§ 1230-m. Bonds of the authority. 1. The authority shall have the
power and is hereby authorized from time to time to issue bonds in
conformance 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 project or projects, or for any other corporate purpose,
including reasonable and 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 may be general obligation bonds secured by the faith and
credit of the authority or may be special obligations payable solely out
of particular revenues or other moneys 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 property, revenues or moneys.

2. The authority is authorized to obtain from any department or agency
of the United States or the state or any non-governmental insurer or
financial institution, any insurance, guaranty or other credit support
device, 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 issued 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 bonds or notes of the authority
as may then exist.

3. Bonds shall be authorized by resolution of the authority, be in
such denominations, bear such date or dates and mature at such time or
times as such resolution may provide, except that bonds and any renewals
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. Such bonds shall be
subject to such terms of redemption, bear interest at such rate or rates
payable at such times, be in such form, 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 and
conditions as such resolution may provide. Bonds may be sold at public
or private sale for such price or prices as the authority shall
determine provided that no issue of bonds may be sold by the authority
at private sale unless such sale and the terms thereof have been
approved in writing by (a) the comptroller, where such sale is not to
such comptroller, or (b) by the state director of the budget, where such
sale is to be to the comptroller. The authority may pay all expenses,
premiums and commissions which it may deem necessary or advantageous in
connection with the issuance and sale of bonds or authority obligations.

4. The authority may also enter into loan agreements, lines of credit
and other security agreements and obtain for or on its behalf letters of
credit, insurance, guarantees or other credit enhancements to the extent
now or hereafter available, in each case for securing its bonds or to
provide direct payment of any costs which the authority is authorized to
pay.

5. 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 the revenues, other monies or property of
the authority to secure the payment of the bonds, or any costs of
issuance thereof, including, but not limited to, any contracts, earnings
or proceeds of any grant to the authority received from any private or
public source 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 the 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, the amount of bonds the holders
of 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 monies
may be deposited;

(h) the terms and provisions of any trust, mortgage, deed or indenture
securing the bonds under which the bond 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 trustees appointed by the
bondholders to appoint a trustee pursuant to this title or limiting or
abrogating the rights of the bondholders to appoint a trustee, 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 power of the authority to sell or otherwise
dispose of any project or any part thereof;

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

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

(n) 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.

6. 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 adopt resolutions and enter into such trust
indentures, agreements or other instruments as the authority may deem
necessary, convenient or desirable concerning the use or disposition of
its revenues or other monies or property, including the mortgaging of
any property and the entrusting, pledging or creation of any other
security interest in any such revenues, monies 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 resolutions, trust
indentures, agreements or other instruments. The authority shall have
power to enter into amendments of any such resolutions, trust
indentures, agreements or other instruments. The provisions of any such
resolutions, trust indentures, agreements or other instruments may be
made a part of the contract with the holders of bonds of the authority.

7. Any provision of the uniform commercial code to the contrary
notwithstanding, any pledge of or other security interest in revenues,
monies, accounts, contract rights, general intangibles or other personal
property made or created by the authority or the water board, pursuant
to this title, shall be valid, binding and perfected against all
persons, 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 or the
water board, irrespective of whether 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.

8. Whether or not the bonds 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.

9. Neither the members of the authority nor any person executing its
bonds shall be liable personally on its bonds or be subject to any
personal liability or accountability by reason of the issuance thereof.

10. Subject to such agreements with bondholders as may then exist, the
authority shall have power out of any funds available therefor to
purchase bonds of the authority, which shall thereupon be cancelled, at
a price not exceeding (a) if the bonds are then redeemable, the
redemption price then applicable plus accrued interest to the next
interest payment date, or (b) 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. Bonds so purchased shall thereupon be
cancelled.