§ 2785. Bonds of the authority. 1. The authority shall have the power
and is hereby authorized from time to time to issue bonds, notes or
other obligations to pay the cost of any project or for any other
corporate purpose, including the establishment of reserves to secure the
bonds, the payment of principal of, premium, if any, and interest on the
bonds and the payment of incidental expenses in connection therewith.
The aggregate principal amount of such bonds, notes or other obligations
outstanding shall not exceed two hundred eighty-five million dollars
($285,000,000), excluding bonds, notes or other obligations issued to
refund or otherwise repay bonds, notes or other obligations theretofore
issued for such purposes; provided, however, that upon any such
refunding or repayment the total aggregate principal amount of
outstanding bonds, notes or other obligations may be greater than two
hundred eighty-five million dollars ($285,000,000) only if the present
value of the aggregate debt service of the refunding or repayment bonds,
notes or other obligations to be issued shall not exceed the present
value of the aggregate debt service of the bonds, notes or other
obligations so to be refunded or repaid. For purposes hereof, the
present values of the aggregate debt service of the refunding or
repayment bonds, notes or other obligations and of the aggregate debt
service of the bonds, notes or other obligations so refunded or repaid,
shall be calculated by utilizing the effective interest rate of the
refunding or repayment bonds, notes or other obligations, which shall be
that rate arrived at by doubling the semi-annual interest rate
(compounded semi-annually) necessary to discount the debt service
payments on the refunding or repayment bonds, notes or other obligations
from the payment dates thereof to the date of issue of the refunding or
repayment bonds, notes or other obligations and to the price bid
including estimated accrued interest or proceeds received by the
authority including estimated accrued interest from the sale thereof.
The authority 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.

2. The authority shall have power from time to time to renew bonds or
to issue renewal bonds for such purpose, to issue bonds to pay bonds,
and, whenever it deems refunding expedient, to refund any bond 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 of the authority. Bonds (other
than notes or other evidence of indebtedness) issued for refunding
purposes, which have a final maturity date longer than the maturity of
the bonds being refunded, shall be approved by a resolution of the
county legislature adopted by a majority vote and approved by the county
executive. Bonds 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. Bonds issued by the authority may be general obligations 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 as to priority only to any
agreements with the holders of outstanding bonds pledging any particular
property, revenues or moneys. 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.

4. Bonds shall be authorized by resolution of the authority, be in
such denominations and bear such date or dates and mature at such time
or times, as such resolution may provide, provided that bonds and
renewals thereof shall mature within forty years from the date of
original issuance of any such bonds.

Bonds shall be subject to such terms of redemption, bear interest at
such rate or rates, be 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 and conditions as such resolution
may provide. Notwithstanding any other provision of law, the bonds of
the authority issued pursuant to this section shall be sold to the
bidder offering the lowest true interest cost, taking into consideration
any premium or discount not less than four nor more that fifteen days,
Sundays excepted, after a notice of such sale has been published at
least once in a newspaper of general circulation in the area served by
the authority, which shall state the terms of the sale. The terms of the
sale may not change unless notice of such change is published in such
newspaper at least one day prior to the date of the sale as set forth in
the original notice of sale. Advertisements shall contain a provision to
the effect that the authority, in its discretion, may reject any or all
bids made in pursuance of such advertisements, and in the event of such
rejection, the authority is authorized to negotiate a private or public
sale or readvertise for bids in the form and manner above described as
many times as, in its judgment, may be necessary to effect satisfactory
sale.

Notwithstanding the provisions of the preceding paragraph, whenever in
the judgment of the authority the interests of the authority will be
served thereby, the members of the authority, on the written
recommendation of the chairperson, may authorize the sale of such bonds
at private or public sale on a negotiated basis or on either a
competitive or negotiated basis. The authority shall set guidelines
governing the terms and conditions of any such private or public sales.
The private or public bond sale guidelines set by the authority shall
include, but not be limited to, a requirement that where the interests
of the authority will be served by a private or public sale of bonds,
the authority shall select underwriters for each private or public bond
sale conducted pursuant to a request for proposal process and
consideration of proposals from qualified underwriters taking into
account, among other things, qualifications of underwriters as to
experience, their ability to structure and sell authority bond issues,
anticipated costs to the authority, the prior experience of the
authority with the firm, if any, the capitalization of such firms,
participation of qualified minority and women-owned business enterprise
firms in such private or public sales of bonds of the authority and the
experience and ability of firms under consideration to work with
minority and women-owned business enterprises so as to promote and
assist participation by such enterprises.

The authority shall have the power from time to time to amend such
private bond sale guidelines in accordance with the provisions of this
subdivision.

No private or public bond sale on a negotiated basis shall be
conducted by the authority without prior approval of the state
comptroller and the county comptroller. The authority shall annually
prepare and approve a bond sale report which shall include the private
or public bond sale guidelines as specified in this subdivision,
amendments to such guidelines since the last private or public bond sale
report, an explanation of the bond sale guidelines and amendments, and
the results of any sale of bonds conducted during the fiscal year. Such
bond sale report may be a part of any other annual report that the
authority is required to make.

The authority shall annually submit its bond sale report to the state
comptroller and the county comptroller and copies thereof to the senate
finance committee and the assembly ways and means committee.

The authority shall make available to the public copies of its bond
sale report upon reasonable request thereof.

Nothing contained in this subdivision shall be deemed to alter, affect
the validity of, modify the terms of or impair any contract or agreement
made or entered into in violation of, or without compliance with, the
provisions of this subdivision.

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 bond holders 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) the rates, rents, fees and other charges to be fixed and collected
by the authority and the amount to be raised in each year thereby and
the use and disposition of revenues;

(e) 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;

(f) 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;

(g) the procedure, if any, by which the terms of any contract with
bond holders 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;

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

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

(j) 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
bond holders to appoint a trustee pursuant to this title or limiting the
rights, duties and powers of such trustee;

(k) defining the acts or omissions to act which may constitute a
default in the obligations and duties of the authority to the bond
holders and providing for the rights and remedies of the bond holders in
the event of such default, including as a matter of right 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 authority to sell or otherwise
dispose of any project or any part thereof;

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

(n) 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

(o) 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 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 authority
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.

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.