§ 1682. Bonds of the authority. 1. The authority shall have power as
hereby authorized from time to time to issue negotiable bonds in
conformity with applicable provisions of the uniform commercial code.
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. In computing the total
amount of bonds of the authority which may at any time be outstanding
the amount of the outstanding bonds to be refunded from the proceeds of
the sale of new bonds or by exchange for new bonds shall be excluded.
Except as may otherwise be expressly provided by the authority, every
issue of the bonds shall be general obligations payable out of any
moneys or revenues of the authority, subject only to any agreements with
the holders of particular bonds pledging any particular moneys or
revenues.

2. Such bonds shall be authorized by resolution of the board, be in
such denominations 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 payable at such times, 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 as such
resolution or resolutions may provide. Such bonds may be sold at public
or private sale for such price or prices as the authority shall
determine.

3. Such bonds may be issued for any corporate purposes of the
authority.

4. Any resolution or resolutions authorizing any bonds may contain
provisions which may be a part of the contract with the holders of the
bonds, as to

(a) pledging all or any part of the moneys or property of the
authority to secure the payment of its bonds, including, but not limited
to, the revenues of designated dormitories, the proceeds of any grant in
aid of the authority received from any private or public source, any
federally guaranteed security and moneys received therefrom whether such
security is initially acquired by the authority or an educational
institution, any moneys received under the terms of any lease, loan or
other agreement executed pursuant to section sixteen hundred
seventy-eight, section sixteen hundred eighty or sixteen hundred
eighty-a of this chapter or any other revenues, state aid, local
assistance payments, user charges or surcharges made available in
accordance with law for such purpose;

(b) the setting aside of reserves or sinking funds and the regulation
or disposition thereof;

(c) the purpose and limitations thereon to which the proceeds of sale
of any issue of bonds then or thereafter to be issued may be applied,
including as authorized purposes, all costs and expenses necessary or
incidental to the issuance of bonds, to the acquisition of or commitment
to acquire any federally guaranteed security and to the issuance and
obtaining of any federally insured mortgage note;

(d) 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;

(e) 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;

(f) the creation of special funds into which any moneys of the
authority may be deposited;

(g) 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 sixteen hundred eighty-six of this
chapter, 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;

(h) defining the acts or omissions to act which shall 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, providing, that such rights and remedies
shall not be inconsistent with the general laws of this state and other
provisions of this title;

(i) any other matters, of like or different character, which in any
way affect the security and protection of the bonds.

4-a. Any pledge of or other security interest in moneys, earnings,
income, revenues, accounts, contract rights, general intangibles or
other personal property made or created by the authority shall be valid,
binding and perfected from the time when such pledge or other security
interest attaches, without any physical delivery of the collateral or
further act. The lien of any such pledge or other security interest
shall be valid, binding and perfected as against all parties having
claims of any kind in tort, contract or otherwise against the authority
irrespective of whether or not such parties have notice thereof. No
instrument by which such a pledge or other security interest is created
nor any financing statement need be recorded or filed. This subdivision
shall apply notwithstanding the provisions of the uniform commercial
code. Any moneys, earnings, income, revenues, accounts, contract rights,
general intangibles or other personal property held or received by the
authority or on behalf of the authority by any lender, servicer,
trustee, custodian, collection agent or institution of higher education,
pursuant to any resolution, trust agreement or other agreement
authorized by, or entered into in connection with, the program
established pursuant to section sixteen hundred seventy nine-c of this
title and pledged by the authority pursuant to a resolution, trust
agreement or such other agreement for the benefit of bondholders shall
constitute moneys, earnings, income, revenues, accounts, contract
rights, general intangibles or other personal property pledged by the
authority for all purposes of this subdivision.

4-b. Any resolution authorizing the issuance of bonds for the purpose
of providing facilities for the city university pursuant to a lease,
sublease or other agreement entered into by the city university
construction fund and the dormitory authority on or after July first,
nineteen hundred eighty-five, refunding any such bonds, or establishing
or funding reserves for such bonds shall state the principal amount of
bonds being issued in connection with senior college facilities and the
principal amount of bonds being issued in connection with community
college facilities. The proceeds of such bonds to be applied to the
payment of the costs of providing senior college facilities shall be
held separate and apart from the proceeds of such bonds to be applied to
the payment of the costs of providing community college facilities. The
proceeds to be applied to the payment of the costs of providing senior
college facilities shall not be applied to the payment of the costs of
providing community college facilities and the proceeds to be applied to
the payment of the costs of providing community college facilities shall
not be applied to the payment of the costs of providing senior college
facilities.

5. Neither the members of the board nor any person executing such
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 any bonds issued by it at a price not exceeding the
redemption price thereof. All bonds so purchased shall be cancelled.

7. In the discretion of the authority the bonds may be secured by a
trust indenture 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 such
provisions for protecting and enforcing the rights and remedies of the
bondholders as may be reasonable and proper and not in violation of law,
including covenants setting forth the duties of the authority in
relation to the construction, maintenance, operation, repair and
insurance of the dormitories or of any dormitory, and the custody,
safeguarding and application of all moneys, and may provide that any
dormitory shall be constructed and paid for under the supervision and
approval of consulting engineers. The authority may provide by such
trust indenture for the payment of the proceeds of the bonds and the
revenues of any dormitory or moneys received under the terms of any
lease or loan executed pursuant to section sixteen hundred eighty of
this chapter, as the case may be, to the trustee of such trust indenture
or other depository, and for the method of disbursement thereof, with
such safeguards and restrictions as it may determine. Notwithstanding
the provisions of section sixteen hundred eighty-six of this chapter, if
the bonds shall be secured by trust indenture the bondholders shall have
no authority to appoint a separate trustee to represent them.