§ 1187. 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 of its corporate purposes. The total amount of bonds issued and
outstanding at any one time shall not exceed in the aggregate the sum of
five hundred million dollars, excluding bonds or notes for the payment
or redemption of which there has been set aside and held in trust either
moneys, or direct and general obligations of, or obligations guaranteed
by, the United States of America, or obligations secured by such
obligations, or any combination thereof, which are or will be sufficient
to pay when due the principal or applicable redemption price and all
accrued interest thereon and, if such bonds or notes are to be redeemed,
for which notice of redemption has been given or satisfactory provision
has been made for the giving of such notice. 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 or are then subject to redemption, and
may issue bonds partly to refund bonds then outstanding and partly for
any of its corporate purposes.

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
forty years from their respective dates, bear interest at such rate or
rates per annum payable at such time or 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 such medium of
payment at such place or places, and be subject to such terms of
redemption, with or without premium, 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 that bonds,
exclusive of notes, shall not be sold at private sale unless the board
of the authority makes a written determination, setting forth the reason
therefore, that a private sale is in the best interest of the authority
and such determination, private sale and the terms thereof have been
approved in writing by (a) the state comptroller, where such sale is not
to the state comptroller, or (b) the state director of the budget, where
such sale is to 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 may contain
provisions, which shall be a part of the contract with the holders of
the bonds, as to

(a) pledging all or any part of the gross or net revenues of the
authority to secure the payment of the bonds;

(b) the rates, rentals and other charges to be imposed and the amounts
to be raised in each year by such rates, rentals and charges and the use
and disposition thereof and of any other 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 its facilities;

(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;

(f) limitations on the issuance of additional bonds;

(g) the time when the project shall be deemed to be completed, or the
method of determining such time, and the time when the certificate
provided for in section fourteen hundred four of this chapter shall be
filed;

(h) 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.

(i) the refunding of outstanding or other bonds;

(j) the creation of special funds into which any earnings or revenues
of the authority may be deposited;

(k) 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 eleven hundred ninety-two 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;

(l) 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. Neither the members of the board nor any person executing the bonds
shall be liable personally on the bonds by reason of the issuance
thereof.

5. The authority shall have power out of any funds available therefor
to purchase any bonds issued by it at a price not more than the
principal amount thereof and the accrued interest. All bonds so
purchased shall be cancelled.

6. 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.