* § 1020-k. Bonds of the authority. 1. The authority shall have power
and is hereby authorized from time to time to issue its negotiable bonds
in conformity with applicable provisions of the uniform commercial code
for any purpose authorized by this title, including without limitation
(a) to acquire any real or personal property or facilities deemed
necessary by the authority, (b) to pay interest on bonds or notes of the
authority, (c) to establish reserves to secure such bonds and notes, (d)
to establish or maintain such other funds or accounts for such purpose
or purposes as the authority may deem necessary or desirable, and (e) to
pay all other expenses of the authority incident to the issuance of such
bonds or notes.

2. Except as may be otherwise expressly provided by the authority, the
bonds and notes 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 or
notes, or any trustee therefor, pledging any particular moneys or
revenues.

3. The authority shall have power from time to time, 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
corporate purpose of the authority. Refunding bonds may be exchanged for
the bonds to be refunded, with such cash adjustments as may be agreed,
or may be sold with the proceeds applied to the purchase, payment or
provision for payment of the bonds to be refunded.

4. Bonds may be issued, payable in annual installments or as term
bonds or both. Bonds shall be authorized by resolution of the board of
the authority and shall bear such date or dates, mature at such time or
times, not exceeding fifty years from their respective dates, 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 lawful money of the United
States of America or by check at such place or places, and be subject to
such terms of redemption, as such resolution or resolutions may provide.
In the event that term bonds are issued, the resolution authorizing the
same may make such provisions for the establishment and maintenance of
sinking funds for the payment thereof as the authority may deem
necessary or appropriate. Bonds or notes may be sold at public or
private sale at such price or prices as the authority shall determine
but shall not be sold by the authority at private sale unless such sale
and terms thereof have been approved in writing by the state
comptroller. Pending preparation of definitive bonds or notes, the
authority may issue bonds or notes in temporary form which shall be
exchanged for bonds or notes in definitive form when available.

5. Any resolution or resolutions authorizing any bonds or any issue of
bonds may (a) delegate to an officer or officers of the authority the
power to approve the issuance of bonds from time to time and to fix the
details of any such bonds or issues of bonds by an appropriate
certificate of such authorized officer or officers and (b) contain
provisions, which shall be a part of the contract with the holders of
the bonds to be authorized as to: (i) pledging or creating a lien on all
or any part of the moneys, revenues or properties of the authority to
secure the payment of the bonds or of any particular issue of bonds or
any portion of any issue of bonds, subject to such agreements with
bondholders as may then exist;

(ii) the rates, 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;

(iii) the setting aside of reserves or sinking funds, and the
regulation and disposition thereof;

(iv) limitations on the right of the authority to restrict and
regulate the use of any of its property;

(v) limitations on the purpose to which the proceeds of sale of any
issue of bonds then or thereafter to be issued may be applied;

(vi) limitations on the issuance of additional bonds, the terms upon
which additional bonds may be issued and secured, and the refunding of
outstanding bonds;

(vii) the procedure, if any, by which the terms of any contract with
bondholders may be amended, the amount or percentage of outstanding
bonds the holders of which must consent thereto, and the manner in which
such consent may be given;

(viii) defining the acts or omissions to act which shall constitute a
default in the duties of the authority to holders of its obligations and
providing the rights and remedies of such holders or of a trustee acting
on their behalf in the event of a default; and

(ix) any other matters of like or different character, which in any
way may affect the security and protection of the bonds and the rights
of the holders thereof.

6. Notwithstanding any other provisions of this title, any such
resolution or resolutions shall contain a covenant by the authority that
it will at all times maintain rates, fees or charges sufficient to pay,
and that any contracts entered into by the authority for the sale,
transmission or distribution of electricity shall contain rates, fees or
charges sufficient to pay, the costs of operation and maintenance of the
facilities owned or operated by the authority, payments in lieu of
taxes, renewals, replacements and capital additions, the principal of
and interest on any obligations issued pursuant to such resolution as
the same severally become due and payable, and to establish or maintain
any reserves or other funds or accounts required or established by or
pursuant to the terms of such resolution or resolutions.

7. It is the intention of the legislature that any pledge of moneys,
revenues or property or of a revenue producing contract or contracts
made by the authority shall be valid and binding from the time when the
pledge is made; that the moneys, revenues or proceeds 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 or lien is created pursuant to this subdivision need be
recorded in order to perfect such pledge or lien.

8. Neither the trustees 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.

9. The authority shall have power out of any funds available therefor
to purchase bonds or notes at such price or prices as it deems
advisable. The authority may hold, pledge, cancel or resell such bonds,
subject to agreements with bondholders.

10. All bonds, notes and other obligations issued by the authority
under the provisions of this title are hereby declared to have all the
qualities and incidents of negotiable instruments under the applicable
laws of the state.

* NB There are 2 § 1020-k's