§ 14. Bonds and notes of the corporation. (1) Subject to the
provisions of subdivision (2) of section sixteen of this act, the
corporation shall have the power and is hereby authorized from time to
time to issue its negotiable bonds and notes in such principal amounts,
as, in the opinion of the corporation, shall be necessary to provide
sufficient funds for achieving any of its corporate purposes, including
the payment of interest on bonds and notes of the corporation,
establishment of reserves to secure such bonds and notes, and all other
expenditures of the corporation incident to and necessary or convenient
to carry out its corporate purposes and powers.

(2) All bonds and notes issued by the corporation shall be general
obligations of the corporation payable out of any revenues or monies of
the agency, subject only to any agreements with the holders of
particular notes or bonds pledging any particular revenues or receipts,
except as may otherwise be expressly provided by the corporation. Such
bonds and notes may be executed and delivered by the corporation at any
time and from time to time, may be in such form and denominations and of
such tenor and maturities, may be in bearer form or in registered form,
as to principal and interest or as to principal alone, all as the
corporation may determine.

(3) Bonds may be payable in such installments and at such time or
times as shall be determined by the corporation, not exceeding fifty
years from the date thereof.

(4) Notes, or any renewals thereof, may be payable in such
installments and at such time or times as shall be determined by the
corporation, not exceeding ten years from the date of the original issue
of such notes.

(5) Bonds and notes may be payable at such place or places whether
within or without the state, may bear interest at such rate or rates
payable at such time or times and at such place or places and evidenced
in such manner, and may contain such provisions not inconsistent
herewith, all as shall be provided in the proceedings of the corporation
under which the bonds or notes shall be authorized to be issued.

(6) If deemed advisable by the corporation, there may be retained in
the proceedings under which any bonds or notes of the corporation are
authorized to be issued an option to redeem all or any part thereof as
may be specified in such proceedings at such price or prices and after
such notice or notices and on such terms and conditions as may be set
forth in such proceedings, and as may be recited on the face of the
bonds or notes, but nothing herein contained shall be construed to
confer on the corporation any right or option to redeem any bonds or
notes except as may be provided in the proceedings under which they
shall be issued.

(7) Any bonds or notes of the corporation may be sold at such price or
prices, at public or private sale, in such manner and from time to time
as may be determined by the corporation, and the corporation may pay all
expenses, premiums and commissions which it may deem necessary or
advantageous in connection with the issuance and sale thereof. No bonds
or notes of the corporation may be sold at private sale, however, unless
such sale and the terms thereof have been approved in writing by (a) the
comptroller where such sale is not to the comptroller or (b) the state
director of the budget, where such sale is to the comptroller.

(8) Any moneys of the corporation, including proceeds from the sale or
any bonds or notes, and revenues, receipts and income from any of its
projects or mortgages, may be invested and reinvested in such
obligations, securities and other investments as shall be provided in
the resolution or resolutions under which such bonds or notes are
authorized.

(9) The resolution under which the bonds or notes are authorized to be
issued shall contain provisions that

(a) title to any industrial project for the acquisition, construction,
reconstruction, rehabilitation or improvement of which bonds or notes
are authorized to be issued shall pass to the state upon retirement of
such indebtedness, and

(b) the state shall have the option to purchase, subject to the rights
of any lessee, mortgagee or beneficiary of any deed of trust, any
industrial project for the acquisition, construction, reconstruction,
rehabilitation or improvement of which bonds or notes are authorized to
be issued at any time for an amount equal to the indebtedness then
outstanding, together with the interest thereon, with interest on any
unpaid installments of interest. In the event of any such sale to the
state, the corporations shall either

(i) redeem the bonds or notes which were issued to acquire, construct,
reconstruct, rehabilitate or improve the industrial project so sold the
state, or

(ii) create a special reserve fund for the payment of the principal of
and interest on such bonds or notes and pay into such reserve fund the
receipts derived from such sale. The funds paid into such reserve fund
may be invested and reinvested in obligations of or guaranteed by the
United States of America, or in certificates of deposit or time deposits
secured in such manner as the corporation shall determine, maturing at
such time or times as shall be appropriate to assure the prompt payment
of the principal of and interest on such bonds or notes. Any moneys
received by the corporation from the sale of such project to the state
after the redemption of such bonds or notes or the creation of such
reserve fund may be used by the corporation in any lawful manner.

(10) Issuance by the corporation of one or more series of bonds or
notes for one or more purposes shall not preclude it from issuing other
bonds or notes in connection with the same project or any other project,
but the proceedings whereunder any subsequent bonds or notes may be
issued shall recognize and protect any prior pledge or mortgage made for
any prior issue of bonds or notes unless in the proceedings authorizing
such prior issue the right is reserved to issue subsequent bonds or
notes on a parity with such prior issue.

(11) The corporation is authorized to provide for the issuance of its
bonds or notes for the purpose of refunding any bonds or notes of the
corporation then outstanding, including the payment of any redemption
premium thereon and any interest accrued or to accrue to the earliest or
subsequent date of redemption, purchase or maturity of such bonds or
notes, and, if deemed advisable by the corporation, for the additional
purpose of paying all or any part of the cost of acquiring,
constructing, reconstructing, rehabilitating, or improving any project,
or the making of any mortgage loan on any project. The proceeds of any
such bonds or notes issued for the purpose of refunding outstanding
bonds or notes, may, in the discretion of the corporation, be applied to
the purchase or retirement at maturity or redemption of such outstanding
bonds or notes either on their earliest or any subsequent redemption
date, and may, pending such application, be placed in escrow to be
applied to such purchase or retirement at maturity or redemption on such
date as may be determined by the corporation. Any such escrowed
proceeds, pending such use, may be invested and reinvested in
obligations of or guaranteed by the United States of America, or in
certificates of deposit or time deposits secured in such manner as the
corporation shall determine, maturing at such time or times as shall be
appropriate to assure the prompt payment, as to principal, interest and
redemption premium, if any, on the outstanding bonds or notes to be so
refunded. The interest, income and profits, if any, earned or realized
on any such investment may also be applied to the payment of the
outstanding bonds or notes to be so refunded. After the terms of the
escrow have been fully satisfied and carried out, any balance of such
proceeds and interest, income and profits, if any, earned or realized on
the investments thereof may be returned to the corporation for use by it
in any lawful manner. The portion of the proceeds of any such bonds or
notes issued for the additional purpose of paying all or any part of the
cost of acquiring, constructing, reconstructing, rehabilitating, or
improving any project, or the making of any mortgage loan on any
project, may be invested and reinvested in obligations of or guaranteed
by the United States of America, maturing not later than the time or
times when such proceeds will be needed for the purpose of paying all or
any part of such cost or the making of any such mortgage loan. The
interest, income and profits, if any, earned or realized on such
investments may be applied to the payment of all or any part of such
cost or the making of any such mortgage loan or may be used by the
corporation in any lawful manner. All such bonds or notes shall be
issued and secured and shall be subject to the provisions of this act in
the same manner and to the same extent as any other bonds or notes
issued pursuant to this act.

(12) All bonds or notes authorized under this section and the interest
coupons applicable thereto are hereby made and shall be construed to be
negotiable instruments.