* § 206. Bonds of the authority. 1. The authority shall have power and
is hereby authorized from time to time to issue its negotiable bonds in
conformity with applicable provisions of the uniform commercial code in
the aggregate principal amount of not exceeding one million five hundred
thousand dollars for any corporate purpose. 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.

2. Such bonds shall be authorized by resolution of the board and shall
be issued in one or more series, 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, not exceeding five per
centum per annum payable semi-annually, 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, be subject to such terms of
redemption, and be declared or become due before the maturity date
thereof, as such resolution or resolutions may provide. Such bonds may
be issued for money or property (at public or private sale for such
price or prices) as the authority shall determine, provided that the
interest cost to maturity of the money or property (at its value as
determined by the board, the determination of which shall be conclusive)
received for any issue of such bonds, shall not exceed five per centum
per annum. Refunding bonds exchanged for outstanding bonds may be
exchanged on such terms and with such cash adjustments as the authority
shall determine.

3. In connection with the issuance of bonds or in order to secure the
payment of its bonds the authority shall have power

(a) To mortgage all or any part of its property, real or personal,
then owned or thereafter acquired;

(b) To pledge all or any part of its revenues;

(c) To covenant against mortgaging all or any part of its property,
real or personal, then owned or thereafter acquired or against
permitting or suffering any lien thereon;

(d) To covenant against pledging all or any part of its revenues to
which its right then exists or the right to which may thereafter come
into existence;

(e) To provide for the release of property or revenues from any pledge
or mortgage, and to reserve rights and powers in, or the right to
dispose of, property which is subject to a pledge or mortgage;

(f) To covenant as to the bonds to be issued pursuant to any mortgage,
deed of trust or other instrument and as to the issuance of such bonds
in escrow or otherwise, and as to the use and disposition of the
proceeds thereof;

(g) To covenant as to what other, or additional debt may be incurred
by it;

(h) To provide for the terms, form, registration, exchange, execution
and authentication of bonds;

(i) To provide for the replacement of lost, destroyed or mutilated
bonds;

(j) To covenant that the authority warrants the title to the premises;

(k) To covenant as to the fees and rentals to be charged, the amount
(calculated as may be determined) to be raised each year or other period
of time by fees, rentals, and other revenues and as to the use and
disposition to be made thereof;

(l) To covenant as to the use of any or all of its property, real or
personal;

(m) To covenant to set aside or pay over reserves and sinking funds
and as to the disposition thereof;

(n) To redeem the bonds, and to covenant for their redemption, and to
provide the terms and conditions thereof;

(o) To covenant against extending the time for the payment of bond
interest, directly or indirectly, by any means or in any manner;

(p) To covenant to maintain offices and agencies for any purpose
connected with its bonds;

(q) To covenant as to the maintenance of its property, the replacement
thereof, the insurance to be carried thereon and the use and disposition
of insurance moneys;

(r) To covenant as to its books of account and as to the inspection
and audit thereof and as to the accounting methods;

(s) To covenant and prescribe as to the events of default and terms
and conditions upon which any or all of its bonds shall become or may be
declared due before maturity and as to the terms and conditions upon
which such declaration and its consequences may be waived;

(t) To covenant as to the rights, liabilities, powers and duties
arising upon the breach by it of any covenant, condition, or obligation;

(u) To vest in a trustee or trustees the right to enforce any covenant
made to secure, to pay or in relation to the bonds, or to foreclose any
mortgage, to provide for the powers and duties of such trustee or
trustees, to limit liabilities thereof and to provide the terms and
conditions upon which the trustee or trustees or the holders of bonds or
any proportion of them may enforce any such covenant or exercise the
right of foreclosure;

(v) To make covenants in addition to the covenants herein expressly
authorized, of like or different character;

(w) To execute all mortgages, bills of sale, conveyances, deeds of
trust and other instruments necessary or convenient in the exercise of
the powers herein granted or in the performance of its covenants or
duties;

(x) To make such covenants and to do any and all such acts and things
as may be necessary or convenient or desirable in order to secure its
bonds, or in the absolute discretion of the board tend to make the bonds
more marketable, notwithstanding that such covenants, acts or things may
not be enumerated herein and notwithstanding that such covenants, acts
or things may restrict or interfere with the carrying out of its
corporate purpose; it being the intention hereof to give the authority
power to do all things in the issuance of bonds, and for their security
that a business corporation can do under the general laws of the state
and no consent or approval of any judge or court shall be required
therefor.

* NB (Abolished in 1975)