Senate Bill S3690

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

                                  3690

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 27, 2009
                               ___________

Introduced  by  Sen. PERKINS -- (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

AN ACT to amend the public authorities law, in relation to  the  special
  powers of the New York state environmental facilities corporation

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

  Section 1. Section 1281 of the public authorities law  is  amended  by
adding a new subdivision 35 to read as follows:
  35.  "MULTILATERAL DEVELOPMENT BANK" MEANS ANY BANK DEFINED AS SUCH BY
FEDERAL  LAW,  INCLUDING THE EUROPEAN INVESTMENT BANK, THE INTERNATIONAL
BANK FOR RECONSTRUCTION AND DEVELOPMENT, THE EUROPEAN  BANK  FOR  RECON-
STRUCTION  AND  DEVELOPMENT,  THE INTERNATIONAL DEVELOPMENT ASSOCIATION,
THE INTERNATIONAL FINANCE CORPORATION, THE MULTILATERAL INVESTMENT GUAR-
ANTEE AGENCY, THE AFRICAN  DEVELOPMENT  BANK,  THE  AFRICAN  DEVELOPMENT
FUND,  THE  ASIAN DEVELOPMENT BANK, THE INTER-AMERICAN DEVELOPMENT BANK,
THE INTER-AMERICAN INVESTMENT CORPORATION, THE BANK FOR ECONOMIC COOPER-
ATION AND DEVELOPMENT IN THE MIDDLE  EAST  AND  NORTH  AFRICA,  AND  ANY
SUBSIDIARY OF ANY SUCH INSTITUTION.
  S 2. 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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07908-04-9
              

S. 3690                             2

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
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 that are rated by a nationally
recognized rating agency in one of its two highest rating categories, OR
(C) IN OBLIGATIONS OF MULTILATERAL DEVELOPMENT BANKS THAT ARE RATED BY A
NATIONALLY RECOGNIZED RATING AGENCY IN ONE OF  ITS  TWO  HIGHEST  RATING
CATEGORIES,  OR  (D)  IN  OBLIGATIONS  WHICH HAVE BEEN REFUNDED PRIOR TO
MATURITY AND ARE PAYABLE FROM DEFEASANCE SECURITIES  IN  AN  IRREVOCABLE
ESCROW WHICH MEET THE REQUIREMENTS OF PARAGRAPHS (A), (B) OR (C) OF THIS
SUBDIVISION.
  S 3. 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

S. 3690                             3

  (b) in obligations as set forth in section ten of the general  munici-
pal  law  that are rated by a nationally recognized rating agency in one
of its two highest rating categories; OR
  (C) IN OBLIGATIONS OF MULTILATERAL DEVELOPMENT BANKS THAT ARE RATED BY
A  NATIONALLY  RECOGNIZED RATING AGENCY IN ONE OF ITS TWO HIGHEST RATING
CATEGORIES; OR
  (D) IN OBLIGATIONS WHICH HAVE BEEN REFUNDED PRIOR TO MATURITY AND  ARE
PAYABLE  FROM  DEFEASANCE SECURITIES IN AN IRREVOCABLE ESCROW WHICH MEET
THE REQUIREMENTS OF PARAGRAPH (A), (B) OR (C) OF THIS SUBDIVISION.
  S 4. This act shall take effect immediately, provided however that the
amendments to subdivision 6 of section 1285-j of the public  authorities
law  made by section two of this act and the amendments to subdivision 6
of section 1285-m of the public authorities law made by section three of
this act shall not affect the expiration of such subdivisions and  shall
expire and be deemed repealed therewith.