N.Y. Public Authorities Law § 1389: Notes of the authority

§ 1389. Notes of the authority. The authority shall have power from

time to time to issue its negotiable notes in conformity with applicable

provisions of the uniform commercial code whenever the board shall

determine that payment thereof can be made in full from any moneys or

revenues which the authority expects to receive from any source. Such

notes may, among other things, be issued to provide moneys to pay

preliminary costs of surveys, plans or other matters relating to any

proposed project. The authority may pledge such moneys or revenues

(subject to any other pledge thereof) for the payment of the notes and

may in addition secure the notes in the same manner and with the same

effect as herein provided for bonds. Such notes may be renewed from time

to time but such notes, including the renewals thereof, shall mature not

later than five years from the date upon which such notes are issued.

Such notes shall be issued in the same manner and subject to the same

restrictions as to price and interest rate as bonds, except that the

board may determine the manner in which such notes shall be sold. In

case of default on its notes, or violation of any of the obligations of

the authority to the noteholders, the noteholders shall have all the

remedies provided herein for bondholders.

Issuance by the authority of one or more series of notes for one or

more purposes in connection with any industrial project shall not

preclude it from issuing other notes in connection with the same

industrial project or any other industrial project, but the proceedings

whereunder any subsequent notes may be issued shall recognize and

protect any prior pledge or mortgage made for any prior issue of notes

unless in the proceedings authorizing such prior issue the right is

reserved to issue subsequent notes on a parity with such prior issue.