N.Y. Public Authorities Law § 2318: Notes of the authority

§ 2318. Notes of the authority. The authority shall have power from

time to time to issue notes and from time to time issue renewal notes

(herein referred to as notes) maturing not later than five years from

their respective original dates in an amount not exceeding at any time

one hundred thousand dollars, over and above the amount of bonds

authorized by subdivision one of section twenty-three hundred sixteen of

this title, for any purpose or purposes for which bonds may be issued,

whenever the authority 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 funds to pay preliminary costs of studies, 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. The notes

shall be issued in the same manner as bonds. The authority shall have

power to make contracts for the future sale from time to time of the

notes, by which the purchasers shall be committed to purchase the notes

from time to time on terms and conditions stated in such contracts, and

the authority shall have power to pay such consideration as it shall

deem proper for such commitments. 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. Such notes shall be as fully negotiable as the bonds of the

authority.