senate Bill S4099A

2011-2012 Legislative Session

Creates the state infrastructure bank

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Archive: Last Bill Status - In Committee


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

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Mar 30, 2012 print number 4099a
amend (t) and recommit to banks
Jan 04, 2012 referred to banks
Mar 17, 2011 referred to banks

Bill Amendments

Original
A (Active)
Original
A (Active)

S4099 - Bill Details

Current Committee:
Law Section:
Transportation Law
Laws Affected:
Add Art 24 §§500 - 523, Transp L; add §§99-u & 99-v, St Fin L

S4099 - Bill Texts

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Creates the state infrastructure bank.

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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.

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                    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.

S4099A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Transportation Law
Laws Affected:
Add Art 24 §§500 - 523, Transp L; add §§99-u & 99-v, St Fin L

S4099A (ACTIVE) - Bill Texts

view summary

Creates the state infrastructure bank.

view sponsor memo
BILL NUMBER:S4099A

TITLE OF BILL:
An act
to amend the transportation law, in relation to creating a
state infrastructure and economic
development bank; and to amend the state finance law, in relation to
establishing the New York
state infrastructure and economic development bank fund and the New
York state infrastructure guarantee trust fund

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 and economic
development bank. Section one authorizes the issuance of bonds.
Section on also establishes the process by which criteria,
priorities, and guidelines for selection of projects are established.

Additionally, Section one establishes a board of directors and
delineates the powers of such board. Section one also outlines the
sources of revenue and authorizes the bank to receive funds from
various sources both public and private entities.

Section 2 creates and establishes the New York State infrastructure
guarantee trust fund in the custody of the comptroller's special fund.

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. The
state infrastructure and economic development bank 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 a state
infrastructure and economic development 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:
This act shall take effect on the one hundred twentieth day after it
shall have become law.

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

                                 4099--A

                       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  --  recommitted  to
  the  Committee  on  Banks  in accordance with Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT to amend the transportation law, in relation to creating a state
  infrastructure and economic development bank; and to amend  the  state
  finance  law,  in  relation to establishing the New York state infras-
  tructure and economic development bank fund and  the  New  York  state
  infrastructure guarantee trust fund

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

  Section 1. The transportation law is amended by adding a  new  article
24 to read as follows:
                              ARTICLE XXIV
           STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK
SECTION 500. DEFINITIONS.
        501. CREATION  OF THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOP-
               MENT BANK.
        502. BOARD OF DIRECTORS.
        503. DUTIES OF EXECUTIVE DIRECTOR.
        504. DUTIES OF THE BOARD OF DIRECTORS.
        505. INSURANCE OR REINSURANCE.
        506. BONDS.
        507. INDEBTEDNESS OF BANK.
        508. TAX EXEMPTION.
        509. STATE'S PLEDGE AND UNDERTAKING.
        510. REPORTS.
        511. CRITERIA,  PRIORITIES  AND  GUIDELINES  FOR  SELECTION   OF
               PROJECTS.
        512. MANDATORY RESOLUTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10317-03-2

S. 4099--A                          2

        513. FINANCING OF ECONOMIC DEVELOPMENT FACILITIES.
        514. MANAGEMENT OF THE NEW YORK STATE INFRASTRUCTURE AND ECONOM-
               IC DEVELOPMENT BANK FUND.
        515. NEW YORK STATE INFRASTRUCTURE GUARANTEE TRUST FUND.
        516. ISSUANCE OF BONDS; BOND PURCHASE AGREEMENTS.
        517. BONDS AUTHORIZED; SOURCES OF REVENUE; ISSUANCE AND SALE.
        518. BOND RESOLUTIONS.
        519. PURCHASE OF BONDS.
        520. TRUST AGREEMENT.
        521. LIABILITY OF STATE.
        522. REFUND OF OUTSTANDING BONDS; PROJECT ENLARGEMENTS.
        523. SECURITY.
  S  500. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "BANK" MEANS THE  STATE  INFRASTRUCTURE  AND  ECONOMIC  DEVELOPMENT
BANK.
  2.  "BOARD"  OR "BANK BOARD" MEANS THE BOARD OF DIRECTORS OF THE STATE
INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK.
  3. "BOND PURCHASE AGREEMENT" MEANS A  CONTRACTUAL  AGREEMENT  EXECUTED
BETWEEN  THE BANK AND A SPONSOR OR A SPECIAL PURPOSE TRUST AUTHORIZED BY
THE BANK OR A SPONSOR OR BOTH, WHEREBY THE BANK OR SPECIAL PURPOSE TRUST
AUTHORIZED BY THE BANK AGREES TO  PURCHASE  BONDS  OF  THE  SPONSOR  FOR
RETENTION OR SALE.
  4.  "BONDS" MEANS BONDS, INCLUDING STRUCTURED, SENIOR AND SUBORDINATED
BONDS OR OTHER SECURITIES; LOANS; NOTES, INCLUDING BOND, REVENUE, TAX OR
GRANT ANTICIPATION NOTES; COMMERCIAL PAPER; FLOATING RATE  AND  VARIABLE
MATURITY  SECURITIES;  AND ANY OTHER EVIDENCES OF INDEBTEDNESS OR OWNER-
SHIP, INCLUDING CERTIFICATES OF PARTICIPATION  OR  BENEFICIAL  INTEREST,
ASSET  BACKED  CERTIFICATES  OR  LEASE-PURCHASE  OR INSTALLMENT PURCHASE
AGREEMENTS, WHETHER TAXABLE OR EXCLUDABLE FROM GROSS INCOME FOR  FEDERAL
INCOME TAXATION PURPOSES.
  5.  "COST"  AS  APPLIED TO A PROJECT OR PORTION THEREOF FINANCED UNDER
THIS ARTICLE, MEANS ALL OR ANY PART OF THE COST OF  CONSTRUCTION,  RENO-
VATION OR ACQUISITION OF ALL LANDS, STRUCTURES, REAL OR PERSONAL PROPER-
TY, RIGHTS, RIGHTS-OF-WAY, FRANCHISES, LICENSES, EASEMENTS AND INTERESTS
ACQUIRED  OR USED FOR A PROJECT; THE COST OF DEMOLISHING OR REMOVING ANY
BUILDINGS OR STRUCTURES ON LAND  SO  ACQUIRED,  INCLUDING  THE  COST  OF
ACQUIRING  ANY  LANDS TO WHICH THE BUILDINGS OR STRUCTURES MAY BE MOVED;
THE COST OF ALL MACHINERY, EQUIPMENT  AND  FINANCING  CHARGES;  INTEREST
PRIOR  TO,  DURING  AND  FOR  A PERIOD AFTER COMPLETION OF CONSTRUCTION,
RENOVATION OR ACQUISITION, AS DETERMINED BY  THE  BANK;  PROVISIONS  FOR
WORKING CAPITAL; RESERVES FOR PRINCIPAL AND INTEREST AND FOR EXTENSIONS,
ENLARGEMENTS, ADDITIONS, REPLACEMENTS, RENOVATIONS AND IMPROVEMENTS; AND
THE  COST  OF  ARCHITECTURAL, ENGINEERING, FINANCIAL AND LEGAL SERVICES,
PLANS, SPECIFICATIONS,  ESTIMATES,  ADMINISTRATIVE  EXPENSES  AND  OTHER
EXPENSES  NECESSARY  OR INCIDENTAL TO DETERMINING THE FEASIBILITY OF ANY
PROJECT OR INCIDENTAL TO THE CONSTRUCTION, ACQUISITION OR  FINANCING  OF
ANY PROJECT.
  6. "ECONOMIC DEVELOPMENT FACILITIES" MEANS REAL AND PERSONAL PROPERTY,
STRUCTURES,  BUILDINGS, EQUIPMENT AND SUPPORTING COMPONENTS THEREOF THAT
ARE USED TO  PROVIDE  INDUSTRIAL,  RECREATIONAL,  RESEARCH,  COMMERCIAL,
UTILITY   OR  SERVICE  ENTERPRISE  FACILITIES,  COMMUNITY,  EDUCATIONAL,
CULTURAL OR SOCIAL WELFARE FACILITIES  AND  ANY  PARTS  OR  COMBINATIONS
THEREOF  AND  ALL FACILITIES OR INFRASTRUCTURE NECESSARY OR DESIRABLE IN
CONNECTION THEREWITH, INCLUDING PROVISION FOR WORKING CAPITAL, BUT SHALL
NOT INCLUDE ANY HOUSING.

S. 4099--A                          3

  7."EXECUTIVE DIRECTOR" MEANS  THE  EXECUTIVE  DIRECTOR  OF  THE  STATE
INFRASTRUCTURE  AND  ECONOMIC  DEVELOPMENT  BANK  APPOINTED  PURSUANT TO
SECTION FIVE HUNDRED ONE OF THIS ARTICLE.
  8.  "FACILITIES" MEANS REAL AND PERSONAL PROPERTY, STRUCTURES, CONVEY-
ANCES, EQUIPMENT, THOROUGHFARES,  BUILDINGS  AND  SUPPORTING  COMPONENTS
THEREOF,  EXCLUDING  ANY HOUSING, THAT ARE DIRECTLY RELATED TO PROVIDING
THE FOLLOWING:
  (A) "CITY STREETS" INCLUDING  ANY  STREET,  AVENUE,  BOULEVARD,  ROAD,
PARKWAY, DRIVE OR OTHER WAY THAT IS ANY OF THE FOLLOWING:
  (1) AN EXISTING MUNICIPAL ROADWAY.
  (2)  IS  SHOWN  UPON  A PLAT APPROVED PURSUANT TO LAW AND INCLUDES THE
LAND BETWEEN THE STREET LINES, WHETHER IMPROVED OR  UNIMPROVED  AND  MAY
COMPRISE PAVEMENT, BRIDGES, SHOULDERS, GUTTERS, CURBS, GUARDRAILS, SIDE-
WALKS,  PARKING  AREAS,  BENCHES, FOUNTAINS, PLANTINGS, LIGHTING SYSTEMS
AND OTHER AREAS WITHIN THE STREET LINES, AS WELL AS EQUIPMENT AND FACIL-
ITIES USED IN THE CLEANING, GRADING, CLEARANCE, MAINTENANCE  AND  UPKEEP
THEREOF.
  (B)  "COUNTY  ROADS" INCLUDING ANY COUNTY ROADS AS DEFINED IN SUBDIVI-
SION FOUR OF SECTION THREE OF THE HIGHWAY LAW, THAT  INCLUDES  THE  LAND
BETWEEN  THE  HIGHWAY  LINES,  WHETHER  IMPROVED  OR  UNIMPROVED AND MAY
COMPRISE PAVEMENT, BRIDGES, SHOULDERS, GUTTERS, CURBS, GUARDRAILS, SIDE-
WALKS, PARKING AREAS, BENCHES, FOUNTAINS,  PLANTINGS,  LIGHTING  SYSTEMS
AND OTHER AREAS WITHIN THE STREET LINES, AS WELL AS EQUIPMENT AND FACIL-
ITIES  USED  IN THE CLEANING, GRADING, CLEARANCE, MAINTENANCE AND UPKEEP
THEREOF.
  (C) "DRAINAGE, WATER SUPPLY AND  FLOOD  CONTROL"  INCLUDING,  BUT  NOT
LIMITED TO, DITCHES, CANALS, LEVEES, PUMPS, DAMS, CONDUITS, PIPES, STORM
SEWERS  AND  DIKES  NECESSARY  TO KEEP OR DIRECT WATER AWAY FROM PEOPLE,
EQUIPMENT, BUILDINGS AND OTHER PROTECTED AREAS AS MAY BE ESTABLISHED  BY
LAWFUL  AUTHORITY,  AS WELL AS THE ACQUISITION, IMPROVEMENT, MAINTENANCE
AND MANAGEMENT OF FLOODPLAIN AREAS AND ALL EQUIPMENT USED IN THE MAINTE-
NANCE AND OPERATION OF THE FOREGOING.
  (D) "EDUCATIONAL FACILITIES" INCLUDING SCHOOLS, LIBRARIES, CHILD  CARE
FACILITIES AND EMPLOYMENT TRAINING FACILITIES.
  (E)    "ENVIRONMENTAL    MITIGATION   MEASURES"   INCLUDING   REQUIRED
CONSTRUCTION OR MODIFICATION OF PUBLIC INFRASTRUCTURE AND  PURCHASE  AND
INSTALLATION OF POLLUTION CONTROL AND NOISE ABATEMENT EQUIPMENT.
  (F)  "PARKS AND RECREATIONAL FACILITIES" INCLUDING LOCAL PARKS, RECRE-
ATIONAL PROPERTY AND EQUIPMENT, PARKWAYS AND PROPERTY.
  (G) "PORT FACILITIES" INCLUDING DOCKS, HARBORS, PORTS OF ENTRY, PIERS,
SHIPS, SMALL BOAT HARBORS AND MARINAS AND ANY  OTHER  FACILITIES,  ADDI-
TIONS OR IMPROVEMENTS IN CONNECTION THEREWITH.
  (H)  "POWER  AND  COMMUNICATIONS"  INCLUDING FACILITIES FOR THE TRANS-
MISSION OR DISTRIBUTION OF ELECTRICAL ENERGY, NATURAL GAS AND  TELEPHONE
AND TELECOMMUNICATIONS SERVICE.
  (I)  "PUBLIC  TRANSIT"  INCLUDING  AIR  AND  RAIL  TRANSPORT OF GOODS,
AIRPORTS, GUIDEWAYS, VEHICLES, RIGHTS-OF-WAY, PASSENGER STATIONS,  MAIN-
TENANCE AND STORAGE YARDS AND RELATED STRUCTURES, INCLUDING PUBLIC PARK-
ING  FACILITIES,  EQUIPMENT USED TO PROVIDE OR ENHANCE TRANSPORTATION BY
BUS, RAIL, FERRY OR  OTHER  CONVEYANCE,  EITHER  PUBLICLY  OR  PRIVATELY
OWNED, THAT PROVIDES TO THE PUBLIC GENERAL OR SPECIAL SERVICE ON A REGU-
LAR AND CONTINUING BASIS.
  (J)  "SEWAGE  COLLECTION  AND  TREATMENT"  INCLUDING  PIPES, PUMPS AND
CONDUITS THAT COLLECT WASTEWATER  FROM  RESIDENTIAL,  MANUFACTURING  AND
COMMERCIAL ESTABLISHMENTS, THE EQUIPMENT, STRUCTURES AND FACILITIES USED
IN TREATING WASTEWATER TO REDUCE OR ELIMINATE IMPURITIES OR CONTAMINANTS

S. 4099--A                          4

AND  THE  FACILITIES  USED  IN  DISPOSING  OF OR TRANSPORTING, REMAINING
SLUDGE, AS WELL AS ALL EQUIPMENT USED IN THE MAINTENANCE  AND  OPERATION
OF THE FOREGOING.
  (K)  "SOLID  WASTE  COLLECTION AND DISPOSAL" INCLUDING VEHICLES, VEHI-
CLE-COMPATIBLE WASTE RECEPTACLES, TRANSFER STATIONS, RECYCLING  CENTERS,
SANITARY  LANDFILLS  AND WASTE CONVERSION FACILITIES NECESSARY TO REMOVE
SOLID WASTE, EXCEPT THAT WHICH IS HAZARDOUS, AS DEFINED BY LAW, FROM ITS
POINT OF ORIGIN.
  (L) "WATER TREATMENT AND DISTRIBUTION" INCLUDING FACILITIES  IN  WHICH
WATER IS PURIFIED AND OTHERWISE TREATED TO MEET RESIDENTIAL, MANUFACTUR-
ING OR COMMERCIAL PURPOSES AND THE CONDUITS, PIPES AND PUMPS THAT TRANS-
PORT IT TO PLACES OF USE.
  (M)  "DEFENSE  CONVERSION"  INCLUDING,  BUT NOT LIMITED TO, FACILITIES
NECESSARY FOR SUCCESSFULLY CONVERTING MILITARY BASES CONSISTENT WITH  AN
ADOPTED BASE REUSE PLAN.
  (N)  "PUBLIC  SAFETY FACILITIES" INCLUDING, BUT NOT LIMITED TO, POLICE
STATIONS, FIRE STATIONS, COURT  BUILDINGS,  JAILS,  JUVENILE  HALLS  AND
JUVENILE DETENTION FACILITIES.
  (O)  "STATE HIGHWAYS" INCLUDING ANY STATE HIGHWAY AS DEFINED IN SUBDI-
VISION ONE OF SECTION THREE OF THE HIGHWAY LAW AND  THE  RELATED  COMPO-
NENTS NECESSARY FOR SAFE OPERATION OF THE HIGHWAY.
  (P) MILITARY INFRASTRUCTURE, INCLUDING, BUT NOT LIMITED TO, FACILITIES
ON  OR NEAR A MILITARY INSTALLATION THAT ENHANCE THE MILITARY OPERATIONS
AND MISSION OF ONE OR MORE MILITARY INSTALLATIONS  IN  THIS  STATE.  FOR
PURPOSES  OF  THIS PARAGRAPH, "MILITARY INSTALLATION" MEANS ANY FACILITY
UNDER THE JURISDICTION OF THE UNITED STATES DEPARTMENT  OF  DEFENSE,  AS
DEFINED IN PARAGRAPH ONE OF SUBSECTION (E) OF SECTION TWENTY-SIX HUNDRED
EIGHTY-SEVEN OF TITLE TEN OF THE UNITED STATES CODE.
  9.  "FINANCIAL ASSISTANCE" IN CONNECTION WITH A PROJECT, INCLUDES, BUT
IS NOT LIMITED TO, ANY COMBINATION OF GRANTS,  LOANS,  THE  PROCEEDS  OF
BONDS ISSUED BY THE BANK OR SPECIAL PURPOSE TRUST, INSURANCE, GUARANTEES
OR  OTHER  CREDIT ENHANCEMENTS OR LIQUIDITY FACILITIES AND CONTRIBUTIONS
OF MONEY, PROPERTY, LABOR OR OTHER THINGS OF VALUE, AS MAY  BE  APPROVED
BY  RESOLUTION  OF  THE  BOARD  OR  THE SPONSOR OR BOTH; THE PURCHASE OR
RETENTION OF BANK BONDS, THE BONDS OF A SPONSOR FOR THEIR  RETENTION  OR
FOR  SALE  BY  THE  BANK OR THE ISSUANCE OF BANK BONDS OR THE BONDS OF A
SPECIAL PURPOSE TRUST USED TO FUND THE COST OF A  PROJECT  FOR  WHICH  A
SPONSOR IS DIRECTLY OR INDIRECTLY LIABLE, INCLUDING, BUT NOT LIMITED TO,
BONDS,  THE  SECURITY FOR WHICH IS PROVIDED IN WHOLE OR IN PART PURSUANT
TO THE POWERS GRANTED BY SECTION FIVE  HUNDRED  FOUR  OF  THIS  ARTICLE;
BONDS  FOR  WHICH  THE  BANK  HAS  PROVIDED  A GUARANTEE OR ENHANCEMENT,
INCLUDING, BUT NOT LIMITED TO, THE PURCHASE OF THE SUBORDINATED BONDS OF
THE SPONSOR, THE SUBORDINATED BONDS OF A SPECIAL PURPOSE  TRUST  OR  THE
RETENTION OF THE SUBORDINATED BONDS OF THE BANK PURSUANT TO SECTION FIVE
HUNDRED  FOURTEEN  OR FIVE HUNDRED FIFTEEN OF THIS ARTICLE; OR ANY OTHER
TYPE OF ASSISTANCE DEEMED APPROPRIATE BY THE BANK OR THE SPONSOR.
  FOR PURPOSES OF THIS SUBDIVISION, "GRANT" DOES NOT INCLUDE GRANTS MADE
BY THE BANK EXCEPT WHEN ACTING AS  AN  AGENT  OR  INTERMEDIARY  FOR  THE
DISTRIBUTION  OR  PACKAGING OF FINANCING AVAILABLE FROM FEDERAL, PRIVATE
OR OTHER PUBLIC SOURCES.
  10. "GUARANTEE TRUST FUND" MEANS THE  STATE  INFRASTRUCTURE  GUARANTEE
TRUST  FUND,  ESTABLISHED PURSUANT TO SECTION NINETY-NINE-V OF THE STATE
FINANCE LAW.
  11. "INFRASTRUCTURE BANK FUND"  MEANS  THE  STATE  INFRASTRUCTURE  AND
ECONOMIC  DEVELOPMENT BANK FUND, ESTABLISHED PURSUANT TO SECTION NINETY-
NINE-U OF THE STATE FINANCE LAW.

S. 4099--A                          5

  12. "LOAN AGREEMENT" MEANS A CONTRACTUAL  AGREEMENT  EXECUTED  BETWEEN
THE BANK OR A SPECIAL PURPOSE TRUST AND A SPONSOR THAT PROVIDES THAT THE
BANK  OR  SPECIAL  PURPOSE TRUST WILL LOAN FUNDS TO THE SPONSOR AND THAT
THE SPONSOR WILL REPAY THE PRINCIPAL AND PAY THE INTEREST AND REDEMPTION
PREMIUM, IF ANY, ON THE LOAN.
  13.  "PARTICIPATING PARTY" MEANS ANY PERSON, ASSOCIATION, PARTNERSHIP,
COMPANY, CORPORATION, FIRM, BUSINESS TRUST, JOINT VENTURE, FUND OR OTHER
PRIVATE BUSINESS ENTITY, ANY STATE OR MUNICIPAL GOVERNMENTAL  ENTITY  OR
ANY  OTHER  ENTITY OR GROUP OF ENTITIES, WHETHER ORGANIZED FOR PROFIT OR
NOT FOR PROFIT, ENGAGED IN BUSINESS OR OPERATIONS WITHIN THE  STATE  AND
THAT  APPLIES  FOR FINANCING FROM THE BANK IN CONJUNCTION WITH A SPONSOR
FOR THE PURPOSE OF IMPLEMENTING A PROJECT.
  14. "PROJECT" MEANS DESIGNING, ACQUIRING, PLANNING, PERMITTING,  ENTI-
TLING,  CONSTRUCTING,  IMPROVING,  EXTENDING,  RESTORING,  FINANCING AND
GENERALLY DEVELOPING ECONOMIC DEVELOPMENT FACILITIES WITHIN THE STATE.
  15. "REVENUES" MEANS ALL RECEIPTS, PURCHASE PAYMENTS, LOAN REPAYMENTS,
LEASE PAYMENTS AND ALL OTHER INCOME OR RECEIPTS DERIVED BY THE BANK OR A
SPONSOR FROM THE SALE, LEASE OR OTHER FINANCING  ARRANGEMENT  UNDERTAKEN
BY  THE  BANK,  A  SPONSOR  OR A PARTICIPATING PARTY, INCLUDING, BUT NOT
LIMITED TO, ALL RECEIPTS FROM A BOND PURCHASE AGREEMENT AND  ANY  INCOME
OR  REVENUE  DERIVED  FROM  THE  INVESTMENT  OF ANY MONEY IN ANY FUND OR
ACCOUNT OF THE BANK OR A SPONSOR AND ANY RECEIPTS DERIVED FROM PROPERTY.
REVENUES SHALL NOT INCLUDE MONEYS IN THE GENERAL FUND OF THE STATE.
  16. "SPECIAL PURPOSE TRUST" MEANS A TRUST, PARTNERSHIP, LIMITED  PART-
NERSHIP,  ASSOCIATION,  CORPORATION, NOT-FOR-PROFIT CORPORATION OR OTHER
ENTITY AUTHORIZED UNDER THE LAWS OF THE STATE TO SERVE AS AN  INSTRUMEN-
TALITY  OF THE STATE TO ACCOMPLISH PUBLIC PURPOSES AND AUTHORIZED BY THE
BANK TO ACQUIRE, BY PURCHASE OR OTHERWISE, FOR RETENTION  OR  SALE,  THE
BONDS  OF A SPONSOR OR OF THE BANK MADE OR ENTERED INTO PURSUANT TO THIS
ARTICLE AND TO ISSUE SPECIAL PURPOSE TRUST BONDS  OR  OTHER  OBLIGATIONS
SECURED BY THESE BONDS OR OTHER SOURCES OF PUBLIC OR PRIVATE REVENUES.
  17.  "SPONSOR" MEANS THE STATE; A COUNTY, CITY, TOWN, VILLAGE OR OTHER
MUNICIPALITY OR POLITICAL SUBDIVISION OF THE STATE; A SCHOOL DISTRICT OR
ANY GOVERNMENTAL ENTITY OPERATING A PUBLIC SCHOOL, COLLEGE OR  UNIVERSI-
TY;  A  PUBLIC  IMPROVEMENT  OR  SPECIAL  DISTRICT;  A PUBLIC AUTHORITY,
COMMISSION OR PUBLIC BENEFIT CORPORATION; ANY OTHER PUBLIC  CORPORATION,
AGENCY  OR INSTRUMENTALITY OR UNIT OF GOVERNMENT WHICH EXERCISES GOVERN-
MENTAL POWERS UNDER THE LAWS OF THE STATE; OR ANY COMBINATION  OF  THESE
ENTITIES  THAT MAKES AN APPLICATION TO THE BANK FOR FINANCIAL ASSISTANCE
IN CONNECTION WITH A PROJECT IN A MANNER PRESCRIBED BY  THE  BANK.  THIS
DEFINITION  SHALL  NOT BE CONSTRUED TO REQUIRE THAT AN APPLICANT HAVE AN
OWNERSHIP INTEREST IN THE PROJECT. IN ADDITION, ANY PERSON, ASSOCIATION,
PARTNERSHIP, COMPANY, CORPORATION, FIRM, BUSINESS TRUST, JOINT  VENTURE,
FUND  OR  OTHER  PRIVATE  BUSINESS  ENTITY  OR ANY OTHER ENTITY OR GROUP
ENGAGED IN BUSINESS OR OPERATION  WITHIN  THE  STATE  THAT  APPLIES  FOR
FINANCING  OF  ANY  ECONOMIC DEVELOPMENT FACILITY, SHALL BE DEEMED TO BE
THE SPONSOR AS WELL AS THE PARTICIPATING PARTY FOR THE PROJECT  RELATING
TO THE FINANCING OF THAT ECONOMIC DEVELOPMENT FACILITY.
  S  501.  CREATION OF THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT
BANK. 1. THERE IS HEREBY CREATED THE STATE INFRASTRUCTURE  AND  ECONOMIC
DEVELOPMENT  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. 4099--A                          6

  S  502.  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 BUDGET OR HIS OR HER DESIGNEE.
  (B) THE STATE COMPTROLLER OR HIS OR HER DESIGNEE.
  (C)  THE COMMISSIONER 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 BOARD.
  S 503. DUTIES OF EXECUTIVE DIRECTOR. 1. THE EXECUTIVE  DIRECTOR  SHALL
MANAGE AND CONDUCT THE BUSINESS AND AFFAIRS OF THE BANK, THE INFRASTRUC-
TURE BANK FUND AND THE 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
ARTICLE.  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.  IN  ADMINISTERING  AND  DIRECTING THE DAY-TO-DAY OPERATIONS OF THE
BANK, THE INFRASTRUCTURE BANK FUND AND THE  GUARANTEE  TRUST  FUND,  THE
EXECUTIVE  DIRECTOR OR WHOEVER HE OR SHE SHALL ASSIGN, MAY DO ANY OF THE
FOLLOWING WITHOUT  AUTHORIZATION  BY  RESOLUTION  OF  THE  BOARD  UNLESS
SPECIFICALLY RESTRICTED BY RESOLUTION OF THE BOARD:
  (A) ENTER INTO CONTRACTS FOR INVESTMENT, GUARANTEE OR ENHANCEMENT.
  (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 INTENTS 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.

S. 4099--A                          7

  (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 AND
SECTIONS NINETY-NINE-U AND NINETY-NINE-V OF THE STATE FINANCE LAW.
  (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 ARTICLE.
  3.  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.
  S  504.  DUTIES  OF  THE BOARD OF DIRECTORS. 1. THE 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.
  2.  THE BOARD MAY DO OR DELEGATE THE FOLLOWING TO THE EXECUTIVE DIREC-
TOR:
  (A) SUE AND BE SUED IN ITS OWN NAME.
  (B) 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 OF FIDUCIARY OBLIGATION BY THE FIDUCI-
ARY.
  (C)  AS PROVIDED IN SECTION NINETY-NINE-V OF THE STATE FINANCE LAW AND
SECTION FIVE HUNDRED FIFTEEN OF THIS ARTICLE, 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.
  (D)  ENGAGE THE SERVICES OF PRIVATE CONSULTANTS TO RENDER PROFESSIONAL
AND TECHNICAL ASSISTANCE AND ADVICE IN CARRYING OUT THE PURPOSES OF THIS
ARTICLE.
  (E) EMPLOY ATTORNEYS, FINANCIAL CONSULTANTS AND OTHER ADVISERS AS MAY,
IN THE BOARD'S JUDGMENT, BE NECESSARY IN CONNECTION  WITH  THE  ISSUANCE
AND SALE OR AUTHORIZATION OF SPECIAL PURPOSE TRUSTS FOR THE ISSUANCE AND
SALE, OF ANY BONDS.
  (F)  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.
  (G)  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.
  (H)  ACQUIRE, TAKE TITLE TO AND SELL BY INSTALLMENT SALE OR OTHERWISE,
LANDS, STRUCTURES, REAL OR  PERSONAL  PROPERTY,  RIGHTS,  RIGHTS-OF-WAY,
FRANCHISES,  EASEMENTS  AND  OTHER  INTERESTS  IN LANDS THAT ARE LOCATED
WITHIN THE STATE, AS THE BANK MAY DEEM NECESSARY OR CONVENIENT  FOR  THE

S. 4099--A                          8

FINANCING OF THE PROJECT, UPON TERMS AND CONDITIONS THAT IT CONSIDERS TO
BE REASONABLE.
  (I)  RECEIVE AND ACCEPT FROM ANY SOURCE INCLUDING, BUT NOT LIMITED TO,
THE FEDERAL GOVERNMENT, THE STATE OR ANY AGENCY THEREOF, LOANS, CONTRIB-
UTIONS OR GRANTS, IN MONEY, PROPERTY, LABOR OR OTHER  THINGS  OF  VALUE,
FOR OR IN AID OF, A PROJECT OR ANY PORTION THEREOF.
  (J)  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.
  (K)  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.
  (L)  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.
  (M)  ASSIGN  OR  PLEDGE  ALL OR ANY PORTION OF THE BANK'S INTERESTS IN
PROPERTY AND THE REVENUES THEREFROM OR ASSETS, THINGS  OF  VALUE,  MORT-
GAGES, DEEDS OF TRUST, BONDS, BOND PURCHASE AGREEMENTS, LOAN AGREEMENTS,
INDENTURES  OF MORTGAGE OR TRUST OR SIMILAR INSTRUMENTS, NOTES AND SECU-
RITY 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.
  (N) MAKE, RECEIVE OR SERVE AS A CONDUIT FOR THE MAKING OF OR OTHERWISE
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.
  (O)  LEASE  THE PROJECT BEING FINANCED TO A SPONSOR OR A PARTICIPATING
PARTY, UPON TERMS AND CONDITIONS THAT THE BANK  DEEMS  PROPER,  PROVIDED
THAT  SUCH  PROJECT  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 OBLIGATIONS 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  INDEBT-
EDNESS  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.
  (P) 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.
  (Q) 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
REPAYMENT  OF  INTEREST OR PRINCIPAL OR BOTH OR ANY PART THEREOF, ON ANY

S. 4099--A                          9

LOAN, LEASE OR OBLIGATION OR ANY INSTRUMENT EVIDENCING OR  SECURING  THE
SAME, MADE OR ENTERED INTO PURSUANT TO THIS ARTICLE.
  (R)  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.
  (S)  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  STATE
COMPTROLLER  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
SPONSOR,  THE BANK OR THE STATE OR ANY AGENCIES THEREOF BY REASON OF ANY
GRANT, ALLOCATION, APPORTIONMENT OR APPROPRIATION OF THE FEDERAL GOVERN-
MENT 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  STATE  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  GOVERNMENT  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.
  (T)  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 CURREN-
CY  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.
  (U) PURCHASE, WITH THE PROCEEDS OF THE BANK'S BONDS, PROPERTY 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
PROPERTY  PURCHASED  PURSUANT  TO  THIS ARTICLE 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 TOGETH-
ER  WITH  OTHER  BONDS  ISSUED BY THE BANK AND NOTWITHSTANDING ANY OTHER
PROVISION OF LAW, MAY BE BOUGHT BY THE BANK AT PRIVATE SALE.

S. 4099--A                         10

  (V) 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 PROPERTY.
  (W)  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.
  (X) AUTHORIZE A SPECIAL PURPOSE TRUST OR TRUSTS TO PURCHASE OR RETAIN,
WITH THE PROCEEDS OF THE BONDS OF A SPECIAL PURPOSE TRUST, 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 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 NOTWITH-
STANDING  ANY  OTHER PROVISION OF LAW, MAY BE BOUGHT BY THE BANK OR BY A
SPECIAL PURPOSE TRUST AT PRIVATE SALE.
  (Y) 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 AND PROCEEDS OF  LOANS
FROM THE GENERAL FUND.
  (Z)  ESTABLISH  A  REASONABLE  SCHEDULE  OF ADMINISTRATIVE FEES, WHICH
SHALL BE PAID BY THE SPONSOR OR  THE  PARTICIPATING  PARTY  PURSUANT  TO
SECTION  FIVE  HUNDRED SEVENTEEN OF THIS ARTICLE, TO REIMBURSE THE STATE
FOR THE COSTS OF ADMINISTERING THIS ARTICLE.
  (AA) 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.
  S 505. INSURANCE OR REINSURANCE. 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  THERE-
FROM,  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  THE  STATE,
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 CLASSI-
FICATIONS 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--A                         11

  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  506.  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, EXECU-
TORS, 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 SECURITIES 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.  WHERE A STATE AGENCY IS AUTHORIZED UNDER STATE LAW TO REQUEST THAT
THE BANK ISSUE BONDS ON ITS BEHALF, THE AGENCY MAY REQUEST AND THE  BANK
MAY ISSUE, THE BONDS FOR THE PURPOSE AUTHORIZED BY STATE LAW AND TO FUND
ANY NECESSARY RESERVES, CAPITALIZED INTEREST AND COSTS OF ISSUANCE ASSO-
CIATED WITH THE BONDS.
  S  507.  INDEBTEDNESS  OF  BANK. 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 NEEDED FROM THE GENERAL FUND, AS SPECIFIED IN SUBDI-
VISION  (Y)  OF  SECTION  FIVE  HUNDRED FOUR OF THIS ARTICLE OR FROM ANY
SPECIAL FUNDS, INCLUDING THE SPECIAL FUNDS OF EXISTING FINANCING AUTHOR-
ITIES. THE BORROWED MONEY SHALL BE REPAID WITH INTEREST WITHIN A REASON-
ABLE TIME AFTER THE BANK RECEIVES REVENUES OR  PROCEEDS  FROM  BONDS  AS
PROVIDED UNDER THIS ARTICLE.
  S  508. 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 THER-
EFROM, 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 509. STATE'S PLEDGE AND UNDERTAKING. THE STATE DOES 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 WILL NOT LIMIT OR ALTER THE RIGHTS HERE-
BY VESTED IN THE BANK TO FINANCE ANY PROJECT AND TO FULFILL THE TERMS OF
ANY  LOAN  AGREEMENT,  LEASE OR OTHER CONTRACT WITH THE BANK 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--A                         12

THE BANK, AS AGENT FOR THE STATE, MAY INCLUDE THIS PLEDGE AND  UNDERTAK-
ING FOR THE STATE IN ITS OBLIGATIONS OR CONTRACTS.
  S  510. REPORTS. 1. THE BANK SHALL, NOT LATER THAN THE FIRST OF NOVEM-
BER 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 BANK'S COSTS. THE INFORMATION PROVIDED PURSU-
ANT TO THIS PARAGRAPH SHALL INCLUDE, BUT NEED NOT BE LIMITED TO, BOTH OF
THE FOLLOWING:
  (I) THE AMOUNT AND SOURCE OF TOTAL BANK REVENUES.  REVENUES  SHALL  BE
SHOWN  BY MAIN CATEGORIES OF REVENUES, INCLUDING INTEREST EARNINGS, FEES
COLLECTED AND BOND PROCEEDS, FOR EACH BANK PROGRAM.
  (II) THE AMOUNT AND TYPE OF TOTAL  BANK  EXPENDITURES.    EXPENDITURES
SHALL  BE  SHOWN  BY  MAJOR  CATEGORIES OF EXPENDITURES, INCLUDING LOANS
PROVIDED, DEBT SERVICE PAYMENTS AND PROGRAM SUPPORT COSTS, FOR EACH BANK
PROGRAM.
  (E) A PROJECTION OF THE BANK'S NEEDS AND REQUIREMENTS 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,  THE  DIRECTOR  OF  THE BUDGET, THE TEMPORARY PRESIDENT OF THE
SENATE AND THE SPEAKER OF THE ASSEMBLY ON A QUARTERLY BASIS  DURING  THE
TWO  THOUSAND  THIRTEEN--TWO  THOUSAND  FOURTEEN FISCAL YEAR AND THE TWO
THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN FISCAL YEAR.
  S 511. CRITERIA, PRIORITIES AND GUIDELINES FOR SELECTION OF  PROJECTS.
1.  FOLLOWING  CONSULTATION  WITH  APPROPRIATE STATE AND LOCAL AGENCIES,
INCLUDING, BUT NOT LIMITED TO, THE DEPARTMENT, THE DEPARTMENT  OF  ENVI-
RONMENTAL  CONSERVATION  AND THE DEPARTMENT OF ECONOMIC DEVELOPMENT, 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. WHEN THE BANK ESTABLISHES OR MAKES CHANGES TO THE CRITERIA, PRIORI-
TIES AND GUIDELINES, THE BANK SHALL NOTIFY THE GOVERNOR, THE DIRECTOR OF
THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE, THE  SPEAKER  OF  THE
ASSEMBLY AND APPROPRIATE STATE AND LOCAL AGENCIES.
  3.  THE  RESOLUTION  REQUIRED  IN  SECTION FIVE HUNDRED TWELVE OF THIS
ARTICLE SHALL HAVE BEEN ADOPTED PRIOR TO THE PROJECT'S SELECTION BY  THE
BANK.
  S  512.  MANDATORY RESOLUTION. 1. PRIOR TO SUBMITTING A PROJECT TO THE
BANK FOR CONSIDERATION, THE LEGISLATIVE BODY OR BODIES  OF  A  MUNICIPAL
SPONSOR  OR SPONSORS OF A PROJECT SHALL FIND, BY RESOLUTION, EACH OF THE
FOLLOWING:
  (A) THE PROJECT IS CONSISTENT WITH THE GENERAL PLAN OF BOTH  THE  CITY
AND/OR THE COUNTY 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

S. 4099--A                         13

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.
  (D) THE PROJECT IS CONSISTENT WITH THE CRITERIA, PRIORITIES AND GUIDE-
LINES  FOR  THE  SELECTION  OF PROJECTS ADOPTED PURSUANT TO SECTION FIVE
HUNDRED ELEVEN OF THIS ARTICLE.
  2. UPON THE ADOPTION OF THE RESOLUTION BY THE LEGISLATIVE BODY  PURSU-
ANT TO SUBDIVISION ONE OF THIS SECTION, THE LEGISLATIVE BODY SHALL TRAN-
SMIT THE RESOLUTION TO THE EXECUTIVE DIRECTOR.
  S 513. FINANCING OF ECONOMIC DEVELOPMENT FACILITIES. 1. THE BANK SHALL
CONSIDER A PROJECT FOR CONDUIT FINANCING FOR ECONOMIC DEVELOPMENT FACIL-
ITIES  UPON  FILING  OF  AN  APPLICATION WITH THE BANK BY AN APPROPRIATE
PARTICIPATING PARTY, ON THE TERMS AND CONDITIONS THE BANK  SHALL  DETER-
MINE.  THE BANK SHALL ESTABLISH PROCEDURES FOR THE EXPEDITIOUS REVIEW OF
APPLICATIONS FOR THE ISSUANCE OR APPROVAL OF BONDS TO  FINANCE  ECONOMIC
DEVELOPMENT FACILITIES.
  2. 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 FIVE HUNDRED
SIXTEEN OF THIS ARTICLE TO PROVIDE FINANCING  FOR  ECONOMIC  DEVELOPMENT
PROJECTS COMPATIBLE WITH THE PUBLIC INTEREST AS SPECIFIED IN SUBDIVISION
THREE OF THIS SECTION.
  (B)  ISSUE  TAXABLE  REVENUE  BONDS  PURSUANT  TO SECTION FIVE HUNDRED
SIXTEEN OF THIS ARTICLE TO PROVIDE  FINANCING  FOR  THE  REVOLVING  LOAN
FUNDS  AND  ECONOMIC  DEVELOPMENT PROJECTS OF SMALL BUSINESS DEVELOPMENT
CORPORATIONS, LOCAL ECONOMIC DEVELOPMENT CORPORATIONS, COMMUNITY  DEVEL-
OPMENT  CORPORATIONS  AND  NONPROFIT ORGANIZATIONS, WHICH REVOLVING LOAN
FUNDS AND ECONOMIC DEVELOPMENT PROJECTS SHALL  BE  COMPATIBLE  WITH  THE
PUBLIC INTEREST AS SPECIFIED IN SUBDIVISION THREE OF THIS SECTION.
  (C)  ISSUE  TAX-EXEMPT  REVENUE BONDS PURSUANT TO SECTION FIVE HUNDRED
SIXTEEN OF THIS ARTICLE TO PROVIDE FINANCING  FOR  ECONOMIC  DEVELOPMENT
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 WITH THE PUBLIC
INTEREST AS SPECIFIED IN SUBDIVISION THREE OF THIS SECTION.
  (D) ISSUE TAX-EXEMPT REVENUE BONDS PURSUANT TO  SECTION  FIVE  HUNDRED
SIXTEEN  OF  THIS  ARTICLE  FOR  ECONOMIC  DEVELOPMENT FACILITIES OF THE
PUBLIC SECTOR AND NONPROFIT ORGANIZATIONS QUALIFYING FOR EXEMPTION UNDER
FEDERAL LAW.
  3. 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.
  (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.
  4.  (A)  ANY  LOAN  ENTERED  INTO PURSUANT TO THIS SECTION MAY CONTAIN
PROVISIONS FOR PAYMENT OF A PENALTY IF ANY RECIPIENT OF FUNDS UNDER THIS
ARTICLE 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.

S. 4099--A                         14

  (C) ANY RECIPIENT OF FUNDS UNDER THIS ARTICLE THAT UTILIZES THE  FUNDS
FOR  CONSTRUCTION PURPOSES, SHALL CERTIFY THAT THE CONTRACTORS ARE PROP-
ERLY LICENSED.
  (D)  THE  BANK  SHALL  REQUIRE  THAT THE PROPOSED ECONOMIC DEVELOPMENT
FACILITIES BE CONSISTENT WITH ANY EXISTING LOCAL OR REGIONAL  COMPREHEN-
SIVE PLAN.
  (E) THE BANK SHALL DEVELOP A POLICY REGARDING FINANCING COMPANIES THAT
MOVE WITHIN THIS STATE SO AS TO MINIMIZE ANY DISPLACEMENT OF JOBS.
  (F)  IN  ADDITION  TO  ANY  OTHER METHODS THE BANK MAY USE TO IDENTIFY
ECONOMIC DEVELOPMENT PROJECTS, THE BANK  SHALL  UTILIZE  EXISTING  LOCAL
ECONOMIC  DEVELOPMENT  ORGANIZATIONS  TO  IDENTIFY  THESE  PROJECTS  AND
PREPARE A PLAN, IN CONSULTATION WITH SUCH ORGANIZATIONS AND THEIR REPRE-
SENTATIVES, TO IMPLEMENT THIS POLICY.
  S 514. MANAGEMENT OF THE NEW YORK STATE  INFRASTRUCTURE  AND  ECONOMIC
DEVELOPMENT BANK FUND 1. THE BANK MAY PLEDGE ANY OR ALL OF THE MONEYS IN
THE  NEW  YORK  STATE  INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK FUND
ESTABLISHED PURSUANT TO SECTION NINETY-NINE-U OF THE STATE  FINANCE  LAW
AS SECURITY FOR PAYMENT OF THE PRINCIPAL OF AND INTEREST ON, ANY PARTIC-
ULAR  ISSUANCE  OF  BONDS ISSUED PURSUANT TO THIS ARTICLE. TO THE EXTENT
PERMITTED BY LAW, THE BANK MAY ALSO INVEST MONEYS OF THE GUARANTEE TRUST
FUND IN OBLIGATIONS OF FINANCIAL  INSTITUTIONS  THAT  ARE  PERMITTED  BY
BOARD  RESOLUTION.  THE  BANK  MAY  USE  ANY OR ALL OF THE MONEYS IN THE
INFRASTRUCTURE BANK FUND, INCLUDING THE  GRANT  ACCOUNT,  TO  RETAIN  OR
PURCHASE  FOR  RETENTION OR SALE, SUBORDINATED BONDS ISSUED BY THE BANK,
BY A SPECIAL PURPOSE TRUST OR BY A SPONSOR PURSUANT TO THIS ARTICLE. FOR
THESE PURPOSES OR AS NECESSARY OR CONVENIENT TO  THE  ACCOMPLISHMENT  OF
ANY  OTHER  PURPOSE  OF THE BANK, THE BANK MAY DIVIDE THE INFRASTRUCTURE
BANK FUND INTO SEPARATE ACCOUNTS OR SUBACCOUNTS. ALL MONEYS ACCRUING  TO
THE BANK PURSUANT TO THIS ARTICLE FROM ANY SOURCES SHALL BE DEPOSITED IN
THE INFRASTRUCTURE BANK FUND.
  2.  SUBJECT TO PRIORITIES THAT MAY BE CREATED BY THE PLEDGE OF PARTIC-
ULAR MONEYS IN THE INFRASTRUCTURE BANK FUND TO SECURE  ANY  ISSUANCE  OF
REVENUE  BONDS  OF  THE  BANK,  A SPECIAL PURPOSE TRUST OR A SPONSOR AND
SUBJECT FURTHER TO REASONABLE COSTS THAT MAY BE INCURRED BY THE BANK  IN
ADMINISTERING  THE PROGRAM AUTHORIZED BY THIS ARTICLE, ALL MONEYS IN THE
INFRASTRUCTURE BANK FUND DERIVED FROM ANY SOURCE, SHALL BE HELD IN TRUST
FOR THE SECURITY AND PAYMENT OF REVENUE BONDS OF  THE  BANK,  A  SPECIAL
PURPOSE  TRUST  OR  A  SPONSOR  AND SHALL NOT BE USED OR PLEDGED FOR ANY
OTHER PURPOSE SO LONG AS THE REVENUE BONDS ARE OUTSTANDING AND UNPAID.
  3. PURSUANT TO ANY AGREEMENTS WITH THE HOLDERS OF REVENUE BONDS PLEDG-
ING ANY PARTICULAR ASSETS, REVENUES OR MONEYS, THE BANK MAY CREATE SEPA-
RATE ACCOUNTS OR SUBACCOUNTS IN THE INFRASTRUCTURE BANK FUND  TO  MANAGE
THESE  ASSETS,  REVENUES OR MONEYS IN THE MANNER SET FORTH IN THE AGREE-
MENTS.
  4. THE BANK MAY, FROM TIME TO TIME, DIRECT THE COMPTROLLER  TO  INVEST
MONEYS  IN  THE  INFRASTRUCTURE  BANK FUND THAT ARE NOT REQUIRED FOR ITS
CURRENT NEEDS, INCLUDING PROCEEDS FROM THE SALE OF  ANY  BONDS,  IN  ANY
ELIGIBLE  SECURITIES  SPECIFIED  IN  SECTION NINETY-EIGHT-A OF THE STATE
FINANCE LAW, AS THE BANK SHALL DESIGNATE. THE BANK MAY DIRECT THE  COMP-
TROLLER  TO  DEPOSIT  MONEYS IN INTEREST-BEARING ACCOUNTS IN ANY BANK IN
THIS STATE OR IN ANY SAVINGS AND LOAN ASSOCIATION  IN  THIS  STATE.  THE
COMPTROLLER  SHALL BE EMPOWERED TO INVEST SUCH FUNDS PURSUANT TO SECTION
NINETY-EIGHT-A OF THE STATE FINANCE LAW CONSISTENT WITH THE PURPOSES  OF
THIS ARTICLE. ALL INTEREST OR OTHER INCREMENT RESULTING FROM THE INVEST-
MENT  OR  DEPOSIT  OF  MONEYS FROM THE INFRASTRUCTURE BANK FUND SHALL BE
DEPOSITED IN THE INFRASTRUCTURE BANK FUND.

S. 4099--A                         15

  5. THE ASSETS OF THE INFRASTRUCTURE BANK FUND SHALL BE  AVAILABLE  FOR
THE  PAYMENT  OF  THE  SALARIES AND OTHER EXPENSES CHARGED AGAINST IT IN
ACCORDANCE WITH THIS ARTICLE.
  6.  ALL EXPENSES INCURRED IN CARRYING OUT THE PURPOSES OF THIS ARTICLE
SHALL BE PAYABLE SOLELY FROM FUNDS PROVIDED PURSUANT TO THIS SECTION AND
NO LIABILITY OR OBLIGATION SHALL BE IMPOSED  UPON  THE  STATE  AND  NONE
SHALL  BE  INCURRED  BY  THE BANK BEYOND THE EXTENT TO WHICH MONEY SHALL
HAVE BEEN PROVIDED PURSUANT TO THIS ARTICLE.
  7. (A) MONEYS IN  THE  INFRASTRUCTURE  BANK  FUND  RECEIVED  FROM  THE
PROCEEDS OF BONDS ISSUED PURSUANT TO THIS ARTICLE MAY NOT BE TRANSFERRED
TO  ANY  OTHER FUND EXCEPT AS NECESSARY TO PAY THE EXPENSES OF OPERATING
THE PROGRAM AUTHORIZED BY THIS ARTICLE, NOR SHALL THE BANK  UTILIZE  ANY
MONEYS  UNDER THE DIRECTION AND CONTROL OF THE NEW YORK MORTGAGE AGENCY,
INCLUDING, BUT NOT LIMITED TO, MONEYS IN THE NEW YORK STATE  INFRASTRUC-
TURE  TRUST  FUND,  ESTABLISHED  BY  SECTION  EIGHTY-EIGHT  OF THE STATE
FINANCE LAW OR THE HOUSING ASSISTANCE FUND ESTABLISHED BY SECTION  NINE-
TY-TWO-Q  OF THE STATE FINANCE LAW, OTHER THAN MONEYS IN THE INFRASTRUC-
TURE BANK FUND TO SATISFY LIABILITIES ARISING FROM  PROJECTS  AUTHORIZED
BY THIS ARTICLE.
  (B) THE INFRASTRUCTURE BANK FUND, ON BEHALF OF THE BANK, MAY BORROW OR
RECEIVE  MONEYS FROM THE BANK OR FROM ANY FEDERAL, STATE OR LOCAL AGENCY
OR PRIVATE ENTITY, IN ORDER TO CREATE  RESERVES  IN  THE  INFRASTRUCTURE
BANK FUND AS PROVIDED IN THIS ARTICLE AND AS AUTHORIZED BY RESOLUTION OF
THE BOARD.
  S  515.  NEW  YORK  STATE INFRASTRUCTURE GUARANTEE TRUST FUND. 1.  THE
BANK MAY, FROM TIME TO TIME, DIRECT THE COMPTROLLER TO INVEST MONEYS  IN
THE  NEW  YORK  STATE  INFRASTRUCTURE  GUARANTEE  TRUST FUND ESTABLISHED
PURSUANT TO SECTION NINETY-NINE-V OF THE STATE FINANCE LAW THAT ARE  NOT
REQUIRED  FOR  ITS CURRENT NEEDS IN ANY ELIGIBLE SECURITIES SPECIFIED IN
SECTION NINETY-EIGHT-A OF THE STATE  FINANCE  LAW,  AS  THE  BANK  SHALL
DESIGNATE.  TO  THE  EXTENT  PERMITTED  BY LAW, THE BANK MAY ALSO INVEST
MONEYS OF THE NEW YORK STATE  INFRASTRUCTURE  GUARANTEE  TRUST  FUND  IN
OBLIGATIONS OF FINANCIAL INSTITUTIONS THAT ARE PERMITTED BY BOARD RESOL-
UTION.  THE  BANK  MAY  DIRECT  THE  COMPTROLLER TO INVEST THE MONEYS BY
ENTERING INTO REPURCHASE AGREEMENTS OR  REVERSE  REPURCHASE  AGREEMENTS,
WHICH,  FOR  PURPOSES  OF  THIS  SECTION,  SHALL MEAN AGREEMENTS FOR THE
PURCHASE OR SALE OF ELIGIBLE SECURITIES PURSUANT TO WHICH THE SELLER  OR
BUYER  AGREES  TO  REPURCHASE OR SELL BACK THE SECURITIES ON OR BEFORE A
SPECIFIED DATE AND FOR A SPECIFIED AMOUNT. THE BANK MAY DIRECT THE COMP-
TROLLER TO INVEST THE MONEYS IN THE SUBORDINATED SECURITIES OF THE BANK,
A SPECIAL PURPOSE TRUST OR A SPONSOR. THE  BANK  MAY  DIRECT  THE  COMP-
TROLLER TO INVEST THE MONEYS IN INVESTMENT AGREEMENTS WITH CORPORATIONS,
FINANCIAL INSTITUTIONS OR NATIONAL ASSOCIATIONS WITHIN THE UNITED STATES
THAT  ARE RATED BY A NATIONALLY RECOGNIZED RATING SERVICE WITHIN THE TOP
THREE RATING CATEGORIES OF THE SERVICE. FOR PURPOSES  OF  THIS  SECTION,
INVESTMENT  AGREEMENTS  SHALL  MEAN  ANY AGREEMENT FOR THE INVESTMENT OF
MONEYS IN THE GUARANTEE TRUST FUND WHETHER AT FIXED OR VARIABLE INTEREST
RATES AND MAY INCLUDE, BUT NOT BE  LIMITED  TO,  REPURCHASE  AGREEMENTS,
NOTES,  UNCOLLATERALIZED  TIME DEPOSITS, CERTIFICATES OF DEPOSIT AND THE
SUBORDINATED SECURITIES OF THE BANK, A SPECIAL PURPOSE TRUST OR A  SPON-
SOR.  THE BANK MAY DIRECT THE COMPTROLLER TO DEPOSIT MONEYS IN INTEREST-
BEARING ACCOUNTS IN STATE OR NATIONAL BANKS OR  OTHER  FINANCIAL  INSTI-
TUTIONS  HAVING  PRINCIPAL  OFFICES IN THIS STATE. ALL INTEREST OR OTHER
INCREMENT RESULTING FROM THE INVESTMENT OR DEPOSIT SHALL BE DEPOSITED IN
THE GUARANTEE TRUST FUND.

S. 4099--A                         16

  2. (A) THE BANK SHALL TAKE ALL REASONABLE STEPS  TO  ENSURE  THAT  THE
GUARANTEE  RESERVE  ACCOUNT  IS CONTINUOUSLY MAINTAINED AT NOT LESS THAN
THE RESERVE ACCOUNT REQUIREMENT ESTABLISHED PURSUANT TO PARAGRAPH (B) OF
SUBDIVISION SEVEN OF SECTION NINETY-NINE-V OF THE STATE FINANCE LAW. THE
BANK SHALL PAY ALL OF THE FOLLOWING INTO THE GUARANTEE RESERVE ACCOUNT:
  (I)  MONEYS  APPROPRIATED  AND  MADE  AVAILABLE BY THE LEGISLATURE FOR
DEPOSIT IN THE ACCOUNT.
  (II) ANY PROCEEDS OF BONDS, INCLUDING GENERAL OBLIGATION BONDS, TO THE
EXTENT PROVIDED IN THE RESOLUTION, TRUST AGREEMENT, RESOLUTIONS OR TRUST
AGREEMENTS AUTHORIZING THE ISSUE THEREOF.
  (III) ANY OTHER MONEYS THAT  THE  BANK  MAY  MAKE  AVAILABLE  FOR  THE
PURPOSE OF DEPOSIT TO THE GUARANTEE RESERVE ACCOUNT.
  (B)  THE  BANK SHALL NOT CAUSE SUMS TO BE WITHDRAWN FROM THE GUARANTEE
RESERVE ACCOUNT IN AMOUNTS THAT WOULD REDUCE THE MONEYS THEREIN TO  LESS
THAN  THE  RESERVE  ACCOUNT  REQUIREMENT, EXCEPT AS NECESSARY TO SATISFY
LIABILITIES ARISING UNDER CONTRACTS OF GUARANTEE. IN THE EVENT THAT  THE
LOAN  GUARANTEE  RESERVE  ACCOUNT  IS  REDUCED  TO LESS THAN THE RESERVE
ACCOUNT REQUIREMENT, THE BANK SHALL CEASE  MAKING  COMMITMENTS  FOR  AND
CONTRACTS  OF,  GUARANTEES  AND ENHANCEMENTS UNTIL THE GUARANTEE RESERVE
ACCOUNT HAS BEEN RESTORED TO THAT REQUIREMENT.
  3. THE BANK MAY CREATE OTHER ACCOUNTS WITHIN THE GUARANTEE TRUST  FUND
AS  ARE  NECESSARY OR CONVENIENT TO CARRY OUT THE PURPOSES OF THIS ARTI-
CLE.
  4. (A) THE OBLIGATION OF THE BANK AND OF THE STATE TO PAY ANY  GUARAN-
TEE BENEFIT PURSUANT TO CONTRACTS OF GUARANTEE OR ANY OTHER CONTRACTS OR
OBLIGATIONS  OF  THE BANK, A SPECIAL PURPOSE TRUST OR SPONSOR SHALL BE A
LIMITED OBLIGATION OF THE BANK PAYABLE SOLELY FROM AMOUNTS DEPOSITED  IN
THE  GUARANTEE  TRUST  FUND  THAT  ARE MADE AVAILABLE THEREFOR UNDER THE
RESPECTIVE CONTRACTS OF GUARANTEE. THE GUARANTEE OF LOANS OR BONDS UNDER
THIS ARTICLE SHALL NOT DIRECTLY OR INDIRECTLY OR  CONTINGENTLY  OBLIGATE
THE  STATE OR ANY POLITICAL SUBDIVISION THEREOF TO LEVY OR TO PLEDGE ANY
FORM OF TAXATION WHATEVER THEREFOR OR  TO  MAKE  ANY  APPROPRIATION  FOR
THEIR PAYMENT.
  (B)  ALL  CONTRACTS OF GUARANTEE OR ANY OTHER CONTRACTS OR OBLIGATIONS
OF THE BANK, SPECIAL PURPOSE TRUST OR A SPONSOR PURSUANT TO THIS ARTICLE
SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO THE  FOLLOWING  EFFECT:
"NEITHER  THE  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
CONTRACT OF GUARANTEE."
  5.  THE BANK MAY CHARGE AND COLLECT INSURANCE GUARANTEE OR ENHANCEMENT
PREMIUMS OR OTHER FEES FOR  THE  INSURANCE  GUARANTEES  OR  ENHANCEMENTS
DESCRIBED  IN  THIS ARTICLE AND IMPOSE OTHER REASONABLE CHARGES AND FEES
FOR SERVICES PERFORMED IN CONNECTION WITH APPROVAL AND PROCESSING OF THE
GUARANTEES OR ENHANCEMENTS OR FOR POOL ASSEMBLY, LOAN SERVICING OR OTHER
SERVICES THE BANK MAY PROVIDE TO A SPECIAL SERVICE TRUST.
  S 516. ISSUANCE OF BONDS; BOND PURCHASE AGREEMENTS. 1.  (A)  THE  BANK
MAY,  FROM  TIME  TO TIME, ISSUE ITS REVENUE BONDS IN A PRINCIPAL AMOUNT
THAT THE BANK SHALL DETERMINE 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.

S. 4099--A                         17

  (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
ARTICLES SEVEN AND EIGHT OF 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  AND  MAY  ALSO  BE ISSUED BY ANY SPONSOR PURSUANT TO STATE LAW,
INCLUDING THE PUBLIC AUTHORITIES LAW, 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)  NOTWITHSTANDING SECTION FIFTY-SEVEN OF THE STATE FINANCE LAW, THE
BONDS MAY BE SOLD AT A DISCOUNT AT ANY RATE  AS  THE  BANK  AND  SPONSOR
SHALL DETERMINE.
  (C)  NOTWITHSTANDING SECTION FIFTY-SEVEN OF THE STATE FINANCE LAW, THE
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.  BONDS FOR WHICH MONEYS OR SECURITIES HAVE BEEN DEPOSITED IN TRUST,
IN AMOUNTS NECESSARY TO PAY OR REDEEM THE PRINCIPAL,  INTEREST  AND  ANY
REDEMPTION  PREMIUM  THEREON,  SHALL BE DEEMED NOT TO BE OUTSTANDING FOR
PURPOSES OF THIS SECTION.
  4. (A) 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.
  (B) 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.
  (C)  ANY  ACTION  UNDER THIS SECTION SHALL BE AT THE DISCRETION OF THE
BANK.
  5. THE COMPTROLLER, THE GOVERNOR OR  THE  LIEUTENANT  GOVERNOR  IS  AN
ELECTED  REPRESENTATIVE  OF  THE  STATE AUTHORIZED TO FULFILL THE PUBLIC
APPROVAL  REQUIREMENT  OF  SUBDIVISION  (F)  OF  SECTION   ONE   HUNDRED
FORTY-SEVEN  OF  TITLE  TWENTY-SIX  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 ARTICLE.

S. 4099--A                         18

  S 517. BONDS AUTHORIZED; SOURCES OF REVENUE; ISSUANCE AND  SALE.    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 PARTIC-
IPATING  PARTIES OR SEVERAL PROJECTS FOR SEVERAL SPONSORS OR PARTICIPAT-
ING 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. SUBJECT TO THE LIMITATIONS IN SECTION FIVE HUNDRED SIXTEEN OF  THIS
ARTICLE,  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
DENOMINATIONS PROVIDED, BE IN THE FORM  OR  FORMS  PROVIDED,  CARRY  THE
REGISTRATION PRIVILEGES PROVIDED, BE EXECUTED IN THE MANNER PROVIDED, BE
PAYABLE IN LAWFUL MONEY OF THE UNITED STATES OR OTHER DESIGNATED CURREN-
CY,  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 IN ACCORDANCE WITH SECTION FIFTY-SEVEN
OF  THE  STATE  FINANCE LAW. 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 PRIC-
ES 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 518. BOND RESOLUTIONS. ANY RESOLUTION AUTHORIZING ANY BONDS  OR  THE
AUTHORIZATION  OF  A  SPECIAL PURPOSE TRUST OR ANY ISSUE OF BONDS OF THE
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 PLEDG-
ING ALL OR ANY PART OF THE REVENUES OF ANY PROJECT OR  ANY  REVENUE-PRO-
DUCING  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 BONDHOLDERS
AS MAY THEN EXIST AND CONSISTENT WITH ARTICLES SEVEN AND  EIGHT  OF  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.

S. 4099--A                         19

  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 519. PURCHASE OF BONDS. 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  520.  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  THEREOF,
TO  BE FINANCED OUT OF THE PROCEEDS OF THE BONDS. THE TRUST AGREEMENT 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.
  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 INDIVID-
UAL RIGHT OF ACTION BY BONDHOLDERS. IN ADDITION, ANY TRUST AGREEMENT  OR
RESOLUTION  MAY  CONTAIN OTHER PROVISIONS THAT THE BANK MAY DEEM REASON-
ABLE 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

S. 4099--A                         20

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, APPORTIONMENT
OR APPROPRIATION OF THE FEDERAL GOVERNMENT OR AGENCIES THEREOF.
  S 521. LIABILITY OF STATE. 1. BONDS ISSUED UNDER THIS ARTICLE  DO  NOT
CONSTITUTE A DEBT OR LIABILITY OF THE STATE OR OF ANY POLITICAL SUBDIVI-
SION  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 ARTICLES SEVEN AND EIGHT OF
THE STATE CONSTITUTION. THIS SUBDIVISION SHALL IN NO WAY  PRECLUDE  BOND
GUARANTEES OR ENHANCEMENTS PURSUANT TO THIS ARTICLE. 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 522. REFUND OF OUTSTANDING BONDS; PROJECT ENLARGEMENTS. 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 MATURI-
TY  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.
  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-

S. 4099--A                         21

MENTS THEREOF, SHALL BE RETURNED TO THE BANK 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 CERTIFICATES
OF  DEPOSIT OR TIME DEPOSITS SECURED BY OBLIGATIONS OF OR GUARANTEED 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  523.  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 APPROPRIATE ACCOUNT OR
SUBACCOUNT OF THE NEW YORK STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT
BANK FUND, AS PROVIDED IN SECTION NINETY-NINE-U OF THE STATE FINANCE LAW
AND AS DETERMINED BY THE BANK.
  S 2. The state finance law is amended by adding two new sections  99-u
and 99-v to read as follows:
  S  99-U.  NEW  YORK STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK
FUND. 1. THERE IS HEREBY ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER A
FUND TO BE KNOWN AS THE  NEW  YORK  STATE  INFRASTRUCTURE  AND  ECONOMIC
DEVELOPMENT BANK FUND FOR THE PURPOSE OF IMPLEMENTING THE OBJECTIVES AND
PROVISIONS  OF ARTICLE TWENTY-FOUR OF THE TRANSPORTATION LAW. WITHIN THE
FUND THERE SHALL ALSO BE ESTABLISHED A SPONSOR REVENUE BOND  ACCOUNT,  A
PARTICIPATING PARTY REVENUE BOND ACCOUNT, A STATE INFRASTRUCTURE REVOLV-
ING  ACCOUNT  AND  ADDITIONAL ACCOUNTS AND SUBACCOUNTS THAT THE BANK MAY
ESTABLISH FROM TIME TO TIME. ALL MONEYS RECEIVED BY THE FUND PURSUANT TO
ARTICLE TWENTY-FOUR OF  THE  TRANSPORTATION  LAW  FROM  WHATEVER  SOURCE
DERIVED SHALL BE DEPOSITED TO THE EXCLUSIVE CREDIT OF SUCH FUND ACCOUNT.
SAID  MONEYS SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMINGLED WITH ANY
OTHER MONEYS IN THE CUSTODY OF THE COMPTROLLER.
  2. EXCEPT AS PROVIDED IN SUBDIVISION THREE OF THIS SECTION, ALL MONEYS
IN THE FUND SHALL BE RETAINED BY THE FUND AND SHALL BE RELEASED  BY  THE
COMPTROLLER  ONLY  UPON CERTIFICATES SIGNED BY THE EXECUTIVE DIRECTOR OF
THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK FOR  THE  SUPPORT
OF  THE  BANK  AND  SHALL  BE AVAILABLE FOR EXPENDITURE FOR THE PURPOSES
STATED IN THIS SECTION AND IN ARTICLE TWENTY-FOUR OF THE  TRANSPORTATION
LAW.
  3.  MONEYS  IN  THE FUND SHALL BE AVAILABLE FOR THE PURPOSE OF GENERAL
ADMINISTRATION OF THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK
ONLY UPON APPROPRIATION BY THE  LEGISLATURE,  BUT  NOT  MORE  THAN  FIVE
PERCENT  OF  ANY  BOND PROCEEDS ADMINISTERED BY THE STATE INFRASTRUCTURE

S. 4099--A                         22

AND ECONOMIC DEVELOPMENT BANK MAY BE EXPENDED  TO  COVER  THE  COSTS  OF
ISSUANCE,  AS  THAT  TERMINOLOGY  IS  DEFINED  UNDER  SUBDIVISION (G) OF
SECTION ONE HUNDRED FORTY-SEVEN  OF  THE  INTERNAL  REVENUE  CODE.  THIS
SUBDIVISION  SHALL  NOT  LIMIT THE AUTHORITY OF THE STATE INFRASTRUCTURE
AND ECONOMIC DEVELOPMENT BANK TO EXPEND FUNDS DIRECTLY  RELATED  TO  THE
SERVICING OF APPROVED DEBT.
  4. (A) THE EXECUTIVE DIRECTOR OF THE STATE INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK MAY TRANSFER FUNDS BETWEEN THE INFRASTRUCTURE BANK FUND
AND  THE NEW YORK STATE INFRASTRUCTURE GUARANTEE TRUST FUND, ESTABLISHED
PURSUANT TO SECTION NINETY-NINE-V OF THIS ARTICLE, WHEN  APPROPRIATE  TO
ACCOMPLISH  THE FINANCING OBJECTIVES OF THIS SECTION AND ARTICLE TWENTY-
FOUR OF THE TRANSPORTATION LAW.
  (B) MONEYS IN THE FUND RECEIVED FROM  THE  PROCEEDS  OF  BONDS  ISSUED
PURSUANT  TO  ARTICLE  TWENTY-FOUR  OF THE TRANSPORTATION LAW MAY NOT BE
TRANSFERRED TO ANY OTHER FUND EXCEPT AS NECESSARY TO PAY THE EXPENSES OF
OPERATING THE PROGRAM AUTHORIZED BY SUCH ARTICLE, NOR  SHALL  THE  STATE
INFRASTRUCTURE  AND  ECONOMIC  DEVELOPMENT BANK UTILIZE ANY MONEYS UNDER
THE DIRECTION AND CONTROL OF THE  DEPARTMENT  OF  TRANSPORTATION,  OTHER
THAN  MONEYS  IN  THE FUND, TO SATISFY LIABILITIES ARISING FROM PROJECTS
AUTHORIZED BY ARTICLE TWENTY-FOUR OF THE TRANSPORTATION LAW.
  (C) THE INFRASTRUCTURE BANK FUND, ON BEHALF OF THE  STATE  INFRASTRUC-
TURE  AND  ECONOMIC  DEVELOPMENT  BANK  OR  A SPECIAL PURPOSE TRUST, MAY
BORROW OR RECEIVE MONEYS FROM ANY FEDERAL,  STATE  OR  LOCAL  AGENCY  OR
PRIVATE  ENTITY,  IN ORDER TO CREATE RESERVES IN THE INFRASTRUCTURE BANK
FUND AS PROVIDED IN ARTICLE TWENTY-FOUR OF THE TRANSPORTATION LAW AND AS
AUTHORIZED BY RESOLUTION OF THE BOARD OF DIRECTORS OF THE STATE  INFRAS-
TRUCTURE AND ECONOMIC DEVELOPMENT BANK.
  S  99-V. NEW YORK STATE INFRASTRUCTURE GUARANTEE TRUST FUND. 1.  THERE
IS HEREBY ESTABLISHED IN THE CUSTODY OF THE COMPTROLLER A  SPECIAL  FUND
TO BE KNOWN AS THE NEW YORK STATE INFRASTRUCTURE GUARANTEE TRUST FUND.
  2.  THE  FUND  SHALL  BE  A  TRUST  FUND  AND SHALL CONSIST OF A TRUST
ACCOUNT, A GUARANTEE RESERVE  ACCOUNT  AND  AN  OPERATING  ACCOUNT.  ALL
INSURANCE  PREMIUMS  RECEIVED  BY  THE STATE INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK FOR  INSURANCE,  GUARANTEES  OR  ENHANCEMENTS  PROVIDED
PURSUANT  TO  ARTICLE  TWENTY-FOUR  OF  THE  TRANSPORTATION LAW SHALL BE
DEPOSITED IN THE FUND.
  3. EXCEPT AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION, ALL  MONEYS
IN  THE  FUND SHALL BE RETAINED BY THE FUND AND SHALL BE RELEASED BY THE
COMPTROLLER ONLY UPON CERTIFICATES SIGNED BY THE EXECUTIVE  DIRECTOR  OF
THE  STATE  INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK FOR THE PURPOSE
OF INSURING ALL OR A PORTION OF THE ACCOUNTS AND SUBACCOUNTS WITHIN  THE
NEW YORK STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK FUND, ESTAB-
LISHED  PURSUANT TO SECTION NINETY-NINE-U OF THIS ARTICLE, ANY CONTRACTS
OR OBLIGATIONS OF THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK
OR A SPONSOR AND ALL OR A PART OF ANY SERIES  OF  BONDS  ISSUED  BY  THE
STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK, BY A SPECIAL PURPOSE
TRUST OR BY A SPONSOR PURSUANT TO ARTICLE TWENTY-FOUR OF THE TRANSPORTA-
TION  LAW  AND  FOR  THE  PURPOSE  OF  DEFRAYING ADMINISTRATIVE EXPENSES
INCURRED BY THE STATE INFRASTRUCTURE AND ECONOMIC  DEVELOPMENT  BANK  IN
OPERATING  THE PROGRAMS OF LOAN AND BOND GUARANTEE.  THE FUND IS AUTHOR-
IZED TO GUARANTEE ALL OR A PART OF ANY OF THE ACCOUNTS  AND  SUBACCOUNTS
WITHIN  THE  NEW YORK STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK
FUND, ANY CONTRACTS OR  OBLIGATIONS  OF  THE  STATE  INFRASTRUCTURE  AND
ECONOMIC  DEVELOPMENT BANK, A SPECIAL PURPOSE TRUST OR A SPONSOR AND ALL
OR PART OF ANY SERIES OF BONDS ISSUED BY THE  STATE  INFRASTRUCTURE  AND
ECONOMIC  DEVELOPMENT  BANK,  BY A SPECIAL PURPOSE TRUST OR BY A SPONSOR

S. 4099--A                         23

AND TO AUTHORIZE PAYMENT ON ANY GUARANTEE OR ENHANCEMENT OF THE  GUARAN-
TEE TRUST FUND.
  4. THIS SECTION SHALL NOT LIMIT THE AUTHORITY OF THE STATE INFRASTRUC-
TURE  AND  ECONOMIC DEVELOPMENT BANK TO EXPEND FUNDS DIRECTLY RELATED TO
THE SERVICING OF APPROVED DEBT.
  5. PURSUANT TO SECTION FIVE HUNDRED FIFTEEN OF THE TRANSPORTATION LAW,
ANY MONEYS IN THE FUND AND IN ANY OF THE ACCOUNTS IN SUCH FUND  MAY,  AT
THE DIRECTION OF THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK,
BE  INVESTED BY THE COMPTROLLER IN SECURITIES AND OBLIGATIONS AS DEFINED
BY SECTION NINETY-EIGHT-A OF THIS ARTICLE.  ANY  INCOME  EARNED  BY  THE
INVESTMENT  OF MONEYS IN ANY OF THE ACCOUNTS IN SUCH FUND SHALL BE ADDED
TO AND BECOME A PART OF AND SHALL BE  USED  FOR  THE  PURPOSES  OF  SUCH
ACCOUNT.
  6.  (A)  THERE  SHALL  BE  A GUARANTEE RESERVE ACCOUNT IN THE NEW YORK
STATE INFRASTRUCTURE GUARANTEE TRUST FUND TO  SECURE  COMMITMENTS  UNDER
CONTRACTS TO GUARANTEE ALL OR PART OF THE BONDS OF THE STATE INFRASTRUC-
TURE  AND  ECONOMIC  DEVELOPMENT  BANK,  A SPECIAL PURPOSE TRUST OR OF A
SPONSOR, ANY CONTRACTS OR OBLIGATIONS OF THE  STATE  INFRASTRUCTURE  AND
ECONOMIC  DEVELOPMENT  BANK, A SPECIAL PURPOSE TRUST OR OF A SPONSOR AND
ALL OR PART OF THE ACCOUNTS OR SUBACCOUNTS WITHIN  THE  NEW  YORK  STATE
INFRASTRUCTURE  AND  ECONOMIC  DEVELOPMENT BANK FUND.  THE STATE INFRAS-
TRUCTURE AND ECONOMIC DEVELOPMENT BANK SHALL TAKE ALL  REASONABLE  STEPS
TO  ENSURE THAT THE GUARANTEE RESERVE ACCOUNT IS CONTINUOUSLY MAINTAINED
AT NOT LESS THAN THE RESERVE ACCOUNT REQUIREMENT ESTABLISHED PURSUANT TO
SUBDIVISION SEVEN OF THIS SECTION. THE STATE INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT BANK SHALL PAY ALL  OF  THE  FOLLOWING  INTO  THE  GUARANTEE
RESERVE ACCOUNT:
  (I)  MONEYS  APPROPRIATED  AND  MADE  AVAILABLE BY THE LEGISLATURE FOR
DEPOSIT IN THE ACCOUNT.
  (II) ANY PROCEEDS OF BONDS, INCLUDING GENERAL OBLIGATION BONDS, TO THE
EXTENT PROVIDED IN THE RESOLUTION, TRUST AGREEMENT, RESOLUTIONS OR TRUST
AGREEMENTS AUTHORIZING THE ISSUE THEREOF.
  (III) ANY OTHER MONEYS THAT  THE  STATE  INFRASTRUCTURE  AND  ECONOMIC
DEVELOPMENT  BANK  MAY  MAKE AVAILABLE FOR THE PURPOSE OF DEPOSIT TO THE
GUARANTEE RESERVE ACCOUNT.
  (B) THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK  SHALL  NOT
CAUSE SUMS TO BE WITHDRAWN FROM THE GUARANTEE RESERVE ACCOUNT IN AMOUNTS
THAT  WOULD  REDUCE  THE MONEYS THEREIN TO LESS THAN THE RESERVE ACCOUNT
REQUIREMENT, EXCEPT AS NECESSARY TO SATISFY  LIABILITIES  ARISING  UNDER
CONTRACTS  OF  GUARANTEE.  IN  THE EVENT THAT THE LOAN GUARANTEE RESERVE
ACCOUNT IS REDUCED TO LESS THAN THE  RESERVE  ACCOUNT  REQUIREMENT,  THE
BANK SHALL CEASE MAKING COMMITMENTS FOR AND CONTRACTS OF, GUARANTEES AND
ENHANCEMENTS  UNTIL  THE  GUARANTEE RESERVE ACCOUNT HAS BEEN RESTORED TO
THAT REQUIREMENT.
  7. (A) THE LEGISLATURE MAY FROM TIME TO TIME APPROPRIATE  OR  TRANSFER
TO THE GUARANTEE RESERVE ACCOUNT FROM FUNDS OR ACCOUNTS THAT ARE LEGALLY
AVAILABLE,  AN  AMOUNT  OR AMOUNTS AS THE LEGISLATURE MAY DETERMINE. THE
LEGISLATURE MAY ESTABLISH AND FROM TIME TO TIME INCREASE, FOR THE  GUAR-
ANTEE  RESERVE ACCOUNT A REQUIREMENT THAT SHALL BE KNOWN AS THE "RESERVE
ACCOUNT REQUIREMENT."
  (B) IF THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT  BANK  DETER-
MINES  THAT  THE  AMOUNT  IN  THE  RESERVE  ACCOUNT IS BELOW THE RESERVE
ACCOUNT REQUIREMENT, THE EXECUTIVE DIRECTOR OF THE STATE  INFRASTRUCTURE
AND  ECONOMIC  DEVELOPMENT  BANK SHALL IMMEDIATELY CERTIFY IN WRITING TO
THE GOVERNOR, THE DIRECTOR OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE

S. 4099--A                         24

SENATE AND THE SPEAKER OF THE ASSEMBLY, THE SUM REQUIRED TO RESTORE  THE
RESERVE FUND TO THE RESERVE ACCOUNT REQUIREMENT.
  (C)  UPON  RECEIVING  NOTICE THAT THE AMOUNT IN THE RESERVE ACCOUNT IS
BELOW THE RESERVE ACCOUNT  REQUIREMENT,  THE  LEGISLATURE  MAY,  AT  ITS
DISCRETION,  CHOOSE  TO  APPROPRIATE AND PAY TO THE STATE INFRASTRUCTURE
AND ECONOMIC DEVELOPMENT BANK FOR DEPOSIT  INTO  THE  GUARANTEE  RESERVE
ACCOUNT  THAT  SUM  THAT  WOULD RESTORE THE RESERVE ACCOUNT TO AN AMOUNT
EQUAL TO THE RESERVE ACCOUNT REQUIREMENT.
  (D) THE STATE INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK MAY UTILIZE
ANY MONEYS THAT MAY BE APPROPRIATED TO THE  GUARANTEE  TRUST  FUND  FROM
TIME  TO  TIME BY THE LEGISLATURE FOR EFFECTUATING ITS PURPOSES, INCLUD-
ING, BUT NOT LIMITED TO, THE PAYMENT OF THE INITIAL EXPENSES OF ADMINIS-
TRATION AND OPERATION AND THE RESTORATION OF THE RESERVE ACCOUNT TO  THE
RESERVE ACCOUNT REQUIREMENT.
  8.  MONEYS  IN  THE GUARANTEE TRUST FUND MAY NOT BE TRANSFERRED TO ANY
OTHER FUND EXCEPT FOR PAYMENT ON ANY GUARANTEE OR ENHANCEMENTS OR EXCEPT
AS NECESSARY TO PAY THE EXPENSES OF OPERATING THE PROGRAM OF BOND  GUAR-
ANTEE AND ENHANCEMENT AUTHORIZED BY THIS SECTION AND ARTICLE TWENTY-FOUR
OF  THE  TRANSPORTATION LAW, NOR SHALL THE BANK UTILIZE ANY MONEYS UNDER
THE DIRECTION AND CONTROL OF THE  DEPARTMENT  OF  TRANSPORTATION,  OTHER
THAN  MONEYS IN THE GUARANTEE TRUST FUND, TO SATISFY LIABILITIES ARISING
FROM CONTRACTS OF GUARANTEE AUTHORIZED BY THIS SECTION AND ARTICLE TWEN-
TY-FOUR OF THE TRANSPORTATION LAW.
  S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.

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