§ 41. Power to issue authority bonds. 1. An authority may from time
to time for any of the purposes of this chapter borrow money and issue
bonds in conformity with applicable provisions of the uniform commercial
code in such amounts and upon such terms as it may deem advisable. Bonds
for state projects and for projects, other than federal projects,
financed without a loan from a government may be issued for periods not
exceeding fifty years and for a period not exceeding the probable life
of the project which said period shall be calculated from the date of
the bonds. Bonds for projects financed with the aid of municipal loans
may be issued for periods not exceeding the probable life of the
project. Bonds for federal projects may be issued for a period not
exceeding sixty years. An authority shall also have power to issue
refunding bonds for the purpose of paying or retiring bonds previously
issued by it but no such refunding bonds shall mature later than the
expiration of the maximum period permitted by this subdivision at the
time of the issuance of the bonds to be refunded for the project for
which such bonds were issued. Such period shall be construed to
commence from the date of issuance of the bonds to be refunded.

2. An authority is authorized to issue, whenever it may deem it
necessary so to do, notes in conformity with applicable provisions of
the uniform commercial code without limitation as to the rate or rates
of interest in anticipation of the sale of bonds of which a government
shall have agreed to purchase at least eighty per centum or which shall
have been authorized at the time such notes are issued or in
anticipation of a loan which a government shall have agreed to make to
the authority. Such notes shall mature within a period not to exceed one
year from the date of their issue but may be made subject to the right
of earlier payment. The proceeds of the sale of such notes shall be used
only for the purposes for which may be used the proceeds of the sale of
bonds or of the loan in anticipation of which the notes were issued. Any
such notes may be renewed or may be refunded through the sale of similar
notes but no such renewal or refunding notes shall be issued after the
sale of bonds. Such notes, renewal notes or refunding notes shall, with
the interest thereon, if any, be paid from funds made available by a
government pursuant to agreement for the purchase of bonds or the making
of a loan, or from the proceeds of the sale of the bonds in anticipation
of the sale of which the notes were issued or, in the event of the sale
of the project with respect to which such notes were issued, from the
purchase price paid to the authority by the purchaser of such project.
Such notes, renewal notes or refunding notes shall mature within a
period not to exceed one year beyond the maturity date of the last
maturing notes outstanding on the date when the authority or, in the
case of state projects, the commissioner, makes the determination that
the project has been completed and that the project cost has been
finally determined, which determination shall be conclusive in any suit,
action or proceeding upon such notes, renewal notes or refunding notes.
The total amount of such notes or renewals thereof issued and
outstanding shall at no time exceed the total amount of bonds of which a
government shall have agreed to purchase at least eighty per centum or
which shall have been authorized to be issued or the total amount of the
loan which a government shall have agreed to make to the authority. The
foregoing limitations upon the time of payment of notes shall not at any
time apply to notes or other obligations which may be issued by an
authority to a government in anticipation of the sale of bonds of which
such government shall have agreed to purchase at least eighty per centum
or in anticipation of a loan which such government shall have agreed to
make to the authority. Except as in this section expressly provided, an
authority shall, in addition to its other powers, have the same powers
in connection with the issuance and securing the payments of its notes
as it has in connection with the issuance and securing payment of its
bonds.

2-a. In connection with a federal project, an authority may,
notwithstanding anything to the contrary contained in subdivision two of
this setcion, issue notes or renewal or refunding notes in conformity
with applicable provisions of the uniform commercial code after the sale
of bonds for such project and without regard to the limitations as to
time of issuance or payment set forth in such subdivision, provided: (a)
the total amount of such notes or renewal or refunding notes issued and
outstanding shall at no time exceed the difference between the estimated
project cost if issued prior to the date of physical completion of the
project or the project cost if issued thereafter and the principal
amount of the bonds theretofore issued for such project; and (b) such
notes or renewal or refunding notes are secured by an agreement between
the authority and the federal government or any agency on
instrumentality thereof pursuant to which the authority agrees to borrow
from such government or agency or instrumentality thereof, and such
government or agency or instrumentality thereof agrees to lend to the
authority at or prior to the maturity of such notes, monies in an amount
which (together with any other monies irrevocably committed to the
payment of principal of or interest on such notes) will be sufficient to
pay the principal of such notes with interest thereon to maturity, which
monies under the terms of such agreement are required to be used by the
authority for the purpose of paying the principal of and interest on
such notes at their maturity. Every note issued in connection with a
federal project which is not refunded and any renewals thereof and every
refunding note and any renewals thereof shall, with the interest
thereon, if any, be paid either from funds made available by the federal
government or agency or instrumentality thereof pursuant to an agreement
for the purchase of bonds or the making of a loan or the payment of
annual contributions, or from the proceeds of the sale of the bonds in
anticipation of the sale of which the notes were issued.

3. The authority may issue its interim certificates, or other
temporary obligations, in conformity with applicable provisions of the
uniform commercial code, to the purchaser of bonds pending the
authorization, preparation, execution or delivery of definitive bonds.
Such interim certificates, or other temporary obligations, shall be in
such form, contain such terms, conditions and provisions, bear such date
or dates, and evidence such agreements relating to their discharge or
payment or the delivery of definitive bonds as the authority may by
resolution determine.

4. Notwithstanding anything to the contrary contained in subdivision
two of this section respecting limitations upon the time of payment of
notes, renewal notes or refunding notes, such notes may be issued during
the period that negotiations for the sale of a project pursuant to the
provisions of the public housing law or the private housing finance law
are pending, but such notes shall not be renewed or refunded beyond the
maturity date of the last maturing notes outstanding on the date of
transfer of title to such project by the authority to the purchaser.
Negotiations for the sale of a project shall be deemed to be pending if
the authority shall have adopted a resolution determining that the
negotiations for the sale of such project are pending. If the
negotiations for such sale are thereafter abandoned, such notes, renewal
notes or refunding notes shall mature within a period not to exceed one
year beyond the maturity date of the last maturing notes outstanding on
the date determined by resolution adopted by the authority as the date
when negotiations for the sale of the project were abandoned, or within
a period not to exceed one year beyond the maturity date of the last
maturing notes outstanding on the date when the determination is made
pursuant to subdivision two of this section that the project has been
completed and that the project cost has been finally determined,
whichever period is longer.