§ 561. Bonds of the authority. 1. The authority shall have the power
and is hereby authorized from time to time to issue its negotiable bonds
in conformity with applicable provisions of the uniform commercial code
for any corporate purpose or power. The authority shall have power from
time to time and whenever it deems refunding advantageous or desirable,
to refund, redeem or otherwise pay, including by purchase or tender 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 or power.
The refunding bonds may be exchanged for the bonds to be refunded, with
such cash adjustments as may be agreed, or may be sold and the proceeds
applied to the purchase or payment of the bonds to be refunded. The
authority may issue general or special obligation bonds. Every issue of
general obligation bonds shall be payable out of any moneys or revenues
of the authority, subject only to any agreements with the holders of
particular bonds pledging any particular tolls or revenues. Every issue
of special obligation bonds shall be payable out of any revenues,
receipts, monies or assets of the authority, the metropolitan
transportation authority and its subsidiary corporations and the New
York city transit authority and its subsidiary corporations identified
for such purposes in accordance with agreements with the holders of
particular bonds.

2. The bonds shall be authorized by resolution of the board and shall
bear such date or dates, mature at such time or times, not exceeding
fifty years from their respective dates, bear interest at such rate or
rates, be payable at such time or times, 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. The bonds may
be sold at public or private sale for such price or prices as the
authority shall determine. Notwithstanding the foregoing provisions,
such bonds as may be authorized by resolution of the board and issued on
or before June thirtieth, nineteen hundred sixty-five, shall bear
interest at such rate or rates as such resolution may provide.

3. The bonds may be issued for any corporate purpose of the authority.

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

(a) pledging all or any part of the tolls and revenues of the project
or of all or any part of any or all such projects to secure the payment
of the bonds or of any issue of the bonds subject to such agreements
with bondholders as may then exist;

(b) the rates of the tolls to be charged, and the amounts to be raised
in each year by tolls, and the use and disposition of the tolls and
other revenues;

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

(d) limitations on the right of the authority to restrict and regulate
the use of the project in connection with which such bonds are issued;

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

(f) 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;

(g) 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;

(h) limitations on the amount of moneys derived from any project to be
expended for operating, administrative or other expenses of the
authority;

(i) vesting in a trustee or trustees such property, 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 five hundred sixty-seven hereof, and
limiting or abrogating the right of the bondholders to appoint a trustee
under section five hundred sixty-seven hereof or limiting the rights,
duties and powers of such trustee;

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

4-a. Any resolution or resolutions authorizing any bonds or any issue
of bonds maturing in not exceeding ten years from their date (hereafter
in this subdivision four-a referred to as "short term obligations") may
contain, in addition to all other provisions authorized by this title,
provisions, which shall be a part of the contract with the holders of
the short term obligations thereby authorized, as to (a) refunding the
short term obligations and, if so provided, outstanding bonds by the
issuance of bonds of the authority either by the sale of bonds and the
application of the proceeds to the payment of the short term obligations
and outstanding bonds or by the exchange of bonds for the short term
obligations and outstanding bonds; provided, however, that the authority
shall make no covenant to refund which shall require it to issue bonds,
the aggregate principal amount of which shall exceed by more than ten
per centum the aggregate principal amount of the short term obligations
and outstanding bonds to be refunded thereby;

(b) satisfying, paying or discharging the short term obligations, at
the election of the authority, by the tender or delivery of bonds of the
authority in exchange therefor; provided, however, that the aggregate
principal amount of bonds shall not exceed by more than ten per centum
the aggregate principal amount of the short term obligations to satisfy,
pay or discharge which the bonds are tendered or delivered;

(c) exchanging or converting the short term obligations, at the
election of the holder thereof, for or into bonds of the authority;
provided, however, that the aggregate principal amount of the bonds
shall not exceed by more than ten per centum the aggregate principal
amount of the short term obligations to be exchanged for or converted
into bonds;

(d) pledging bonds of the authority as collateral to secure payment of
the short term obligations and providing for the terms and conditions of
the pledge and manner of enforcing the pledge, which terms and
conditions may provide for the delivery of the bonds in satisfaction of
the short term obligations; provided, however, that the aggregate
principal amount of the bonds pledged shall not exceed by more than ten
per centum the aggregate principal amount of the short term obligations
to secure which they are pledged;

(e) depositing bonds in escrow or in trust with a trustee or fiscal
agent or otherwise providing for the issuance and disposition of the
bonds as security for carrying out any provisions in any resolution
adopted pursuant to the foregoing paragraphs (a), (b), (c) and (d)
hereof and providing for the powers and duties of the trustee or fiscal
agent or other depositary and the terms and conditions on which the
bonds are to be issued, held and disposed of;

(f) any other matters of like or different character which relate to
any provision or provisions of any resolution adopted pursuant to the
foregoing paragraphs (a), (b), (c), (d) and (e) hereof.

In computing the amount of bonds of the authority which may be
outstanding at any one time, short term obligations shall be excluded to
the extent that the resolution authorizing the issuance of such short
term obligations shall provide for the issuance of bonds pursuant to
paragraphs (a), (b), (c) or (d) of this section, but the bonds provided
to be issued by such resolution shall be included in making such
computation whether or not such bonds are outstanding.

The authority shall have power to make contracts for the future sale
from time to time of short term obligations, by which the purchasers
shall be committed to purchase short term obligations from time to time
on the terms and conditions stated in such contracts, and the authority
shall have power to pay such consideration as it shall deem proper for
such commitments.

4-b. The authority shall have power from time to time to issue notes
(herein referred to as notes) for any corporate purpose or power and
from time to time to issue renewal notes maturing not later than five
years, from their respective dates whenever the authority shall
determine that payment thereof can be made in full from any moneys or
revenues which the authority expects to receive from any source. The
authority may pledge such moneys or revenues (subject to any other
pledge thereof) for the payment of the notes and may in addition secure
the notes in the same manner as herein provided for bonds or otherwise.
The notes shall be issued in the same manner as bonds. The authority
shall have power to make contracts for the future sale from time to time
of the notes, by which the purchasers shall be committed to purchase the
notes from time to time on terms and conditions stated in such
contracts, and the authority shall have power to pay such consideration
as it shall deem proper for such commitments.

4-c. It is the intention hereof that any pledge of tolls or other
revenues or other moneys made by the authority shall be valid and
binding from the time when the pledge is made; that the tolls or other
revenues or other 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.

5. Neither the members of the board nor any person executing the 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 bonds. The authority may hold, cancel or resell such bonds,
subject to and in accordance with agreements with bondholders.