§ 1207. Notes and equipment trusts. 1. The authority may issue notes
in conformity with applicable provisions of the uniform commercial code
in anticipation of the receipt of revenues provided that the aggregate
principal amount of such revenue anticipation notes outstanding at any
time shall not exceed ten per cent of the average annual revenues of the
authority. All such revenue anticipation notes shall mature within two
years of the date of issue and an installment or installments of not
less than fifty per cent of the principal amount of such notes shall
mature in the first fiscal year succeeding the fiscal year in which such
notes are issued. Such notes may be sold at public or private sale and
the city shall have power to purchase the same from any revenues or
funds of the city other than moneys derived from borrowings.

2. The authority shall have power to purchase pursuant to conditional
sales agreements or equipment trust agreements, to lease and otherwise
to acquire subject to a lien for the purchase price, such equipment as
it deems desirable including cars and rolling stock, electric and other
motive power vehicles, automobiles, buses, and other motor vehicles,
provided, however, that the amount of liabilities which the authority
may incur under this subdivision shall be governed by the limitations
contained in paragraph b of subdivision one of section eighteen hundred
three of this law and shall in no event exceed such sum of five million
dollars in any one fiscal year without the approval of the mayor.
Payment for such equipment, or rentals therefor, may be made in
installments to a trustee in trust to secure payment of equipment trust
certificates, and provision may be made that title to such equipment
shall not vest in the authority until the equipment trust certificates
are paid, or that such equipment shall be subject to a lien to secure
equipment trust certificates. Any such agreements, leases and equipment
trust certificates shall contain such covenants, conditions and
provisions as it deems necessary or desirable to insure payment of the
equipment trust certificates.

3. The authority may also issue its promissory notes from time to time
in conformity with applicable provisions of the uniform commercial code
for the purpose of raising working capital to pay its expenses of
operation. Such promissory notes shall be general obligations of the
authority, may be secured or unsecured as the authority shall determine,
subject to the prior rights, if any, of the holders of other obligations
of the authority, shall mature not later than five years from the date
of issue and shall at no time be outstanding in an unpaid principal
amount in excess of two hundred million dollars. Such promissory notes
may be sold at public or private sale.