Assembly Bill A5747

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5747
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 15, 2017
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee 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.
   § 3700. SHORT TITLE. THIS TITLE SHALL BE KNOWN AND MAY BE CITED AS THE
 "NEW YORK CITY EASTSIDE FINANCE CORPORATION ACT".
   § 3701. DEFINITIONS. FOR  THE  PURPOSES  OF  THIS  TITLE,  UNLESS  THE
 CONTEXT OTHERWISE REQUIRES:
   1. "BASE YEAR" MEANS THE TWO THOUSAND SEVENTEEN 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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07420-01-7

 A. 5747                             2
 
   5. "COSTS" MEANS COSTS PROVIDING FOR THE CONSTRUCTION, RECONSTRUCTION,
 ACQUISITION  OR  INSTALLATION OF PHYSICAL PUBLIC BETTERMENTS OR IMPROVE-
 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.
   § 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.
   § 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.

 A. 5747                             3
 
   4.  THE  CORPORATION  SHALL  APPOINT  A TREASURER AND MAY APPOINT SUCH
 OTHER OFFICERS AS IT MAY REQUIRE AND PRESCRIBE THEIR DUTIES.
   § 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.
   § 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.
   § 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

 A. 5747                             4

 CORPORATION WHICH, TOGETHER WITH OTHER MONEY OF THE  CORPORATION  AVAIL-
 ABLE  FOR THE OPERATING EXPENSES OF THE CORPORATION, THE PAYMENT OF DEBT
 SERVICE AND PAYMENTS TO RESERVE FUNDS, EXCEEDS THE AMOUNT  REQUIRED  FOR
 SUCH PURPOSES SHALL BE TRANSFERRED TO THE CITY.
   §  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. 5747                             5
 
   (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;
   (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.
   §  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.

 A. 5747                             6
 
 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.
   §  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.
   § 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.
   § 2. This act shall take effect immediately.