§ 1226-h. Agreements among the water board, board of water supply,
municipalities and the authority for the provision of projects. 1. The
authority, the water board, the board of water supply and any
municipality may enter into agreements for the purpose of providing for
the construction and financing of a project.

2. Any such agreements: (i) shall describe in sufficient detail for
reasonable identification the particular project to be financed in whole
or in part by the authority, (ii) shall describe the plan for the
financing of the cost of the construction of such project, including the
amount, if any, to be provided by the water board and the source or
sources thereof, (iii) shall set forth the method by which and by whom
and the terms and conditions upon which moneys provided by the authority
shall be disbursed, (iv) may require, in the discretion of the
authority, the payment to the authority of the proceeds of any state and
federal grants available to the water board, (v) shall provide for the
establishment of user fees, rates and other charges and the charging and
collection thereof by the water board for the use of, or services
furnished, rendered or made available by such project such as to provide
that the water board receive revenues at least sufficient, together with
other revenues of the water board, if any, to meet the requirements of
this title, (vi) may provide for the transfer by the board of water
supply or by any municipality to the water board pursuant to this title
of ownership of any project, (vii) may provide for the construction and
completion of such project by such municipality or the water board and
for the operation, maintenance and repair thereof, subject to such terms
and conditions, not inconsistent with this title, which may be in the
public interest and necessary or desirable properly and adequately to
secure the holders of bonds of the authority, (viii) shall provide for
the discontinuance or disconnection of the supply of water for
non-payment of fees, rates or other charges therefor imposed by the
water board, provided such discontinuance or disconnection of any supply
of water shall not be carried out except in the manner and upon the
notice as is required of a waterworks corporation pursuant to
subdivisions three-a, three-b and three-c of section eighty-nine-b and
section one hundred sixteen of the public service law, and (ix) in the
discretion of the authority, require reports concerning the project from
the water board to the authority and any municipality.

3. If the city executes an agreement pursuant to this section,
relating to the financing of projects by revenue bonds, it shall have
and shall be deemed to have annulled its power to levy user fees, rents
and other charges on participating properties or customers for the cost
of financing, operating and maintaining such projects under its
jurisdiction until all bonds of the authority shall have been paid or
discharged in accordance with the agreement and the resolution of the
authority authorizing such bonds. If the city has outstanding general
obligation bonds issued for acquiring or constructing water or sewerage
facilities, whether the bonds are payable from revenues, special
assessments, or taxes, it may authorize the authority pursuant to the
agreement to issue its revenue bonds under this title for the purpose of
retiring the outstanding bonds.

4. No such agreement shall be executed until the water board shall
have held a public hearing at which users of the project shall have had
opportunity to be heard concerning the proposed provisions thereof.
Notice of such hearing shall be published not less than ten nor more
than twenty days in advance in a newspaper or newspapers having a
general circulation in the service area as designated by the water
board.

5. Such agreement shall be effective upon the issuance by the
authority of bonds to finance the cost of constructing projects of the
city or the water board.

6. Any such agreement may be amended, revised or extended by
supplemental agreements authorized and executed in the same manner as
the original agreement, provided that any such supplemental agreement
shall not be inconsistent with the provisions of this title.

7. (a) Following the execution of the initial agreement by and between
the authority, the water board, the board of water supply and any
municipality pursuant to this section, the secretary of the water board
shall, and following the execution of any subsequent agreement by and
between the authority, the water board, the board of water supply, and
any municipality pursuant to this section may, publish a notice in
substantially the following form:

"Notice is hereby given that (here insert the parties to the
agreement) (has) (have) on the _ day of _ entered into an agreement
with the upper Mohawk valley regional water finance authority in
relation to the construction and financing of (here insert a brief
description of the water project or facility to which such agreement
relates) pursuant to the upper Mohawk valley regional water finance
authority act for the purpose of placing its water facilities on an
independent basis, imposing fees and rates on water users, which,
together with other revenues available for such purposes, if any, are
sufficient to pay to the authority debt service on bonds issued by the
authority pursuant to the agreement and for operation and maintenance of
the facility (title to which is transferred to the water board pursuant
to the agreement). Such agreement in general terms provides (here insert
a brief summary of the substantive provisions of such agreement).

A copy of the complete agreement is on file for public inspection in
the office of the secretary of the water board where the same may be
examined by any interested person during regular business hours. The
validity of the agreement may be hereafter contested only upon the
ground or grounds that: (i) such agreement violates, or the performance
of any provision thereof by any party thereto would violate, the
provisions of the state constitution or (ii) the provisions of law which
should have been complied with in relation to the authorization and
execution thereof were not substantially complied with, and an action,
suit or proceeding is commenced within sixty days after the date of this
notice."

(b) The publication authorized by this subdivision shall be in a
newspaper or newspapers having a general circulation in the service area
as designated by the water board.

(c) After the expiration of the sixty day period set forth in such
notice, the validity of such agreement shall be conclusively presumed
and the validity thereof shall not thereafter be questioned by either a
party plaintiff or a party defendant and no court shall have
jurisdiction in any action, suit or proceeding contesting such validity.

(d) Neither any error nor omission in the notice of publication
provided for in this subdivision shall affect or impair the validity of
an agreement executed pursuant to this section so long as the notice
substantially conforms to the provisions of this section.