§ 1056. Bonds of the authority. 1. The authority shall have the 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 of its corporate purposes, including incidental expenses in
connection therewith, and to secure the payment of the same by lien of
the pledge of the revenues. 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 of its corporate purposes. Except as may be otherwise
expressly provided by the authority, every issue of bonds by the
authority shall be general obligations payable out of any moneys,
earnings or revenues of the authority, subject only to any agreements
with the holders of particular bonds pledging any particular moneys,
earnings or revenues.

2. The bonds shall be authorized by resolution of the authority and
shall bear such date or dates, mature at such time or times not
exceeding forty years from their respective dates, bear interest at such
rate or rates per annum payable at such times, 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, at such place or places and be subject to
such terms of redemption, as such resolution or resolutions may provide.
Such bonds of the authority 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. The foregoing provisions shall be applicable to bonds
issued by the authority notwithstanding the provisions of any other
general, special or local law to the contrary.

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 moneys, earnings, income and
revenues derived from all or any part of the properties of the authority
to secure the payment of the bonds or of any issue of the bonds subject
to such agreements with bondholders as may then exist;

(b) the rates, rentals, fees and other charges to be fixed and
collected and the amounts to be raised in each year thereby, and the use
and disposition of the earnings and other revenues;

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

(d) limitations on the right of the authority to restrict and regulate
the use of the properties in connection with which such bonds are
issued;

(e) limitations in the purposes to which the proceeds of sale of any
issue of bonds may be applied and pledging such proceeds to secure the
payment of the bonds or 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) the creation of special funds into which any earnings or revenues
of the authority may be deposited;

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

(j) 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 sixty-six hereof, and
limiting or abrogating the right of the bondholders to appoint a trustee
under such section or limiting the rights, duties and powers of such
trustee;

(k) limitations on the power of the authority to sell or otherwise
dispose of its properties;

(l) any other matters, of like or different character which in any way
affect the security or protection of the bonds;

(m) limitations on the amount of moneys derived from the properties to
be expended for operating, administrative or other expenses of the
authority;

(n) the protection and enforcement of the rights and remedies of the
bondholders;

(o) the obligations of the authority in relation to the construction,
maintenance, operation, repairs and insurance of the properties, the
safeguarding and application of all moneys and as to the requirements
for the supervision and approval of consulting engineers in connection
with construction, reconstruction and operation;

(p) the payment of the proceeds of bonds and revenues of the
properties to a trustee or other depositary, and for the method of
disbursement thereof with such safeguards and restrictions as the
authority may determine.

4. It is the intention of the legislature that any pledge of earnings,
revenues or other moneys made by the authority shall be valid and
binding from the time when the pledge is made; that the earnings,
revenues or other moneys 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 is
created need be recorded.

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. The authority shall cancel 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 (instead of a resolution) by and between the authority
and a corporate trustee, which may be any trust company or bank having
the powers of a trust company in the state of New York. Such trust
indenture may contain any of the provisions which a resolution
authorizing bonds may contain.

Notwithstanding any other provisions of this title, any resolution or
resolutions authorizing bonds or notes of the authority shall contain a
covenant by the authority that it will at all times maintain rates,
fees, rentals and other charges sufficient to pay, and that any
contracts entered into by the authority for the sale or distribution of
water shall contain rates, fees, rentals or other charges sufficient to
pay, the cost of operation and maintenance of the properties, the
principal of and interest on any obligations issued pursuant to such
resolution or resolutions as the same severally become due and payable,
and to maintain any reserves or other funds required by the terms of
such resolution or resolutions.