A. 1894 2
sities, hospitals, libraries, community centers, businesses, nonprofit
organizations, and residential properties. To increase the speed and
availability at which affordable broadband services become available in
this state, it is declared to be a valid public purpose to assist in the
financing and refinancing of the private and public sectors' development
of a statewide broadband infrastructure.
S 3. Definitions. 1. "Authority" means the New York state broadband
development authority.
2. "Capital reserve fund requirement" means the fund amount require-
ment that may be established in the resolution authorizing notes or
bonds for which a capital reserve fund has been established under
section 95-h of the state finance law. The required amount shall not
exceed the maximum amount of principal and interest maturing and becom-
ing due in a succeeding calendar year on the notes or bonds secured in
whole or in part by the fund.
3. "Broadband developer" means a person selected by the authority to
acquire, construct, develop, and create any part of the broadband
infrastructure.
4. "Broadband infrastructure" means all facilities, hardware, and
software and other intellectual property necessary to provide broadband
services in this state, including, but not limited to, voice, video, and
data.
5. "Broadband operator" means a person selected by the authority to
operate any part of the broadband infrastructure.
6. "Broadband services" means those services, including, but not
limited to, voice, video, and data, that provide capacity for trans-
mission in excess of 200 kilobits per second in at least one direction
regardless of the technology or medium used, including, but not limited
to, wireless, copper wire, fiber optic cable, or coaxial cable. If voice
transmission capacity is offered in conjunction with other services
utilizing transmission in excess of 200 kilobits per second, the voice
transmission capacity may be less than 200 kilobits per second.
7. "Development costs" means the costs associated with the broadband
infrastructure that have been approved by the authority and include, but
are not limited to, all of the following:
(a) the costs for planning, acquiring, leasing, constructing, main-
taining, and operating of the broadband infrastructure.
(b) payments for options to purchase, deposits on contracts of
purchase, and payments for the purchases of properties for the broadband
infrastructure.
(c) financing, refinancing, acquisition, demolition, construction,
rehabilitation, and site development of new and existing buildings.
(d) carrying charges during construction.
(e) purchases of hardware, software, facilities, or other expenses
related to the broadband infrastructure.
(f) legal, organizational, and marketing expenses, project manager and
clerical staff salaries, office rent, and other incidental expenses.
(g) payment of fees for preliminary feasibility studies and advances
for planning, engineering, and architectural work.
(h) any other costs and expenses necessary for the acquisition,
construction, maintenance, and operation of all or portions of the
broadband infrastructure.
8. "Person" means an individual, corporation, limited or general part-
nership, joint venture, or limited liability company or a governmental
entity, including state authorities, municipalities, counties, and town-
ships, police, fire and other public safety organizations, judicial
A. 1894 3
entities, medical entities, schools, colleges, universities, hospitals,
libraries, community centers, and local economic development entities.
Except to the extent that state authorities, police, fire and other
public safety organizations, judicial entities, medical entities,
schools, colleges, universities, hospitals, and libraries may constitute
state entities, person does not include this state.
S 4. New York state broadband development authority. 1. A board to be
known as the "New York state broadband development authority" is hereby
created. Such board shall be a body corporate and politic constituting
a public benefit corporation. The authority shall consist of 13 members
who shall be residents of New York state. The head or designee of the
state consumer protection board, the department of education, the
department of health, the department of labor, the department of public
service, the state emergency management office, and the office for tech-
nology shall serve as members. The remaining six members shall be
appointed in the following manner: two shall be appointed by the gover-
nor, two shall be appointed by the temporary president of the senate,
and two shall be appointed by the speaker of the assembly.
2. These members shall have experience in telecommunications and will
be subject to the limitations in the public officers law. The appointed
members shall serve for terms of four years each, provided that the
members first appointed shall serve until the thirty-first day of Decem-
ber of the third year following the year of their appointment. Vacan-
cies, occurring otherwise than by expiration of term of office, shall be
filled for the unexpired terms. The members of the authority shall
receive no compensation for their services but shall be reimbursed for
all their actual and necessary expenses incurred in connection with the
carrying out of the purposes of this act. The powers as set forth in
the by-laws of the board shall be established and vested in and be exer-
cised by the members of the authority at an initial meeting duly called
and held and eleven members shall constitute a quorum.
3. Notwithstanding any inconsistent provision of any general, special
or local law, ordinance, resolution or charter, no officer, member or
employee of the state or of any public authority shall forfeit his or
her office or employment by reason of his or her acceptance of appoint-
ment as a member, officer or employee of the authority, nor shall
service as such member, officer or employee be deemed incompatible or in
conflict with such office, membership or employment.
4. The authority and its corporate existence shall continue until
terminated by law, provided, however, that no such termination shall
take effect so long as the authority shall have bonds or other obli-
gations outstanding unless adequate provision has been made for the
payment thereof.
5. It is hereby determined and declared that the authority and the
carrying out of its powers and duties are in all respects for the bene-
fit of the people of the state of New York for the improvement of their
health, welfare and prosperity and that such purposes are public
purposes and that the authority is and will be performing an essential
governmental function in the exercise of the powers conferred upon it by
this act.
6. The board shall hold at least three regular meetings every year.
The chairperson, or in his or her absence the vice-chairperson, may call
a special meeting by notice in writing served personally upon the other
members of the board at least 48 hours prior to such meeting. All meet-
ings of the board shall be subject to article 7 of the public officers
law.
A. 1894 4
7. The purposes of the authority are to:
(a) assist through financing and refinancing the expansion of broad-
band infrastructure services to residential, commercial, public, and
nonprofit customers in this state.
(b) authorize the issuance of bonds and notes to finance or refinance
the private and public sectors' development of the broadband infrastruc-
ture.
(c) authorize the making of loans and joint venture and partnership
arrangements to broadband developers and broadband operators.
(d) authorize the imposition and collection of rents, charges, and
fees for the services furnished by the broadband infrastructure in
conjunction with financing entered into by the authority.
(e) enter into joint venture and partnership arrangements and partner-
ships to acquire, construct, maintain, and operate the broadband infras-
tructure.
(f) assist broadband developers and operators with all other matters
necessary for the acquisition, construction, maintenance, and operation
of the broadband infrastructure.
(g) continuously evaluate all types of technologies in order to
encourage the widest deployment of broadband services and broadband
infrastructure in this state.
(h) make broadband services to schools, libraries, and underserved
areas a priority under authority financing programs.
(i) insure that the financing and refinancing of the development of
broadband services under this act includes provisions that small busi-
nesses and that each region of this state have an equal opportunity to
receive financing and refinancing.
S 5. 1. The powers of the authority shall include all those necessary
to carry out and effectuate the purposes of this act, including, but not
limited to, all of the following:
(a) to borrow money and issue bonds and notes to fund operations of
the authority, to finance or refinance part or all of the development
costs of the broadband infrastructure, to refinance existing debt for
technology that constitutes a part of or is related to the broadband
infrastructure, and to secure bonds and notes by mortgage, assignment,
or pledge of any of its revenues and assets.
(b) to invest any money of the authority at the authority's
discretion, in any obligations determined proper by the authority, and
name and use depositories for its money.
(c) to enter into joint venture and partnership arrangements with
persons that will acquire, construct, develop, maintain, and operate all
or portions of the broadband infrastructure.
(d) to be designated the state program manager for federal telecommu-
nications assistance, to represent this state in negotiations with the
federal government regarding telecommunications assistance, and to
receive and distribute federal funding, including loans, grants, and
other forms of funding and assistance on this state's behalf.
(e) to receive and distribute state or local funding including grants,
loans, general appropriations, or an appropriation made for the purposes
of this act.
(f) to make loans and to enter into any joint venture and partnership
arrangements with broadband developers and broadband operators that will
acquire, construct, maintain, and operate all or portions of the broad-
band infrastructure.
(g) to provide operating assistance to make broadband services more
affordable to broadband developers, broadband operators, and broadband
A. 1894 5
customers, in conjunction with broadband infrastructure financed by the
authority.
(h) to impose and collect charges, fees, or rentals for the services
furnished by those portions of the broadband infrastructure financed by
the authority under this act.
(i) to set construction, operation, and financing standards for the
broadband infrastructure in connection with authority financing and to
provide for inspections to determine compliance with those standards.
(j) to acquire from any person interests in real or personal property
necessary for the operation of the authority.
(k) to procure insurance against any loss in connection with the
broadband infrastructure and any other property, assets, or activities
of the authority.
(l) to sue and be sued, to have a seal, and to make, execute, and
deliver contracts, conveyances, and other instruments necessary to the
exercise of the authority's powers.
(m) to enforce financial, operational, warranty, security, lease, and
guaranty terms and conditions established under financings by the
authority. The authority may acquire, construct, develop, lease, create,
and maintain all or portions of the broadband infrastructure and acquire
from any person interests in real and personal property.
(n) to make and amend bylaws.
(o) to indemnify and procure insurance indemnifying any members of the
board of the authority from personal liability by reason of their
service as a board member.
(p) to investigate, evaluate, and assess the current broadband infras-
tructure and the future broadband infrastructure needs of this state and
to encourage and participate in aggregation strategies for the broadband
services of all public entities and nonprofit corporations in this state
to maximize the interconnectivity and efficiencies of the broadband
infrastructure.
2. Notwithstanding any other provision of this act, the authority
shall not make loans to, or enter into any joint venture and partnership
arrangements or participation with, any governmental entity or nonprofit
organization except in connection with the financing or refinancing of
development costs for that allocable portion of the broadband infras-
tructure used or to be used exclusively by governmental entities or
nonprofit organizations, including, but not limited to, universities,
colleges, hospitals, school districts, public safety agencies, judicial
organizations, libraries, cities, townships, and counties. No allocable
portion of the broadband infrastructure financed by a loan to a govern-
mental entity or a nonprofit organization shall be used to serve resi-
dential, business, or other commercial customers.
3. Notwithstanding any other provision of this act, except in
connection with financing or refinancing under subdivision two of this
section or enforcement procedures authorized under paragraph (m) of
subdivision one of this section, the authority shall acquire real or
personal property constituting portions of the broadband infrastructure
only in connection with the participation of persons other than govern-
mental entities or nonprofit organizations through joint ventures and
partnership arrangements, or other co-ownership arrangements and only if
the participation is necessary to assure availability of financing or
refinancing derived from the issuance by the authority of bonds or
notes, the interest on which is exempt from taxation under the United
States internal revenue code, and the financing derived from the tax-ex-
empt bonds or notes is allocated only to those development costs relat-
A. 1894 6
ing to that portion of the broadband infrastructure that is to be used
by governmental bodies or nonprofit organizations.
4. The authority shall establish a seed capital loan program to make
capital loans to persons planning to apply to the authority for financ-
ing of broadband infrastructure. Priority for the seed capital loan
program shall be given for developments targeted to underserved areas.
During the initial 2 years of operations, the authority shall designate
a minimum of $500,000.00 to be targeted to rural underserved areas and a
minimum of $500,000.00 targeted to urban underserved areas. Community
economic development programs and small providers shall be given a pref-
erence to receive loans under this subdivision. The terms and conditions
for the seed capital loans shall be established by the authority. As
used in this act, "underserved areas" means geographical areas of this
state identified by the authority as having the greatest need for broad-
band development. In identifying underserved areas, the authority shall
consider the area's economic conditions, including, but not limited to,
family income, affordability of access, lack of options available, low
percentage of residents subscribing, and any other criteria considered
important by the authority in determining whether an area is under-
served.
5. As part of an application for financing under this act, the broad-
band developer and broadband operator shall file with the authority a
participation plan for small and minority owned businesses and a commu-
nitywide outreach plan to educate the public of the availability of
broadband services. The authority shall not approve an application
unless a plan is submitted under this subdivision.
6. The authority is authorized and directed:
(a) to study the desirability and means of attracting industry to the
state of New York.
(b) to periodically review the accessibility and rates to consumers
and businesses on the basis of accurate cost data obtained by such
accounting methods and systems as shall be approved by the members and
in furtherance of the authority's policy.
(c) to fund, through the use of bonds issued pursuant to section nine
of this act, research and development projects relating to broadband
that are sponsored by the state university of New York.
S 6. Code of ethics. The authority shall be deemed a state agency and
subject to section 74 of the public officers law.
S 7. Equal employment opportunity. The authority shall ensure that all
employees or applicants for employment are afforded equal employment
opportunity without discrimination.
S 8. 1. The authority may issue notes and bonds as provided under this
act to do all the following:
(a) pay the development costs associated with acquiring, leasing,
constructing, maintaining, and operating the broadband infrastructure.
(b) make loans to persons for development costs.
(c) make loans to persons to make purchases related to the broadband
infrastructure.
(d) make loans to persons to refinance existing debt of the authority
or other persons incurred in connection with the acquisition or develop-
ment of technology that constitutes a part of or is related to the
broadband infrastructure.
(e) pay the interest on bonds and notes of the authority.
(f) establish reserves to secure the bonds and notes of the authority.
A. 1894 7
(g) make other expenditures necessary to carry out the authority's
duties under this act, including the payment of the authority's operat-
ing expenses.
2. The authority may issue renewal notes, issue bonds to pay notes,
and refund bonds by the issuance of new bonds, whether or not the bonds
to be refunded have matured. The refunding bonds shall be sold and the
proceeds applied to the purchase, redemption, or payment of the bonds to
be refunded. The authority may issue instruments separate from the obli-
gations described in this section that establish a contractual right in
the holder of the instrument to require mandatory tender for purchase of
the obligations to which the instrument applies for a period of time and
subject to provisions as the authority may determine.
3. Except as otherwise provided by the authority or this act, every
note or bond issue of the authority shall be a general obligation of the
authority payable out of revenues or money of the authority, subject
only to agreements with the holders of particular notes or bonds pledg-
ing any particular receipts or revenues.
4. Whether or not the notes or bonds are of a form or character as to
be negotiable instruments, the notes or bonds are negotiable instruments
within the meaning of the uniform commercial code.
S 9. 1. The notes and bonds shall be authorized by resolution of the
authority and mature at the time provided in the resolution. The notes
and bonds shall be in a form, bear interest at a rate or rates, be in
the denominations, carry registration privileges, be payable, and be
subject to the terms of redemption as provided in the resolution.
2. The notes and bonds of the authority may be sold by the authority
at public or private sales at prices as the authority determines.
S 10. A resolution relating to authorizing notes or bonds may contain
any of the following provisions, which shall be a part of the contract
with the holder of the notes or bonds:
1. Pledging all or any part of the revenues of the authority, and all
or any part of the money received in payment of loans and interest on
loans, and other money received or to be received to secure the payment
of the notes or bonds.
2. Pledging all or any part of the assets of the authority, including
mortgages and obligations obtained by the authority in connection with
its programs, to secure the payment of the notes or bonds.
3. Pledging any loan, grant, or contribution from a government entity.
4. The use and disposition of the gross income from contracts and
leases of the authority.
5. The setting aside of reserves or sinking funds and the regulation
and disposition of reserved or sinking funds.
6. Limitations on the purpose to which the proceeds of sale of notes
or bonds may be applied and pledging proceeds to secure the payment of
the notes or bonds.
7. Limitations on the issuance of additional notes or bonds, the terms
upon which additional notes or bonds may be issued and secured, and the
refunding of outstanding or other notes or bonds.
8. The procedure, if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated, the amount of
notes or bonds the holders of which shall consent to the amendment or
abrogation, and the manner in which the consent is to be given.
9. Vesting in a trustee or trustees property, rights, powers, and
duties in trust as the authority may determine, which may include any of
the rights, powers, and duties of the trustee appointed by the bondhold-
ers under this act and limiting or abrogating the rights of the bond-
A. 1894 8
holders to appoint a trustee under this section or limiting the rights,
powers, and duties of the trustee.
10. Establishing a contractual right to require mandatory tender for
purchase of the notes or bonds in an instrument separate from the notes
or bonds. The instrument may be issued or sold by the authority to
investors.
11. Except as otherwise prohibited by this act, any other provision
that may affect the security or protection of the notes or bonds.
12. Delegating to an officer or other employee of the authority, or an
agent designated by the authority, for a period of time as the authority
determines, the power to cause the issue, sale, and delivery of the
notes or bonds within limits on those notes or bonds established by the
authority as to any of the following:
(a) the form.
(b) the maximum interest rate or rates.
(c) the maturity date or dates.
(d) the purchase price.
(e) the denominations.
(f) the redemption premiums.
(g) the nature of the security.
(h) the selection of the applicable interest rate index.
(i) other terms and conditions with respect to issuance of the notes
or bonds as the authority shall prescribe.
S 11. 1. Any pledge made by the authority is valid and binding from
the date that the pledge is made.
2. The money or property pledged and received by the authority shall
immediately be subject to the lien of the pledge without any physical
delivery or further act and the lien of the pledge is valid and binding
against all parties having claims in tort, contract, or otherwise
against the authority, irrespective of whether the parties have notice
of the lien.
3. The resolution or any other instrument by which a pledge is created
need not be recorded.
S 12. The members of the board or any person executing the notes or
bonds under this act are not liable personally on the notes or bonds or
subject to any personal liability or accountability by reason of the
issuance of the notes or bonds.
S 13. 1. The authority may issue notes or bonds that are expressly
stated not to be general obligations of the authority but that consti-
tute limited obligations of the authority payable solely from and
secured solely by the revenues, money, and property as the authority may
specify.
2. The notes or bonds designated as limited obligations under this
section shall not be payable from or secured by the reserve capital
account, and any reserve fund established for the limited obligation
notes or bonds shall not constitute a capital reserve fund under this
act.
S 14. Monies of the authority. 1. All monies of the authority from
whatever source derived shall be paid to the state comptroller as agent
of the authority, who shall not commingle such monies with any other
monies. Such monies shall be deposited in a separate bank account or
accounts. The monies in such accounts shall be paid out on check of the
comptroller on requisition of the chairperson of the authority or of
such other person as the authority may authorize to make such requisi-
tion. All deposits of such monies shall be secured by obligations of the
United States or of the state of New York of a market value equal at all
A. 1894 9
times to the amount on deposit and all banks and trust companies are
authorized to give such security for such deposits. The comptroller and
his or her legally authorized representatives are hereby authorized and
empowered from time to time to examine the accounts and books of the
authority, including its receipts, disbursements, contracts, leases,
sinking funds, investments and any other matters relating to its finan-
cial standing.
2. Notwithstanding the provisions of this section, the authority shall
have power, subject to the approval of the comptroller, to contract with
the holders of any of its bonds as to the custody, collection, securing,
investment and payment of any monies of the authority, or any monies
held in trust or otherwise for the payment of bonds or in any way to
secure notes or bonds, and to carry out any such contract. Monies held
in trust or otherwise for the payment of bonds or in any way to secure
bonds and deposits of such monies may be secured in the same manner as
monies of the authority, and all banks and trust companies are author-
ized to give such security for such deposits.
3. Monies of the authority not required for immediate use may, in the
discretion of the authority, be invested by the comptroller in obli-
gations of the United States government or of the state of New York.
4. Subject to agreements with bondholders and the approval of the
comptroller, the authority shall prescribe a system of accounts.
S 15. Agreement of the state. The state of New York does hereby pledge
to and agree with the holders of any obligations issued under this act,
and with those parties who may enter into contracts with the authority,
that the state will not limit or alter the rights hereby vested in the
authority until such obligations together with the interest thereon are
fully met and discharged and/or such contracts are fully performed on
the part of the authority, provided that nothing contained in this act
shall preclude such limitation or alteration if and when adequate
provision shall be made by law for the protection of the holders of such
obligations of the authority or those entering into such contracts with
the authority. The authority as agent for the state is authorized to
include this pledge and undertaking for the state in such obligations or
contracts.
S 16. The state is not liable on notes or bonds of the authority and
the notes and bonds of the authority shall not constitute a debt of this
state. The bonds shall contain on their face a statement of the limita-
tion contained in this section.
S 17. Contracts negotiated by authority. 1. Contracts negotiated by
the authority shall be in conformity with the applicable provisions of
section 135 of the state finance law.
2. After preliminary agreement upon the terms of any such contracts
shall have been reached by the authority and its co-party or co-parties,
the authority shall promptly transmit a copy of such proposed contract
to the governor, the comptroller, the speaker of the assembly, the
minority leader of the assembly, the chairperson of the assembly ways
and means committee, the temporary president of the senate and the
minority leader of the senate and the chairperson of the senate finance
committee and shall hold a public hearing or hearings upon the terms
thereof. At least thirty days notice of such hearing shall be given by
publication once in each week during such period in each of six newspa-
pers within the state to be selected by the authority. Copies of
proposed contracts shall be available for public inspection during such
period of thirty days at the office or offices of the authority and at
such other places throughout the state as it may designate.
A. 1894 10
3. Following such public hearing, the authority shall reconsider the
terms of the proposed contract or contracts and shall negotiate such
changes and modifications in the contract or contracts as it deems
necessary or advisable.
4. When such contract or contracts are finally agreed upon in terms
satisfactory to the authority and its co-party or co-parties, and which
the authority believes to be in the public interest, the authority shall
thereupon report the proposed contract or contracts, together with its
recommendations and the record of the public hearings thereon, to the
comptroller, the speaker of the assembly, the chairperson of the assem-
bly ways and means committee, the temporary president of the senate, the
chairperson of the senate finance committee and the governor. The gover-
nor shall, within 60 days thereafter, indicate his or her approval or
disapproval thereof and give his or her reasons therefor.
5. If the governor and comptroller shall approve such contract, then
the same shall be executed by the chairperson and secretary of the
authority and it shall thereupon come into full force and effect and be
binding upon the authority and all other parties thereto in accordance
with its terms.
S 18. The notes and bonds of the authority are securities in which
public officers and bodies of this state and municipalities and munici-
pal subdivisions, insurance companies and associations and other persons
carrying on an insurance business, banks, trust companies, savings banks
and savings associations, savings and loan associations, investment
companies, administrators, guardians, executors, trustees and other
fiduciaries, and any other person who is now or may be authorized to
invest in bonds or other obligations of this state, may properly and
legally invest funds, including capital, in their control or belonging
to them.
S 19. Exemption from taxation. It is hereby found and declared that
the projects authorized by this act are for the aid and improvement of
commerce and that such aid and improvement of commerce and the develop-
ment of equal access to bandwidth is primarily for the benefit of the
people of the state of New York, for the improvement of their health and
welfare and material prosperity, and is a public purpose, and the
authority shall be regarded as performing a governmental function in
undertaking such projects and in carrying out the provisions of this
act, and shall be required to pay no taxes or assessments upon its
activities in the operations and maintenance thereof, provided that
nothing herein shall prevent the authority from entering into agreements
to make payments in lieu of taxes with respect to property acquired for
any project where such payments are based solely on the value of real
property without regard to any improvement thereof by the authority.
S 20. Actions against authority. If any action founded upon a tort, a
notice of claim shall be required as a condition precedent to the
commencement of an action or special proceeding against the authority or
any officer, appointee, agent or employee thereof, and the provisions of
section 50-e of the general municipal law shall govern the giving of
such notice. An action against the authority for wrongful death shall be
commenced in accordance with the notice of claim and time limitation
provisions provided by law.
S 21. Public service law not applicable to authority. The authority
shall not be subject to the provisions of the public service law or to
regulation by or the jurisdiction of the department of public service or
the public service commission by reason of any contract, agreement or
A. 1894 11
arrangement entered into by the authority with any private telecommuni-
cations company.
S 22. Annual reports. The authority shall report annually to the
governor, the comptroller, and the legislature upon its operations and
transactions. Such annual report shall include but not be limited to:
1. An assessment of current availability and reliability of bandwidth
to all businesses and residents of New York;
2. The costs associated with acquiring and using lowband, broadband,
and wireless bandwidth;
3. Progress on service to previously defined underserved areas;
4. A schedule of its bonds and notes outstanding at the end of the
fiscal year and a statement of the amounts redeemed and incurred in that
fiscal year; and
5. Basic financial and operating information specifically detailed for
the reporting year and including but not limited to income and expense
statements, balance sheets, and changes in financial position, all in
accordance with generally accepted accounting principles, debt structure
and a summary of funds on a cash basis.
S 23. Separability. If any clause, sentence, paragraph, section, or
part of this act shall be adjudged by any court of competent jurisdic-
tion to be invalid, such judgment shall not affect, impair or invalidate
the remainder thereof, but shall be confined in its operation to the
clause, sentence, paragraph, section, or part thereof involved in the
controversy in which such judgment shall have been rendered.
S 24. The state finance law is amended by adding two new sections 95-h
and 95-i to read as follows:
S 95-H. BROADBAND DEVELOPMENT AUTHORITY CAPITAL RESERVE FUND. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND
THE CHAIRPERSON OF THE NEW YORK STATE BROADBAND DEVELOPMENT AUTHORITY A
REVENUE FUND KNOWN AS THE "BROADBAND DEVELOPMENT AUTHORITY CAPITAL
RESERVE FUND".
2. THE FUND SHALL CONSIST OF THAT AMOUNT OF MONEY NECESSARY TO FULFILL
THE CAPITAL RESERVE FUND REQUIREMENT ESTABLISHED BY THE NEW YORK STATE
BROADBAND AUTHORITY ACT.
3. THE MONEYS OF THE FUND SHALL BE USED FOR THE PAYMENT OF PRINCIPAL
AND INTEREST OF NOTES OR BONDS, FOR THE PURCHASE OR REDEMPTION OF THE
NOTES OR BONDS, OR FOR THE PAYMENT OF A REDEMPTION OF A PREMIUM REQUIRED
TO BE PAID WHEN THE NOTES OR BONDS ARE REDEEMED BEFORE MATURITY. THE
MONEYS OF THE FUND SHALL NOT BE USED FOR AN OPTIONAL PURCHASE OR
OPTIONAL REDEMPTION OF NOTES OR BONDS IF THE USE WOULD REDUCE THE TOTAL
OF THE MONEY IN THE CAPITAL RESERVE FUND TO LESS THAN THE CAPITAL
RESERVE FUND REQUIREMENT ESTABLISHED FOR THE FUND.
4. INCOME EARNED BY THE FUND MAY BE TRANSFERRED TO THE BROADBAND
DEVELOPMENT AUTHORITY RESERVE CAPITAL ACCOUNT ESTABLISHED IN SECTION
NINETY-FIVE-I OF THIS ARTICLE.
5. IF, AT ANY TIME, THE AMOUNT OF THE CAPITAL RESERVE FUND FALLS BELOW
THE CAPITAL RESERVE FUND REQUIREMENT, THE CHAIRPERSON OF THE NEW YORK
STATE BROADBAND DEVELOPMENT AUTHORITY SHALL TRANSFER MONEY FROM THE
BROADBAND DEVELOPMENT AUTHORITY RESERVE CAPITAL ACCOUNT THE AMOUNT
NECESSARY TO MEET THE CAPITAL RESERVE FUND REQUIREMENT. IF, AT ANY TIME,
THE BROADBAND DEVELOPMENT AUTHORITY RESERVE CAPITAL ACCOUNT HAS BEEN
EXHAUSTED AND THE BROADBAND DEVELOPMENT AUTHORITY CAPITAL RESERVE FUND
FALLS BELOW THE CAPITAL RESERVE FUND REQUIREMENT, THEN THE CHAIRPERSON
OF THE BROADBAND DEVELOPMENT AUTHORITY SHALL, BY THE NEXT DECEMBER
FIRST, CERTIFY TO THE GOVERNOR THE AMOUNT NECESSARY TO RESTORE THE FUND
TO ITS REQUIRED AMOUNT.
A. 1894 12
S 95-I. BROADBAND DEVELOPMENT AUTHORITY RESERVE CAPITAL ACCOUNT. 1.
THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND
THE CHAIRPERSON OF THE NEW YORK STATE BROADBAND DEVELOPMENT AUTHORITY A
MISCELLANEOUS REVENUE FUND KNOWN AS THE "BROADBAND DEVELOPMENT AUTHORITY
RESERVE CAPITAL ACCOUNT".
2. THE BROADBAND DEVELOPMENT AUTHORITY RESERVE CAPITAL ACCOUNT SHALL
CONSIST OF ALL MONEYS RECEIVED BY OR ON BEHALF OF THE NEW YORK STATE
BROADBAND DEVELOPMENT AUTHORITY THAT ARE NOT OTHERWISE NEEDED FOR THE
BROADBAND DEVELOPMENT CAPITAL RESERVE FUND ESTABLISHED IN SECTION NINE-
TY-FIVE-H OF THIS ARTICLE. SUCH MONEYS SHALL INCLUDE, BUT NOT BE LIMITED
TO, ANY PROCEEDS RECEIVED AS A RESULT OF THE SALE OF NOTES OR BONDS, ANY
GIFTS OR DONATIONS MADE TO THE AUTHORITY, SURETY BONDS, INTEREST FROM
THE BROADBAND DEVELOPMENT CAPITAL RESERVE FUND, OR ANY OTHER MONEYS
RECEIVED BY THE AUTHORITY.
3. THE MONEYS OF THIS ACCOUNT SHALL BE USED TO FURTHER THE PURPOSES OF
THE NEW YORK STATE BROADBAND DEVELOPMENT AUTHORITY AS DESCRIBED IN THE
NEW YORK STATE BROADBAND DEVELOPMENT AUTHORITY ACT.
S 25. This act shall take effect January 1, 2010 and shall be deemed
repealed 10 years after such effective date.