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Notes and bonds of the corporation
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 8, TITLE 26
§ 2536. Notes and bonds of the corporation. 1. (a) The corporation
shall have power and is hereby authorized from time to time to issue its
negotiable notes and bonds in conformity with applicable provisions of
the uniform commercial code in such principal amount, as the corporation
shall determine to be necessary, to provide sufficient funds for
achieving its corporate purposes, including the making of payments to
the city, the payment of interest on notes and bonds of the corporation,
the establishment of reserves to secure such notes and bonds, and the
payment of all operating expenses of the corporation and all other
expenditures of the corporation incidental to or necessary or convenient
to carry out its corporate purposes and powers.

(b) The corporation shall have the power, from time to time, to issue
(i) notes to renew notes and (ii) bonds to pay notes, including the
interest thereon and, whenever it deems refunding expedient, to refund
any bonds by the issuance of new bonds, whether the bonds to be refunded
have or have not matured, and to issue bonds partly to refund bonds then
outstanding and partly for any of its other corporate purposes. The
refunding bonds may be exchanged for the bonds to be refunded or sold
and the proceeds applied to the purchase, redemption or payment of such

(c) Except as may otherwise be expressly provided by the corporation,
every issue of its notes and bonds shall be general obligations of the
corporation payable out of any revenues of the corporation, subject only
to any agreements with the holders of particular notes or bonds pledging
any particular revenues.

(d) The notes and bonds shall be authorized by resolution of the
corporation, shall bear such date and shall mature at such time as such
resolution may provide, except that no note or bond or the renewal or
refunding thereof shall mature more than ten years from the date of the
original issue of such note or bond. The bonds may be issued as serial
bonds or as term bonds or as a combination thereof. Provision for the
payment of principal of and interest on bonds shall be made in not more
than ten approximately equal annual installments or in not more than
twenty approximately equal semi-annual installments. The notes and bonds
shall bear interest at such rate and shall be in such denomination, 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 and be subject to such terms of redemption as
such resolution may provide. The notes and bonds may be sold by the
corporation at public or private sale, at such price as the corporation
shall determine.

2. Any resolution authorizing any notes or bonds or any issue thereof
may contain provisions, which shall be a part of the contract with the
holders thereof, as to:

(a) pledging all or any part of the revenues to secure the payment of
the notes or bonds or of any issue thereof, subject to such agreements
with noteholders or bondholders as may then exist;

(b) pledging all or any part of the assets of the corporation to
secure the payment of the notes or bonds or of any issue of notes or
bonds, subject to such agreements with noteholders or bondholders as may
then exist;

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

(d) limitations on the purpose to which the proceeds of sale of notes
or bonds may be applied and pledging such proceeds to secure the payment
of the notes or bonds or of any issue thereof;

(e) limitations on the issuance of additional notes or bonds; the
terms upon which additional notes or bonds may be issued and secured;
and the refunding of outstanding or other notes or bonds;

(f) the procedure, if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated, the amount of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;

(g) limitations on the amount of moneys to be expended by the
corporation for operating expenses of the corporation;

(h) vesting in a trustee such property, rights, powers and duties in
trust as the corporation may determine, which may include any or all of
the rights, powers and duties of the trustee appointed by the
bondholders pursuant to this title, and limiting or abrogating the right
of the bondholders to appoint a trustee under this title or limiting the
rights, powers and duties of such trustee;

(i) the acts or omissions to act which shall constitute a default in
the obligations and duties of the corporation to the holders of the
notes or bonds and providing for the rights and remedies of the holders
of the notes or bonds in event of such default, including the right to
appointment of a receiver; providing, however, that such rights and
remedies shall not be inconsistent with the general laws of the state
and the other provisions of this title;

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

3. Any pledge made by the corporation shall be valid and binding from
the time when the pledge is made. The revenues or property so pledged
and thereafter received by the corporation shall immediately be subject
to the lien of such pledge without any physical delivery thereof or
further act, and 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 corporation, irrespective of whether such parties
have notice thereof. Neither the resolution nor any other instrument by
which a pledge is created need be recorded or filed to protect such
pledge except in the office of the corporation.

4. Neither the directors of the corporation nor any other person
executing the notes or bonds of the corporation shall be subject to any
personal liability or accountability by reason of the issuance thereof.

5. The corporation, subject to such agreements with noteholders or
bondholders as may then exist, shall have power out of any funds
available therefor, to purchase notes or bonds of the corporation, which
shall thereupon be cancelled, at a price not exceeding:

(a) if the notes or bonds are then redeemable, the redemption price
then applicable.

(b) if the notes or bonds are not then redeemable, the redemption
price applicable on the first date after such purchase upon which the
notes or bonds becme subject to redemption.

6. In the discretion of the directors of the corporation, the bonds
may be secured by a trust indenture by and between the corporation and a
corporate trustee, which may be any trust company or bank having the
powers of a trust company in the state. Such trust indenture may contain
such provisions for protecting and enforcing the rights and remedies of
the bondholders as may be reasonable and proper and not in violation of
law, including covenants setting forth the duties of the corporation in
relation to the exercise of its corporate powers and the custody,
safeguarding and application of all moneys. The Corporation may provide
by such trust indenture for the payment of the proceeds of the bonds and
the revenues to the trustee under such trust indenture or other
depository, and for the method of disbursement thereof, with such
safeguards and restrictions as it may determine. All expenses incurred
in carrying out such trust indenture may be treated as a part of the
operating expenses of the corporation. If the bonds shall be secured by
a trust indenture, the bondholders shall have no authority to appoint a
separate trustee to represent them.

7. Whether or not the notes and bonds are of such form and character
as to be negotiable instruments under the terms of the uniform
commercial code, the notes and 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 notes and
bonds for registration.

8. The corporation shall not issue any bonds or notes if such issue
would bring the aggregate amount of indebtedness evidenced by bonds or
notes of the corporation issued pursuant to this title to an amount
exceeding five hundred twenty million dollars. In calculating the amount
of indebtedness issued by the corporation pursuant to this title, there
shall be excluded the amount of indebtedness to be refunded or renewed
from the proceeds from the sale of, or to be exchanged for, new