§ 1860. Bonds and notes. 1. The authority shall have the power and is
hereby authorized to issue at one time or in series from time to time
its negotiable bonds and notes in conformity with applicable provisions
of the uniform commercial code in such principal amounts as, in the
opinion of the authority, shall be necessary to provide sufficient
moneys for achieving the authority's corporate purposes, including the
establishment of reserves to secure the bonds and notes and the payment
of interest on bonds and notes.

2. The authority shall have power from time to time to renew bonds or
notes or to issue renewal bonds or notes for such purpose, to issue
bonds or notes to pay bonds or notes, and, whenever it deems refunding
expedient, to refund any bond or note by the issuance of new bonds or
notes, whether the bonds or notes to be refunded have or have not
matured, and may issue bonds or notes partly to refund bonds or notes
then outstanding and partly for any other corporate purpose of the
authority. Bonds or notes issued for refunding purposes shall be sold
and the proceeds applied to the purchase, redemption or payment of the
bonds or notes to be refunded.

3. Except as may otherwise be expressly provided by the authority,
every issue of bonds or notes shall be general obligations payable out
of any moneys or revenues of the authority, subject only to any
agreements with the holders of bonds or notes pledging any receipts or
revenues.

4. The bonds and notes shall be authorized by resolution of the
authority, shall bear such date or dates and mature at such time or
times as such resolution shall provide, except that notes and any
renewals thereof shall mature within five years from their respective
dates of issuance or renewal, as the case may be, and bonds shall mature
within forty years from their respective dates of issuance or renewal,
as the case may be. The bonds and notes shall bear interest at such rate
or rates, be in such denomination, 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.

5. Bonds and notes shall be sold by the authority, at public or
private sale, at such price or prices as the authority may determine.
Bonds and notes of the authority shall not be sold by the authority at
private sale unless such sale and the terms thereof have been approved
in writing by the comptroller, where such sale is not to the
comptroller, or by the director of the budget, where such sale is to the
comptroller.

6. In the discretion of the authority any bonds or issue of bonds or
notes or issue of notes may be secured by such resolution or 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 or by a secured loan agreement or other instrument. Such
resolution, trust indenture, loan agreement or other instrument may
contain any usual or customary provisions, covenants or limitations for
bonds or notes of similar nature which shall be a part of the contract
with the holders thereof, including such provisions for protecting and
enforcing the rights and remedies of bondholders and noteholders as may
be reasonable and proper and not in violation of law.

7. Any resolution or resolutions authorizing any notes or bonds or any
issue thereof may contain provisions, which shall be a part of the
contract with the holders thereof, as to:

(a) pledging all or part of the fees, charges, gifts, grants, rents,
revenues or other moneys received or to be received and leases or
agreements to secure the payment of the notes or bonds or of any issue
thereof subject to such agreements with bondholders as may then exist;

(b) the rates of the fees or charges to be established, and the
amounts to be raised in each year thereby and the use and disposition of
the fees, charges, gifts, grants, rents, revenues or other moneys
received or to be received;

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

(d) limitations on the purpose to which the proceeds of sale of any
issue of notes or bonds then or thereafter to be issued may be applied
and pledging such proceeds to secure the payment of the notes or bonds
or of any issue thereof;

(e) limitations on the issuance of additional notes or bonds; the
terms upon which additional notes or bonds may be issued and secured;
the refunding of outstanding or other notes or bonds;

(f) the procedure, if any, by which the terms of any contract with
bondholders or noteholders may be amended or abrogated, the amount of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;

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

8. It is the intention hereof that any pledge made by the authority
shall be valid and binding from the time when the pledge is made, that
the 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.

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

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

11. The state does hereby pledge to and agree with the holders of any
bonds or notes that the state will not limit or alter the rights and
powers vested in the authority by this title to fulfill the terms of any
contract made by the authority with such holders, or in any way impair
the rights and remedies of such holders until such bonds and notes,
together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with
any action or proceeding by or on behalf of such holders, are fully met
and discharged. The authority is authorized to include this pledge and
agreement of the state, insofar as it refers to holders of any bonds or
notes, in any contract with such holders.