(a) (i) The legislative bodies of two or more municipalities acting separately may each by resolution designate the legislative body of one of the municipalities to act as agent for all of the interested municipalities.

(ii) If one agent is designated pursuant to this subdivision, it shall obtain the report and recommendation of the planning agency of each municipality on the redevelopment plan and its conformity to the master plan of each municipality before presenting the redevelopment plan to the legislative body of each municipality. In order for a preliminary plan to be adopted or for a redevelopment plan to be adopted or amended approval must be obtained by resolution of the legislative body of each municipality acting separately. The legislative body which has been designated as agent, the municipality which such legislative body represents and the planning agency of such municipality shall, unless otherwise provided by this section, exercise all other powers, duties and responsibilities for the purpose of redevelopment pursuant to this article in the same manner as if such municipality were acting alone.

(iii) If two or more municipalities jointly exercise the powers granted under this subdivision and a redevelopment plan as adopted provides for the allocation of real property tax revenues pursuant to section nine hundred seventy-o of this article the real property taxes of each municipality shall be allocated pursuant to such section.

(iv) If two or more municipalities jointly exercise the powers granted under this subdivision and the redevelopment plan as adopted provides for the issuance of indebtedness pursuant to section nine hundred seventy-o of this article, such indebtedness shall either be issued jointly by the municipalities and the resolution authorizing the issuance of such indebtedness must be approved by the legislative body of each municipality acting separately or shall be issued by resolution of the designated agent on behalf of the municipality it represents and, by resolution of its legislative body, each municipality shall irrevocably pledge the revenues allocated pursuant to section nine hundred seventy-p of this article to the repayment of such indebtedness and any interest thereon.

(v) The joint exercise of powers authorized by this subdivision shall be permitted only for the purpose of redevelopment of an area located wholly within each municipality and within one or more school districts.

(b) (i) The legislature may by special act establish on behalf of and for the benefit of more than one municipality, a municipal redevelopment authority or empower an existing public corporation to carry out the purposes and provisions of this article. Upon the establishment of a municipal redevelopment authority the legislative body of each municipality shall file within one year after the effective date of such special act, in the office of the secretary of state, a certificate setting forth (1) the date of passage of such special act; (2) the name of the authority; and (3) the name or names of the member or members appointed by such governing body and their terms of office. Each such certificate shall be accompanied by a copy of the intermunicipal agreement under which membership on the authority is apportioned among the sponsoring municipalities and a copy of the local law approving the same. Such authority shall be deemed to be and shall be in existence upon the satisfactory filing and receipt of the certificate or certificates required by this paragraph and shall thereafter be perpetual in duration.

(ii) A municipal redevelopment authority shall be a corporate governmental agency constituting a public benefit corporation. Except as otherwise provided by special act of the legislature, an authority shall consist of not less than five nor more than nine members. Membership shall be apportioned among the municipalities and participating school districts, and the manner of selection of a chairman determined by an agreement approved by local law by each such municipality, and by resolution of the board of education of each school district. Members shall serve at the pleasure of the appointing authority, and each member shall continue to hold office until his successor is appointed and has qualified. The governing body of each municipality and school district shall file with the secretary of state a certificate of appointment or reappointment of any member appointed or reappointed by it. Members shall receive no compensation for their services but shall be entitled to reimbursement of the necessary expenses, including traveling expenses, incurred in the discharge of their duties. No action shall be taken by an authority except pursuant to the favorable vote of a majority of the members then in office. Any one or more of the members of an authority may be an official or an employee of such municipality. In the event that an official or an employee of such municipality shall be appointed as a member of the agency, acceptance or retention of such appointment shall not be deemed a forfeiture of his municipal office or employment, or incompatible therewith or affect his tenure or compensation in any way. The term of office of a member of an authority who is an official or an employee of such municipality when appointed as a member thereof by special act of the legislature creating the authority shall terminate at the expiration of the term of his municipal office. Upon the creation of an authority, from time to time the governing body of a municipality or a school district, may, by resolution, appropriate sums of money to defray the expenses of the authority.

(iii) Unless otherwise provided by this subdivision or by the special act of the legislature establishing a municipal redevelopment authority or empowering an existing public corporation to carry out the purposes and provisions of this article, such authority or public corporation shall have the powers, duties and responsibilities granted a municipality and its legislative body pursuant to sections nine hundred seventy-d through nine hundred seventy-m of this article, as well as the authority to receive the taxes of each municipality and school district allocated and paid pursuant to section nine hundred seventy-p of this article. Such authority or public corporation shall have the power to designate survey areas and select project areas as provided by sections nine hundred seventy-d and nine hundred seventy-e of this article. Such authority or public corporation shall obtain the report and recommendation of the planning agency of each municipality or school district on the redevelopment plan and its conformity to the master plan of each municipality and school district before presenting the redevelopment plan to the legislative body of each municipality or school district. In order for a preliminary plan to be adopted or for a redevelopment plan to be adopted or amended approval must be obtained by resolution of the legislative body of each municipality and the board of education of each school district acting separately.

(iv) The authority or public corporation shall have the power to apply for and to accept any gifts or grants or loans of funds or property or financial or other aid in any form from the federal government or any agency or instrumentality thereof, or from the state or any agency or instrumentality thereof or from any other source, for any or all of the purposes specified in this article, and to comply, subject to the provisions of this article, with the terms and conditions thereof.

(v) (1) An authority or public corporation shall have the powers and duties granted municipalities pursuant to section nine hundred seventy-o of this article to issue tax increment bonds and tax increment bond anticipation notes. Such bonds and notes shall be bonds and notes of the authority or public corporation and neither the state nor any municipality shall be liable on such bonds and notes and such bonds and notes shall not be a debt of the state or of any municipality.

(2) The bonds and notes of an authority or public corporation are hereby made securities in which all public officials and bodies of the state and all municipalities, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, investment companies and other persons carrying on a banking business, and administrators, guardians, executors, trustees and other fiduciaries and all other persons whatsoever, who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds including capital in their control or belonging to them. The bonds and notes are also hereby made securities which may be deposited with and may be received by all public officers and bodies of this state and all municipalities for any purposes for which the deposit of bonds or other obligations of this state is now or hereafter may be authorized.

(3) The state does hereby pledge to and agree with the holders of any bonds and notes issued by an authority or public corporation pursuant to this article that the state will not alter or limit the rights hereby vested in the authority to fulfill the terms of any agreement made with or for the benefit of such holders, or in any way impair the rights and remedies of such holders, until the bonds or notes, together with the interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. An authority or public corporation is authorized to include this pledge and agreement of the state in any agreement with such holders.

(vi) Any bonds or notes issued pursuant to this article and the interest thereon as well as the revenues, moneys and all other property and activities of an authority or public corporation shall be exempt from taxation for municipal and state purposes, except for transfer and estate taxes. The state hereby covenants with the purchasers and with all subsequent holders and transferees of bonds issued by an authority or public corporation pursuant to this paragraph, in consideration of the acceptance of and payment for the bonds, that the bonds of the authority or public corporation issued pursuant to this paragraph and the income therefrom and all revenues, moneys, and other property pledged to secure the payment of such bonds shall at all times be free from such taxes, except for transfer and estate taxes.

(vii) All moneys of an authority from whatever source derived shall be paid to the treasurer of an authority and shall be deposited forthwith in a bank or banks in the state designated by the authority. The moneys in such accounts shall be paid out on check of the treasurer upon requisition by the chairman of the authority or of such other officer or officers as the authority may authorize to make such requisitions. All deposits of such moneys shall be secured by obligations of or guaranteed by the United States or of the state of a market value equal at all times to the amount on deposit and all banks and trust companies are authorized to give such security for such deposits. An authority shall have power, notwithstanding the provisions of this section, to contract with the holders of any bonds as to the custody, collection, security, investment and payment of any moneys of the authority or any moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds. Moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of such moneys may be secured in the same manner as moneys of an authority and all banks and trust companies are authorized to give such security for such deposits.

(viii) No action or proceeding shall be prosecuted or maintained against an authority for personal injury or damage to real or personal property alleged to have been sustained by reason of the negligence or wrongful act of the authority or any member, officer, agent or employee thereof, unless (1) notice of claim shall have been made and served upon the authority or the secretary of state within the time limit established by and in compliance with section fifty-e of this chapter, (2) it shall appear by and as an allegation in the complaint or moving papers that at least thirty days have elapsed since the service of such notice and that the adjustment or payment thereof has been neglected or refused, and (3) the action or proceeding shall be commenced within one year and ninety days after the cause of action shall have accrued.