senate Bill S4099

Amended

Creates the state infrastructure bank

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 17 / Mar / 2011
    • REFERRED TO BANKS
  • 04 / Jan / 2012
    • REFERRED TO BANKS
  • 30 / Mar / 2012
    • AMEND (T) AND RECOMMIT TO BANKS
  • 30 / Mar / 2012
    • PRINT NUMBER 4099A

Summary

Creates the state infrastructure bank.

do you support this bill?

Bill Details

Versions:
S4099
S4099A
Legislative Cycle:
2011-2012
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add Art 17 ยงยง9100 - 9119, Bank L

Sponsor Memo

BILL NUMBER:S4099

TITLE OF BILL:
An act
to amend the banking law, in relation to creating a state
infrastructure bank

PURPOSE:
To create a method of funding highway, rail, transit, intermodal, and
other transportation facilities 'and projects which produce revenue
to amortize debt while contributing to the connectivity of New York's
transportation system and further the goals such as corridor
completion, economic development, competitiveness in a global
economy, and quality of life.

SUMMARY OF PROVISIONS:
Section one of the bill creates a state infrastructure bank within the
New York State Department of Transportation. The department would be
authorized, under the guidelines established by this act and the
federal National Highway System (NHS) Designation Act of 1995, to use
federal aid to make loans, provide credit enhancements, subsidize
interest rates and offer additional financial tools in order to
undertake highway, transit and economic development projects that
would otherwise not move forward or be delayed.

Additionally. Section one establishes a board of directors and
delineates the powers of such board. Section one would also require
the department to assist those public and private entities eligible
for assistance: where access to such assistance is unavailable or
where such entities have been denied such assistance; where there is
a measurable public benefit such as an increase in economic
opportunities for persons who are unemployed; and, where such
entities are considered small businesses or are minority-and
women-owned business enterprises.

JUSTIFICATION:
The SIB will provide local agencies and private entities low interest
loans to fund important and merit-based rail, road, transit and port
projects.

In 1995, Congress passed and the President signed into law the
National Highway System (NHS) Designation Act. This act established a
state infrastructure bank pilot program that allowed as many as ten
states to allocate part of their Federal apportionment to capitalize
or "seed" an infrastructure bank. The U.S. Department of
Transportation solicited candidates for the pilot program and
selected ten pilot states, including Ohio, Oregon, Arizona, Texas,
California, Florida, Missouri, Oklahoma, South Carolina and Virginia.

In September 1996, Congress passed new legislation that enables the U.S.
Department of Transportation to designate more than ten qualified
states to
participate in the infrastructure bank program. Congress also approved
an additional $150 million to capitalize pilot infrastructure banks
following enactment of the legislation.


Many major transportation projects, whether they be highway, transit,
port or intermodal, are often costly and complex to finance. Under
federal law states now apply to the u.s. Department of Transportation
for designation as a state infrastructure bank. The State Department
of Transportation, with federal designation as an Infrastructure bank
and appropriate state legislation in place, would be able to function
like a revolving loan fund, bond bank. or both. As a revolving loan
for an infrastructure bank could make loans for infrastructure
investments while borrowers replenish the funds as they repay the
loans. Once repaid, these funds can be used by a multitude of project
sponsors for a broad range of projects. As a bond bank, an
infrastructure bank could provide the necessary bonding requirements,
letters of credit or other credit enhancements to support
transportation capital projects.

This bill will provide the necessary framework for the department to
be designed as a state infrastructure bank and in turn leverage
additional funding, encourage economic opportunity and provide the
necessary improvement to the States transit, highway and intermodal
facilities.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4099

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 17, 2011
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

AN ACT to amend the banking law, in relation to creating a state infras-
  tructure bank

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  banking law is amended by adding a new article 17 to
read as follows:
                              ARTICLE XVII
                        STATE INFRASTRUCTURE BANK
SECTION 9100. CREATION.
        9101. BOARD OF DIRECTORS.
        9102. FUNCTIONS AND DUTIES OF THE BOARD OF DIRECTORS.
        9103. AUTHORITY OF THE BANK.
        9104. SUBSTANCE OF BONDS.
        9105. FINANCING FOR ECONOMIC DEVELOPMENT FACILITIES.
        9106. TAX EXEMPTION.
        9107. PLEDGE OF STATE.
        9108. FEES.
        9109. REPORT.
        9110. APPLICATION FOR BANK FINANCING.
        9111. MANDATORY RESOLUTION.
        9112. ISSUANCE OF BONDS.
        9113. AUTHORIZED FINANCING OF BONDS.
        9114. BOND RESOLUTIONS.
        9115. PURCHASE OF BONDS BY THE BANK.
        9116. TRUST AGREEMENT.
        9117. LIABILITY OF THE STATE.
        9118. REFUNDING BONDS.
        9119. SECURITY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10317-01-1

S. 4099                             2

  S 9100. CREATION. 1. THERE IS HEREBY CREATED THE STATE  INFRASTRUCTURE
BANK  WHICH SHALL BE RESPONSIBLE FOR CARRYING OUT THE PROVISIONS OF THIS
ARTICLE.
  2.  THE  BANK  SHALL  BE  UNDER THE DIRECTION OF AN EXECUTIVE DIRECTOR
APPOINTED BY THE GOVERNOR, AND WHO SHALL SERVE AT THE  PLEASURE  OF  THE
GOVERNOR.  THE  APPOINTMENT  SHALL  BE  SUBJECT  TO  CONFIRMATION BY THE
SENATE.
  S 9101. BOARD OF DIRECTORS. 1. THE BANK  SHALL  BE  GOVERNED  AND  ITS
CORPORATE  POWER EXERCISED BY A BOARD OF DIRECTORS THAT SHALL CONSIST OF
THE FOLLOWING PERSONS:
  (A) THE DIRECTOR OF THE DIVISION OF THE BUDGET OR HIS OR HER DESIGNEE.
  (B) THE STATE COMPTROLLER OR HIS OR HER DESIGNEE.
  (C) THE COMMISSIONER OF THE DEPARTMENT OF TRANSPORTATION OR HIS OR HER
DESIGNEE, WHO SHALL SERVE AS CHAIR OF THE BOARD.
  (D) AN APPOINTEE OF THE GOVERNOR.
  (E) THE SECRETARY OF STATE OR HIS OR HER DESIGNEE.
  2. ANY DESIGNATED DIRECTOR SHALL SERVE AT THE PLEASURE OF  THE  DESIG-
NATING POWER.
  3.  THREE OF THE MEMBERS SHALL CONSTITUTE A QUORUM AND THE AFFIRMATIVE
VOTE OF THREE BOARD MEMBERS SHALL BE NECESSARY  FOR  ANY  ACTION  TO  BE
TAKEN BY THE BOARD.
  4.  A  MEMBER OF THE BOARD SHALL NOT PARTICIPATE IN ANY BANK ACTION OR
ATTEMPT TO INFLUENCE ANY DECISION OR RECOMMENDATION BY ANY EMPLOYEE  OF,
OR CONSULTANT TO, THE BANK THAT INVOLVES A SPONSOR OF WHICH HE OR SHE IS
A  REPRESENTATIVE OR IN WHICH THE MEMBER OR A MEMBER OF HIS OR HER IMME-
DIATE FAMILY HAS A PERSONAL FINANCIAL INTEREST.  FOR  PURPOSES  OF  THIS
SECTION,  "IMMEDIATE  FAMILY" MEANS THE SPOUSE, CHILDREN, AND PARENTS OF
THE MEMBER.
  5. EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE MEMBERS  OF  THE  BOARD
SHALL SERVE WITHOUT COMPENSATION, BUT SHALL BE REIMBURSED FOR ACTUAL AND
NECESSARY  EXPENSES  INCURRED  IN THE PERFORMANCE OF THEIR DUTIES TO THE
EXTENT THAT REIMBURSEMENT FOR THESE EXPENSES IS NOT  OTHERWISE  PROVIDED
OR  PAYABLE  BY  ANOTHER  PUBLIC  AGENCY,  AND SHALL RECEIVE ONE HUNDRED
DOLLARS FOR EACH FULL DAY OF ATTENDING MEETINGS OF THE AUTHORITY.
  S 9102. FUNCTIONS AND DUTIES OF THE BOARD OF DIRECTORS. 1. THE  EXECU-
TIVE  DIRECTOR  SHALL MANAGE AND CONDUCT THE BUSINESS AND AFFAIRS OF THE
BANK, THE INFRASTRUCTURE BANK FUND, AND GUARANTEE TRUST FUND, SUBJECT TO
THE DIRECTION OF  THE  BOARD.  EXCEPT  AS  OTHERWISE  PROVIDED  IN  THIS
SECTION,  THE BOARD MAY ASSIGN TO THE EXECUTIVE DIRECTOR, BY RESOLUTION,
THOSE DUTIES GENERALLY NECESSARY OR CONVENIENT TO CARRY OUT  ITS  POWERS
AND  PURPOSES UNDER THIS CHAPTER. ANY ACTION INVOLVING FINAL APPROVAL OF
ANY BONDS, NOTES, OR LOANS SHALL REQUIRE THE APPROVAL OF A  MAJORITY  OF
THE  MEMBERS  OF THE BOARD. SUBJECT TO ANY CONDITIONS THAT THE BOARD MAY
FROM TIME TO TIME PRESCRIBE, THE EXECUTIVE  DIRECTOR  MAY  EXERCISE  ANY
POWER, FUNCTION, OR DUTY CONFERRED BY LAW ON THE BANK IN CONNECTION WITH
THE  ADMINISTRATION, MANAGEMENT, AND CONDUCT OF THE BUSINESS AND AFFAIRS
OF THE BANK, THE INFRASTRUCTURE BANK FUND, AND THE GUARANTEE TRUST FUND.
  2. THE DIRECTORS, ON BEHALF OF THE BANK MAY PURCHASE INSURANCE FOR ITS
FIDUCIARIES OR FOR ITSELF TO COVER  LIABILITY  OR  LOSSES  OCCURRING  BY
REASON  OF  THE ACT OR OMISSION OF A FIDUCIARY, IF THE INSURANCE PERMITS
RECOURSE BY THE INSURER AGAINST THE FIDUCIARY IN THE CASE  OF  A  BREACH
FIDUCIARY OBLIGATION BY THE FIDUCIARY.
  3.  IN  ADMINISTERING  AND  DIRECTING THE DAY-TO-DAY OPERATIONS OF THE
BANK, THE EXECUTIVE DIRECTOR, OR WHOEVER HE OR SHE SHALL ASSIGN, MAY  DO
ANY OF THE FOLLOWING IF AUTHORIZED BY RESOLUTION OF THE BOARD:
  (A) ENTER INTO CONTRACTS FOR INVESTMENT, GUARANTEE, OR ENHANCEMENT.

S. 4099                             3

  (B)  ESTABLISH PROCEDURES, GUIDELINES, CRITERIA, TERMS, CONDITIONS, OR
OTHER REQUIREMENTS OF ANY CONTRACT, BOND, GRANT, OR PROGRAM, AS THE CASE
MAY BE, IN ORDER TO CARRY OUT THE INTENT AND PURPOSES OF  THE  BOARD  IN
AUTHORIZING ANY BOND, LOAN, OR GRANT PROGRAM PURSUANT TO THIS ARTICLE.
  (C)  DECLINE  TO GUARANTEE ANY RISK, OR TO ENTER INTO ANY CONTRACT, IN
WHICH THE MINIMUM REQUIREMENTS  OF  THE  GUARANTEE  TRUST  FUND  OR  THE
INFRASTRUCTURE BANK FUND ARE NOT COMPLIED WITH.
  (D) REINSURE ANY RISK OR ANY PART OF ANY RISK.
  (E)  MAKE  RULES FOR PAYMENTS THROUGH THE INFRASTRUCTURE BANK FUND AND
THE SETTLEMENT OF CLAIMS AGAINST THE GUARANTEE TRUST FUND AND  DETERMINE
TO WHOM AND THROUGH WHOM THE PAYMENTS ARE TO BE MADE.
  (F)  ENTER  INTO  ANY CONTRACTS OR OBLIGATIONS RELATING TO THE INFRAS-
TRUCTURE BANK FUND AND THE GUARANTEE TRUST FUND.
  (G) INVEST AND REINVEST THE MONEYS  BELONGING  TO  THE  INFRASTRUCTURE
BANK FUND AND THE GUARANTEE TRUST FUND AS PROVIDED BY THIS ARTICLE.
  (H)  ENTER  INTO  ANY  CONTRACT  OR AGREEMENT, EXECUTE ANY INSTRUMENT,
CONDUCT ALL BUSINESS AND AFFAIRS, AND PERFORM ALL ACTS RELATING  TO  THE
INFRASTRUCTURE  BANK  FUND  AND  THE GUARANTEE TRUST FUND WHETHER OR NOT
SPECIFICALLY DESIGNATED IN THIS DIVISION.
  4. THE BOARD MAY DELEGATE TO THE EXECUTIVE DIRECTOR, OR WHOMEVER HE OR
SHE SHALL ASSIGN, THE AUTHORITY TO  EXECUTE  A  CONTRACT  OR  AGREEMENT,
EXECUTE AN INSTRUMENT, CONDUCT ALL BUSINESS AND AFFAIRS, AND PERFORM ALL
ACTS  RELATING  TO  THE INFRASTRUCTURE BANK FUND AND THE GUARANTEE TRUST
FUND.
  5. THE EXECUTIVE DIRECTOR MAY CONTRACT WITH ANY STATE AGENCY,  PERSON,
OR  FIRM  TO  ENABLE  THE BANK TO PROPERLY PERFORM THE DUTIES IMPOSED BY
THIS ARTICLE.
  6. THE BANK BOARD SHALL DO THE FOLLOWING:
  (A) ADOPT BYLAWS FOR THE REGULATION OF ITS AFFAIRS AND THE CONDUCT  OF
ITS BUSINESS.
  (B) ADOPT AN OFFICIAL SEAL.
  7.  THE  BANK  BOARD MAY DO OR DELEGATE THE FOLLOWING TO THE EXECUTIVE
DIRECTOR:
  (A) SUE AND BE SUED IN ITS OWN NAME.
  (B) ISSUE BONDS AND AUTHORIZE SPECIAL PURPOSE TRUSTS TO  ISSUE  BONDS,
INCLUDING,  AT  THE  OPTION OF THE BOARD, BONDS BEARING INTEREST THAT IS
TAXABLE FOR THE PURPOSE OF FEDERAL INCOME TAXATION, OR BORROW  MONEY  TO
PAY  ALL  OR  ANY PART OF THE COST OF ANY PROJECT, OR TO OTHERWISE CARRY
OUT THE PURPOSES OF THIS ARTICLE.
  (C) ENGAGE THE SERVICES OF PRIVATE CONSULTANTS TO RENDER  PROFESSIONAL
AND TECHNICAL ASSISTANCE AND ADVICE IN CARRYING OUT THE PURPOSES OF THIS
ARTICLE.
  (D)  EMPLOY  ATTORNEYS,  FINANCIAL  CONSULTANTS, AND OTHER ADVISERS AS
MAY, IN THE BANK'S JUDGMENT, BE NECESSARY IN CONNECTION WITH  THE  ISSU-
ANCE  AND SALE, OR AUTHORIZATION OF SPECIAL PURPOSE TRUSTS FOR THE ISSU-
ANCE AND SALE, OF ANY BONDS.
  (E) CONTRACT FOR  ENGINEERING,  ARCHITECTURAL,  ACCOUNTING,  OR  OTHER
SERVICES  OF  APPROPRIATE  STATE  AGENCIES  AS  MAY, IN ITS JUDGMENT, BE
NECESSARY FOR THE SUCCESSFUL DEVELOPMENT OF A PROJECT.
  (F) PAY THE REASONABLE  COSTS  OF  CONSULTING  ENGINEERS,  ARCHITECTS,
ACCOUNTANTS,  AND  CONSTRUCTION, LAND USE, RECREATION, AND ENVIRONMENTAL
EXPERTS EMPLOYED BY ANY SPONSOR OR PARTICIPATING PARTY IF, IN THE BANK'S
JUDGMENT, THOSE SERVICES ARE NECESSARY FOR THE SUCCESSFUL DEVELOPMENT OF
A PROJECT.
  (G) ACQUIRE, TAKE TITLE TO, AND SELL BY INSTALLMENT SALE OR OTHERWISE,
LANDS, STRUCTURES, REAL OR  PERSONAL  PROPERTY,  RIGHTS,  RIGHTS-OF-WAY,

S. 4099                             4

FRANCHISES,  EASEMENTS,  AND  OTHER  INTERESTS IN LANDS THAT ARE LOCATED
WITHIN THE STATE, OR TRANSITION PROPERTY AS THE BANK MAY DEEM  NECESSARY
OR  CONVENIENT  FOR  THE FINANCING OF THE PROJECT, UPON TERMS AND CONDI-
TIONS THAT IT CONSIDERS TO BE REASONABLE.
  (H)  RECEIVE AND ACCEPT FROM ANY SOURCE INCLUDING, BUT NOT LIMITED TO,
THE FEDERAL  GOVERNMENT,  THE  STATE,  OR  ANY  AGENCY  THEREOF,  LOANS,
CONTRIBUTIONS,  OR GRANTS, IN MONEY, PROPERTY, LABOR, OR OTHER THINGS OF
VALUE, FOR, OR IN AID OF, A PROJECT, OR ANY PORTION THEREOF.
  (I) MAKE LOANS TO ANY SPONSOR OR PARTICIPATING PARTY, EITHER  DIRECTLY
OR  BY  MAKING  A  LOAN TO A LENDING INSTITUTION, IN CONNECTION WITH THE
FINANCING OF A PROJECT IN ACCORDANCE WITH AN AGREEMENT BETWEEN THE  BANK
AND  THE SPONSOR OR A PARTICIPATING PARTY, EITHER AS A SOLE LENDER OR IN
PARTICIPATION WITH OTHER LENDERS. HOWEVER,  NO  LOAN  SHALL  EXCEED  THE
TOTAL  COST  OF  THE PROJECT AS DETERMINED BY THE SPONSOR OR THE PARTIC-
IPATING PARTY AND APPROVED BY THE BANK.
  (J) MAKE LOANS TO ANY SPONSOR OR PARTICIPATING PARTY, EITHER  DIRECTLY
OR  BY  MAKING  A  LOAN  TO A LENDING INSTITUTION, IN ACCORDANCE WITH AN
AGREEMENT BETWEEN THE BANK AND THE SPONSOR  OR  PARTICIPATING  PARTY  TO
REFINANCE INDEBTEDNESS INCURRED BY THE SPONSOR OR PARTICIPATING PARTY IN
CONNECTION WITH PROJECTS UNDERTAKEN AND COMPLETED PRIOR TO ANY AGREEMENT
WITH  THE  BANK  OR  EXPECTATION  THAT THE BANK WOULD PROVIDE FINANCING,
EITHER AS A SOLE LENDER OR IN PARTICIPATION WITH OTHER LENDERS.
  (K) MORTGAGE ALL OR ANY PORTION OF THE BANK'S INTEREST  IN  A  PROJECT
AND THE PROPERTY ON WHICH ANY PROJECT IS LOCATED, WHETHER OWNED OR THER-
EAFTER  ACQUIRED,  INCLUDING  THE GRANTING OF A SECURITY INTEREST IN ANY
PROPERTY, TANGIBLE OR INTANGIBLE.
  (L) ASSIGN OR PLEDGE ALL OR ANY PORTION OF  THE  BANK'S  INTERESTS  IN
TRANSITION  PROPERTY  AND  THE  REVENUES THEREFROM, OR ASSETS, THINGS OF
VALUE, MORTGAGES, DEEDS OF TRUST, BONDS, BOND PURCHASE AGREEMENTS,  LOAN
AGREEMENTS,  INDENTURES  OF  MORTGAGE  OR TRUST, OR SIMILAR INSTRUMENTS,
NOTES, AND SECURITY INTERESTS IN PROPERTY, TANGIBLE  OR  INTANGIBLE  AND
THE  REVENUES  THEREFROM, OF A SPONSOR OR A PARTICIPATING PARTY TO WHICH
THE BANK HAS MADE LOANS, AND THE REVENUES THEREFROM,  INCLUDING  PAYMENT
OR  INCOME  FROM ANY INTEREST OWNED OR HELD BY THE BANK, FOR THE BENEFIT
OF THE HOLDERS OF BONDS.
  (M) MAKE, RECEIVE, OR SERVE AS A CONDUIT FOR THE MAKING OF, OR  OTHER-
WISE  PROVIDE  FOR, GRANTS, CONTRIBUTIONS, GUARANTEES, INSURANCE, CREDIT
ENHANCEMENTS OR LIQUIDITY FACILITIES, OR OTHER FINANCIAL ENHANCEMENTS TO
A SPONSOR OR  A  PARTICIPATING  PARTY  AS  FINANCIAL  ASSISTANCE  FOR  A
PROJECT.
  (N)  LEASE  THE PROJECT BEING FINANCED TO A SPONSOR OR A PARTICIPATING
PARTY, UPON TERMS AND CONDITIONS THAT THE BANK DEEMS  PROPER  BUT  SHALL
NOT  BE  LEASED  AT A LOSS; CHARGE AND COLLECT RENTS THEREFOR; TERMINATE
ANY LEASE UPON THE FAILURE OF THE LESSEE TO COMPLY WITH ANY OF THE OBLI-
GATIONS THEREOF; INCLUDE IN ANY LEASE, IF DESIRED, PROVISIONS  THAT  THE
LESSEE  SHALL  HAVE  OPTIONS TO RENEW THE LEASE FOR A PERIOD OR PERIODS,
AND AT RENTS DETERMINED BY THE BANK; PURCHASE ANY OR ALL OF THE PROJECT;
OR, UPON PAYMENT OF ALL THE INDEBTEDNESS INCURRED BY THE  BANK  FOR  THE
FINANCING  OF THE PROJECT, THE BANK MAY CONVEY ANY OR ALL OF THE PROJECT
TO THE LESSEE OR LESSEES.
  (O) CHARGE AND EQUITABLY APPORTION AMONG  SPONSORS  AND  PARTICIPATING
PARTIES  THE  BANK'S  ADMINISTRATIVE  COSTS AND EXPENSES INCURRED IN THE
EXERCISE OF THE POWERS AND DUTIES CONFERRED BY THIS ARTICLE.
  (P) ISSUE, OBTAIN, OR AID IN OBTAINING, FROM ANY DEPARTMENT OR  AGENCY
OF  THE  UNITED  STATES,  FROM  OTHER AGENCIES OF THE STATE, OR FROM ANY
PRIVATE COMPANY, ANY INSURANCE OR GUARANTEE TO, OR FOR, THE  PAYMENT  OR

S. 4099                             5

REPAYMENT OF INTEREST OR PRINCIPAL, OR BOTH, OR ANY PART THEREOF, ON ANY
LOAN,  LEASE, OR OBLIGATION OR ANY INSTRUMENT EVIDENCING OR SECURING THE
SAME, MADE OR ENTERED INTO PURSUANT TO THIS ARTICLE.
  (Q)  NOTWITHSTANDING  ANY  OTHER PROVISION OF THIS ARTICLE, ENTER INTO
ANY AGREEMENT, CONTRACT, OR ANY OTHER INSTRUMENT  WITH  RESPECT  TO  ANY
INSURANCE  OR  GUARANTEE;  ACCEPT  PAYMENT  IN  THE  MANNER  AND FORM AS
PROVIDED THEREIN IN THE EVENT OF DEFAULT BY A SPONSOR OR A PARTICIPATING
PARTY; AND ISSUE OR ASSIGN ANY INSURANCE OR GUARANTEE  AS  SECURITY  FOR
THE BANK'S BONDS.
  (R)  ENTER INTO ANY AGREEMENT OR CONTRACT, EXECUTE ANY INSTRUMENT, AND
PERFORM ANY ACT OR THING NECESSARY OR CONVENIENT TO, DIRECTLY  OR  INDI-
RECTLY,  SECURE  THE BANK'S BONDS, THE BONDS ISSUED BY A SPECIAL PURPOSE
TRUST, OR A SPONSOR'S OBLIGATIONS TO THE BANK OR TO  A  SPECIAL  PURPOSE
TRUST,  INCLUDING,  BUT  NOT LIMITED TO, BONDS OF A SPONSOR PURCHASED BY
THE BANK OR A SPECIAL PURPOSE TRUST FOR RETENTION OR SALE, WITH FUNDS OR
MONEYS THAT ARE LEGALLY AVAILABLE AND THAT ARE DUE  OR  PAYABLE  TO  THE
SPONSOR  BY  REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT OR APPROPRI-
ATION OF THE STATE OR AGENCIES THEREOF, TO THE  EXTENT  THAT  THE  COMP-
TROLLER  SHALL BE THE CUSTODIAN AT ANY TIME OF THESE FUNDS OR MONEYS, OR
WITH FUNDS OR MONEYS THAT ARE OR WILL BE LEGALLY AVAILABLE TO THE  SPON-
SOR,  THE  BANK,  OR  THE STATE OR ANY AGENCIES THEREOF BY REASON OF ANY
GRANT,  ALLOCATION,  APPORTIONMENT,  OR  APPROPRIATION  OF  THE  FEDERAL
GOVERNMENT  OR AGENCIES THEREOF; AND IN THE EVENT OF WRITTEN NOTICE THAT
THE SPONSOR HAS NOT PAID OR IS IN DEFAULT ON ITS OBLIGATIONS TO THE BANK
OR A SPECIAL PURPOSE TRUST, DIRECT THE COMPTROLLER TO  WITHHOLD  PAYMENT
OF  THOSE  FUNDS  OR MONEYS FROM THE SPONSOR OVER WHICH IT IS OR WILL BE
CUSTODIAN AND TO PAY THE SAME TO THE BANK OR SPECIAL  PURPOSE  TRUST  OR
THEIR ASSIGNEE, OR DIRECT THE STATE OR ANY AGENCIES THEREOF TO WHICH ANY
GRANT, ALLOCATION, APPORTIONMENT OR APPROPRIATION OF THE FEDERAL GOVERN-
MENT OR AGENCIES THEREOF IS OR WILL BE LEGALLY AVAILABLE TO PAY THE SAME
UPON  RECEIPT  BY  THE  BANK OR SPECIAL PURPOSE TRUST OR THEIR ASSIGNEE,
UNTIL THE DEFAULT HAS BEEN CURED AND THE AMOUNTS  THEN  DUE  AND  UNPAID
HAVE  BEEN  PAID TO THE BANK OR SPECIAL PURPOSE TRUST OR THEIR ASSIGNEE,
OR UNTIL ARRANGEMENTS SATISFACTORY TO THE BANK OR SPECIAL PURPOSE  TRUST
HAVE BEEN MADE TO CURE THE DEFAULT.
  (S)  ENTER INTO ANY AGREEMENT OR CONTRACT, EXECUTE ANY INSTRUMENT, AND
PERFORM ANY ACT OR THING NECESSARY, CONVENIENT, OR APPROPRIATE TO  CARRY
OUT  ANY  POWER  EXPRESSLY GIVEN TO THE BANK BY THIS ARTICLE, INCLUDING,
BUT NOT LIMITED TO, AGREEMENTS FOR THE SALE OF ALL OR ANY PART,  INCLUD-
ING  PRINCIPAL, INTEREST, REDEMPTION RIGHTS OR ANY OTHER RIGHTS OR OBLI-
GATIONS, OF BONDS OF THE BANK OR OF A SPECIAL PURPOSE  TRUST,  LIQUIDITY
AGREEMENTS,  CONTRACTS  COMMONLY KNOWN AS INTEREST RATE SWAP AGREEMENTS,
FORWARD PAYMENT CONVERSION AGREEMENTS, FUTURES  OR  CONTRACTS  PROVIDING
FOR  PAYMENTS  BASED  ON  LEVELS  OF,  OR  CHANGES IN, INTEREST RATES OR
CURRENCY EXCHANGE RATES, OR CONTRACTS TO EXCHANGE CASH-FLOWS OR A SERIES
OF PAYMENTS, OR CONTRACTS, INCLUDING OPTIONS, PUTS  OR  CALLS  TO  HEDGE
PAYMENTS,  RATE,  SPREAD, CURRENCY EXCHANGE, OR SIMILAR EXPOSURE, OR ANY
OTHER FINANCIAL INSTRUMENT COMMONLY  KNOWN  AS  A  STRUCTURED  FINANCIAL
PRODUCT.
  (T)  PURCHASE, WITH THE PROCEEDS OF THE BANK'S BONDS, TRANSITION PROP-
ERTY OR BONDS  ISSUED  BY,  OR  FOR  THE  BENEFIT  OF,  ANY  SPONSOR  IN
CONNECTION  WITH  A  PROJECT,  PURSUANT  TO A BOND PURCHASE AGREEMENT OR
OTHERWISE. BONDS OR TRANSITION PROPERTY PURCHASED PURSUANT TO THIS ARTI-
CLE MAY BE HELD BY THE BANK, PLEDGED OR ASSIGNED BY THE BANK, OR SOLD TO
PUBLIC OR PRIVATE PURCHASERS AT PUBLIC OR NEGOTIATED SALE, IN  WHOLE  OR
IN PART, SEPARATELY OR TOGETHER WITH OTHER BONDS ISSUED BY THE BANK, AND

S. 4099                             6

NOTWITHSTANDING ANY OTHER PROVISION OF LAW, MAY BE BOUGHT BY THE BANK AT
PRIVATE SALE.
  (U)  ENTER INTO PURCHASE AND SALE AGREEMENTS WITH ALL ENTITIES, PUBLIC
AND PRIVATE, INCLUDING STATE AND LOCAL GOVERNMENT  PENSION  FUNDS,  WITH
RESPECT TO THE SALE OR PURCHASE OF BONDS OR TRANSITION PROPERTY.
  (V)  INVEST ANY MONEYS HELD IN RESERVE OR SINKING FUNDS, OR ANY MONEYS
NOT REQUIRED FOR IMMEDIATE USE OR DISBURSEMENT, IN OBLIGATIONS THAT  ARE
AUTHORIZED  BY  LAW  FOR THE INVESTMENT OF TRUST FUNDS IN THE CUSTODY OF
THE STATE COMPTROLLER.
  (W) AUTHORIZE A SPECIAL PURPOSE TRUST OR TRUSTS TO PURCHASE OR RETAIN,
WITH THE PROCEEDS OF THE BONDS OF A SPECIAL  PURPOSE  TRUST,  TRANSITION
PROPERTY  OR  BONDS  ISSUED  BY,  OR  FOR THE BENEFIT OF, ANY SPONSOR IN
CONNECTION WITH A PROJECT OR ISSUED BY THE BANK  OR  A  SPECIAL  PURPOSE
TRUST,  PURSUANT  TO  A  BOND  PURCHASE AGREEMENT OR OTHERWISE. BONDS OR
TRANSITION PROPERTY PURCHASED PURSUANT TO THIS ARTICLE MAY BE HELD BY  A
SPECIAL PURPOSE ENTITY, PLEDGED OR ASSIGNED BY A SPECIAL PURPOSE ENTITY,
OR SOLD TO PUBLIC OR PRIVATE PURCHASERS AT PUBLIC OR NEGOTIATED SALE, IN
WHOLE  OR  IN PART, WITH OR WITHOUT STRUCTURING, SUBORDINATION OR CREDIT
ENHANCEMENT, SEPARATELY OR TOGETHER WITH OTHER BONDS ISSUED BY A SPECIAL
PURPOSE TRUST, AND NOTWITHSTANDING ANY OTHER PROVISION OF  LAW,  MAY  BE
BOUGHT BY THE BANK OR BY A SPECIAL PURPOSE TRUST AT PRIVATE SALE.
  (X)  APPLY  FOR  AND  ACCEPT SUBVENTIONS, GRANTS, LOANS, ADVANCES, AND
CONTRIBUTIONS FROM ANY SOURCE OF MONEY, PROPERTY, LABOR, OR OTHER THINGS
OF VALUE. THE SOURCES MAY INCLUDE BOND PROCEEDS, DEDICATED TAXES,  STATE
APPROPRIATIONS,  FEDERAL  APPROPRIATIONS,  FEDERAL GRANT AND LOAN FUNDS,
PUBLIC AND PRIVATE SECTOR RETIREMENT SYSTEM FUNDS.
  (Y) DO ALL THINGS NECESSARY AND CONVENIENT TO CARRY OUT  ITS  PURPOSES
AND EXERCISE ITS POWERS, PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE
CONSTRUED  TO AUTHORIZE THE BANK TO ENGAGE DIRECTLY IN THE BUSINESS OF A
MANUFACTURING, INDUSTRIAL, REAL ESTATE DEVELOPMENT,  OR  NONGOVERNMENTAL
SERVICE  ENTERPRISE.  FURTHER, THE BANK SHALL NOT BE ORGANIZED TO ACCEPT
DEPOSITS OF MONEY FOR TIME OR DEMAND DEPOSITS OR TO CONSTITUTE A BANK OR
TRUST COMPANY.
  8. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXTEND OR  LIMIT  ANY
AUTHORITY OF THE BANK PREVIOUSLY AUTHORIZED UNDER THIS CHAPTER.
  S  9103.  AUTHORITY  OF THE BANK. 1. THE BANK MAY PROVIDE INSURANCE OR
REINSURANCE OF LOANS OR PORTIONS THEREOF, OR THEIR DEBT SERVICE, INCLUD-
ING AMOUNTS PAYABLE AS PREMIUMS OF PENALTIES IN THE EVENT  OF  MANDATORY
OR OPTIONAL PREPAYMENT, MADE TO FINANCE A PROJECT, AND TO PROVIDE INSUR-
ANCE OR REINSURANCE OR RESERVES, OR PORTIONS THEREOF, OR THE YIELD THER-
EFROM,  ESTABLISHED  TO  SECURE  BONDS  ISSUED  TO  FUND  THOSE LOANS OR
RESERVES.
  2. THE BANK MAY ENTER INTO OR  ARRANGE  AGREEMENTS  FOR  INSURANCE  OR
REINSURANCE  WITH USERS, MORTGAGORS, LENDING INSTITUTIONS, INSURERS, AND
OTHERS, THE BANK BEING AUTHORIZED TO  REINSURE  OR  CEDE  RISKS  TO  THE
INSURERS  IN  ANY AMOUNTS AS THE BANK MAY DETERMINE AND THE INSURERS, IF
OTHERWISE AUTHORIZED TO REINSURE OR INSURE  THOSE  RISKS  IN  NEW  YORK,
BEING  HEREBY  AUTHORIZED TO REINSURE THE BANK OR CEDE RISKS TO THE BANK
TO THE SAME EXTENT AS IF THE BANK WERE A COMPANY AUTHORIZED TO  REINSURE
OR INSURE THOSE RISKS.
  3.  THE BANK MAY FIX A RATE OR RATES OF PREMIUM FOR INSURANCE OR REIN-
SURANCE, WHICH NEED NOT BE UNIFORM, AND MAY REFLECT ANY RISKS AND  CLAS-
SIFICATIONS OF RISK AS THE BANK DETERMINES TO BE REASONABLE.
  4.  THE BANK MAY EXERCISE THOSE OTHER POWERS AS ARE NECESSARY OR INCI-
DENTAL TO INSURANCE, REINSURANCE, AND RELATED MATTERS.

S. 4099                             7

  5. THE BANK SHALL MAKE REASONABLE PROVISIONS FOR THE SECURITY OF LOANS
MADE BY THE BANK, AND ANY INSURANCE, REINSURANCE,  AND  OTHER  FINANCING
ARRANGEMENTS NEGOTIATED BY THE BANK.
  6.  THE  INSURANCE  OR  REINSURANCE PROVIDED FOR BY THE BANK SHALL NOT
CONSTITUTE A DEBT OR PLEDGE OF THE FAITH AND CREDIT OF THE STATE OR  ANY
SUBDIVISION OF THE STATE.
  S  9104.  SUBSTANCE OF BONDS. 1. BONDS ISSUED BY THE BANK OR A SPECIAL
PURPOSE TRUST ARE LEGAL INVESTMENTS FOR ALL TRUST FUNDS,  THE  FUNDS  OF
ALL  INSURANCE  COMPANIES,  BANKS,  BOTH  COMMERCIAL  AND SAVINGS, TRUST
COMPANIES, EXECUTORS, ADMINISTRATORS, TRUSTEES, AND  OTHER  FIDUCIARIES,
FOR  STATE  SCHOOL  FUNDS,  PENSION FUNDS, AND FOR ANY FUNDS THAT MAY BE
INVESTED IN COUNTY, SCHOOL, OR MUNICIPAL BONDS. THESE BONDS ARE  SECURI-
TIES  THAT  MAY LEGALLY BE DEPOSITED WITH, AND RECEIVED BY, ANY STATE OR
MUNICIPAL OFFICER OR AGENCY OR POLITICAL SUBDIVISION OF  THE  STATE  FOR
ANY  PURPOSE  FOR WHICH THE DEPOSIT OF BONDS OR OBLIGATIONS OF THE STATE
IS NOW, OR MAY HEREAFTER BE, AUTHORIZED BY LAW, INCLUDING,  DEPOSITS  TO
SECURE PUBLIC FUNDS.
  2.  NO  LIABILITY  SHALL  BE INCURRED BY THE BANK BEYOND THE EXTENT TO
WHICH FUNDS HAVE BEEN PROVIDED UNDER  THIS  ARTICLE.  HOWEVER,  FOR  THE
PURPOSES  OF  MEETING THE NECESSARY EXPENSES OF INITIAL ORGANIZATION AND
OPERATION UNTIL THE DATE THAT THE BANK DERIVES REVENUES OR PROCEEDS FROM
BONDS AS PROVIDED UNDER THIS ARTICLE, THE BANK MAY BORROW MONEY AS NEED-
ED FOR THE PURPOSES OF MEETING THE NECESSARY EXPENSES OF INITIAL  ORGAN-
IZATION.  THE  BORROWED  MONEY  SHALL  BE  REPAID WITH INTEREST WITHIN A
REASONABLE TIME AFTER THE BANK RECEIVES REVENUES OR PROCEEDS FROM  BONDS
AS PROVIDED UNDER THIS ARTICLE.
  S  9105.  FINANCING  FOR ECONOMIC DEVELOPMENT FACILITIES. 1.  NOTWITH-
STANDING ANY OTHER PROVISION OF THIS ARTICLE, SECTION NINETY-ONE HUNDRED
TEN OF THIS ARTICLE SHALL NOT APPLY TO ANY CONDUIT FINANCING FOR ECONOM-
IC DEVELOPMENT FACILITIES BY THE BANK DIRECTLY  FOR  THE  BENEFIT  OF  A
PARTICIPATING PARTY.
  2. THE BANK SHALL CONSIDER A PROJECT FOR CONDUIT FINANCING FOR ECONOM-
IC DEVELOPMENT FACILITIES UPON FILING OF AN APPLICATION WITH THE BANK BY
AN APPROPRIATE PARTICIPATING PARTY, ON THE TERMS AND CONDITIONS THE BANK
SHALL DETERMINE. THE BANK SHALL ESTABLISH PROCEDURES FOR THE EXPEDITIOUS
REVIEW  OF APPLICATIONS FOR THE ISSUANCE OR APPROVAL OF BONDS TO FINANCE
ECONOMIC DEVELOPMENT FACILITIES.
  3. IN ORDER TO PROVIDE OR ARRANGE FOR THE FINANCING OF ECONOMIC DEVEL-
OPMENT FACILITIES, THE BANK MAY:
  (A) ISSUE TAXABLE REVENUE BONDS PURSUANT TO SECTION NINETY-ONE HUNDRED
TWELVE OF THIS ARTICLE TO PROVIDE  FINANCING  FOR  ECONOMIC  DEVELOPMENT
PROJECTS COMPATIBLE WITH THE PUBLIC INTEREST AS SPECIFIED IN SUBDIVISION
FOUR OF THIS SECTION.
  (B) ISSUE TAXABLE REVENUE BONDS PURSUANT TO SECTION NINETY-ONE HUNDRED
TWELVE OF THIS ARTICLE TO PROVIDE FINANCING FOR THE REVOLVING LOAN FUNDS
AND  ECONOMIC  DEVELOPMENT PROJECTS OF SMALL BUSINESS DEVELOPMENT CORPO-
RATIONS, LOCAL ECONOMIC DEVELOPMENT CORPORATIONS, COMMUNITY  DEVELOPMENT
CORPORATIONS,  AND  NONPROFIT  ORGANIZATIONS, WHICH REVOLVING LOAN FUNDS
AND ECONOMIC DEVELOPMENT PROJECTS SHALL BE COMPATIBLE  WITH  THE  PUBLIC
INTEREST.
  (C)  ISSUE  TAX-EXEMPT  REVENUE  BONDS  PURSUANT TO SECTION NINETY-ONE
HUNDRED TWELVE OF THIS ARTICLE TO PROVIDE FINANCING FOR ECONOMIC  DEVEL-
OPMENT  FACILITIES  AS  PERMITTED  BY FEDERAL LAW AND IN ACCORDANCE WITH
APPLICABLE STATE LAW RELATING TO THE DISTRIBUTION OF  STATE  ALLOCATIONS
FOR  PRIVATE  ACTIVITY  BONDS.  PROJECTS SO FINANCED SHALL BE COMPATIBLE

S. 4099                             8

WITH THE PUBLIC INTEREST  AS  SPECIFIED  IN  SUBDIVISION  FOUR  OF  THIS
SECTION.
  (D)  ISSUE  TAX-EXEMPT  REVENUE  BONDS  PURSUANT TO SECTION NINETY-ONE
HUNDRED TWELVE OF THIS ARTICLE FOR ECONOMIC  DEVELOPMENT  FACILITIES  OF
PUBLIC SECTOR AND NONPROFIT ORGANIZATIONS QUALIFYING FOR EXEMPTION UNDER
FEDERAL LAW.
  4.  NO  FINANCING  SHALL BE MADE BY THE BANK UNDER THIS SECTION UNLESS
THE BANK SHALL HAVE FIRST DETERMINED THAT THE  FINANCING  OR  ASSISTANCE
MEETS THE FOLLOWING PUBLIC INTEREST CRITERIA:
  (A)  THE  FINANCING, LOAN, GRANT, OR OTHER ASSISTANCE IS FOR A PROJECT
OR A USE IN THE STATE OF NEW YORK.
  (B) THOSE SEEKING FUNDS OR OTHER ASSISTANCE  ARE  CAPABLE  OF  MEETING
OBLIGATIONS INCURRED UNDER RELEVANT AGREEMENTS.
  (C)  IN THE CASE OF LOANS OR BONDS, PAYMENTS TO BE MADE UNDER APPLICA-
BLE FINANCING DOCUMENTS ARE ADEQUATE TO PAY THE CURRENT EXPENSES OF  THE
BANK IN CONNECTION WITH THE FINANCING AND TO MAKE PAYMENTS ON THE BONDS.
  (D) THE PROPOSED FINANCING IS APPROPRIATE FOR THE SPECIFIC PROJECT.
  5.  (A)  ANY  LOAN  ENTERED  INTO PURSUANT TO THIS SECTION MAY CONTAIN
PROVISIONS FOR PAYMENT OF A PENALTY IF ANY RECIPIENT OF FUNDS UNDER THIS
SECTION LEAVES THIS STATE PRIOR TO THE COMPLETION OF THE  FULL  TERM  OF
THE LOAN.
  (B)  PROJECTS THAT THE BOARD DETERMINES WILL PRODUCE LONG-TERM EMPLOY-
MENT CREATION OR RETENTION SHALL RECEIVE FIRST PRIORITY FOR FINANCING.
  (C) THE BANK SHALL REQUIRE  THAT  THE  PROPOSED  ECONOMIC  DEVELOPMENT
FACILITIES  BE CONSISTENT WITH ANY EXISTING LOCAL OR REGIONAL COMPREHEN-
SIVE PLAN.
  (D) THE BANK SHALL DEVELOP A POLICY REGARDING FINANCING COMPANIES THAT
MOVE WITHIN THIS STATE SO AS TO MINIMIZE ANY DISPLACEMENT OF JOBS.
  (E) IN ADDITION TO ANY OTHER METHODS THE  BANK  MAY  USE  TO  IDENTIFY
ECONOMIC  DEVELOPMENT  PROJECTS,  THE  BANK SHALL UTILIZE EXISTING LOCAL
ECONOMIC DEVELOPMENT NETWORKS TO IDENTIFY THESE PROJECTS AND  PREPARE  A
PLAN, IN CONSULTATION WITH LOCAL ECONOMIC DEVELOPMENT NETWORKS AND THEIR
ORGANIZATIONS AND REPRESENTATIVES, TO IMPLEMENT THIS POLICY.
  S 9106. TAX EXEMPTION. 1. NEITHER THE BANK NOR A SPECIAL PURPOSE TRUST
AUTHORIZED  BY  THE  BANK SHALL BE REQUIRED TO PAY ANY PROPERTY TAXES OR
ASSESSMENTS UPON, OR WITH  RESPECT  TO,  ANY  PROJECT  OR  ANY  PROPERTY
ACQUIRED  BY,  OR  FOR,  THE BANK UNDER THIS ARTICLE, OR UPON THE INCOME
THEREFROM, SO LONG AS THE BANK, ON BEHALF OF THE STATE, HOLDS  TITLE  TO
THE PROJECT OR TO THE PROPERTY CONTAINED IN THE PROJECT.
  2.  THE EXEMPTION OF THE BANK OR OF A SPECIAL PURPOSE TRUST FROM TAXA-
TION OF ANY PROPERTY SHALL CEASE WHEN TITLE TO THE  PROPERTY  IS  TRANS-
FERRED FROM THE BANK TO ANY TAXABLE PERSON OR ENTITY. THIS SECTION SHALL
NOT  EXEMPT  ANY  TAXABLE PERSON OR ENTITY FROM TAXATION, INCLUDING, BUT
NOT LIMITED TO, TAXATION UPON A POSSESSORY INTEREST, WITH RESPECT TO ANY
PROJECT, OR THE PROPERTY OF FACILITIES CONTAINED IN ANY PROJECT THAT MAY
OTHERWISE BE APPLICABLE TO THE PERSON.
  S 9107. PLEDGE OF STATE. THE STATE SHALL HEREBY PLEDGE TO, AND  AGREES
WITH, THE HOLDERS OF ANY BONDS ISSUED UNDER THIS ARTICLE, AND WITH THOSE
PARTIES  WHO  MAY  ENTER  INTO  CONTRACTS WITH THE BANK PURSUANT TO THIS
ARTICLE, THAT THE STATE SHALL NOT LIMIT OR ALTER THE RIGHTS HEREBY VEST-
ED IN THE BANK TO FINANCE ANY PROJECT AND TO FULFILL THE  TERMS  OF  ANY
LOAN  AGREEMENT,  LEASE,  OR  OTHER CONTRACT WITH THE AGENCY PURSUANT TO
THIS ARTICLE, OR IN ANY WAY IMPAIR THE RIGHTS OR REMEDIES OF  THE  BOND-
HOLDERS  OR  OF  THE  PARTIES  UNTIL THOSE BONDS, TOGETHER WITH INTEREST
THEREON, ARE FULLY DISCHARGED OR PROVISION FOR THIS DISCHARGE  HAS  BEEN
MADE  AND  THOSE  CONTRACTS ARE FULLY PERFORMED ON THE PART OF THE BANK.

S. 4099                             9

THE BANK, AS AGENT FOR THE STATE, MAY INCLUDE THIS PLEDGE AND  UNDERTAK-
ING FOR THE STATE IN ITS OBLIGATIONS OR CONTRACTS.
  S 9108. FEES. THE BANK SHALL ESTABLISH A REASONABLE SCHEDULE OF ADMIN-
ISTRATIVE  FEES, WHICH SHALL BE PAID BY THE SPONSOR OR THE PARTICIPATING
PARTY PURSUANT TO SECTION NINETY-ONE HUNDRED THIRTEEN OF  THIS  ARTICLE,
TO REIMBURSE THE STATE FOR THE COSTS OF ADMINISTERING THIS ARTICLE.
  S  9109.  REPORT.  1.  THE BANK SHALL, NO LATER THAN NOVEMBER FIRST OF
EACH YEAR, SUBMIT TO THE GOVERNOR,  THE  DIRECTOR  OF  THE  BUDGET,  THE
TEMPORARY  PRESIDENT  OF  THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, A
REPORT OF ITS ACTIVITIES PURSUANT TO  THIS  ARTICLE  FOR  THE  PRECEDING
FISCAL YEAR. THE REPORT SHALL INCLUDE ALL OF THE FOLLOWING:
  (A) A LISTING OF APPLICATIONS ACCEPTED, INCLUDING A DESCRIPTION OF THE
EXPECTED EMPLOYMENT IMPACT OF EACH PROJECT.
  (B) A SPECIFICATION OF BONDS SOLD AND INTEREST RATES THEREON.
  (C)  THE  AMOUNT  OF  OTHER  PUBLIC AND PRIVATE FUNDS LEVERAGED BY THE
ASSISTANCE PROVIDED.
  (D) A REPORT OF REVENUES AND EXPENDITURES  FOR  THE  PRECEDING  FISCAL
YEAR, INCLUDING ALL OF THE COSTS OF THE BANK.
  (E)  A  PROJECTION  OF  THE NEEDS AND REQUIREMENTS OF THE BANK FOR THE
COMING YEAR.
  (F) RECOMMENDATIONS FOR CHANGES IN STATE AND FEDERAL LAW NECESSARY  TO
MEET THE OBJECTIVES OF THIS ARTICLE.
  2.  THE  REPORT  REQUIRED  BY  THIS  SECTION SHALL BE SUBMITTED TO THE
GOVERNOR AND THE LEGISLATURE ON A QUARTERLY BASIS DURING THE  TWO  THOU-
SAND  TWELVE--TWO  THOUSAND  THIRTEEN  FISCAL  YEAR AND THE TWO THOUSAND
THIRTEEN--TWO THOUSAND FOURTEEN FISCAL YEAR.
  S 9110. APPLICATION FOR BANK FINANCING. 1. FOLLOWING CONSULTATION WITH
APPROPRIATE STATE AND LOCAL AGENCIES, THE BANK SHALL ESTABLISH CRITERIA,
PRIORITIES, AND GUIDELINES FOR THE  SELECTION  OF  PROJECTS  TO  RECEIVE
ASSISTANCE  FROM  THE  BANK.  PROJECTS  SHALL  COMPLY WITH THE CRITERIA,
PRIORITIES, AND GUIDELINES ADOPTED BY THE BANK.
  2. THE CRITERIA, PRIORITIES, AND GUIDELINES SHALL, AT  A  MINIMUM,  BE
BASED  UPON  THE  PLANS  AND POLICIES OF THE DEPARTMENT OF ENVIRONMENTAL
CONSERVATION.
  3. WHEN THE BANK ESTABLISHES OR MAKES CHANGES TO THE CRITERIA, PRIORI-
TIES, AND GUIDELINES, THE BANK SHALL NOTIFY THE GOVERNOR, THE FISCAL AND
POLICY COMMITTEES OF THE LEGISLATURE THAT EXERCISE LEGISLATIVE OVERSIGHT
OF THE BANK, AND APPROPRIATE STATE AND LOCAL AGENCIES.
  4. THE RESOLUTION REQUIRED IN SECTION  NINETY-ONE  HUNDRED  ELEVEN  OF
THIS ARTICLE SHALL HAVE BEEN ADOPTED PRIOR TO THE PROJECT'S SELECTION BY
THE BANK.
  S  9111. MANDATORY RESOLUTION. 1. PRIOR TO SUBMITTING A PROJECT TO THE
BANK FOR CONSIDERATION, THE LEGISLATIVE BODY OR BODIES OF THE SPONSOR OR
SPONSORS OF THE PROJECT SHALL FIND, BY RESOLUTION, EACH OF  THE  FOLLOW-
ING:
  (A)  THE  PROJECT IS CONSISTENT WITH THE GENERAL PLAN OF BOTH THE CITY
AND COUNTY, OR ONLY THE COUNTY FOR PROJECTS IN UNINCORPORATED  AREAS  IN
WHICH THE PROJECT IS LOCATED.
  (B) THE PROPOSED FINANCING IS APPROPRIATE FOR THE SPECIFIC PROJECT.
  (C)  THE  PROJECT  FACILITATES EFFECTIVE AND EFFICIENT USE OF EXISTING
AND FUTURE PUBLIC RESOURCES SO AS TO PROMOTE BOTH  ECONOMIC  DEVELOPMENT
AND CONSERVATION OF NATURAL RESOURCES. THE PROJECT DEVELOPS AND ENHANCES
PUBLIC INFRASTRUCTURE IN A MANNER THAT WILL ATTRACT, CREATE, AND SUSTAIN
LONG-TERM EMPLOYMENT OPPORTUNITIES.

S. 4099                            10

  (D)  THE  PROJECT  IS  CONSISTENT  WITH  THE CRITERIA, PRIORITIES, AND
GUIDELINES FOR THE SELECTION OF PROJECTS ADOPTED PURSUANT TO THIS  ARTI-
CLE.
  2.  UPON  THE  ADOPTION  OF  THE RESOLUTION IN SUBDIVISION ONE OF THIS
SECTION BY THE LEGISLATIVE BODY, THE LEGISLATIVE BODY SHALL TRANSMIT THE
RESOLUTION TO THE EXECUTIVE DIRECTOR OF THE INFRASTRUCTURE BANK.
  S 9112. ISSUANCE OF BONDS. 1. (A) THE BANK MAY,  FROM  TIME  TO  TIME,
ISSUE ITS REVENUE BONDS IN A PRINCIPAL AMOUNT THAT THE BANK SHALL DETER-
MINE TO BE NECESSARY TO PROVIDE SUFFICIENT FUNDS FOR ITS PURPOSES, WHICH
MAY  INCLUDE,  BUT  SHALL  NOT  BE  LIMITED  TO, PROVIDING FUNDS FOR THE
PAYMENT OF COSTS OF A PROJECT, FOR THE PURCHASE OF BONDS  OF  A  SPECIAL
PURPOSE  TRUST OR A SPONSOR, PAYMENT OF INTEREST ON BONDS OF THE BANK OR
OF A SPECIAL PURPOSE TRUST, ESTABLISHMENT OF RESERVES TO  SECURE  BONDS,
REFUNDING  PREVIOUSLY  ISSUED  BONDS  OR  REFUNDING  BONDS  OF THE BANK,
SPECIAL PURPOSE TRUST, OR A SPONSOR, AND PAYMENT OF  OTHER  EXPENDITURES
OF  THE  BANK  OR SPECIAL PURPOSE TRUST INCIDENT TO ISSUANCE OF BONDS OR
REFUNDING BONDS OF THE BANK.
  (B) THE BANK, BY PRIVATE SALE PURSUANT TO A BOND  PURCHASE  AGREEMENT,
MAY  PURCHASE  THE  BONDS OF ANY LOCAL SPONSOR OR OF ANY SPECIAL PURPOSE
TRUST THAT ARE ISSUED PURSUANT TO ANY OTHER PROVISION OF APPLICABLE LAW,
AND MAY BE SECURED WITH ANY FUNDS, MONEYS, OR REVENUES THAT ARE  LEGALLY
AVAILABLE.
  (C) THE BANK MAY ALSO ISSUE BONDS OR AUTHORIZE A SPECIAL PURPOSE TRUST
TO  ISSUE  BONDS FOR THE PURPOSE OF MAKING LOANS TO A SPONSOR TO BE USED
BY A SPONSOR TO PAY FOR THE COST OF A PROJECT,  AND  THAT  LOAN  MAY  BE
SECURED  WITH ANY FUNDS, MONEYS, OR REVENUES THAT ARE LEGALLY AVAILABLE,
INCLUDING, BUT NOT LIMITED TO, ANY LEGALLY  AVAILABLE  FUNDS  OR  MONEYS
THAT  ARE  DUE  OR  PAYABLE TO THE SPONSOR BY REASON OF ANY GRANT, ALLO-
CATION, OR APPROPRIATION OF THE STATE OR AGENCIES THEREOF, TO THE EXTENT
THAT THE COMPTROLLER SHALL BE THE CUSTODIAN AT ANY TIME OF  THESE  FUNDS
OR MONEYS, AND ANY LEGALLY AVAILABLE FUNDS OR MONEYS THAT ARE OR WILL BE
DUE  OR  PAYABLE  TO ANY SPONSOR, THE BANK, OR THE STATE OR THE AGENCIES
THEREOF BY REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT, OR  APPROPRI-
ATION OF THE FEDERAL GOVERNMENT OR AGENCIES THEREOF.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, BUT CONSISTENT WITH THE
STATE  CONSTITUTION,  A SPONSOR MAY ISSUE BONDS FOR PURCHASE BY THE BANK
PURSUANT TO A BOND PURCHASE AGREEMENT.  THE  BANK  MAY  ISSUE  BONDS  OR
AUTHORIZE  A  SPECIAL  PURPOSE  TRUST TO ISSUE BONDS. THESE BONDS MAY BE
ISSUED PURSUANT TO THE CHARTER OF ANY CITY OR ANY CITY AND  COUNTY  THAT
AUTHORIZED THE ISSUANCE OF THESE BONDS AS A SPONSOR TO PAY THE COSTS AND
EXPENSES PURSUANT TO THIS ARTICLE, SUBJECT TO THE FOLLOWING CONDITIONS:
  (A)  WITH  THE  PRIOR APPROVAL OF THE BANK, THE SPONSOR MAY SELL THESE
BONDS IN ANY MANNER AS IT MAY DETERMINE, EITHER BY PRIVATE  SALE  OR  BY
MEANS OF COMPETITIVE BID.
  (B)  BONDS MAY BE SOLD AT A DISCOUNT AT ANY RATE AS THE BANK AND SPON-
SOR SHALL DETERMINE.
  (C) BONDS SHALL BEAR INTEREST AT ANY RATE AND BE PAYABLE AT  ANY  TIME
AS THE SPONSOR SHALL DETERMINE WITH THE CONSENT OF THE BANK.
  3.  THE  TOTAL  AMOUNT  OF  BONDS ISSUED TO FINANCE PUBLIC DEVELOPMENT
FACILITIES THAT MAY BE OUTSTANDING AT ANY ONE TIME  UNDER  THIS  CHAPTER
SHALL  NOT  EXCEED  FIVE  BILLION  DOLLARS.  THE  TOTAL  AMOUNT  OF RATE
REDUCTION BONDS THAT MAY BE OUTSTANDING AT ANY ONE TIME UNDER THIS CHAP-
TER SHALL NOT EXCEED TEN BILLION DOLLARS.
  4. BONDS FOR WHICH MONEYS OR SECURITIES HAVE BEEN DEPOSITED IN  TRUST,
IN  AMOUNTS  NECESSARY TO PAY OR REDEEM THE PRINCIPAL, INTEREST, AND ANY

S. 4099                            11

REDEMPTION PREMIUM THEREON, SHALL BE DEEMED NOT TO  BE  OUTSTANDING  FOR
PURPOSES OF THIS SECTION.
  5.  THE  BANK MAY GIVE FINAL APPROVAL FOR THE ISSUANCE OF THE BONDS OR
OF THE AUTHORIZATION OF A SPECIAL PURPOSE  TRUST  UPON  TERMS  IT  DEEMS
NECESSARY OR DESIRABLE.
  (A)  THE EXECUTIVE DIRECTOR MAY ESTABLISH THE TERMS AND CONDITIONS FOR
THE ISSUANCE OF THE BONDS OR OF THE AUTHORIZATION OF A  SPECIAL  PURPOSE
TRUST  AND TAKE ANY OTHER ACTION NECESSARY OR DESIRABLE FOR THE ISSUANCE
OF THE BONDS OR OF A SPECIAL PURPOSE TRUST AUTHORIZED BY THE BANK.
  (B) ANY ACTION UNDER THIS SECTION SHALL BE AT THE  DISCRETION  OF  THE
BANK.
  6.  THE  COMPTROLLER,  THE  GOVERNOR, OR THE LIEUTENANT GOVERNOR IS AN
ELECTED REPRESENTATIVE OF THE STATE AUTHORIZED  TO  FULFILL  THE  PUBLIC
APPROVAL  REQUIREMENT  OF  SECTION  147(F)  OF  TITLE 26 OF THE INTERNAL
REVENUE CODE (26 U.S.C.A. SEC. 147(F)), INCLUDING SUBSEQUENT  AMENDMENTS
THERETO,  OR  ITS  SUCCESSOR  PROVISION,  FOR THE ISSUANCE OF TAX-EXEMPT
BONDS ISSUED BY THE BANK, A SPECIAL PURPOSE TRUST, OR A SPONSOR PURSUANT
TO THIS CHAPTER.
  S 9113. AUTHORIZED FINANCING OF BONDS. 1. BONDS MAY BE  AUTHORIZED  TO
FINANCE  A SINGLE PROJECT FOR A SINGLE SPONSOR OR A PARTICIPATING PARTY,
A SERIES OF PROJECTS FOR A SINGLE SPONSOR OR A  PARTICIPATING  PARTY,  A
SINGLE PROJECT FOR SEVERAL SPONSORS OR PARTICIPATING PARTIES, OR SEVERAL
PROJECTS FOR SEVERAL SPONSORS OR PARTICIPATING PARTIES.
  2.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED BY THE BANK, EVERY ISSUE OF
ITS BONDS SHALL BE PAYABLE FROM ANY REVENUES OR OTHER MONEYS OF THE BANK
AVAILABLE THEREFOR AND NOT OTHERWISE PLEDGED. THESE REVENUES  OR  MONEYS
MAY INCLUDE THE PROCEEDS OF ADDITIONAL BONDS, SUBJECT ONLY TO ANY AGREE-
MENTS  WITH  THE  HOLDERS  OF  PARTICULAR  BONDS PLEDGING ANY PARTICULAR
REVENUES OR MONEYS. NOTWITHSTANDING THAT THE BONDS MAY BE PAYABLE FROM A
SPECIAL FUND, THESE BONDS SHALL BE DEEMED TO BE  NEGOTIABLE  INSTRUMENTS
FOR ALL PURPOSES.
  3.  BONDS MAY BE ISSUED IN ONE OR MORE SERIES, MAY BE ISSUED AS SERIAL
BONDS OR AS TERM BONDS OR AS A COMBINATION THEREOF. THE BONDS  SHALL  BE
AUTHORIZED  BY  RESOLUTION  OF  THE  BANK  AND SHALL, AS PROVIDED BY THE
RESOLUTION, BEAR THE DATE OF ISSUANCE, THE TIME OF MATURITY, WHICH SHALL
NOT EXCEED FIFTY YEARS FROM THE DATE OF ISSUANCE, BEAR THE RATE OR RATES
OF INTEREST, BE PAYABLE AT THE TIME OR TIMES PROVIDED, BE IN THE DENOMI-
NATIONS PROVIDED, BE IN THE FORM OR FORMS PROVIDED, CARRY THE  REGISTRA-
TION PRIVILEGES PROVIDED, BE EXECUTED IN THE MANNER PROVIDED, BE PAYABLE
IN  LAWFUL  MONEY OF THE UNITED STATES, OR OTHER DESIGNATED CURRENCY, AT
THE PLACE OR PLACES PROVIDED, AND BE SUBJECT TO ANY TERMS OF  REDEMPTION
PROVIDED THEREIN.
  4.  SALE  OF THE BONDS OF THE BANK OR OF A SPECIAL PURPOSE TRUST SHALL
BE COORDINATED BY THE COMPTROLLER. THE COMPTROLLER SHALL SELL THE  BONDS
WITHIN  NINETY  DAYS  OF  RECEIVING  A  CERTIFIED COPY OF THE RESOLUTION
AUTHORIZING THE SALE OF BONDS, UNLESS  THE  BOARD  ADOPTS  A  RESOLUTION
EXTENDING THE NINETY-DAY PERIOD.
  5.  THE  SALE  MAY  BE  A PUBLIC OR PRIVATE SALE, AND FOR ANY PRICE OR
PRICES, AND ON ANY TERMS AND CONDITIONS, AS THE BANK DETERMINES  PROPER,
AFTER  GIVING  DUE  CONSIDERATION  TO THE RECOMMENDATIONS OF ANY SPECIAL
PURPOSE TRUST AND ANY SPONSOR TO BE ASSISTED FROM THE  PROCEEDS  OF  THE
BONDS.    PENDING  PREPARATION  OF DEFINITIVE BONDS, THE COMPTROLLER MAY
ISSUE INTERIM RECEIPTS, CERTIFICATES, OR TEMPORARY BONDS THAT  SHALL  BE
EXCHANGED FOR DEFINITIVE BONDS.
  S  9114. BOND RESOLUTIONS. ANY RESOLUTION AUTHORIZING ANY BONDS OR THE
AUTHORIZATION OF A SPECIAL PURPOSE TRUST OR ANY ISSUE OF  BONDS  OF  THE

S. 4099                            12

BANK  OR  A  SPECIAL PURPOSE TRUST MAY CONTAIN THE FOLLOWING PROVISIONS,
WHICH SHALL BE A PART OF THE CONTRACT WITH THE HOLDERS OF THE  BONDS  TO
BE AUTHORIZED:
  1.  PROVISIONS  PLEDGING  THE  FULL  FAITH  AND CREDIT OF THE BANK, OR
PLEDGING ALL OR ANY PART OF THE REVENUES OF ANY PROJECT, OR  ANY  REVEN-
UE-PRODUCING CONTRACT OR CONTRACTS MADE BY THE BANK WITH ANY SPONSOR, OR
ANY  OTHER  MONEYS OF THE BANK, TO SECURE THE PAYMENT OF THE BONDS OR OF
ANY PARTICULAR ISSUE OF BONDS, SUBJECT TO THOSE  AGREEMENTS  WITH  BOND-
HOLDERS AS MAY THEN EXIST AND CONSISTENT WITH THE STATE CONSTITUTION.
  2.  PROVISIONS  SETTING OUT THE RENTALS, FEES, PURCHASE PAYMENTS, LOAN
REPAYMENTS, AND OTHER CHARGES, AND THE AMOUNTS TO BE RAISED IN EACH YEAR
THEREBY, AND THE USE AND DISPOSITION OF THE REVENUES.
  3. PROVISIONS SETTING ASIDE RESERVES OR SINKING  FUNDS,  OR  PROVIDING
FOR  THE  USE  OF SUBORDINATED CLASSES OF BONDS BY THE BANK OR A SPECIAL
PURPOSE TRUST, AND THE REGULATION AND DISPOSITION THEREOF.
  4. LIMITATIONS ON THE ISSUANCE OF ADDITIONAL  BONDS,  THE  TERMS  UPON
WHICH  ADDITIONAL  BONDS MAY BE ISSUED AND SECURED, AND THE REFUNDING OF
OUTSTANDING BONDS.
  5. THE PROCEDURE, IF ANY, BY WHICH THE  TERMS  OF  ANY  CONTRACT  WITH
BONDHOLDERS  MAY  BE  AMENDED  OR ABROGATED, THE AMOUNT OF BONDS AND THE
HOLDERS THEREOF THAT ARE REQUIRED  TO  GIVE  CONSENT  THERETO,  AND  THE
MANNER IN WHICH THE CONSENT MAY BE GIVEN.
  6.  LIMITATIONS  ON THE BANK'S EXPENDITURES FOR OPERATION AND ADMINIS-
TRATION, OR OTHER EXPENSES.
  7. DEFINITIONS OF ACTS OR OMISSIONS TO ACT THAT CONSTITUTE  A  DEFAULT
IN  THE  DUTIES OF THE BANK TO HOLDERS OF ITS OBLIGATIONS, AND PROVIDING
THE RIGHTS AND REMEDIES OF THE HOLDERS IN THE EVENT OF A DEFAULT.
  8. THE MORTGAGING OF ANY PROJECT AND THE SITE THEREOF FOR THE  PURPOSE
OF SECURING THE INTERESTS OF THE BONDHOLDERS.
  9.  THE  MORTGAGING  OF LAND, IMPROVEMENTS, OR OTHER ASSETS OWNED BY A
SPONSOR OR PARTICIPATING PARTY FOR THE PURPOSE OF SECURING THE INTERESTS
OF THE BONDHOLDERS.
  S 9115. PURCHASE OF BONDS BY THE BANK. THE  BANK,  A  SPECIAL  PURPOSE
TRUST,  OR  ANY  SPONSOR  OR  PARTICIPATING  PARTY MAY, OUT OF ANY FUNDS
AVAILABLE THEREFOR, PURCHASE THEIR RESPECTIVE  BONDS.  THE  BANK  AND  A
SPECIAL  PURPOSE  TRUST MAY HOLD, PLEDGE, CANCEL, OR RESELL THEIR BONDS,
SUBJECT TO AND IN ACCORDANCE WITH AGREEMENTS WITH BONDHOLDERS.
  S 9116. TRUST AGREEMENT. IN THE DISCRETION  OF  THE  BANK,  A  SPECIAL
PURPOSE  TRUST,  OR  THE  SPONSOR,  AS THE CASE MAY BE, ANY BONDS ISSUED
UNDER THIS ARTICLE MAY BE SECURED BY A TRUST AGREEMENT BETWEEN THE BANK,
A SPECIAL PURPOSE TRUST, OR THE SPONSOR AND A CORPORATE TRUSTEE OR TRUS-
TEES, THAT MAY INCLUDE THE COMPTROLLER OR  ANY  TRUST  COMPANY  OR  BANK
HAVING THE POWERS OF A TRUST COMPANY WITHIN OR WITHOUT THE STATE.
  1. THE TRUST AGREEMENT OR THE RESOLUTION PROVIDING FOR THE ISSUANCE OF
THE  BONDS  MAY  PLEDGE  OR  ASSIGN  ANY  FUNDS OR ASSETS OF THE BANK OR
SPECIAL PURPOSE TRUST LEGALLY AVAILABLE FOR PLEDGE OR ASSIGNMENT, ALL OR
A PORTION OF THE REVENUES TO BE RECEIVED BY THE BANK, DIRECTLY OR  INDI-
RECTLY,  WITH RESPECT TO THE PROJECT, OR THE PROCEEDS OF ANY CONTRACT OR
CONTRACTS, LOAN OR LOAN AGREEMENTS, BOND OR  BOND  PURCHASE  AGREEMENTS,
AND MAY CONVEY OR MORTGAGE THE PROJECT OR PROJECTS, OR ANY PORTION THER-
EOF,  TO  BE FINANCED OUT OF THE PROCEEDS OF THE BONDS. THE TRUST AGREE-
MENT OR RESOLUTION PROVIDING FOR THE ISSUANCE OF THE BONDS  MAY  CONTAIN
PROVISIONS FOR PROTECTING AND ENFORCING THE RIGHTS AND REMEDIES OF BOND-
HOLDERS  AS  MAY  BE  REASONABLE AND PROPER AND NOT IN VIOLATION OF LAW,
INCLUDING PROVISIONS SPECIFICALLY  AUTHORIZED  TO  BE  INCLUDED  IN  ANY
RESOLUTION OR RESOLUTIONS OF THE BANK OR A SPONSOR AUTHORIZING BONDS.

S. 4099                            13

  2.  ANY  BANK  OR  TRUST  COMPANY DOING BUSINESS UNDER THE LAWS OF THE
STATE THAT MAY ACT AS A DEPOSITORY OF THE PROCEEDS OF BONDS OR OF REVEN-
UES OR OTHER MONEYS SHALL FURNISH INDEMNIFYING BONDS OR  PLEDGE  SECURI-
TIES WHEN REQUIRED BY THE BANK, A SPECIAL PURPOSE TRUST, OR A SPONSOR.
  3.  THE  TRUST  AGREEMENT MAY SET FORTH THE RIGHTS AND REMEDIES OF THE
BONDHOLDERS AND OF THE TRUSTEE OR TRUSTEES, AND MAY RESTRICT  THE  INDI-
VIDUAL  RIGHT OF ACTION BY BONDHOLDERS. IN ADDITION, ANY TRUST AGREEMENT
OR RESOLUTION MAY CONTAIN  OTHER  PROVISIONS  THAT  THE  BANK  MAY  DEEM
REASONABLE AND PROPER FOR THE SECURITY OF THE BONDHOLDERS.
  4.  THE  TRUST  AGREEMENT  MAY PROVIDE FOR THE PLEDGE OR ASSIGNMENT OF
FUNDS OR MONEYS IN THE CUSTODY  OF  THE  COMPTROLLER  THAT  ARE  LEGALLY
AVAILABLE  TO  A  SPONSOR  AND THAT ARE DUE OR PAYABLE TO THE SPONSOR BY
REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT, OR APPROPRIATION OF  THE
STATE  OR  AGENCIES  THEREOF,  AND ANY LEGALLY AVAILABLE FUNDS OR MONEYS
THAT ARE OR WILL BE DUE OR PAYABLE, TO ANY SPONSOR, THE BANK, THE  STATE
OR  THE  AGENCIES THEREOF BY REASON OF ANY GRANT, ALLOCATION, APPORTION-
MENT, OR APPROPRIATION OF THE FEDERAL GOVERNMENT OR AGENCIES THEREOF.
  S 9117. LIABILITY OF THE STATE. 1. BONDS ISSUED UNDER THIS ARTICLE  DO
NOT  CONSTITUTE  A  DEBT  OR  LIABILITY OF THE STATE OR OF ANY POLITICAL
SUBDIVISION THEREOF, OTHER THAN THE BANK OR A SPECIAL PURPOSE TRUST, AND
DO NOT CONSTITUTE A PLEDGE OF THE FULL FAITH AND CREDIT OF THE STATE  OR
ANY  OF  ITS  POLITICAL  SUBDIVISIONS,  OTHER  THAN  THE BANK OR SPECIAL
PURPOSE TRUST, BUT ARE PAYABLE SOLELY FROM THE FUNDS  PROVIDED  THEREFOR
UNDER  THIS ARTICLE AND SHALL BE CONSISTENT WITH THE STATE CONSTITUTION.
THIS SECTION SHALL IN NO WAY PRECLUDE BOND  GUARANTEES  OR  ENHANCEMENTS
PURSUANT  TO THIS TITLE. ALL THE BONDS SHALL CONTAIN ON THE FACE THEREOF
A STATEMENT TO THE FOLLOWING EFFECT:  "NEITHER THE FULL FAITH AND CREDIT
NOR THE TAXING POWER OF THE STATE OF NEW YORK IS PLEDGED TO THE  PAYMENT
OF THE PRINCIPAL OF, OR INTEREST ON, THIS BOND."
  2.  THE  ISSUANCE  OF  BONDS  UNDER THIS ARTICLE SHALL NOT DIRECTLY OR
INDIRECTLY OR CONTINGENTLY OBLIGATE THE STATE OR ANY POLITICAL  SUBDIVI-
SION  THEREOF  TO  LEVY OR TO PLEDGE ANY FORM OF TAXATION THEREFOR OR TO
MAKE ANY APPROPRIATION FOR THEIR PAYMENT. NOTHING IN THIS SECTION  SHALL
PREVENT,  OR  BE  CONSTRUED  TO PREVENT, THE BANK FROM PLEDGING THE FULL
FAITH AND CREDIT OF THE INFRASTRUCTURE BANK FUND TO THE PAYMENT OF BONDS
OR ISSUANCE OF BONDS AUTHORIZED PURSUANT TO THIS ARTICLE.
  S 9118. REFUNDING BONDS. 1. THE BANK OR A SPECIAL  PURPOSE  TRUST  MAY
ISSUE  BONDS  FOR  THE  PURPOSE  OF REFUNDING ANY BONDS, NOTES, OR OTHER
SECURITIES OF THE BANK, A SPECIAL  PURPOSE  TRUST,  OR  A  SPONSOR  THEN
OUTSTANDING, INCLUDING THE PAYMENT OF ANY REDEMPTION PREMIUM THEREON AND
ANY  INTEREST ACCRUED, OR TO ACCRUE, ON THEIR EARLIEST OR ANY SUBSEQUENT
DATE OF REDEMPTION, PURCHASE, OR MATURITY OF THESE BONDS. THE BANK, OR A
SPONSOR, IF IT DEEMS ADVISABLE, MAY ISSUE  OR  AUTHORIZE  A  SPONSOR  TO
ISSUE  BONDS FOR THE ADDITIONAL PURPOSE OF PAYING ALL OR ANY PART OF THE
COST OF CONSTRUCTING AND ACQUIRING ADDITIONS, IMPROVEMENTS,  EXTENSIONS,
OR ENLARGEMENTS OF ANY PROJECT OR ANY PORTION THEREOF.
  2.  THE  PROCEEDS  OF  ANY  BONDS  ISSUED FOR THE PURPOSE OF REFUNDING
OUTSTANDING BONDS AS PROVIDED IN SUBDIVISION ONE OF THIS SECTION MAY, IN
THE DISCRETION OF THE BANK, BE APPLIED TO THE PURCHASE OR RETIREMENT  AT
MATURITY OR REDEMPTION OF THOSE OUTSTANDING BONDS EITHER ON THEIR EARLI-
EST OR ANY SUBSEQUENT REDEMPTION DATE OR UPON THE PURCHASE OR RETIREMENT
AT  THE MATURITY THEREOF AND MAY, PENDING THIS APPLICATION, BE PLACED IN
ESCROW TO BE APPLIED TO  THE  PURCHASE  OR  RETIREMENT  AT  MATURITY  OR
REDEMPTION  OF  THOSE  OUTSTANDING  BONDS ON THE DATE OR DATES AS MAY BE
DETERMINED BY THE BANK.

S. 4099                            14

  3. PENDING THIS USE, THE ESCROWED PROCEEDS MAY BE INVESTED  AND  REIN-
VESTED  BY THE COMPTROLLER OR A TRUSTEE IN OBLIGATIONS OF, OR GUARANTEED
BY, THE UNITED STATES, OR IN CERTIFICATES OF DEPOSIT  OR  TIME  DEPOSITS
SECURED BY OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES, MATURING
AT  THE TIME OR TIMES APPROPRIATE TO ASSURE PROMPT PAYMENT, OF THE PRIN-
CIPAL, INTEREST, AND REDEMPTION PREMIUM,  IF  ANY,  OF  THE  OUTSTANDING
BONDS  TO BE REFUNDED. THE INTEREST, INCOME, AND PROFITS, IF ANY, EARNED
OR REALIZED ON THE INVESTMENT MAY ALSO BE APPLIED TO THE PAYMENT OF  THE
OUTSTANDING  BONDS  TO  BE  REFUNDED. AFTER THE TERMS OF THE ESCROW HAVE
BEEN FULLY SATISFIED AND CARRIED OUT, ANY BALANCE OF  THE  PROCEEDS  AND
INTEREST, INCOME, AND PROFITS, IF ANY, EARNED OR REALIZED ON THE INVEST-
MENTS  THEREOF,  SHALL BE RETURNED TO THE AGENCY FOR USE IN CARRYING OUT
THE PURPOSES OF THIS ARTICLE.
  4. THE PORTION OF THE PROCEEDS OF THE BONDS ISSUED FOR THE  ADDITIONAL
PURPOSE  OF  PAYING  ALL  OR  ANY  PART  OF THE COST OF CONSTRUCTION AND
ACQUIRING ADDITIONS, IMPROVEMENTS, EXTENSIONS, OR  ENLARGEMENTS  OF  ANY
PROJECT  MAY  BE INVESTED AND REINVESTED BY THE COMPTROLLER OR A TRUSTEE
IN OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES,  OR  IN  CERTIF-
ICATES OF DEPOSIT OR TIME DEPOSITS SECURED BY OBLIGATIONS OF, OR GUARAN-
TEED  BY,  THE  UNITED STATES, MATURING NOT LATER THAN THE TIME OR TIMES
WHEN THESE PROCEEDS WILL BE NEEDED FOR THE PURPOSE OF PAYING ALL OR  ANY
PART  OF THE COST.  THE INTEREST, INCOME, AND PROFITS, IF ANY, EARNED OR
REALIZED ON THIS INVESTMENT MAY BE APPLIED TO THE PAYMENT OF ALL, OR ANY
PART OF, THE COST OR MAY BE  USED  BY  THE  BANK  IN  CARRYING  OUT  THE
PURPOSES OF THIS ARTICLE.
  S  9119.  SECURITY.  1.  ANY ISSUE OF REVENUE BONDS BY THE BANK MAY BE
SECURED AND MADE MORE ATTRACTIVE TO CAPITAL  MARKETS  THROUGH  FINANCIAL
INSTRUMENTS, INCLUDING, BUT NOT LIMITED TO:
  (A)  DEEDS  OF TRUST ON THE RESOURCES, FACILITIES, AND REVENUES OF THE
PROJECTS.
  (B) CREDIT ENHANCEMENTS, INCLUDING, BUT NOT  LIMITED  TO,  LETTERS  OF
CREDIT,  BOND  INSURANCE, AND SURETY BONDS PROVIDED BY PRIVATE FINANCIAL
INSTITUTIONS.
  (C) INSURANCE AND GUARANTEES PROVIDED BY THE BANK ITSELF.
  2. THE BANK MAY MAKE LOANS TO HELP ESTABLISH AND SUPPORT THE REVOLVING
LOAN FUNDS OF SMALL BUSINESS DEVELOPMENT CORPORATIONS, ECONOMIC DEVELOP-
MENT CORPORATIONS, COMMUNITY  DEVELOPMENT  CORPORATIONS,  AND  NONPROFIT
CORPORATIONS.  THE  LOANS  MAY  BE MADE FROM ANY MONEYS AVAILABLE TO THE
BANK.
  S 2. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.