§ 906. 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
purpose under this title, 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 shall not exceed ten million dollars
($10,000,000), excluding bonds, notes or other obligations issued to
refund or 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 ten million dollars
($10,000,000), only if the present value of the aggregate debt service
of the refunding or repayment of 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 of this section, the present value of the aggregate debt
service of the refunding or repayment of bonds, notes or other
obligations and the aggregate debt service of the bonds, notes or other
obligations and of the aggregate debt service of the bonds, notes or
other obligations so to be refunded or repaid shall be calculated by
utilizing the effective interest rate of the refunding or repayment of
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 of bonds, notes or other obligations from payment of dates
thereof to the date of issue of the refunding or repayment of bonds,
notes or other obligations and to the price bid including estimated
accrued interest from the sale thereof. The authority shall have the
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 or other subsidy with respect to any bonds.

2. The authority shall have the power from time to time to renew bonds
or to issue renewal bonds for the purposes authorized under this title,
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 purpose of the
authority. 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 monies 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 monies. 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. (a) Bonds shall be authorized by resolution of the governing body
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 thirty
years from the date of original issuance of any such bonds.

(b) 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 than fifteen days,
Sunday excepted, after a notice of such sale has been published at least
once in a newspaper of general circulation in the service area of 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 pursuant to 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.

(c) Notwithstanding the provisions of paragraph (b) of this
subdivision, whenever in the judgment of the authority the interests of
the authority will be served thereby, the governing body 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 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.

(d) 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.

(e) In addition to the authority to sell notes at private sale
contained in this section.

(f) No private or public bond sale on a negotiated basis shall be
conducted by the authority without prior approval of the state
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.

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

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

(i) 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 by the authority 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, together with any 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
bondholders as may then exist;

(b) the setting aside of reserves and the creation of sinking the
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
bondholders may be amended or abrogated, including the proportion of
bondholders 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 bonds 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
bondholders 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
bondholders and providing for the rights and remedies of the bondholders
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 or other property;

(m) limitations on the amount of revenues and other monies to be
expended or 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 the bondholders.

6. In addition to the powers conferred under this section upon the
authority to secure its bonds, the authority shall have the 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 within
the powers granted to the authority by this title and to perform 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 of the authority 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 governing body of the authority nor the
officers 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, in lieu of redemption, at a price not
exceeding, if the bonds are then redeemable, the redemption price then
applicable plus accrued interest to the next interest payment date, or,
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 canceled.

11. The authority shall have power and is hereby authorized to issue
negotiable bond anticipation notes in conformity with applicable
provisions of the uniform commercial code and may renew the same from
time to time but the maximum maturity of any such note, including
renewals thereof, shall not exceed five years from the date of issue of
such original note.