§ 3407. Bonds or notes of the corporation. 1. The corporation 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 corporation 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 corporation shall have the 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
corporation. 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 corporation may be general obligations secured
by the faith and credit of the corporation or may be special obligations
payable solely out of particular revenues or other monies as may be
designated in the proceedings of the corporation 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 corporation 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 the purpose of securing its bonds or notes or to provide direct
payment of any amounts which the corporation is authorized to pay.

4. Bonds shall be authorized by resolution of the corporation, and may
be in such denominations and bear such date or dates and mature at such
time or times as such resolution may provide, except that bonds and any
renewals thereof shall mature within forty years from the date of
original issuance of any such bonds. Obligations with a maturity of
five years or less from the date of their original issuance may be
designated as notes. Bonds shall be subject to such terms of redemption,
bear interest at such rate or rates per annum payable at such times, be
in such form, 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. Bonds may be sold at public or private sale for such price or
prices as the corporation shall determine, provided that no bonds of the
corporation, other than obligations designated as notes, may be sold by
the corporation at private sale unless such sale in the terms thereof
have been approved in writing by the comptroller, where such sale is not
to be to such comptroller, or by the state director of the division of
the budget, where such sale is to be to the comptroller. The corporation
may pay all expenses, premiums and commissions which it may deem
necessary or advantageous in connection with the issuance and sale of
bonds.

5. Any resolution or resolutions authorizing bonds or any issue of
bonds by the corporation 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 corporation 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 corporation
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 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 corporation and the amount to be raised in each year thereby and
the use and disposition of revenues;

(e) limitations on the right of the corporation 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 corporation may determine which may include
any or all of the rights, powers and duties of the trustees appointed by
the bondholders pursuant to section thirty-four hundred eight of this
title and limiting the rights of the bondholders to appoint a trustee
under such section 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 corporation 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 corporation 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
corporation;

(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 corporation 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 herein conferred upon the corporation to
secure its bonds, the corporation 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 corporation 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
corporation would have the right to do in the absence of such
resolutions, trust indentures, agreements or other instruments. The
corporation shall have power to enter into amendments of any such
resolutions, trust indentures, agreements or other instruments within
the powers granted to the corporation 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 corporation.

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 corporation 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 corporation
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 corporation 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 directors nor the non-voting representatives nor the
officers of the corporation 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
corporation shall have power out of any funds available therefor to
purchase bonds of the corporation, 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 corporation 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.