S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6162
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 21, 2019
                                ___________
 
 Introduced  by Sen. HARCKHAM -- (at request of the Environmental Facili-
   ties Corporation) -- read twice and ordered printed, and when  printed
   to  be  committed  to  the  Committee on Corporations, Authorities and
   Commissions
 
 AN ACT to amend the public authorities law, in relation to  the  special
   powers of the New York state environmental facilities corporation
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 6 of section 1285-j of the  public  authorities
 law,  as  amended by chapter 307 of the laws of 2005, is amended to read
 as follows:
   6. Moneys in  the  water  pollution  control  revolving  fund  may  be
 invested  as  provided  in  subdivision  four  of section twelve hundred
 eighty-four of this title and may be further invested (a) in  investment
 agreements  continuously  secured  by  obligations with any insurance or
 reinsurance company or corporate affiliate thereof rated by a nationally
 recognized rating agency in one of its two highest categories, any bank,
 trust company or broker or dealer, as defined by the securities exchange
 act of 1934, which is a dealer in government bonds,  which  reports  to,
 trades  with  and is recognized as a primary dealer by a federal reserve
 bank and is a member of the securities [investors]  INVESTOR  protection
 corporation,  if,  (i)  such obligations securing such investment agree-
 ments are obligations as set forth in section ten of the general munici-
 pal law, (ii) such obligations are delivered to a trustee for the  bene-
 fit  of  the  corporation  or,  with  respect to moneys pledged under an
 indenture of trust relating to bonds or notes of the corporation, to the
 trustee under such indenture, or are supported by a safe keeping receipt
 issued by a depository satisfactory to the  corporation  as  applicable,
 provided  that such investment agreements must provide that the value of
 the underlying obligations shall  be  maintained  at  a  current  market
 value,  calculated no less frequently than monthly, of not less than the
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09425-01-9

 S. 6162                             2
 
 amount deposited thereunder, (iii) a prior perfected  security  interest
 in the obligations which are securing such agreement has been granted to
 the  corporation,  as applicable, and (iv) such obligations are free and
 clear  of  adverse  third  party  claims, [or] (b) in obligations as set
 forth in section ten of the general municipal law that are  rated  by  a
 nationally  recognized  rating  agency  in one of its two highest rating
 categories, OR (C) IN OBLIGATIONS OF GOVERNMENTAL  ENTITIES  OF  ANOTHER
 STATE  THAT  ARE  BACKED  BY THE FULL FAITH AND CREDIT OF THAT STATE AND
 RATED IN ONE OF THE TWO  HIGHEST  RATING  CATEGORIES  BY  AT  LEAST  ONE
 NATIONALLY RECOGNIZED RATING ORGANIZATION.
   § 2. Subdivision 6 of section 1285-m of the public authorities law, as
 amended  by  chapter  307  of  the  laws  of 2005, is amended to read as
 follows:
   6. Moneys in the drinking water revolving  fund  may  be  invested  as
 provided  in  subdivision  four of section twelve hundred eighty-four of
 this title and may be further invested:
   (a) in investment agreements continuously secured by obligations  with
 any  insurance  company  or  reinsurance  company or corporate affiliate
 thereof rated by a nationally recognized rating agency in one of its two
 highest categories, any bank, trust company  or  broker  or  dealer,  as
 defined  by  the  securities  exchange act of 1934, which is a dealer in
 government bonds, which reports to, trades with and is recognized  as  a
 primary  dealer by a federal reserve bank and is a member of the securi-
 ties [investors] INVESTOR protection  corporation,  if  such  investment
 agreement provides that:
   (i)  such  obligations  securing  such investment agreements are obli-
 gations as set forth in section ten of the general municipal law;
   (ii) such obligations are to be delivered to a trustee for the benefit
 of the corporation or, with respect to moneys pledged under an indenture
 of trust or trust agreement relating to bonds or  notes  of  the  corpo-
 ration,  to  the trustee under such indenture or trust agreement, or are
 supported by a safe keeping receipt issued by a depository  satisfactory
 to  the  corporation as applicable, provided that such investment agree-
 ments must provide that the value of the underlying obligations shall be
 maintained at a current market value, calculated no less frequently than
 monthly, of not less than the amount deposited thereunder;
   (iii) a prior perfected security interest in the obligations which are
 securing such agreement has been granted to the corporation, such  trus-
 tee or such depository as applicable; and
   (iv)  such  obligations  are  free  and  clear  of adverse third party
 claims; [or]
   (b) in obligations as set forth in section ten of the general  munici-
 pal  law  that are rated by a nationally recognized rating agency in one
 of its two highest rating categories; OR
   (C) IN OBLIGATIONS OF GOVERNMENTAL ENTITIES OF ANOTHER STATE THAT  ARE
 BACKED  BY  THE  FULL FAITH AND CREDIT OF THAT STATE AND RATED IN ONE OF
 THE TWO HIGHEST RATING CATEGORIES BY AT LEAST ONE NATIONALLY  RECOGNIZED
 RATING ORGANIZATION.
   §  3.  This  act shall take effect immediately; provided, however that
 the amendments to subdivision 6 of section 1285-j and subdivision  6  of
 section  1285-m  of  the public authorities law made by sections one and
 two of this act shall not affect the expiration and  reversion  of  such
 subdivisions and shall expire and be deemed repealed therewith.