§ 1048-o. Bonds of the authority. 1. The authority shall have the
power and is hereby authorized from time to time to issue bonds, in
conformity with applicable provisions of the uniform commercial code, in
such principal amounts as it may determine to be necessary to pay the
cost of any water project or water projects, or for any other corporate
purposes, including incidental expenses in connection therewith. The
authority shall have power from time to time 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. Bonds issued by the authority
shall be special obligations payable solely out of particular revenues
or other moneys of the authority as may be designated in the proceedings
of the authority under which the bonds shall be authorized to be issued,
subject to any agreements entered into between the authority and the
city, and the authority, the water board and the city, and subject to
any agreements with the holders of outstanding bonds pledging any
particular revenues or moneys.

2. The authority is authorized to obtain from any department or agency
of the United States of America or non-governmental insurer any
insurance or guaranty, to the extent now or hereafter available, as to,
or for the payment or repayment of interest or principal, or both, or
any part thereof, on any bonds or notes issued by the authority, or on
any municipal obligations of governmental units purchased or held by the
authority; and to enter into any agreement or contract with respect to
any such insurance or guaranty, except to the extent that the same would
in any way impair or interfere with the ability of the authority to
perform and fulfill the terms of any agreement made with the holders of
the bonds or notes of the authority.

3. Whenever the authority shall determine that the issuance of its
bonds is appropriate, the comptroller shall make a recommendation as to
the arrangements necessary for the issuance and sale of such bonds
including the underwriting of such bonds through negotiated agreement or
public letting or the private sale of such bonds and such recommendation
shall include compensation for services rendered as he deems
appropriate. The comptroller shall recommend to the authority the price
or prices, interest rate or rates, maturities and other terms and
conditions for the issuance of the bonds, except that bonds and any
renewal thereof shall mature within forty years of the date of their
original issuance and notes and any renewal thereof shall mature within
five years of the date of their original issuance. Following such
recommendation, bonds shall be authorized by bond resolution of the
authority which shall set forth the arrangements for the issuance of the
bonds, the price or prices, the interest rate or rates, maturities,
terms of redemption, form and other terms of the bonds. Such bond
resolution and the minutes of the authority related thereto shall be
transmitted to the comptroller for his approval or disapproval thereof.
Approval of such bond resolution shall be indicated by the execution of
the bond resolution by the comptroller whereupon such bond resolution
shall come into full force and effect in accordance with its terms.

4. Any resolution or resolutions authorizing bonds or any issue of
bonds may contain provisions which may be a part of the contract with
the holders of the bonds thereby authorized as to:

(a) pledging all or part of its revenues, together with any other
moneys, securities, contracts or property, to secure the payment of the
bonds, subject to such agreements with bondholders as may then exist;

(b) the setting aside of reserves and the creation of sinking funds
and the regulation and disposition thereof;

(c) limitations on the purpose to which the proceeds from the sale of
bonds may be applied;

(d) limitations on the right of the authority to restrict and regulate
the use of any project or part thereof in connection with which bonds
are issued;

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

(f) the procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, including the proportion of
bondholders which must consent thereto and the manner in which such
consent may be given;

(g) the creation of special funds into which any revenues or other
moneys may be deposited;

(h) the terms and provisions of any trust, deed or indenture securing
the bonds under which the bonds may be issued;

(i) vesting in a trustee or trustees such properties, rights, powers
and duties in trust as the authority may determine, which may include
any or all of the rights, powers and duties of the trustee appointed by
the bondholders pursuant to section one thousand forty-eight-p of this
title and limiting or abrogating the rights of the bondholders to
appoint a trustee under such section or limiting the rights, duties and
powers of such trustee;

(j) defining the acts or omissions to act which may constitute a
default in the obligations and duties of the authority to the
bondholders and providing for the rights and remedies of the bondholders
in the event of such default, including as a matter of right the
appointment of a receiver, provided, however, that such rights and
remedies shall not be inconsistent with the general laws of the state
and other provisions of this title;

(k) limitations on the amount of revenues and other moneys to be
expended for operating, administrative or other expenses of the
authority;

(l) the payment of the proceeds of bonds, revenues and other moneys to
a trustee or other depository, and for the method of disbursement
thereof with such safeguards and restrictions as the authority may
determine; and

(m) any other matters of like or different character which in any way
affect the security or protection of the bonds or the rights and
remedies of bondholders.

5. In addition to the powers herein conferred upon the authority to
secure its bonds, the authority shall have power in connection with the
issuance of bonds to enter into such agreements as the authority may
deem necessary, consistent or desirable concerning the use or
disposition of its revenues or other moneys or property, including the
mortgaging of any property and the entrusting, pledging or creation of
any other security interest in any such revenues, moneys or property and
the doing of any act, including refraining from doing any act, which the
authority would have the right to do in the absence of such agreements.
The authority shall have power to enter into amendments of any such
agreements within the powers granted to the authority by this title and
to perform such agreements. The provisions of any such agreements may be
made a part of the contract with the holders of bonds of the authority.

6. Any provision of the uniform commercial code to the contrary
notwithstanding, any pledge of or other security interest in revenues,
moneys, accounts, contract rights, general intangibles or other personal
property made or created by the authority shall be valid, binding and
perfected from the time when such pledge is made or other security
interest attaches without any physical delivery of the collateral or
further act, and the lien of any such pledge or other security interest
shall be valid, binding and perfected against all parties having claims
of any kind in tort, contract or otherwise against the authority
irrespective of whether or not such parties have notice thereof. No
instrument by which such a pledge or security interest is created nor
any financing statement need be recorded or filed.

7. Whether or not the bonds of the authority are of such form and
character as to be negotiable instruments under the terms of the uniform
commercial code, the 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 bonds for registration.

8. Neither the directors of the authority nor any person executing
bonds shall be liable personally thereon or be subject to any personal
liability or accountability solely by reason of the issuance thereof.

9. The authority, subject to such agreements with bondholders as then
may exist, shall have power out of any moneys available therefor to
purchase bonds of the authority, which shall thereupon be cancelled, at
a price not exceeding (i) if the bonds are then redeemable, the
redemption price then applicable, plus accrued interest to the next
interest payment date, or (ii) if the bonds are not then redeemable, the
redemption price applicable on the first date after such purchase upon
which the bonds become subject to redemption, plus accrued interest to
the next interest payment date.