S T A T E O F N E W Y O R K
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6985--A
Cal. No. 1086
I N S E N A T E
April 11, 2014
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Introduced by Sen. GRISANTI -- (at request of the Environmental Facili-
ties Corporation) -- read twice and ordered printed, and when printed
to be committed to the Committee on Corporations, Authorities and
Commissions -- reported favorably from said committee and committed to
the Committee on Finance -- reported favorably from said committee,
ordered to first and second report, ordered to a third reading,
amended and ordered reprinted, retaining its place in the order of
third reading
AN ACT to amend the public authorities law, in relation to the special
powers of the New York state environmental facilities corporation; and
providing for the repeal of such provisions upon the expiration there-
of
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 6 of section 1285-j of the public authorities
law, as amended by chapter 307 of the laws of 2005, is amended to read
as follows:
6. Moneys in the water pollution control revolving fund may be
invested as provided in subdivision four of section twelve hundred
eighty-four of this title and may be further invested (a) in investment
agreements continuously secured by obligations with any insurance or
reinsurance company or corporate affiliate thereof rated by a nationally
recognized rating agency in one of its two highest categories, any bank,
trust company or broker or dealer, as defined by the securities exchange
act of 1934, which is a dealer in government bonds, which reports to,
trades with and is recognized as a primary dealer by a federal reserve
bank and is a member of the securities investors protection corporation,
if, (i) such obligations securing such investment agreements are obli-
gations as set forth in section ten of the general municipal law, (ii)
such obligations are delivered to a trustee for the benefit of the
corporation or, with respect to moneys pledged under an indenture of
trust relating to bonds or notes of the corporation, to the trustee
under such indenture, or are supported by a safe keeping receipt issued
by a depository satisfactory to the corporation as applicable, provided
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S LBD13980-05-4
S. 6985--A 2
that such investment agreements must provide that the value of the
underlying obligations shall be maintained at a current market value,
calculated no less frequently than monthly, of not less than the amount
deposited thereunder, (iii) a prior perfected security interest in the
obligations which are securing such agreement has been granted to the
corporation, as applicable, and (iv) such obligations are free and clear
of adverse third party claims, or (b) in obligations as set forth in
section ten of the general municipal law, OTHER THAN THOSE OBLIGATIONS
SET FORTH IN SUBPARAGRAPH (IV) OF PARAGRAPH F OF SUBDIVISION ONE OF
SECTION TEN OF THE GENERAL MUNICIPAL LAW, that are rated by a nationally
recognized rating agency in one of its two highest rating categories, OR
(C) IN OBLIGATIONS AS SET FORTH IN SUBPARAGRAPH (IV) OF PARAGRAPH F OF
SUBDIVISION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL LAW THAT ARE
RATED BY A NATIONALLY RECOGNIZED RATING AGENCY IN ONE OF ITS THREE HIGH-
EST RATING CATEGORIES, OR (D) IN OBLIGATIONS OF ANY AGENCY, INSTRUMEN-
TALITY OR GOVERNMENTAL ENTITY OF ANOTHER STATE THAT ARE RATED BY AT
LEAST ONE NATIONALLY RECOGNIZED RATING AGENCY IN ONE OF ITS TWO HIGHEST
RATING CATEGORIES.
S 2. Subdivision 6 of section 1285-m of the public authorities law, as
amended by chapter 307 of the laws of 2005, is amended to read as
follows:
6. Moneys in the drinking water revolving fund may be invested as
provided in subdivision four of section twelve hundred eighty-four of
this title and may be further invested:
(a) in investment agreements continuously secured by obligations with
any insurance company or reinsurance company or corporate affiliate
thereof rated by a nationally recognized rating agency in one of its two
highest categories, any bank, trust company or broker or dealer, as
defined by the securities exchange act of 1934, which is a dealer in
government bonds, which reports to, trades with and is recognized as a
primary dealer by a federal reserve bank and is a member of the securi-
ties investors protection corporation, if such investment agreement
provides that:
(i) such obligations securing such investment agreements are obli-
gations as set forth in section ten of the general municipal law;
(ii) such obligations are to be delivered to a trustee for the benefit
of the corporation or, with respect to moneys pledged under an indenture
of trust or trust agreement relating to bonds or notes of the corpo-
ration, to the trustee under such indenture or trust agreement, or are
supported by a safe keeping receipt issued by a depository satisfactory
to the corporation as applicable, provided that such investment agree-
ments must provide that the value of the underlying obligations shall be
maintained at a current market value, calculated no less frequently than
monthly, of not less than the amount deposited thereunder;
(iii) a prior perfected security interest in the obligations which are
securing such agreement has been granted to the corporation, such trus-
tee or such depository as applicable; and
(iv) such obligations are free and clear of adverse third party
claims; or
(b) in obligations as set forth in section ten of the general munici-
pal law, OTHER THAN THOSE OBLIGATIONS SET FORTH IN SUBPARAGRAPH (IV) OF
PARAGRAPH F OF SUBDIVISION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL
LAW, that are rated by a nationally recognized rating agency in one of
its two highest rating categories; OR
(C) IN OBLIGATIONS AS SET FORTH IN SUBPARAGRAPH (IV) OF PARAGRAPH F OF
SUBDIVISION ONE OF SECTION TEN OF THE GENERAL MUNICIPAL LAW THAT ARE
S. 6985--A 3
RATED BY A NATIONALLY RECOGNIZED RATING AGENCY IN ONE OF ITS THREE HIGH-
EST RATING CATEGORIES; OR
(D) IN OBLIGATIONS OF ANY AGENCY, INSTRUMENTALITY OR GOVERNMENTAL
ENTITY OF ANOTHER STATE THAT ARE RATED BY AT LEAST ONE NATIONALLY RECOG-
NIZED RATING AGENCY IN ONE OF ITS TWO HIGHEST RATING CATEGORIES.
S 3. This act shall take effect immediately; provided, however that
the amendments to subdivision 6 of section 1285-j and subdivision 6 of
section 1285-m of the public authorities law made by sections one and
two of this act shall not affect the expiration and reversion of such
subdivisions and shall expire and be deemed repealed therewith; provided
further that nothing contained in this act shall be construed so as to
extend the provisions of this act beyond September 30, 2017, when upon
such date this act shall expire and the provisions contained herein
shall be deemed repealed.