Assembly Bill A10131

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

                                  10131

                          I N  A S S E M B L Y

                              May 12, 2016
                               ___________

Introduced  by  M.  of  A.  BRENNAN, WRIGHT, KAVANAGH, QUART, RODRIGUEZ,
  SEAWRIGHT -- Multi-Sponsored by -- M. of A. FARRELL -- read  once  and
  referred to the Committee on Corporations, Authorities and Commissions

AN  ACT to amend the public authorities law, in relation to establishing
  the New York city eastside finance corporation

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

  Section  1.  Article  10-D of the public authorities law is amended by
adding a new title 1-A to read as follows:
                                TITLE 1-A
             NEW YORK CITY EASTSIDE FINANCE CORPORATION ACT
SECTION 3700. SHORT TITLE.
        3701. DEFINITIONS.
        3702. NEW YORK CITY EASTSIDE FINANCE CORPORATION.
        3703. ADMINISTRATION OF THE CORPORATION.
        3704. GENERAL POWERS OF THE CORPORATION.
        3705. REVENUES OF THE CORPORATION.
        3706. MONEYS OF THE CORPORATION.
        3707. BONDS OF THE CORPORATION.
        3708. CITY LIABLE ON BONDS.
        3709. AUDITING AND REPORTING REQUIREMENTS.
        3710. ASSISTANCE TO THE CORPORATION.
  S 3700. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
"NEW YORK CITY EASTSIDE FINANCE CORPORATION ACT".
  S 3701. DEFINITIONS. FOR  THE  PURPOSES  OF  THIS  TITLE,  UNLESS  THE
CONTEXT OTHERWISE REQUIRES:
  1. "BASE YEAR" MEANS THE TWO THOUSAND SIXTEEN CALENDAR YEAR.
  2.  "BONDS"  MEANS  BONDS,  NOTES AND OTHER EVIDENCES OF INDEBTEDNESS,
ISSUED BY THE CORPORATION.
  3. "CITY" MEANS THE CITY OF NEW YORK.
  4. "CORPORATION" MEANS THE PUBLIC BENEFIT CORPORATION CREATED BY  THIS
TITLE.
  5. "COSTS" MEANS COSTS PROVIDING FOR THE CONSTRUCTION, RECONSTRUCTION,
ACQUISITION  OR  INSTALLATION OF PHYSICAL PUBLIC BETTERMENTS OR IMPROVE-

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

                                                           LBD15227-01-6

A. 10131                            2

MENTS, OR THE COSTS OF ANY PRELIMINARY STUDIES,  SURVEYS,  MAPS,  PLANS,
ESTIMATES  AND HEARINGS, OR INCIDENTAL COSTS, INCLUDING, BUT NOT LIMITED
TO, LEGAL FEES, PRINTING OR ENGRAVING, PUBLICATION OF NOTICES, TAKING OF
TITLE, APPORTIONMENT OF COSTS, AND INTEREST DURING CONSTRUCTION.
  6. "EASTSIDE DISTRICT" MEANS THE TERRITORY IN THE BOROUGH OF MANHATTAN
BOUNDED  AND  DESCRIBED AS FOLLOWS: THE DISTRICT SHALL BE BOUNDED IN THE
WEST BY FIFTH AVENUE, IN THE NORTH BY EAST 125TH STREET, IN THE EAST  BY
THE FDR DRIVE, AND IN THE SOUTH BY EAST 42ND STREET.
  7.  "MTA"  MEANS  THE  METROPOLITAN  TRANSPORTATION  AUTHORITY CREATED
PURSUANT TO TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER.
  8. "REVENUES" MEANS THE TAX REVENUES AND ALL AID, RENTS, FEES,  CHARG-
ES,  PAYMENTS  AND THE INCOME AND RECEIPTS PAID OR PAYABLE TO THE CORPO-
RATION OR A DIRECTOR FOR THE ACCOUNT OF THE CORPORATION.
  9. "STATE" MEANS THE STATE OF NEW YORK.
  S 3702. NEW YORK CITY EASTSIDE FINANCE CORPORATION. 1. THE CITY  SHALL
ESTABLISH  A  LOCAL DEVELOPMENT CORPORATION PURSUANT TO SECTION FOURTEEN
HUNDRED ELEVEN OF THE NOT-FOR-PROFIT CORPORATION LAW, TO BE  CALLED  THE
"NEW YORK CITY EASTSIDE FINANCE CORPORATION". THE CORPORATION SHALL BE A
CORPORATE  GOVERNMENTAL AGENCY CONSTITUTING A PUBLIC BENEFIT CORPORATION
AND AN INSTRUMENTALITY OF THE STATE.
  2. THE PURPOSE OF THE CORPORATION SHALL BE TO LESSEN  THE  BURDENS  OF
GOVERNMENT  FOR  THE  STATE  AND  CITY OF NEW YORK; TO ACT IN THE PUBLIC
INTEREST THROUGH THE FINANCING OF CAPITAL PROJECTS OF THE  CITY  AND  OF
THE NEW YORK CITY TRANSIT AUTHORITY, AND OF CAPITAL PROJECTS OR ELEMENTS
RELATED  TO  THE SECOND AVENUE SUBWAY; AND TO PROVIDE FOR ADDITIONAL AND
MAXIMUM EMPLOYMENT.
  3. THE CORPORATION SHALL CONTINUE  UNTIL  SIX  MONTHS  AFTER  ALL  ITS
LIABILITIES  HAVE BEEN MET OR OTHERWISE DISCHARGED. UPON THE TERMINATION
OF THE EXISTENCE OF THE CORPORATION, ALL  OF  ITS  RIGHTS  AND  PROPERTY
SHALL PASS TO AND BE VESTED IN THE CITY.
  S 3703. ADMINISTRATION OF THE CORPORATION. 1. THE CORPORATION SHALL BE
ADMINISTERED BY SEVEN DIRECTORS, CONSISTING OF:
  (A) THE DIRECTOR OF THE DIVISION OF BUDGET OF THE STATE OF NEW YORK;
  (B) THE DIRECTOR OF MANAGEMENT AND BUDGET OF THE CITY OF NEW YORK;
  (C) ONE APPOINTEE BY THE GOVERNOR OF THE STATE OF NEW YORK;
  (D) ONE APPOINTEE BY THE SPEAKER OF THE NEW YORK CITY COUNCIL;
  (E) TWO APPOINTEES BY THE MAYOR OF THE CITY OF NEW YORK; AND
  (F) ONE APPOINTEE BY THE CHIEF EXECUTIVE OFFICER OF THE MTA.
  2. THE DIRECTOR OF MANAGEMENT AND BUDGET OF THE CITY OF NEW YORK SHALL
SERVE  AS  CHAIRPERSON OF THE CORPORATION. THE CHAIRPERSON OR HIS OR HER
DESIGNEE SHALL PRESIDE OVER ALL MEETINGS OF THE DIRECTORS AND SHALL HAVE
SUCH OTHER DUTIES AS MAY BE FIXED BY THE DIRECTORS.
  3. THREE DIRECTORS SHALL CONSTITUTE A QUORUM FOR  THE  TRANSACTION  OF
ANY  BUSINESS OR THE EXERCISE OF ANY POWER OF THE CORPORATION. NO ACTION
SHALL BE TAKEN BY THE CORPORATION EXCEPT PURSUANT TO A FAVORABLE VOTE OF
AT LEAST THREE DIRECTORS PRESENT AT A MEETING AT WHICH  SUCH  ACTION  IS
TAKEN.  ANY DIRECTOR MAY, BY WRITTEN INSTRUMENT, FILED WITH AND APPROVED
AS TO FORM BY THE CORPORATION, DESIGNATE AN ALTERNATE OR  ALTERNATES  TO
PERFORM,  IN  THE ABSENCE OF SUCH DIRECTOR, HIS OR HER DUTIES UNDER THIS
TITLE. THE TERM "DIRECTOR" AS USED IN  THIS  TITLE  SHALL  INCLUDE  SUCH
ALTERNATES, EXCEPT THAT NO ALTERNATE MAY DESIGNATE AN ALTERNATE PURSUANT
TO  THIS  PARAGRAPH.  THE DESIGNATION OF SUCH ALTERNATES SHALL BE DEEMED
TEMPORARY ONLY AND SHALL NOT AFFECT  THE  CIVIL  SERVICE  OR  RETIREMENT
RIGHTS OF ANY PERSONS SO DESIGNATED.
  4.  THE  CORPORATION  SHALL  APPOINT  A TREASURER AND MAY APPOINT SUCH
OTHER OFFICERS AS IT MAY REQUIRE AND PRESCRIBE THEIR DUTIES.

A. 10131                            3

  S 3704. GENERAL POWERS OF THE CORPORATION. IN ADDITION TO ANY SPECIFIC
POWERS CONFERRED TO THE CORPORATION PURSUANT TO THIS TITLE,  THE  CORPO-
RATION  SHALL  HAVE ALL THE POWERS SET FORTH IN PARAGRAPH (C) OF SECTION
FOURTEEN HUNDRED ELEVEN OF THE NOT-FOR-PROFIT CORPORATION  LAW,  SUBJECT
ONLY TO AGREEMENTS WITH BONDHOLDERS.
  S  3705.  REVENUES  OF  THE CORPORATION. 1. THE REVENUES OF THE CORPO-
RATION SHALL BE GENERATED AS FOLLOWS: THE AMOUNT EQUAL TO THE DIFFERENCE
OF THE AMOUNT OF THE REAL PROPERTY TAX RECEIVED OR COLLECTED BY THE CITY
PURSUANT TO TITLE THREE OF ARTICLE NINE OF THE REAL PROPERTY TAX LAW  IN
THE  BASE  YEAR  AND  THE REAL PROPERTY TAX RECEIVED OR COLLECTED BY THE
CITY IN EACH SUCCEEDING CALENDAR YEAR ON TAXABLE REAL  PROPERTY  LOCATED
WITHIN THE EASTSIDE DISTRICT.
  2.  THE  CITY SHALL MAKE AN ANNUAL APPROPRIATION TO THE CORPORATION OF
THE AMOUNT DESCRIBED IN SUBDIVISION ONE OF THIS SECTION.
  3. (A) THE REVENUES OF THE  CORPORATION  MAY  ONLY  BE  USED  FOR  THE
PAYMENT  OF  DEBT SERVICE, PAYMENTS TO RESERVE FUNDS, IF APPLICABLE, AND
FOR OPERATING OR ADMINISTRATIVE EXPENSES OF THE CORPORATION.
  (B) IF THERE ARE INSUFFICIENT FUNDS PAID TO  THE  CORPORATION  IN  THE
FIRST  FIVE  YEARS  OF  THE FORMATION OF THE CORPORATION TO PAY THE DEBT
SERVICE ON ITS BONDS, THE CITY SHALL BE RESPONSIBLE FOR  AND  LIABLE  TO
PAY  THE  DEBT  SERVICE  OF THE CORPORATION. THE CORPORATION SHALL ENTER
INTO AN AGREEMENT WITH THE CITY TO REIMBURSE THE CITY FOR  ANY  PAYMENTS
MADE ON BEHALF OF THE CORPORATION PURSUANT TO THIS PARAGRAPH.
  S  3706.  MONEYS  OF  THE CORPORATION. 1. SUBJECT TO THE PROVISIONS OF
THIS TITLE, THE DIRECTORS OF  THE  CORPORATION  SHALL  RECEIVE,  ACCEPT,
INVEST,  ADMINISTER,  EXPEND AND DISBURSE FOR ITS CORPORATE PURPOSES ALL
MONEY OF THE CORPORATION FROM WHATEVER SOURCES  DERIVED  INCLUDING:  (A)
THE  REVENUES  DESCRIBED  IN  SECTION  THIRTY-SEVEN HUNDRED FIVE OF THIS
TITLE; (B) THE PROCEEDS OF BONDS;  AND  (C)  ANY  OTHER  APPROPRIATIONS,
GRANTS, PAYMENTS OR GIFTS TO THE CORPORATION FROM ANY OTHER SOURCE.
  2. ALL MONEYS OF THE CORPORATION FROM WHATEVER SOURCE DERIVED SHALL BE
PAID  TO  THE TREASURER OF THE CORPORATION AND SHALL BE DEPOSITED FORTH-
WITH IN A BANK OR TRUST COMPANY IN THE STATE DESIGNATED BY THE BOARD  OF
DIRECTORS. THE MONEYS IN SUCH ACCOUNTS SHALL BE PAID OUT BY CHECK SIGNED
BY  THE  TREASURER UPON REQUISITION BY THE BOARD OF DIRECTORS OR OF SUCH
OTHER PERSON OR PERSONS AS THE BOARD MAY AUTHORIZE TO MAKE  SUCH  REQUI-
SITIONS.  ALL  DEPOSITS  OF  CORPORATION MONEY SHALL BE SECURED BY OBLI-
GATIONS OF THE UNITED STATES OR OF THE STATE OR OF THE CITY AT A  MARKET
VALUE EQUAL AT ALL TIMES TO THE AMOUNT OF THE DEPOSIT, AND ALL BANKS AND
TRUST COMPANIES ARE AUTHORIZED TO GIVE SUCH SECURITY FOR SUCH DEPOSITS.
  3.   THE   CORPORATION  SHALL  HAVE  THE  POWER,  NOTWITHSTANDING  THE
PROVISIONS OF THIS SECTION, TO CONTRACT WITH THE HOLDERS OF ANY  OF  ITS
BONDS AS TO THE CUSTODY, COLLECTION, SECURING, INVESTMENT AND PAYMENT OF
ANY MONEY OF THE CORPORATION OR ANY MONEY HELD IN TRUST OR OTHERWISE FOR
THE PAYMENT OF BONDS OR IN ANY WAY TO SECURE BONDS, AND TO CARRY OUT ANY
SUCH  CONTRACT  NOTWITHSTANDING  THAT  SUCH CONTRACT MAY BE INCONSISTENT
WITH THE OTHER PROVISIONS OF THIS TITLE. MONEY HELD IN TRUST  OR  OTHER-
WISE FOR THE PAYMENT OF BONDS OR IN ANY WAY TO SECURE BONDS AND DEPOSITS
OF  SUCH  MONEY MAY BE SECURED IN THE SAME MANNER AS MONEY OF THE CORPO-
RATION, AND ALL BANKS AND TRUST COMPANIES ARE AUTHORIZED  TO  GIVE  SUCH
SECURITY FOR SUCH DEPOSITS.
  4. SUBJECT TO THE PROVISIONS OF ANY CONTRACT WITH BONDHOLDERS: (A) THE
MONEY  OF THE CORPORATION SHALL BE PAID TO THE CORPORATION AND SHALL NOT
BE COMMINGLED WITH ANY OTHER MONEY, AND (B) ALL MONEY  RECEIVED  BY  THE
CORPORATION  WHICH,  TOGETHER WITH OTHER MONEY OF THE CORPORATION AVAIL-
ABLE FOR THE OPERATING EXPENSES OF THE CORPORATION, THE PAYMENT OF  DEBT

A. 10131                            4

SERVICE  AND  PAYMENTS TO RESERVE FUNDS, EXCEEDS THE AMOUNT REQUIRED FOR
SUCH PURPOSES SHALL BE TRANSFERRED TO THE CITY.
  S  3707.  BONDS  OF THE CORPORATION. 1. (A) THE CORPORATION SHALL HAVE
THE POWER AND IS HEREBY AUTHORIZED TO ISSUE BONDS,  IN  CONFORMITY  WITH
APPLICABLE  PROVISIONS OF THE UNIFORM COMMERCIAL CODE, IN SUCH PRINCIPAL
AMOUNTS AS CAN BE SUPPORTED BY THE  REVENUES  OF  THE  CORPORATION.  THE
CORPORATION  SHALL  HAVE THE POWER FROM TIME TO TIME TO REFUND ANY BONDS
OF THE CORPORATION BY THE ISSUANCE OF NEW BONDS WHETHER THE BONDS TO  BE
REFUNDED  HAVE OR HAVE NOT MATURED, AND MAY ISSUE BONDS PARTLY TO REFUND
BONDS OF THE CORPORATION THEN OUTSTANDING.  BONDS ISSUED BY  THE  CORPO-
RATION  SHALL  BE  PAYABLE  SOLELY  OUT  OF PARTICULAR REVENUES OR OTHER
MONEYS OF THE CORPORATION AS MAY BE DESIGNATED IN THE PROCEEDINGS OF THE
CORPORATION UNDER WHICH THE BONDS SHALL  BE  AUTHORIZED  TO  BE  ISSUED,
SUBJECT  TO  ANY AGREEMENTS ENTERED INTO BETWEEN THE CORPORATION AND THE
CITY, AND SUBJECT TO ANY AGREEMENTS  WITH  THE  HOLDERS  OF  OUTSTANDING
BONDS PLEDGING ANY PARTICULAR REVENUES OR MONEYS.
  (B)  THE  PROCEEDS  FROM  ANY BONDS ISSUED BY THE CORPORATION SHALL BE
DISTRIBUTED AS FOLLOWS: FIFTY PERCENT OF THE PROCEEDS TO THE CITY GENER-
AL FUND TO PAY FOR CAPITAL PROJECTS CONTAINED IN THE CITY'S MOST  RECENT
CAPITAL PLAN; TWENTY-FIVE PERCENT TO THE NEW YORK CITY TRANSIT AUTHORITY
TO PAY FOR COSTS OF ITS FACILITIES, SUPPLIES, MATERIAL OR EQUIPMENT; AND
TWENTY-FIVE  PERCENT  TO  MTA  TO  PAY  FOR  COSTS  ASSOCIATED  WITH THE
COMPLETION OF THE SECOND AVENUE SUBWAY LINE.
  2. THE CORPORATION IS AUTHORIZED TO OBTAIN INSURANCE, LETTERS OF CRED-
IT AND OTHER CREDIT OR LIQUIDITY FACILITIES RELATED TO BONDS IN  ACCORD-
ANCE  WITH  PARAGRAPH  A AND PARAGRAPHS C THROUGH G OF SECTION 168.00 OF
THE LOCAL FINANCE LAW, AS AMENDED FROM TIME TO TIME; PROVIDED,  HOWEVER,
THAT  THE  BOARD OF DIRECTORS OF THE CORPORATION SHALL MAKE THE DETERMI-
NATION AS TO "FINANCIALLY RESPONSIBLE PARTIES" REQUIRED UNDER THE  LOCAL
FINANCE LAW.
  3.  THE  CORPORATION:  (A) SHALL AMORTIZE ITS SERIAL AND TERM BONDS IN
ACCORDANCE WITH SECTIONS 11.00, 21.00 AND 57.00 OF THE LOCAL FINANCE LAW
AND ITS BOND ANTICIPATION NOTES IN ACCORDANCE WITH SECTION 23.00 OF  THE
LOCAL  FINANCE  LAW,  AS  AMENDED FROM TIME TO TIME, (B) SHALL ESTABLISH
PROVISIONS RELATING TO REDEMPTION OF ITS BONDS THAT CONFORM WITH SECTION
53.00 OF THE LOCAL FINANCE LAW, AS AMENDED FROM TIME TO  TIME,  (C)  MAY
ISSUE  BONDS  WITH VARIABLE RATES OF INTEREST, AND ENTER INTO AGREEMENTS
RELATED THERETO, SUBJECT TO THE LIMITATIONS PRESCRIBED IN  PARAGRAPHS  A
AND  C OF SECTION 54.90 OF THE LOCAL FINANCE LAW, OTHER THAN THE LIMITA-
TION THEREIN ON THE TOTAL PRINCIPAL AMOUNT OF SUCH VARIABLE RATE  BONDS,
AND (D) SHALL NOT ISSUE REFUNDING BONDS WITHOUT MEETING THE STANDARDS OF
SUBPARAGRAPH  (A)  OR  (B)  OF SUBDIVISION TWO OF PARAGRAPH B OF SECTION
90.10 OF THE LOCAL FINANCE LAW. IN ADDITION, EXCEPT AS PROVIDED IN  THIS
TITLE, BONDS OF THE CORPORATION SHALL BE SUBJECT TO ALL OTHER PROVISIONS
OF  THE  LOCAL  FINANCE LAW, AS AMENDED FROM TIME TO TIME, APPLICABLE TO
BONDS OF THE CITY OF NEW YORK, EXCEPT WHERE APPLICATION OF SUCH  LAW  TO
BONDS OF THE CORPORATION WOULD BE INAPPROPRIATE.
  4.  THE  DIRECTORS  MAY DELEGATE TO THE CHAIRPERSON OF THE CORPORATION
THE POWER TO SET THE FINAL TERMS OF BONDS.
  5. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING BONDS  OR  ANY  ISSUE  OF
BONDS  MAY  CONTAIN  PROVISIONS WHICH MAY BE A PART OF THE CONTRACT WITH
THE HOLDERS OF THE BONDS THEREBY AUTHORIZED AS TO:
  (A) PLEDGING ALL OR PART OF ITS  REVENUES,  TOGETHER  WITH  ANY  OTHER
MONEYS,  SECURITIES  OR  CONTRACTS,  TO SECURE THE PAYMENT OF THE BONDS,
SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS MAY THEN EXIST;

A. 10131                            5

  (B) THE SETTING ASIDE OF RESERVES AND THE CREATION  OF  SINKING  FUNDS
AND THE REGULATION AND DISPOSITION THEREOF;
  (C)  LIMITATIONS ON THE PURPOSE TO WHICH THE PROCEEDS FROM THE SALE OF
BONDS MAY BE APPLIED;
  (D) LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS,  THE  TERMS  UPON
WHICH  ADDITIONAL  BONDS  MAY BE ISSUED AND SECURED AND THE REFUNDING OF
BONDS;
  (E) THE PROCEDURE, IF ANY, BY WHICH THE TERMS  OF  ANY  CONTRACT  WITH
BONDHOLDERS  MAY  BE  AMENDED  OR ABROGATED, INCLUDING THE PROPORTION OF
BONDHOLDERS WHICH MUST CONSENT THERETO AND  THE  MANNER  IN  WHICH  SUCH
CONSENT MAY BE GIVEN;
  (F)  DEFINING  THE  ACTS  OR  OMISSIONS  TO ACT WHICH MAY CONSTITUTE A
DEFAULT IN THE OBLIGATIONS AND DUTIES OF THE CORPORATION  TO  THE  BOND-
HOLDERS  AND PROVIDING FOR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS IN
THE EVENT OF SUCH DEFAULT, INCLUDING AS A MATTER OF RIGHT  THE  APPOINT-
MENT  OF  A  RECEIVER;  PROVIDED, HOWEVER, THAT SUCH RIGHTS AND REMEDIES
SHALL NOT BE INCONSISTENT WITH THE GENERAL LAWS OF THE STATE  AND  OTHER
PROVISIONS OF THIS TITLE.
  6.  IN ADDITION TO THE POWERS HEREIN CONFERRED UPON THE CORPORATION TO
SECURE ITS BONDS, THE CORPORATION SHALL HAVE POWER  IN  CONNECTION  WITH
THE  ISSUANCE  OF BONDS TO ENTER INTO SUCH AGREEMENTS FOR THE BENEFIT OF
THE BONDHOLDERS AS THE CORPORATION MAY  DEEM  NECESSARY,  CONVENIENT  OR
DESIRABLE  CONCERNING  THE  USE  OR DISPOSITION OF ITS REVENUES OR OTHER
MONEYS, INCLUDING THE ENTRUSTING, PLEDGING  OR  CREATION  OF  ANY  OTHER
SECURITY INTEREST IN ANY SUCH REVENUES, MONEYS AND THE DOING OF ANY ACT,
INCLUDING  REFRAINING  FROM  DOING  ANY ACT, WHICH THE CORPORATION WOULD
HAVE THE RIGHT TO DO IN THE ABSENCE OF SUCH AGREEMENTS. THE  CORPORATION
SHALL  HAVE POWER TO ENTER INTO AMENDMENTS OF ANY SUCH AGREEMENTS WITHIN
THE POWERS GRANTED TO THE CORPORATION BY THIS TITLE AND TO PERFORM  SUCH
AGREEMENTS.  THE PROVISIONS OF ANY SUCH AGREEMENTS MAY BE MADE A PART OF
THE CONTRACT WITH THE HOLDERS OF BONDS OF THE CORPORATION.
  7. NOTWITHSTANDING ANY PROVISION OF THE UNIFORM COMMERCIAL CODE TO THE
CONTRARY, ANY PLEDGE OF OR OTHER SECURITY INTEREST IN REVENUES,  MONEYS,
ACCOUNTS, CONTRACT RIGHTS, GENERAL INTANGIBLES OR OTHER PERSONAL PROPER-
TY  MADE  OR  CREATED  BY  THE  CORPORATION  SHALL BE VALID, BINDING AND
PERFECTED FROM THE TIME WHEN SUCH  PLEDGE  IS  MADE  OR  OTHER  SECURITY
INTEREST  ATTACHES  WITHOUT  ANY  PHYSICAL DELIVERY OF THE COLLATERAL OR
FURTHER ACT, AND THE LIEN OF ANY SUCH PLEDGE OR OTHER SECURITY  INTEREST
SHALL  BE VALID, BINDING AND PERFECTED AGAINST ALL PARTIES HAVING CLAIMS
OF ANY KIND IN TORT, CONTRACT OR OTHERWISE AGAINST THE CORPORATION IRRE-
SPECTIVE OF WHETHER OR NOT SUCH PARTIES HAVE NOTICE THEREOF. NO  INSTRU-
MENT  BY  WHICH  SUCH  A  PLEDGE  OR SECURITY INTEREST IS CREATED OR ANY
FINANCING STATEMENT NEED BE RECORDED OR FILED.
  8. WHETHER OR NOT THE BONDS OF THE CORPORATION ARE OF  SUCH  FORM  AND
CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS UNDER THE TERMS OF THE UNIFORM
COMMERCIAL CODE, THE BONDS ARE HEREBY MADE NEGOTIABLE INSTRUMENTS WITHIN
THE  MEANING OF AND FOR ALL THE PURPOSES OF THE UNIFORM COMMERCIAL CODE,
SUBJECT ONLY TO THE PROVISIONS OF THE BONDS FOR REGISTRATION.
  9. NEITHER THE DIRECTORS OF THE CORPORATION NOR ANY  PERSON  EXECUTING
BONDS  SHALL  BE LIABLE PERSONALLY THEREON OR BE SUBJECT TO ANY PERSONAL
LIABILITY OR ACCOUNTABILITY SOLELY BY REASON OF THE ISSUANCE THEREOF.
  S 3708. CITY LIABLE ON BONDS. THE BONDS OR OTHER  OBLIGATIONS  OF  THE
CORPORATION  ISSUED  PURSUANT TO THIS TITLE SHALL BE A DEBT OF THE CITY.
THE CITY SHALL BE LIABLE ON SUCH BONDS, WHICH SHALL BE  PAYABLE  OUT  OF
ANY  FUNDS OF THE CITY IN ADDITION TO THOSE OF THE CORPORATION; AND SUCH
BONDS SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO SUCH EFFECT.

A. 10131                            6

  S 3709. AUDITING AND  REPORTING  REQUIREMENTS.  THE  ACCOUNTS  OF  THE
CORPORATION  SHALL  BE  SUBJECT TO THE SUPERVISION OF THE COMPTROLLER OF
THE CITY AND AN ANNUAL AUDIT SHALL BE PERFORMED BY AN INDEPENDENT CERTI-
FIED ACCOUNTANT. THE CORPORATION SHALL ANNUALLY SUBMIT ANNUAL AND BUDGET
REPORTS  PURSUANT TO THE PROVISIONS OF TITLE ONE OF ARTICLE NINE OF THIS
CHAPTER, AND A COPY OF SUCH REPORTS SHALL ALSO BE SUBMITTED TO THE  CITY
COUNCIL  OF  THE  CITY  OF  NEW YORK. THE CITY COMPTROLLER OR HIS OR HER
LEGALLY AUTHORIZED REPRESENTATIVE ARE AUTHORIZED AND EMPOWERED FROM TIME
TO TIME TO EXAMINE THE ACCOUNTS AND BOOKS OF THE CORPORATION,  INCLUDING
ITS  RECEIPTS,  DISBURSEMENTS,  CONTRACTS,  LEASES,  INVESTMENTS AND ANY
OTHER RECORDS AND PAPERS RELATING TO ITS FINANCIAL STANDING.
  S 3710. ASSISTANCE TO THE CORPORATION. WITH THE CONSENT OF THE  GOVER-
NOR OR THE MAYOR OF THE CITY OF NEW YORK, AS THE CASE MAY BE, THE CORPO-
RATION MAY USE EMPLOYEES AND FACILITIES OF THE STATE OR CITY OF NEW YORK
PAYING  TO THE AFFECTED AGENCY ITS AGREED PROPORTION OF THE COMPENSATION
OR COSTS.
  S 2. This act shall take effect immediately.