEDING
 THIRTY YEARS FROM THEIR RESPECTIVE DATES, BEAR INTEREST AT SUCH RATE  OR
 RATES,  PAYABLE  ANNUALLY OR SEMI-ANNUALLY, BE IN SUCH DENOMINATIONS, BE
 IN SUCH FORM, EITHER COUPON OR REGISTERED, CARRY SUCH REGISTRATION PRIV-
 ILEGES, BE EXECUTED IN SUCH MANNER, BE PAYABLE IN LAWFUL  MONEY  OF  THE
 UNITED STATES OF AMERICA AT SUCH PLACE OR PLACES, AND BE SUBJECT TO SUCH
 TERMS  OF REDEMPTION, AS SUCH RESOLUTION OR RESOLUTIONS MAY PROVIDE. THE
 BONDS MAY BE SOLD AT PUBLIC OR PRIVATE SALE FOR SUCH PRICE OR PRICES  AS
 THE  AUTHORITY SHALL DETERMINE; PROVIDED, HOWEVER, THAT ANY PRIVATE SALE
 SHALL BE SUBJECT TO THE APPROVAL OF THE  STATE  COMPTROLLER  WHERE  SUCH
 SALE IS NOT TO THE COMPTROLLER, OR THE DIRECTOR OF THE BUDGET WHERE SUCH
 SALE IS TO THE COMPTROLLER.
   3. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING ANY BONDS OR ANY ISSUE OF
 BONDS MAY CONTAIN PROVISIONS, WHICH SHALL BE A PART OF THE CONTRACT WITH
 THE HOLDERS OF THE BONDS THEREBY AUTHORIZED, AS TO:
   (A)  PLEDGING ALL OR ANY PART OF THE REVENUES OF A PROJECT OR PROJECTS
 AND REVENUES AND INCOME OF THE AUTHORITY TO SECURE THE  PAYMENT  OF  THE
 BONDS, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY THEN EXIST;
   (B) THE RENTALS, FEES AND OTHER CHARGES TO BE CHARGED, AND THE AMOUNTS
 TO  BE  RAISED  IN EACH YEAR THEREBY, AND THE USE AND DISPOSITION OF THE
 REVENUES;
   (C) THE SETTING ASIDE OF RESERVES OR SINKING FUNDS, AND THE REGULATION
 AND DISPOSITION THEREOF;
   (D) LIMITATIONS ON THE RIGHT OF THE AUTHORITY TO RESTRICT AND REGULATE
 THE USE OF A PROJECT;
   (E) LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS OF  SALE  OF  ANY
 ISSUE OF BONDS THEN OR THEREAFTER TO BE ISSUED MAY BE APPLIED AND PLEDG-
 ING  SUCH PROCEEDS TO SECURE THE PAYMENT OF THE BONDS OR OF ANY ISSUE OF
 THE BONDS;
   (F) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS;  THE  TERMS  UPON
 WHICH  ADDITIONAL  BONDS  MAY  BE  ISSUED  AND SECURED; THE REFUNDING OF
 OUTSTANDING OR OTHER BONDS;
   (G) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
 BONDHOLDERS MAY BE AMENDED OR ABROGATED, THE AMOUNT OF 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 DERIVED FROM A PROJECT  TO  BE
 EXPENDED FOR OPERATING, ADMINISTRATIVE OR OTHER EXPENSES OF THE AUTHORI-
 TY;
   (I) VESTING IN A TRUSTEE OR TRUSTEES SUCH PROPERTY, RIGHTS, POWERS AND
 DUTIES  IN TRUST AS THE AUTHORITY MAY DETERMINE WHICH MAY INCLUDE ANY OR
 ALL, THE RIGHTS, POWERS AND DUTIES OF THE TRUSTEE APPOINTED BY THE BOND-
 A. 6920                             8
 
 HOLDERS PURSUANT TO SECTION SIXTEEN HUNDRED TWENTY-ONE-P OF THIS  TITLE,
 AND  LIMITING  OR  ABROGATING  THE RIGHT OF THE BONDHOLDERS TO APPOINT A
 TRUSTEE UNDER SAID SECTION OR LIMITING THE RIGHTS, DUTIES AND POWERS  OF
 SUCH TRUSTEE;
   (J)  ANY  OTHER  MATTERS, OF LIKE OR DIFFERENT CHARACTER, WHICH IN ANY
 WAY AFFECT THE SECURITY OR PROTECTION OF THE BONDS.
   4. NOTWITHSTANDING ANY OTHER PROVISION OF LAW,  IT  IS  THE  INTENTION
 HEREOF THAT ANY PLEDGE OF REVENUES OR OTHER MONEYS MADE BY THE AUTHORITY
 SHALL  BE  VALID AND BINDING FROM THE TIME WHEN THE PLEDGE IS MADE; THAT
 THE REVENUES OR OTHER MONEYS SO PLEDGED AND THEREAFTER RECEIVED  BY  THE
 AUTHORITY  SHALL IMMEDIATELY BE SUBJECT TO THE LIEN OF SUCH PLEDGE WITH-
 OUT 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 OR FILED IN ORDER TO PROTECT THE SECURITY INTEREST GRANTED.
   5.  NEITHER  THE MEMBERS OF THE AUTHORITY NOR ANY PERSON EXECUTING THE
 BONDS SHALL BE LIABLE PERSONALLY ON THE  BONDS  OR  BE  SUBJECT  TO  ANY
 PERSONAL LIABILITY OR ACCOUNTABILITY BY REASON OF THE ISSUANCE THEREOF.
   6.  THE AUTHORITY SHALL HAVE POWER OUT OF ANY FUNDS AVAILABLE THEREFOR
 TO PURCHASE BONDS UPON SUCH TERMS AND CONDITIONS AS  THE  AUTHORITY  MAY
 DETERMINE.  THE AUTHORITY MAY HOLD, CANCEL OR RESELL SUCH BONDS, SUBJECT
 TO AND IN ACCORDANCE WITH AGREEMENTS WITH BONDHOLDERS.
   7.  IN  THE DISCRETION OF THE AUTHORITY, THE BONDS MAY BE SECURED BY A
 TRUST INDENTURE BY AND BETWEEN THE AUTHORITY AND  A  CORPORATE  TRUSTEE,
 WHICH  MAY  BE  ANY  TRUST COMPANY, BANK OR NATIONAL BANKING ASSOCIATION
 HAVING THE POWERS OF A TRUST COMPANY IN THE STATE OF  NEW  YORK.    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  AUTHORITY IN RELATION TO THE CONSTRUCTION, MAINTE-
 NANCE, OPERATION, REPAIR AND INSURANCE OF THE PROJECT OR  PROJECTS,  AND
 THE CUSTODY, SAFEGUARDING AND APPLICATION OF ALL MONEYS, AND MAY PROVIDE
 THAT THE PROJECT OR PROJECTS SHALL BE CONSTRUCTED AND PAID FOR UNDER THE
 SUPERVISION  AND  APPROVAL  OF  CONSULTING  ENGINEERS. THE AUTHORITY MAY
 PROVIDE BY SUCH TRUST INDENTURE FOR THE PAYMENT OF THE PROCEEDS  OF  THE
 BONDS  AND  THE REVENUES OF THE PROJECT OR PROJECTS OR OTHER REVENUES OF
 THE AUTHORITY TO THE TRUSTEE UNDER SUCH TRUST INDENTURE OR OTHER DEPOSI-
 TORY, 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 COST OF MAINTE-
 NANCE, OPERATION, AND REPAIRS OF THE PROJECT OR PROJECTS. IF  THE  BONDS
 SHALL  BE  SECURED  BY  A TRUST INDENTURE, THE BONDHOLDERS SHALL HAVE NO
 AUTHORITY TO APPOINT A SEPARATE TRUSTEE TO REPRESENT THEM, AND THE TRUS-
 TEE UNDER SUCH TRUST INDENTURE SHALL HAVE AND POSSESS ALL OF THE  POWERS
 WHICH  ARE  CONFERRED  BY  SECTION  SIXTEEN HUNDRED TWENTY-ONE-P OF THIS
 TITLE UPON A TRUSTEE APPOINTED BY BONDHOLDERS.
   § 1621-J. NOTES OF THE AUTHORITY. THE AUTHORITY SHALL HAVE POWER  FROM
 TIME TO TIME TO ISSUE NOTES AND FROM TIME TO TIME TO ISSUE RENEWAL NOTES
 (HEREAFTER  "NOTES"),  MATURING  NOT  LATER  THAN  FIVE YEARS FROM THEIR
 RESPECTIVE ORIGINAL DATES IN AN AMOUNT NOT EXCEEDING AT ANY ONE TIME ONE
 HUNDRED THOUSAND DOLLARS, OVER AND ABOVE THE AMOUNT OF BONDS  AUTHORIZED
 BY  SUBDIVISION  ONE  OF  SECTION  SIXTEEN  HUNDRED TWENTY-ONE-I OF THIS
 TITLE, FOR ANY PURPOSE OR PURPOSES FOR WHICH BONDS MAY BE ISSUED,  WHEN-
 EVER  THE  AUTHORITY SHALL DETERMINE THAT PAYMENT THEREOF CAN BE MADE IN
 A. 6920                             9
 
 FULL FROM ANY MONEYS OR REVENUES WHICH THE AUTHORITY EXPECTS TO  RECEIVE
 FROM  ANY  SOURCE.  THE  AUTHORITY MAY PLEDGE SUCH MONEYS OR REVENUES OR
 SOURCE THEREOF (SUBJECT TO ANY OTHER PLEDGE THEREOF) FOR THE PAYMENT  OF
 THE  NOTES  AND  MAY IN ADDITION SECURE THE NOTES IN THE SAME MANNER AND
 WITH THE SAME EFFECT AS HEREIN PROVIDED FOR BONDS. THE  NOTES  SHALL  BE
 SOLD  AND  ISSUED  IN THE SAME MANNER AS BONDS. THE AUTHORITY SHALL HAVE
 POWER TO MAKE CONTRACTS FOR THE FUTURE SALE FROM TIME  TO  TIME  OF  THE
 NOTES,  BY  WHICH THE PURCHASER SHALL BE COMMITTED TO PURCHASE THE NOTES
 FROM TIME TO TIME ON TERMS AND CONDITIONS STATED IN SUCH CONTRACTS,  AND
 THE  AUTHORITY  SHALL  HAVE  POWER TO PAY SUCH CONSIDERATION AS IT SHALL
 DEEM PROPER FOR SUCH COMMITMENTS. IN CASE OF DEFAULT ON  ITS  NOTES,  OR
 VIOLATION OF ANY OF THE OBLIGATIONS OF THE AUTHORITY TO THE NOTEHOLDERS,
 THE  NOTEHOLDERS  SHALL  HAVE ALL THE REMEDIES PROVIDED HEREIN FOR BOND-
 HOLDERS. SUCH NOTES SHALL BE AS FULLY NEGOTIABLE AS  THE  BONDS  OF  THE
 AUTHORITY.
   § 1621-K. AGREEMENTS OF THE CITY AND THE STATE. 1. THE CITY IS AUTHOR-
 IZED  TO, AND THE STATE OF NEW YORK DOES HEREBY PLEDGE TO AND AGREE WITH
 THE HOLDERS OF THE BONDS OR NOTES THAT NEITHER THE CITY NOR  THE  STATE,
 RESPECTIVELY,  WILL  LIMIT  OR  ALTER  THE  RIGHTS  HEREBY VESTED IN THE
 AUTHORITY TO ACQUIRE, CONSTRUCT, RECONSTRUCT, IMPROVE,  EQUIP,  FURNISH,
 MAINTAIN  OR  OPERATE  ANY PROJECT OR PROJECTS, TO ESTABLISH AND COLLECT
 RENTALS, FEES AND OTHER CHARGES AND TO FULFILL THE TERMS OF  ANY  AGREE-
 MENTS  MADE WITH THE HOLDERS OF THE BONDS OR NOTES, OR IN ANY WAY IMPAIR
 THE RIGHTS AND REMEDIES OF THE BONDHOLDERS  OR  NOTEHOLDERS,  UNTIL  THE
 BONDS  OR  NOTES,  TOGETHER  WITH 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  THE  BONDHOLDERS  OR
 NOTEHOLDERS, ARE FULLY MET AND DISCHARGED.
   2.  THE  AUTHORITY IS HEREBY AUTHORIZED, IN ITS DISCRETION, FOR AND ON
 BEHALF OF ITSELF AND, SUBJECT TO APPROVAL BY THE COMMON COUNCIL AND  THE
 MAYOR  OF THE CITY OF MIDDLETOWN, TO COVENANT AND AGREE WITH THE HOLDERS
 OF THE BONDS OR NOTES, WITH SUCH EXCEPTIONS AND LIMITATIONS  AS  IT  MAY
 DEEM  IN  THE  PUBLIC  INTEREST  AND IN THE INTERESTS OF THE AUTHORITY'S
 BONDHOLDERS AND NOTEHOLDERS, THAT NO PUBLIC  PARKING  AREAS  OR  SPACES,
 INCLUDING THE INSTALLATION AND OPERATION OF PARKING METERS ON THE PUBLIC
 STREETS OF THE CITY, EXCEPT THOSE ACQUIRED AND OPERATED BY THE AUTHORITY
 WILL BE CONSTRUCTED OR OPERATED IN THE CITY BY THE CITY (EXCEPT AS HERE-
 INAFTER  PROVIDED),  OR  BY ANY PUBLIC BENEFIT OR OTHER CORPORATION, THE
 MEMBERS OF WHICH ARE ELECTED  OR  APPOINTED  BY  CITY  OFFICIALS,  UNTIL
 EITHER: (A) THE BONDS OR NOTES, TOGETHER WITH INTEREST THEREON, INTEREST
 ON  ANY  UNPAID  INSTALLMENTS  OF INTEREST AND ALL COSTS AND EXPENSES IN
 CONNECTION WITH ANY ACTION OR PROCEEDING BY OR ON BEHALF  OF  THE  BOND-
 HOLDERS OR NOTEHOLDERS ARE FULLY MET AND DISCHARGED; OR (B) PRINCIPAL OR
 INTEREST  OF ANY OF THE BONDS OR NOTES SHALL BE OVERDUE AND UNPAID FOR A
 PERIOD OF THREE YEARS OR MORE; PROVIDED, HOWEVER, NOTHING  CONTAINED  IN
 THIS SECTION SHALL BE DEEMED TO IMPAIR THE RIGHT OF THE CITY TO CONTINUE
 TO  OPERATE  THE PRESENTLY EXISTING MUNICIPAL PARKING FACILITIES AND ANY
 REPLACEMENTS THEREOF.
   § 1621-L. STATE AND CITY NOT LIABLE ON BONDS.  THE  BONDS,  NOTES  AND
 OTHER  OBLIGATIONS  OF THE AUTHORITY SHALL NOT BE A DEBT OF THE STATE OF
 NEW YORK OR OF THE CITY, AND NEITHER THE STATE NOR  THE  CITY  SHALL  BE
 LIABLE  THEREON,  NOR  SHALL THEY BE PAYABLE OUT OF ANY FUNDS OTHER THAN
 THOSE OF THE AUTHORITY.
   § 1621-M. BONDS AND NOTES LEGAL INVESTMENTS FOR  PUBLIC  OFFICERS  AND
 FIDUCIARIES. THE BONDS AND NOTES ARE HEREBY MADE SECURITIES IN WHICH ALL
 PUBLIC  OFFICERS,  AND  BODIES  OF  THE STATE AND ALL MUNICIPALITIES AND
 A. 6920                            10
 
 MUNICIPAL SUBDIVISIONS, ALL INSURANCE  COMPANIES  AND  ASSOCIATIONS  AND
 OTHER  PERSONS  CARRYING  ON  AN INSURANCE BUSINESS, ALL BANKS, BANKERS,
 TRUST COMPANIES,  SAVINGS  BANKS  AND  SAVINGS  ASSOCIATIONS,  INCLUDING
 SAVINGS  AND  LOAN ASSOCIATIONS, BUILDING AND LOAN ASSOCIATIONS, INVEST-
 MENT COMPANIES AND OTHER PERSONS CARRYING ON  A  BANKING  BUSINESS,  ALL
 ADMINISTRATORS, GUARDIANS, EXECUTORS, TRUSTEES AND OTHER FIDUCIARIES AND
 ALL  OTHER PERSONS WHATSOEVER WHO ARE NOW OR MAY HEREAFTER BE AUTHORIZED
 TO INVEST IN BONDS OR OTHER OBLIGATIONS OF THE STATE, MAY  PROPERLY  AND
 LEGALLY  INVEST FUNDS INCLUDING CAPITAL IN THEIR CONTROL OR BELONGING TO
 THEM. THE BONDS AND NOTES ARE ALSO HEREBY MADE SECURITIES WHICH  MAY  BE
 DEPOSITED  WITH  AND SHALL BE RECEIVED BY ALL PUBLIC OFFICERS AND BODIES
 OF THIS STATE AND ALL MUNICIPALITIES AND MUNICIPAL SUBDIVISIONS FOR  ANY
 PURPOSE  FOR  WHICH  THE  DEPOSIT  OF BONDS OR OTHER OBLIGATIONS OF THIS
 STATE IS NOW OR MAY HEREAFTER BE AUTHORIZED.
   § 1621-N. TAX EXEMPTIONS. 1. IT IS HEREBY DETERMINED THAT THE CREATION
 OF THE AUTHORITY AND THE CARRYING OUT OF ITS CORPORATE  PURPOSES  IS  IN
 ALL RESPECTS FOR THE BENEFIT OF THE PEOPLE OF THE CITY OF MIDDLETOWN AND
 ITS  ENVIRONS,  AND  IS  A  PUBLIC  PURPOSE,  AND THE AUTHORITY SHALL BE
 REGARDED AS PERFORMING AN ESSENTIAL GOVERNMENTAL FUNCTION IN  THE  EXER-
 CISE OF THE POWERS CONFERRED UPON IT BY THIS TITLE AND SHALL BE REQUIRED
 TO  PAY  NO TAXES OR ASSESSMENTS UPON ANY OF THE PROPERTY ACQUIRED BY IT
 OR UNDER ITS JURISDICTION OR CONTROL OR SUPERVISION OR UPON  ITS  ACTIV-
 ITIES.
   2. ANY BONDS OR NOTES ISSUED PURSUANT TO THIS TITLE, TOGETHER WITH THE
 INCOME  THEREFROM,  AS  WELL  AS THE PROPERTY OF THE AUTHORITY, SHALL BE
 EXEMPT FROM TAXATION, EXCEPT FOR TRANSFER AND ESTATE TAXES.
   § 1621-O. TAX CONTRACT BY THE STATE. THE STATE OF NEW  YORK  COVENANTS
 WITH  THE  PURCHASERS AND WITH ALL SUBSEQUENT HOLDERS AND TRANSFEREES OF
 BONDS OR NOTES ISSUED BY  THE  AUTHORITY  PURSUANT  TO  THIS  TITLE,  IN
 CONSIDERATION  OF  THE ACCEPTANCE OF AND PAYMENT FOR THE BONDS OR NOTES,
 THAT THE BONDS OR NOTES OF THE AUTHORITY ISSUED PURSUANT TO  THIS  TITLE
 AND  THE INCOME THEREFROM, AND ALL MONEYS, FUNDS AND REVENUES PLEDGED TO
 PAY OR SECURE THE PAYMENT OF SUCH BONDS OR NOTES, SHALL AT ALL TIMES  BE
 FREE  FROM TAXATION EXCEPT FOR ESTATE TAXES AND TAXES ON TRANSFERS BY OR
 IN CONTEMPLATION OF DEATH.
   § 1621-P. REMEDIES OF BONDHOLDERS. 1. IN THE EVENT THAT THE  AUTHORITY
 SHALL DEFAULT IN THE PAYMENT OF PRINCIPAL OF OR INTEREST ON ANY ISSUE OF
 THE  BONDS  AFTER THE SAME SHALL BECOME DUE, WHETHER AT MATURITY OR UPON
 CALL FOR REDEMPTION, AND SUCH DEFAULT SHALL CONTINUE  FOR  A  PERIOD  OF
 THIRTY  DAYS, OR IN THE EVENT THAT THE AUTHORITY SHALL FAIL OR REFUSE TO
 COMPLY WITH THE PROVISIONS OF THIS TITLE, OR SHALL DEFAULT IN ANY AGREE-
 MENT MADE WITH THE HOLDERS OF ANY ISSUE OF THE  BONDS,  THE  HOLDERS  OF
 TWENTY-FIVE  PER  CENTUM  IN  AGGREGATE PRINCIPAL AMOUNT OF THE BONDS OF
 SUCH ISSUE THEN OUTSTANDING, BY INSTRUMENT OR INSTRUMENTS FILED  IN  THE
 OFFICE  OF  THE CLERK OF THE COUNTY OF ORANGE AND PROVED OR ACKNOWLEDGED
 IN THE SAME MANNER AS A DEED TO BE RECORDED, MAY APPOINT  A  TRUSTEE  TO
 REPRESENT  THE  HOLDERS  OF SUCH BONDS FOR THE PURPOSES PROVIDED IN THIS
 SECTION.
   2. SUCH TRUSTEE MAY, AND UPON WRITTEN REQUEST OF THE HOLDERS OF  TWEN-
 TY-FIVE  PER  CENTUM  IN PRINCIPAL AMOUNT OF SUCH BONDS THEN OUTSTANDING
 SHALL, IN THE TRUSTEE'S OWN NAME:
   (A) BY MANDAMUS OR OTHER SUIT, ACTION OR  PROCEEDING,  AT  LAW  OR  IN
 EQUITY,  ENFORCE  ALL  RIGHTS OF THE BONDHOLDERS, INCLUDING THE RIGHT TO
 REQUIRE THE AUTHORITY TO COLLECT REVENUES ADEQUATE TO CARRY OUT  BY  ANY
 AGREEMENT AS TO, OR PLEDGE OF, SUCH REVENUES, AND TO REQUIRE THE AUTHOR-
 A. 6920                            11
 
 ITY TO CARRY OUT ANY OTHER AGREEMENTS WITH THE HOLDERS OF SUCH BONDS AND
 TO PERFORM ITS DUTIES UNDER THIS TITLE;
   (B) BRING SUIT UPON SUCH BONDS;
   (C)  BY  ACTION OR SUIT IN EQUITY, REQUIRE THE AUTHORITY TO ACCOUNT AS
 IF IT WERE THE TRUSTEE OF AN EXPRESS  TRUST  FOR  THE  HOLDERS  OF  SUCH
 BONDS;
   (D)  BY  ACTION OR SUIT IN EQUITY, ENJOIN ANY ACTS OR THINGS WHICH MAY
 BE UNLAWFUL OR IN VIOLATION OF THE RIGHTS OF THE HOLDERS OF SUCH BONDS;
   (E) DECLARE ALL SUCH BONDS DUE AND PAYABLE, AND IF ALL DEFAULTS  SHALL
 BE  MADE  GOOD  THEN  WITH THE CONSENT OF THE HOLDERS OF TWENTY-FIVE PER
 CENTUM OF THE PRINCIPAL AMOUNT OF SUCH BONDS THEN OUTSTANDING, TO  ANNUL
 SUCH DECLARATION AND ITS CONSEQUENCES.
   3.  THE  SUPREME  COURT SHALL HAVE JURISDICTION OF ANY SUIT, ACTION OR
 PROCEEDING BY THE TRUSTEE ON BEHALF OF BONDHOLDERS.  THE  VENUE  OF  ANY
 SUCH SUIT, ACTION OR PROCEEDING SHALL BE LAID IN THE COUNTY OF ORANGE.
   4.  BEFORE  DECLARING THE PRINCIPAL OF ALL SUCH BONDS DUE AND PAYABLE,
 THE TRUSTEE SHALL FIRST GIVE THIRTY  DAYS'  NOTICE  IN  WRITING  TO  THE
 AUTHORITY.
   5.  ANY SUCH TRUSTEE, WHETHER OR NOT THE ISSUE OF BONDS REPRESENTED BY
 SUCH TRUSTEE HAS BEEN DECLARED DUE AND PAYABLE, SHALL BE ENTITLED AS  OF
 RIGHT  TO  THE  APPOINTMENT  OF  A  RECEIVER OF ANY PART OR PARTS OF THE
 PROJECT THE REVENUES OF WHICH ARE PLEDGED FOR THE SECURITY OF THE  BONDS
 OF  SUCH  ISSUE, AND SUCH RECEIVER MAY ENTER AND TAKE POSSESSION OF SUCH
 PART OR PARTS OF THE PROJECT AND, SUBJECT TO  ANY  PLEDGE  OR  AGREEMENT
 WITH BONDHOLDERS, SHALL TAKE POSSESSION OF ALL MONEYS AND OTHER PROPERTY
 DERIVED  FROM OR APPLICABLE TO THE ACQUISITION, CONSTRUCTION, OPERATION,
 MAINTENANCE AND RECONSTRUCTION OF SUCH PART OR PARTS OF THE PROJECT  AND
 PROCEED  WITH  THE ACQUISITION OF ANY REAL PROPERTY NECESSARY OR CONVEN-
 IENT IN CONNECTION WITH THE PROJECT THAT THE AUTHORITY HAS COVENANTED TO
 CONSTRUCT, AND WITH ANY CONSTRUCTION WHICH THE AUTHORITY IS UNDER  OBLI-
 GATION TO DO AND TO OPERATE, MAINTAIN AND RECONSTRUCT SUCH PART OR PARTS
 OF  THE  PROJECT AND COLLECT AND RECEIVE ALL REVENUES THEREAFTER ARISING
 THEREFROM SUBJECT TO ANY PLEDGE THEREOF OR  AGREEMENT  WITH  BONDHOLDERS
 RELATING  THERETO AND PERFORM THE PUBLIC DUTIES AND CARRY OUT THE AGREE-
 MENTS AND OBLIGATIONS OF THE AUTHORITY UNDER THE DIRECTION OF THE COURT.
 IN ANY SUIT, ACTION OR PROCEEDING BY THE TRUSTEE, THE FEE, COUNSEL  FEES
 AND  EXPENSES  OF THE TRUSTEE AND OF THE RECEIVER, IF ANY, SHALL CONSTI-
 TUTE TAXABLE DISBURSEMENTS AND ALL COSTS AND  DISBURSEMENTS  ALLOWED  BY
 THE  COURT  SHALL  BE  A  FIRST CHARGE ON ANY REVENUES DERIVED FROM SUCH
 PROJECT.
   6. SUCH TRUSTEE SHALL, IN ADDITION TO THE FOREGOING, HAVE AND  POSSESS
 ALL OF THE POWERS NECESSARY OR APPROPRIATE FOR THE EXERCISE OF ANY FUNC-
 TIONS  SPECIFICALLY SET FORTH IN THIS SECTION OR INCIDENT TO THE GENERAL
 REPRESENTATION OF BONDHOLDERS IN THE ENFORCEMENT AND PROTECTION OF THEIR
 RIGHTS.
   § 1621-Q. ACTIONS AGAINST THE AUTHORITY. 1. IN  EVERY  ACTION  AGAINST
 THE AUTHORITY FOR DAMAGES, FOR INJURIES TO REAL OR PERSONAL PROPERTY, OR
 FOR  THE  DESTRUCTION  THEREOF,  OR  FOR PERSONAL INJURIES OR DEATH, THE
 COMPLAINT SHALL CONTAIN AN ALLEGATION THAT AT  LEAST  NINETY  DAYS  HAVE
 ELAPSED  SINCE  THE  DEMAND,  CLAIM  OR CLAIMS UPON WHICH SUCH ACTION IS
 FOUNDED WERE PRESENTED TO A MEMBER OF THE AUTHORITY, OR  TO  ITS  SECRE-
 TARY,  OR  TO  ITS  CHIEF  EXECUTIVE  OFFICER AND THAT THE AUTHORITY HAS
 NEGLECTED OR REFUSED TO MAKE AN ADJUSTMENT OR PAYMENT THEREOF FOR NINETY
 DAYS AFTER SUCH PRESENTMENT.
   2. EXCEPT IN AN ACTION FOR  WRONGFUL  DEATH,  AN  ACTION  AGAINST  THE
 AUTHORITY  FOR DAMAGES FOR INJURIES TO REAL OR PERSONAL PROPERTY, OR FOR
 A. 6920                            12
 
 THE DESTRUCTION THEREOF, OR FOR PERSONAL INJURIES, ALLEGED TO HAVE  BEEN
 SUSTAINED,  SHALL  NOT  BE  COMMENCED MORE THAN ONE YEAR AND NINETY DAYS
 AFTER THE CAUSE OF ACTION THEREFOR SHALL  HAVE  ACCRUED,  NOR  UNLESS  A
 NOTICE  OF CLAIM SHALL HAVE BEEN SERVED ON THE AUTHORITY WITHIN THE TIME
 LIMIT ESTABLISHED BY AND IN COMPLIANCE WITH ALL REQUIREMENTS OF  SECTION
 FIFTY-E  OF  THE  GENERAL MUNICIPAL LAW. AN ACTION AGAINST THE AUTHORITY
 FOR WRONGFUL DEATH SHALL BE COMMENCED IN ACCORDANCE WITH THE  NOTICE  OF
 CLAIM  AND TIME LIMITATION PROVISIONS OF TITLE ELEVEN OF ARTICLE NINE OF
 THIS CHAPTER.
   § 1621-R. TERMINATION OF THE AUTHORITY. WHENEVER ALL OF THE BONDS  AND
 NOTES ISSUED BY THE AUTHORITY SHALL HAVE BEEN REDEEMED OR CANCELLED, AND
 ALL  ITS  LIABILITIES  AND DUTIES MET OR DISCHARGED, THE AUTHORITY SHALL
 CEASE TO EXIST AND ALL RIGHTS, TITLE AND INTERESTS AND  ALL  OBLIGATIONS
 AND  LIABILITIES  THEREOF  VESTED IN OR POSSESSED BY THE AUTHORITY SHALL
 THEREUPON VEST IN AND BE POSSESSED BY THE CITY OF MIDDLETOWN.
   § 1621-S. SEVERABILITY. IF ANY CLAUSE, SENTENCE,  PARAGRAPH,  SUBDIVI-
 SION,  SECTION OR PART OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF
 COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT  SHALL  NOT  AFFECT,
 IMPAIR,  OR  INVALIDATE  THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN
 ITS OPERATION TO THE CLAUSE, SENTENCE, PARAGRAPH,  SUBDIVISION,  SECTION
 OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY IN WHICH SUCH JUDG-
 MENT  SHALL  HAVE BEEN RENDERED.  IT IS HEREBY DECLARED TO BE THE INTENT
 OF THE LEGISLATURE THAT THIS ARTICLE WOULD HAVE  BEEN  ENACTED  EVEN  IF
 SUCH INVALID PROVISIONS HAD NOT BEEN INCLUDED HEREIN.
   § 1621-T. INCONSISTENT PROVISIONS IN OTHER ACTS SUPERSEDED. INSOFAR AS
 THE PROVISIONS OF THIS TITLE ARE INCONSISTENT WITH THE PROVISIONS OF ANY
 OTHER  ACT,  GENERAL  OR  SPECIAL,  OR OF ANY LOCAL LAW OF THE CITY, THE
 PROVISIONS OF THIS TITLE SHALL BE CONTROLLING.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed  repealed  upon the occurrence of the events set forth in section
 1621-r of title 21 of article 7 of the public authorities law, as  added
 by  section one of this act. Upon such occurrence, the mayor of the city
 of Middletown shall notify the legislative bill drafting  commission  in
 order  that the commission may maintain an accurate and timely effective
 data base of the official text of the laws of the state of New  York  in
 furtherance of effectuating the provisions of section 44 of the legisla-
 tive law and section 70-b of the public officers law.