§ 2046-g. Bonds and notes. 1. The agency shall have the power and is
hereby authorized from time to time to issue bonds and notes, in
conformity 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 for any other corporate purpose, including
incidental expenses in connection therewith provided such bonds and
notes shall in no event exceed fifty million dollars in outstanding
indebtedness at any time, except as any such higher amount has been
approved in advance of issuance by the qualified voters of the town of
Islip at a public referendum conducted pursuant to the rules and
regulations of the state board of elections. The agency shall have power
and is hereby authorized to enter into such agreements and perform such
acts as may be required under any applicable federal legislation to
secure a federal guarantee of any bonds or notes. The agency shall have
power from time to time to refund any bonds or notes 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. Bonds
or notes issued by the agency may be general obligations secured by the
faith and credit of the agency or may be special obligations payable
solely out of particular revenues or other moneys as may be designated
in the proceedings of the agency under which the bonds or notes shall be
authorized to be issued and subject to any agreements with the holders
of outstanding bonds and notes pledging any particular revenues or
moneys.

2. The bonds and notes shall be authorized by resolution of the
governing body, shall bear such date or dates, shall mature at such time
or times, shall bear interest at such rate or rates, be in such
denominations, 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, provided
that no note or any renewal thereof shall mature more than five years
after the date of issue of the original note and provided that no bond
shall mature more than forty years after the date of the original
issuance. The bonds and notes of the agency may be sold by the agency at
public or private sale at such price or prices as the agency shall
determine, provided that the terms of any private sale of bonds shall be
approved in writing by the state comptroller where such sale is not to
the state comptroller, or by the director of the division of the budget
where such sale is to the state comptroller. The agency may pay all
expenses, premiums and commissions which it may deem necessary or
advantageous in connection with the issuance and sale thereof.

3. Any resolution or resolutions authorizing any bonds or notes 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 any part of the moneys or revenues derived by the
agency from the ownership or operation of, or otherwise in connection
with, any project or projects or any part or parts thereof to secure the
payment of the bonds or notes or of any issue thereof, subject to such
agreements with bondholders or noteholders as may then exist;

(b) the amount, use and disposition of the rates, rentals, fees and
other charges to be fixed and collected by the agency;

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

(d) limitations on the right of the agency to restrict and regulate
the use of the properties in connection with which such bonds or notes
are issued;

(e) limitations on the purpose to which the proceeds of sale of bonds
or notes may be applied;

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

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

(h) the creation of special funds into which any moneys or revenues of
the agency may be deposited;

(i) the terms and provisions of any mortgage or trust deed or
indenture securing the bonds or notes or under which the bonds or notes
may be issued;

(j) vesting in a trustee or trustees such property, rights, powers and
duties in trust as the agency may determine which may include any or all
of the rights, powers and duties of the trustee appointed by the
bondholders or noteholders pursuant to this title, and limiting or
abrogating the right of the bondholders or noteholders to appoint a
trustee under this title or limiting the rights, powers and duties of
such trustee;

(k) defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the agency to the bondholders
or noteholders and providing the rights and remedies of the bondholders
or noteholders 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;

(l) limitations on the power of the agency to sell or otherwise
dispose of its properties;

(m) limitations on the amount of money derived from the properties to
be expended for operating, administrative or other expenses of the
agency;

(n) the protection and enforcement of the rights and remedies of the
bondholders or noteholders;

(o) the obligations of the agency in relation to the construction,
maintenance, operation, repairs and insurance of the properties of the
agency, the safeguarding and application of all moneys and the
requirements for the supervision and approval of consulting engineers in
connection with construction, maintenance and operation of such
properties;

(p) the payment of the proceeds of bonds and notes and other moneys
and revenues of the agency to a trustee or other depositary, and for the
method of disbursement thereof with such safeguards and restrictions as
the agency may determine;

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

4. In addition to the powers herein conferred upon the agency to
secure its bonds and notes, the agency shall have power in connection
with the issuance of bonds and notes to enter into such agreements as
the agency may deem necessary, convenient or desirable concerning the
use or disposition of its moneys or property including the mortgaging of
only such property and the entrusting, pledging or creation of any other
security interest in any such moneys or property and the doing of any
act, including refraining from doing any act, which the agency would
have the right to do in the absence of such agreements. The agency shall
have power to enter into amendments of any such agreements within the
powers granted to the agency by this title and to perform such
agreements. The provisions of any such agreements may be made a part of
the contract with the holders of the bonds and notes of the agency.

5. Any provision of the uniform commercial code to the contrary
notwithstanding, any pledge of or other security interest in revenues,
moneys, accounts, contract rights, general intangibles or other personal
property made or created by the agency shall be valid, binding and
perfected 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 agency
irrespective of whether or not 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.

6. Whether or not the bonds or notes are of such form and character as
to be negotiable instruments under the terms of the uniform commercial
code, the bonds and notes 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 and notes for registration.

7. Neither the directors of the agency 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.

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