NY State Senate Bill 2025-S9161A

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Apr 13, 2026	print number 9161a
Apr 13, 2026	amend and recommit to corporations, authorities and commissions
Feb 09, 2026	referred to corporations, authorities and commissions

Bill Amendments

Original

A (Active)

2025-S9161 - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §§3852, 3854 & 3863, add §3862-a, Pub Auth L

2025-S9161 - Summary

Provides secondary bonding authority up to $46,000,000 to the Buffalo fiscal stability authority during the period of July 1, 2026 and June 30, 2030; extends the authority to 2047.

2025-S9161 - Sponsor Memo

                                 
BILL NUMBER: S9161

SPONSOR: BASKIN
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to providing
secondary bonding authority to the Buffalo fiscal stability authority

 
PURPOSE:

The purpose of this bill is to authorize the Buffalo Fiscal Stability
Authority to issue bonds between July 1, 2026 and June 30, 2030.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: amends subdivision 3 of section 3852 of the Public Authori-
ties Law by extending the existence of the Buffalo fiscal stability
authority through 2070 so that bonds may reach final maturity.

Section 2: creates a new section of Public Authorities Law, section
3862-a, providing secondary bonding authority to the Buffalo Fiscal
Stability Authority.

Subsection 1 outlines the financeable costs to which funds from the
issuance of such bonds may be applied and describes what percentage of
the projected gap the issuance of such bonds may cover in a given fiscal
year.

Subsection 2 provides that the final date of maturity for such bonds is
June 30, 2070.

Subsection 3 clarifies that bonds may be issued without regard to the
provisions of local finance law.

Subsection 4 permits the Buffalo Fiscal Stability authority may delegate
the authority to set the financial terms of bonds to the chairperson, or
any director or officer of the authority.

Subsection 5 describes how the bonds may be executed and sold.

Subsection 6 specifies all the ways in which the authority is permitted
to secure the payment of the bonds.

Subsection 7 grants the authority the power to enter into agreements for
the benefit of bondholders, including the entrusting, pledging or
creation of any security interest in any such revenues.

Subsection 8 specifies that the proceeds from the sale of any bonds in
this section not applied to deficit financing may be used to directly
pay obligations of the city where such bonds were purchased by the city.

Subsection 9 establishes the validity of security interests in, or
pledges of, revenues, moneys, or other personal property made or created
by the authority.

Subsection 10 specifies that all bonds, notes, or other obligations of
the authority are negotiable instruments under the UCC.


Subsection 11 specifies that the director of the authority and anyone
executing bonds on the authority's behalf cannot be held personally
liable on the bonds. The State of New York and the City of Buffalo also
cannot be held liable.

Subsection 12 grants the authority the power to buy back its own bonds.

Subsection 13 provides that nothing in this section shall be construed
as authorization to reimpose a control period.

Section 3: amends section 3854 of Public Authorities Law to provides
authority to enter into interest rate exchanges or arrangements, includ-
ing provisions as to default or early termination and indemnification by
the authority resulting in the loss of benefits.  Any such losses are
capped at 25% of the amount authorized in section 3862-a for the speci-
fied purposes.

Section 4: specifies that remedies of bondholders under section 3863 of
Public Authorities Law are applicable to bonds issued pursuant to
section 3862-a

 
EXISTING LAW:

Section 3862 of Public Authorities Law provides primary bonding authori-
ty to the Buffalo Fiscal Stability Authority.

 
JUSTIFICATION:

In 2003, the New York State Legislature created the Buffalo Fiscal
Stability Authority (BFSA). This body exists to exercise oversight over
the financial affairs of the City of Buffalo. At that time, the BFSA was
granted bonding authority to provide financial relief to the City. Muni-
cipalities, public benefit corporations, and other governmental entities
issue bonds to fund day-to-day operating as well as capital projects.
These instruments are functionally a series of loans from an assortment
of buyers, who are guaranteed regular interest payments and repayment of
the full principal upon "maturity" of the bond. The BFSA was initially
authorized to issue no more than $170 million in bonds at one time, with
a maturity date of 2037.

At present, the City of Buffalo is on the precipice of a fiscal cliff.
The City currently estimates a budget gap of $50 million. Erie County
says that this figure may be larger, and the BFSA and City Comptroller
have both expressed concerns. The City needs a long-term plan to close
this budget gap, and time to implement that plan.

To that end, this bill authorizes the BFSA to issue up to an additional
$500 million in bonds between July 1, 2026 and June 30, 2030, with a
maturity date of June 30, 2070. In each of those four fiscal years, the
BFSA is authorized to issue a total bond amount no greater than an annu-
ally decreasing set percentage of the total budget gap. This funding
will shrink the budget gap by a set percent each year, permit the City
of Buffalo to come up with long-term revenue generating policies, and
collect said revenue to the point that such funding will no longer be
necessary.

 
LEGISLATIVE HISTORY:

S.7682 of 2025.

 
FISCAL IMPLICATIONS:

None.

 
LOCAL FISCAL IMPLICATIONS:

This bill will raise up to $500 million in revenue for the City of
Buffalo.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S9161 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9161
 
                             I N  S E N A T E
 
                             February 9, 2026
                                ___________
 
 Introduced  by  Sen.  BASKIN -- 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 providing
   secondary bonding authority to the Buffalo fiscal stability authority
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  3  of section 3852 of the public authorities
 law, as added by chapter 122 of the laws of 2003, is amended to read  as
 follows:
   3. The  authority  shall continue until its control, advisory or other
 responsibilities,  and  its  liabilities  have  been  met  or  otherwise
 discharged,  which  in  no event shall be later than June thirtieth, two
 thousand [thirty-seven] FORTY-SEVEN. Upon the termination of the author-
 ity, all of its property and assets shall pass to and be vested  in  the
 city.
   §  2.  The  public  authorities law is amended by adding a new section
 3862-a to read as follows:
   § 3862-A. ADDITIONAL BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORI-
 TY. 1. COMMENCING JULY FIRST, TWO THOUSAND TWENTY-SIX AND TERMINATING ON
 JUNE THIRTIETH, TWO THOUSAND THIRTY, THE AUTHORITY SHALL HAVE THE  POWER
 AND  IS  HEREBY  AUTHORIZED  FROM  TIME TO TIME TO ISSUE BONDS, NOTES OR
 OTHER OBLIGATIONS IN SUCH PRINCIPAL AMOUNTS AS IT MAY  DETERMINE  TO  BE
 NECESSARY  PURSUANT  TO  SECTION  THIRTY-EIGHT HUNDRED SIXTY-ONE OF THIS
 TITLE TO PAY ANY FINANCEABLE COSTS AND TO FUND RESERVES TO  SECURE  SUCH
 BONDS,  NOTES  OR  OTHER  OBLIGATIONS,  INCLUDING INCIDENTAL EXPENSES IN
 CONNECTION THEREWITH; PROVIDED, HOWEVER, THE AGGREGATE PRINCIPAL AMOUNTS
 OF SUCH BONDS, NOTES OR OTHER  OBLIGATIONS  OUTSTANDING AT ANY ONE  TIME
 SHALL  NOT  EXCEED  FIVE  HUNDRED MILLION DOLLARS IN ADDITION TO THE ONE
 HUNDRED SEVENTY-FIVE MILLION  DOLLARS  AUTHORIZED  PURSUANT  TO  SECTION
 THIRTY-EIGHT  HUNDRED SIXTY-TWO OF THIS TITLE. SUCH FUNDS MAY BE APPLIED
 TO FINANCEABLE COSTS DEFINED IN PARAGRAPHS (A), (D) AND (E) OF  SUBDIVI-
 SION  FIFTEEN  OF  SECTION THIRTY-EIGHT HUNDRED FIFTY-ONE OF THIS TITLE.
 SUCH FUNDS IN CITY FISCAL YEAR  TWO  THOUSAND  TWENTY-SIX--TWO  THOUSAND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14815-01-6
 S. 9161                             2
 
 TWENTY-SEVEN  SHALL  NOT  EXCEED  EIGHTY PERCENT OF THE PROJECTED GAP AS
 DEFINED IN SUBDIVISION TWENTY OF SECTION THIRTY-EIGHT HUNDRED  FIFTY-ONE
 OF  THIS TITLE, IN CITY FISCAL YEAR TWO THOUSAND TWENTY-SEVEN--TWO THOU-
 SAND  TWENTY-EIGHT  SUCH  FUNDS  SHALL  NOT  EXCEED SIXTY PERCENT OF THE
 PROJECTED GAP AS DEFINED IN SUBDIVISION TWENTY OF  SECTION  THIRTY-EIGHT
 HUNDRED  FIFTY-ONE OF THIS TITLE, IN CITY FISCAL YEAR TWO THOUSAND TWEN-
 TY-EIGHT--TWO THOUSAND TWENTY-NINE SUCH FUNDS  SHALL  NOT  EXCEED  FORTY
 PERCENT OF THE PROJECTED GAP AS DEFINED IN SUBDIVISION TWENTY OF SECTION
 THIRTY-EIGHT  HUNDRED  FIFTY-ONE  OF THIS TITLE, AND IN CITY FISCAL YEAR
 TWO THOUSAND TWENTY-NINE--TWO  THOUSAND  THIRTY  SUCH  FUNDS  SHALL  NOT
 EXCEED  TWENTY  PERCENT  OF  THE PROJECTED GAP AS DEFINED IN SUBDIVISION
 TWENTY OF SECTION THIRTY-EIGHT HUNDRED FIFTY-ONE OF THIS  TITLE.    SUCH
 BONDS  MAY  BE ISSUED WHETHER THE CITY OF BUFFALO IS IN A CONTROL PERIOD
 OR AN ADVISORY PERIOD.  SUCH BONDS SHALL BE TAX EXEMPT  TO  THE  MAXIMUM
 EXTENT  PRACTICABLE,  AS PROVIDED BY SECTION THIRTY-EIGHT HUNDRED SIXTY-
 NINE OF THIS TITLE. BONDS, NOTES OR  OTHER  OBLIGATIONS  ISSUED  BY  THE
 AUTHORITY  (A) TO PAY REASONABLE COSTS OF ISSUANCE, AS DETERMINED BY THE
 AUTHORITY, (B) TO ESTABLISH DEBT SERVICE RESERVE FUNDS, (C) TO REFUND OR
 ADVANCE REFUND ANY OUTSTANDING BONDS OR NOTES OF THE CITY OR THE AUTHOR-
 ITY, OR (D) AS CASH FLOW BORROWINGS SHALL NOT COUNT  AGAINST  THE  ABOVE
 LIMIT ON OUTSTANDING BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY,
 NOR  SHALL  ANY  ACCRETION  OF  PRINCIPAL OF BONDS THAT WOULD CONSTITUTE
 INTEREST UNDER THE INTERNAL REVENUE CODE  OF  1986,  AS  AMENDED,  COUNT
 AGAINST  SUCH  LIMIT;  PROVIDED, HOWEVER, THAT   THE AGGREGATE PRINCIPAL
 AMOUNT OF CASH FLOW BORROWINGS OUTSTANDING AT ANY  ONE  TIME  SHALL  NOT
 EXCEED ONE HUNDRED FORTY-FIVE MILLION DOLLARS.
   2. THE AUTHORITY MAY ISSUE BONDS, NOTES OR OTHER OBLIGATIONS TO REFUND
 BONDS,  NOTES  OR  OTHER  OBLIGATIONS PREVIOUSLY ISSUED, BUT IN NO EVENT
 SHALL THE FINAL MATURITY OF ANY BONDS, NOTES OR OTHER OBLIGATIONS OF THE
 AUTHORITY BE LATER THAN JUNE THIRTIETH, TWO THOUSAND SEVENTY. NO BOND OF
 THE AUTHORITY SHALL MATURE MORE THAN THIRTY YEARS FROM THE DATE  OF  ITS
 ISSUE,  OR AFTER JUNE THIRTIETH, TWO THOUSAND SEVENTY, WHICHEVER DATE IS
 EARLIER.
   3. BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY MAY  BE  ISSUED,
 AMORTIZED, REDEEMED AND REFUNDED WITHOUT REGARD TO THE PROVISIONS OF THE
 LOCAL FINANCE LAW.
   4.  THE DIRECTORS MAY DELEGATE TO THE CHAIRPERSON OR OTHER DIRECTOR OR
 OFFICER OF THE AUTHORITY THE POWER TO SET THE FINANCIAL TERMS OF  BONDS,
 NOTES OR OTHER OBLIGATIONS.
   5. THE AUTHORITY IN ITS SOLE DISCRETION SHALL DETERMINE THAT THE ISSU-
 ANCE  OF  ITS  BONDS,  NOTES OR OTHER OBLIGATIONS IS APPROPRIATE. BONDS,
 NOTES OR OTHER OBLIGATIONS SHALL BE  AUTHORIZED  BY  RESOLUTION  OF  THE
 AUTHORITY. BONDS SHALL BEAR INTEREST AT SUCH FIXED OR VARIABLE RATES AND
 SHALL BE IN SUCH DENOMINATIONS, BE IN SUCH FORM, EITHER COUPON OR REGIS-
 TERED,  BE  SOLD  AT  SUCH  PUBLIC  OR PRIVATE SALE, BE EXECUTED IN SUCH
 MANNER, BE DENOMINATED IN UNITED STATES CURRENCY,  BE  PAYABLE  IN  SUCH
 MEDIUM OF PAYMENT, AT SUCH PLACE AND BE SUBJECT TO SUCH TERMS OF REDEMP-
 TION AS THE AUTHORITY MAY PROVIDE IN SUCH RESOLUTION. NO BONDS, NOTES OR
 OTHER  OBLIGATIONS  OF  THE AUTHORITY MAY BE SOLD AT PRIVATE SALE UNLESS
 SUCH SALE AND THE TERMS THEREOF HAVE BEEN APPROVED IN WRITING BY (A) THE
 STATE COMPTROLLER WHERE SUCH SALE IS NOT TO THE  STATE  COMPTROLLER,  OR
 (B)  THE  DIRECTOR  OF THE BUDGET, WHERE SUCH SALE IS TO THE STATE COMP-
 TROLLER.
   6. ANY RESOLUTION OR RESOLUTIONS AUTHORIZING  BONDS,  NOTES  OR  OTHER
 OBLIGATIONS  OR  ANY  ISSUE  OF  BONDS,  NOTES  OR OTHER OBLIGATIONS MAY
 CONTAIN PROVISIONS WHICH MAY BE A PART OF THE CONTRACT WITH THE  HOLDERS
 S. 9161                             3
 
 OF  THE  BONDS, NOTES OR OTHER OBLIGATIONS THEREBY AUTHORIZED AS TO: (A)
 PLEDGING ALL OR PART OF THE  AUTHORITY'S  REVENUES,  TOGETHER  WITH  ANY
 OTHER  MONEYS,  SECURITIES  OR  CONTRACTS,  TO SECURE THE PAYMENT OF THE
 BONDS, NOTES OR OTHER  OBLIGATIONS,  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 PURPOSES TO WHICH THE PROCEEDS FROM THE  SALE  OF
 BONDS, NOTES OR OTHER OBLIGATIONS MAY BE APPLIED; (D) LIMITATIONS ON THE
 ISSUANCE OF ADDITIONAL BONDS, NOTES OR OTHER OBLIGATIONS, THE TERMS UPON
 WHICH  ADDITIONAL  BONDS,  NOTES  OR OTHER OBLIGATIONS MAY BE ISSUED AND
 SECURED AND THE REFUNDING OF BONDS, NOTES OR OTHER OBLIGATIONS; (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) VESTING IN A TRUSTEE OR  TRUSTEES  SUCH  PROPERTIES,  RIGHTS,
 POWERS  AND  DUTIES  IN  TRUST AS THE AUTHORITY MAY DETERMINE, WHICH MAY
 INCLUDE ANY OR ALL OF THE RIGHTS, POWERS AND DUTIES   OF   THE   TRUSTEE
 APPOINTED  BY  THE  BONDHOLDERS PURSUANT TO SECTION THIRTY-EIGHT HUNDRED
 SIXTY-THREE OF THIS TITLE AND LIMITING OR ABROGATING THE RIGHTS  OF  THE
 BONDHOLDERS  TO  APPOINT  A  TRUSTEE  UNDER SUCH SECTION OR LIMITING THE
 RIGHTS, DUTIES AND POWERS OF SUCH TRUSTEE; AND (G) DEFINING THE ACTS  OR
 OMISSIONS  OF THE AUTHORITY TO ACT WHICH MAY CONSTITUTE A DEFAULT IN THE
 OBLIGATIONS AND DUTIES OF THE AUTHORITY TO THE BONDHOLDERS AND PROVIDING
 FOR THE RIGHTS AND REMEDIES OF THE BONDHOLDERS  IN  THE  EVENT  OF  SUCH
 DEFAULT,  INCLUDING  AS A MATTER OF RIGHT THE APPOINTMENT OF A RECEIVER;
 PROVIDED, HOWEVER, THAT SUCH ACTS OR OMISSIONS OF THE AUTHORITY TO   ACT
 WHICH MAY CONSTITUTE A DEFAULT AND SUCH RIGHTS AND REMEDIES SHALL NOT BE
 INCONSISTENT  WITH THE GENERAL LAWS OF THE STATE AND OTHER PROVISIONS OF
 THIS TITLE.
   7. IN ADDITION TO THE POWERS CONFERRED  UPON  THE  AUTHORITY  IN  THIS
 SECTION  TO  SECURE ITS BONDS, NOTES OR OTHER OBLIGATIONS, THE AUTHORITY
 SHALL HAVE POWER IN CONNECTION WITH THE  ISSUANCE  OF  BONDS,  NOTES  OR
 OTHER  OBLIGATIONS  TO ENTER INTO SUCH AGREEMENTS FOR THE BENEFIT OF THE
 BONDHOLDERS AS THE AUTHORITY 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,  INCLUD-
 ING  REFRAINING  FROM  DOING ANY ACT, WHICH THE AUTHORITY WOULD HAVE THE
 RIGHT TO DO IN THE ABSENCE OF SUCH AGREEMENTS. THE AUTHORITY SHALL  HAVE
 POWER  TO ENTER INTO AMENDMENTS OF ANY SUCH AGREEMENTS WITHIN THE POWERS
 GRANTED TO THE AUTHORITY 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, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY.
   8.  WHENEVER  A  SERIES  OF  BONDS,  NOTES OR OTHER OBLIGATIONS OF THE
 AUTHORITY IS ISSUED PURSUANT TO THIS SECTION  FOR  PURPOSES  OTHER  THAN
 DEFICIT FINANCING AUTHORIZED BY SECTION THIRTY-EIGHT HUNDRED FIFTY-SEVEN
 OF  THIS  TITLE,  THE  PAYMENT  OF THE PROCEEDS OF SUCH SERIES OF BONDS,
 NOTES OR OTHER OBLIGATIONS TO THE CITY MAY BE, AT  THE  REQUEST  OF  THE
 AUTHORITY,  EVIDENCED  BY  OBLIGATIONS  OF THE CITY ISSUED IN ACCORDANCE
 WITH APPLICABLE PROVISIONS OF THE STATE CONSTITUTION AND  LOCAL  FINANCE
 LAW THEN IN EFFECT AT THE TIME ANY SUCH OBLIGATIONS ARE ISSUED, PROVIDED
 THAT THE PRINCIPAL AMOUNT OF THE AUTHORITY'S BONDS, NOTES OR OTHER OBLI-
 GATIONS ISSUED IN CONNECTION WITH ANY SUCH EXCHANGE SHALL NOT EXCEED THE
 PRINCIPAL  AMOUNT  OF  SUCH OBLIGATIONS OF THE CITY AND ACCRUED INTEREST
 THEREON AT THE STATED RATE TO THE DATE OF SUCH  EXCHANGE,  AND  PROVIDED
 FURTHER,  HOWEVER, THAT THE PRINCIPAL PAYMENTS ON ANY SUCH ISSUE OF CITY
 S. 9161                             4
 
 OBLIGATIONS SHALL IN NO EVENT BE SCHEDULED TO FALL ON A DATE LATER  THAN
 THE  DATE  ON  WHICH FALLS A CORRESPONDING AMOUNT OF SCHEDULED PRINCIPAL
 PAYMENTS ON THE SERIES OF BONDS,  NOTES  OR  OTHER  OBLIGATIONS  OF  THE
 AUTHORITY ORIGINALLY ISSUED TO PROVIDE SUCH PROCEEDS OR ISSUED TO REFUND
 BONDS, NOTES OR OTHER OBLIGATIONS ISSUED TO PROVIDE SUCH PROCEEDS.
   9. 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  AUTHORITY  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 AUTHORITY IRRE-
 SPECTIVE OF WHETHER SUCH PARTIES HAVE NOTICE THEREOF. NO  INSTRUMENT  BY
 WHICH  SUCH  A  PLEDGE OR SECURITY INTEREST IS CREATED NOR ANY FINANCING
 STATEMENT NEED BE RECORDED OR FILED TO BE VALID AND BINDING.
   10. WHETHER OR NOT THE  BONDS,  NOTES  OR  OTHER  OBLIGATIONS  OF  THE
 AUTHORITY ARE OF SUCH FORM AND CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS
 UNDER  THE  TERMS  OF  THE  UNIFORM COMMERCIAL CODE, THE BONDS, NOTES OR
 OTHER OBLIGATIONS 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.
   11. NEITHER THE DIRECTORS OF THE AUTHORITY NOR  ANY  PERSON  EXECUTING
 BONDS,  NOTES OR OTHER OBLIGATIONS SHALL BE LIABLE PERSONALLY THEREON OR
 BE SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY SOLELY BY  REASON
 OF  THE  ISSUANCE  THEREOF. THE BONDS, NOTES OR OTHER OBLIGATIONS OF THE
 AUTHORITY SHALL NOT BE A DEBT OF EITHER  THE  STATE  OR  THE  CITY,  AND
 NEITHER  THE  STATE NOR THE CITY SHALL BE LIABLE THEREON, NOR SHALL THEY
 BE PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE OF THE AUTHORITY; AND  SUCH
 BONDS,  NOTES  OR  OTHER OBLIGATIONS SHALL CONTAIN ON THE FACE THEREOF A
 STATEMENT TO SUCH EFFECT.
   12. THE AUTHORITY, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS THEN
 MAY EXIST, SHALL HAVE POWER TO PURCHASE  BONDS,  NOTES  OR  OTHER  OBLI-
 GATIONS  OF  THE  AUTHORITY  OUT OF ANY MONEYS AVAILABLE THEREFOR, WHICH
 SHALL THEREUPON BE CANCELED.
   13. NOTWITHSTANDING ANY PROVISION OF THIS TITLE TO THE CONTRARY, NOTH-
 ING IN THIS SECTION MAY BE CONSTRUED  AS  AUTHORIZATION  TO  REIMPOSE  A
 CONTROL  PERIOD  OF  THE  AUTHORITY  UNDER  SECTION THIRTY-EIGHT HUNDRED
 FIFTY-EIGHT OF THIS TITLE.
   § 3. Subdivision 9 of section 3854 of the public authorities  law,  as
 added by chapter 122 of the laws of 2003, is amended to read as follows:
   9.  to  enter into interest rate exchange or similar arrangements with
 any person under such terms and conditions as the authority  may  deter-
 mine,  not  inconsistent  with  the general laws of this state and other
 provisions of this title, including, without limitation,  provisions  as
 to  default or early termination and indemnification by the authority or
 any other party thereto for  loss  of  benefits  as  a  result  thereof;
 provided,  however, that such exchanges or similar arrangements shall be
 limited to twenty-five percent of the amount authorized  in  subdivision
 one  of  section thirty-eight hundred sixty-two of this title to pay the
 financeable costs described in paragraph (a), (c), (d) or (e) of  subdi-
 vision  fifteen of section thirty-eight hundred fifty-one of this title,
 OR TO TWENTY-FIVE PERCENT OF THE AMOUNT AUTHORIZED IN SUBDIVISION ONE OF
 SECTION THIRTY-EIGHT HUNDRED SIXTY-TWO-A OF  THIS    TITLE  TO  PAY  THE
 FINANCEABLE  COSTS DESCRIBED IN PARAGRAPH (A), (C), (D) OR (E) OF SUBDI-
 S. 9161                             5
 
 VISION FIFTEEN OF SECTION THIRTY-EIGHT HUNDRED FIFTY-ONE OF THIS  TITLE,
 AS APPLICABLE;
   §  4.  The opening paragraph of section 3863 of the public authorities
 law, as added by chapter 122 of the laws of 2003, is amended to read  as
 follows:
   Subject to any resolution or resolutions adopted pursuant to paragraph
 (f)  of  subdivision  six  of  section thirty-eight hundred sixty-two OR
 PARAGRAPH (F) OF SUBDIVISION SIX OF SECTION THIRTY-EIGHT HUNDRED  SIXTY-
 TWO-A of this title, AS APPLICABLE:
   § 5. This act shall take effect immediately.

2025-S9161A (ACTIVE) - Details

Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: Public Authorities Law
Laws Affected:: Amd §§3852, 3854 & 3863, add §3862-a, Pub Auth L

2025-S9161A (ACTIVE) - Summary

Provides secondary bonding authority up to $46,000,000 to the Buffalo fiscal stability authority during the period of July 1, 2026 and June 30, 2030; extends the authority to 2047.

2025-S9161A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9161A

SPONSOR: BASKIN
 
TITLE OF BILL:

An act to amend the public authorities law, in relation to providing
secondary bonding authority to the Buffalo fiscal stability authority

 
PURPOSE:

The purpose of this bill is to authorize the Buffalo Fiscal Stability
Authority to issue bonds between July 1, 2025 and June 30, 2029.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1: amends subdivision 3 of section 3852 of the Public Authori-
ties Law by extending the existence of the Buffalo fiscal stability
authority through 2046 so that bonds may reach final maturity.

Section 2: creates a new section of Public Authorities Law, section
3862-a, providing secondary bonding authority to the Buffalo Fiscal
Stability Authority.

Subsection 1 outlines the financeable costs to which funds from the
issuance of such bonds may be applied and describes what percentage of
the projected gap the issuance of such bonds may cover in a given fiscal
year.

Subsection 2 provides that the final date of maturity for such bonds is
June 30, 2046.

Subsection 3 clarifies that bonds may be issued without regard to the
provisions of local finance law.

Subsection 4 permits the Buffalo Fiscal Stability authority may delegate
the authority to set the financial terms of bonds to the chairperson, or
any director or officer of the authority.

Subsection 5 describes how the bonds may be executed and sold.

Subsection 6 specifies all the ways in which the authority is permitted
to secure the payment of the bonds.

Subsection 7 grants the authority the power to enter into agreements for
the benefit of bondholders, including the entrusting, pledging or
creation of any security interest in any such revenues.

Subsection 8 specifies that the proceeds from the sale of any bonds in
this section not applied to deficit financing may be used to directly
pay obligations of the city where such bonds were purchased by the city.

Subsection 9 establishes the validity of security interests in, or
pledges of, revenues, moneys, or other personal property made or created
by the authority.

Subsection 10 specifies that all bonds, notes, or other obligations of
the authority are negotiable instruments under the UCC.


Subsection 11 specifies that the director of the authority and anyone
executing bonds on the authority's behalf cannot be held personally
liable on the bonds. The State of New York and the City of Buffalo also
cannot be held liable.

Subsection 12 grants the authority the power to buy back its own bonds.

Section 3: amends section 3854 of Public Authorities Law to provide
authority to enter into interest rate exchanges or arrangements, includ-
ing provisions as to default or early termination and indemnification by
the authority resulting in the loss of benefits.  Any such losses are
capped at 25% of the amount authorized in section 3862-a for the speci-
fied purposes.

Section 4: specifies that remedies of bondholders under section 3863 of
Public Authorities Law are applicable to bonds issued pursuant to
section 3862-a.

Section 5: effective date.

 
JUSTIFICATION:

In 2003, the New York State Legislature created the Buffalo Fiscal
Stability Authority (BFSA). This body exists to exercise oversight over
the financial affairs of the City of Buffalo. At that time, the BFSA was
granted bonding authority to provide financial relief to the City. Muni-
cipalities, public benefit corporations, and other governmental entities
issue bonds to fund day-to-day operating as well as capital projects.
These instruments are functionally a series of loans from an assortment
of buyers, who are guaranteed regular interest payments and repayment of
the full principal upon "maturity" of the bond. The BFSA was initially
authorized to issue no more than $170 million in bonds at one time, with
a maturity date of 2037.

At present, the City of Buffalo is on the precipice of a fiscal cliff.
The City currently estimates a budget gap of $50 million. Erie County
says that this figure may be larger, and the BFSA and City Comptroller
have both expressed concerns. The City needs a long-term plan to close
this budget gap, and time to implement that plan.

To that end, this bill authorizes the BFSA to issue up to an additional
$150 million in bonds between July 1, 2025 and June 30, 2029, with a
maturity date of June 30, 2046. In each of those four fiscal years, the
BFSA is authorized to issue a total bond amount no greater than an annu-
ally decreasing set percentage of the total budget gap. This funding
will shrink the budget gap by a set percent each year, permit the City
of Buffalo to come up with long-term revenue generating policies, and
collect said revenue to the point that such funding will no longer be
necessary.

 
LEGISLATIVE HISTORY:

2025: S.7682 Referred to Corporations, Authorities, and Commissions.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2025-S9161A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9161--A
 
                             I N  S E N A T E
 
                             February 9, 2026
                                ___________
 
 Introduced  by  Sen.  BASKIN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and   Commissions  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the public authorities law,  in  relation  to  providing
   secondary bonding authority to the Buffalo fiscal stability authority
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 3 of section 3852  of  the  public  authorities
 law,  as added by chapter 122 of the laws of 2003, is amended to read as
 follows:
   3. The authority shall continue until its control, advisory  or  other
 responsibilities,  and  its  liabilities  have  been  met  or  otherwise
 discharged, which in no event shall be later than  June  thirtieth,  two
 thousand [thirty-seven] FORTY-SEVEN. Upon the termination of the author-
 ity,  all  of its property and assets shall pass to and be vested in the
 city.
   § 2. The public authorities law is amended by  adding  a  new  section
 3862-a to read as follows:
   § 3862-A. ADDITIONAL BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORI-
 TY. 1. COMMENCING JULY FIRST, TWO THOUSAND TWENTY-SIX AND TERMINATING ON
 JUNE  THIRTIETH, TWO THOUSAND THIRTY, THE AUTHORITY SHALL HAVE THE POWER
 AND IS HEREBY AUTHORIZED FROM TIME TO TIME  TO  ISSUE  BONDS,  NOTES  OR
 OTHER  OBLIGATIONS  IN  SUCH PRINCIPAL AMOUNTS AS IT MAY DETERMINE TO BE
 NECESSARY PURSUANT TO SECTION THIRTY-EIGHT  HUNDRED  SIXTY-ONE  OF  THIS
 TITLE  TO  PAY ANY FINANCEABLE COSTS AND TO FUND RESERVES TO SECURE SUCH
 BONDS, NOTES OR OTHER  OBLIGATIONS,  INCLUDING  INCIDENTAL  EXPENSES  IN
 CONNECTION THEREWITH; PROVIDED, HOWEVER, THE AGGREGATE PRINCIPAL AMOUNTS
 OF  SUCH BONDS, NOTES OR OTHER  OBLIGATIONS  OUTSTANDING AT ANY ONE TIME
 SHALL NOT EXCEED FORTY-SIX  MILLION  DOLLARS  IN  ADDITION  TO  THE  ONE
 HUNDRED  SEVENTY-FIVE  MILLION  DOLLARS  AUTHORIZED  PURSUANT TO SECTION
 THIRTY-EIGHT HUNDRED SIXTY-TWO OF THIS TITLE. SUCH FUNDS MAY BE  APPLIED
 TO  FINANCEABLE COSTS DEFINED IN PARAGRAPHS (A), (D) AND (E) OF SUBDIVI-
 SION FIFTEEN OF SECTION THIRTY-EIGHT HUNDRED FIFTY-ONE  OF  THIS  TITLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14815-02-6
 S. 9161--A                          2
 
 SUCH  FUNDS  IN  CITY  FISCAL YEAR TWO THOUSAND TWENTY-SIX--TWO THOUSAND
 TWENTY-SEVEN SHALL NOT EXCEED EIGHTY PERCENT OF  THE  PROJECTED  GAP  AS
 DEFINED  IN SUBDIVISION TWENTY OF SECTION THIRTY-EIGHT HUNDRED FIFTY-ONE
 OF  THIS TITLE, IN CITY FISCAL YEAR TWO THOUSAND TWENTY-SEVEN--TWO THOU-
 SAND TWENTY-EIGHT SUCH FUNDS SHALL  NOT  EXCEED  SIXTY  PERCENT  OF  THE
 PROJECTED  GAP  AS DEFINED IN SUBDIVISION TWENTY OF SECTION THIRTY-EIGHT
 HUNDRED FIFTY-ONE OF THIS TITLE, IN CITY FISCAL YEAR TWO THOUSAND  TWEN-
 TY-EIGHT--TWO  THOUSAND  TWENTY-NINE  SUCH  FUNDS SHALL NOT EXCEED FORTY
 PERCENT OF THE PROJECTED GAP AS DEFINED IN SUBDIVISION TWENTY OF SECTION
 THIRTY-EIGHT HUNDRED FIFTY-ONE OF THIS TITLE, AND IN  CITY  FISCAL  YEAR
 TWO  THOUSAND  TWENTY-NINE--TWO  THOUSAND  THIRTY  SUCH  FUNDS SHALL NOT
 EXCEED TWENTY PERCENT OF THE PROJECTED GAP  AS  DEFINED  IN  SUBDIVISION
 TWENTY  OF  SECTION  THIRTY-EIGHT HUNDRED FIFTY-ONE OF THIS TITLE.  SUCH
 BONDS MAY BE ISSUED WHETHER THE CITY OF BUFFALO IS IN A  CONTROL  PERIOD
 OR  AN  ADVISORY PERIOD.   SUCH BONDS SHALL BE TAX EXEMPT TO THE MAXIMUM
 EXTENT PRACTICABLE, AS PROVIDED BY SECTION THIRTY-EIGHT  HUNDRED  SIXTY-
 NINE  OF  THIS  TITLE.  BONDS,  NOTES OR OTHER OBLIGATIONS ISSUED BY THE
 AUTHORITY (A) TO PAY REASONABLE COSTS OF ISSUANCE, AS DETERMINED BY  THE
 AUTHORITY, (B) TO ESTABLISH DEBT SERVICE RESERVE FUNDS, (C) TO REFUND OR
 ADVANCE REFUND ANY OUTSTANDING BONDS OR NOTES OF THE CITY OR THE AUTHOR-
 ITY,  OR  (D)  AS CASH FLOW BORROWINGS SHALL NOT COUNT AGAINST THE ABOVE
 LIMIT ON OUTSTANDING BONDS, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY,
 NOR SHALL ANY ACCRETION OF PRINCIPAL  OF  BONDS  THAT  WOULD  CONSTITUTE
 INTEREST  UNDER  THE  INTERNAL  REVENUE  CODE OF 1986, AS AMENDED, COUNT
 AGAINST SUCH LIMIT; PROVIDED, HOWEVER, THAT    THE  AGGREGATE  PRINCIPAL
 AMOUNT  OF  CASH  FLOW  BORROWINGS OUTSTANDING AT ANY ONE TIME SHALL NOT
 EXCEED ONE HUNDRED FORTY-FIVE MILLION DOLLARS.
   2. THE AUTHORITY MAY ISSUE BONDS, NOTES OR OTHER OBLIGATIONS TO REFUND
 BONDS, NOTES OR OTHER OBLIGATIONS PREVIOUSLY ISSUED,  BUT  IN  NO  EVENT
 SHALL THE FINAL MATURITY OF ANY BONDS, NOTES OR OTHER OBLIGATIONS OF THE
 AUTHORITY BE LATER THAN JUNE THIRTIETH, TWO THOUSAND SEVENTY. NO BOND OF
 THE  AUTHORITY  SHALL MATURE MORE THAN THIRTY YEARS FROM THE DATE OF ITS
 ISSUE, OR AFTER JUNE THIRTIETH, TWO THOUSAND SEVENTY, WHICHEVER DATE  IS
 EARLIER.
   3.  BONDS,  NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY MAY BE ISSUED,
 AMORTIZED, REDEEMED AND REFUNDED WITHOUT REGARD TO THE PROVISIONS OF THE
 LOCAL FINANCE LAW.
   4. THE DIRECTORS MAY DELEGATE TO THE CHAIRPERSON OR OTHER DIRECTOR  OR
 OFFICER  OF THE AUTHORITY THE POWER TO SET THE FINANCIAL TERMS OF BONDS,
 NOTES OR OTHER OBLIGATIONS.
   5. THE AUTHORITY IN ITS SOLE DISCRETION SHALL DETERMINE THAT THE ISSU-
 ANCE OF ITS BONDS, NOTES OR OTHER  OBLIGATIONS  IS  APPROPRIATE.  BONDS,
 NOTES  OR  OTHER  OBLIGATIONS  SHALL  BE AUTHORIZED BY RESOLUTION OF THE
 AUTHORITY. BONDS SHALL BEAR INTEREST AT SUCH FIXED OR VARIABLE RATES AND
 SHALL BE IN SUCH DENOMINATIONS, BE IN SUCH FORM, EITHER COUPON OR REGIS-
 TERED, BE SOLD AT SUCH PUBLIC OR  PRIVATE  SALE,  BE  EXECUTED  IN  SUCH
 MANNER,  BE  DENOMINATED  IN  UNITED STATES CURRENCY, BE PAYABLE IN SUCH
 MEDIUM OF PAYMENT, AT SUCH PLACE AND BE SUBJECT TO SUCH TERMS OF REDEMP-
 TION AS THE AUTHORITY MAY PROVIDE IN SUCH RESOLUTION. NO BONDS, NOTES OR
 OTHER OBLIGATIONS OF THE AUTHORITY MAY BE SOLD AT  PRIVATE  SALE  UNLESS
 SUCH SALE AND THE TERMS THEREOF HAVE BEEN APPROVED IN WRITING BY (A) THE
 STATE  COMPTROLLER  WHERE  SUCH SALE IS NOT TO THE STATE COMPTROLLER, OR
 (B) THE DIRECTOR OF THE BUDGET, WHERE SUCH SALE IS TO  THE  STATE  COMP-
 TROLLER.
   6.  ANY  RESOLUTION  OR  RESOLUTIONS AUTHORIZING BONDS, NOTES OR OTHER
 OBLIGATIONS OR ANY ISSUE  OF  BONDS,  NOTES  OR  OTHER  OBLIGATIONS  MAY
 S. 9161--A                          3
 
 CONTAIN  PROVISIONS WHICH MAY BE A PART OF THE CONTRACT WITH THE HOLDERS
 OF THE BONDS, NOTES OR OTHER OBLIGATIONS THEREBY AUTHORIZED AS  TO:  (A)
 PLEDGING  ALL  OR  PART  OF  THE AUTHORITY'S REVENUES, TOGETHER WITH ANY
 OTHER  MONEYS,  SECURITIES  OR  CONTRACTS,  TO SECURE THE PAYMENT OF THE
 BONDS, NOTES OR OTHER  OBLIGATIONS,  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 PURPOSES TO WHICH THE PROCEEDS FROM THE SALE OF
 BONDS, NOTES OR OTHER OBLIGATIONS MAY BE APPLIED; (D) LIMITATIONS ON THE
 ISSUANCE OF ADDITIONAL BONDS, NOTES OR OTHER OBLIGATIONS, THE TERMS UPON
 WHICH ADDITIONAL BONDS, NOTES OR OTHER OBLIGATIONS  MAY  BE  ISSUED  AND
 SECURED  AND THE REFUNDING OF BONDS, NOTES OR OTHER OBLIGATIONS; (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)  VESTING  IN  A TRUSTEE OR TRUSTEES SUCH PROPERTIES, RIGHTS,
 POWERS AND DUTIES IN TRUST AS THE AUTHORITY  MAY  DETERMINE,  WHICH  MAY
 INCLUDE  ANY  OR  ALL OF THE RIGHTS, POWERS AND DUTIES  OF  THE  TRUSTEE
 APPOINTED BY THE BONDHOLDERS PURSUANT TO  SECTION  THIRTY-EIGHT  HUNDRED
 SIXTY-THREE  OF  THIS TITLE AND LIMITING OR ABROGATING THE RIGHTS OF THE
 BONDHOLDERS TO APPOINT A TRUSTEE UNDER  SUCH  SECTION  OR  LIMITING  THE
 RIGHTS,  DUTIES AND POWERS OF SUCH TRUSTEE; AND (G) DEFINING THE ACTS OR
 OMISSIONS OF THE AUTHORITY TO ACT WHICH MAY CONSTITUTE A DEFAULT IN  THE
 OBLIGATIONS AND DUTIES OF THE AUTHORITY TO THE BONDHOLDERS AND PROVIDING
 FOR  THE  RIGHTS  AND  REMEDIES  OF THE BONDHOLDERS IN THE EVENT OF SUCH
 DEFAULT, INCLUDING AS A MATTER OF RIGHT THE APPOINTMENT OF  A  RECEIVER;
 PROVIDED,  HOWEVER, THAT SUCH ACTS OR OMISSIONS OF THE AUTHORITY TO  ACT
 WHICH MAY CONSTITUTE A DEFAULT AND SUCH RIGHTS AND REMEDIES SHALL NOT BE
 INCONSISTENT WITH THE GENERAL LAWS OF THE STATE AND OTHER PROVISIONS  OF
 THIS TITLE.
   7.  IN  ADDITION  TO  THE  POWERS CONFERRED UPON THE AUTHORITY IN THIS
 SECTION TO SECURE ITS BONDS, NOTES OR OTHER OBLIGATIONS,  THE  AUTHORITY
 SHALL  HAVE  POWER  IN  CONNECTION  WITH THE ISSUANCE OF BONDS, NOTES OR
 OTHER OBLIGATIONS TO ENTER INTO SUCH AGREEMENTS FOR THE BENEFIT  OF  THE
 BONDHOLDERS AS THE AUTHORITY 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, INCLUD-
 ING REFRAINING FROM DOING ANY ACT, WHICH THE AUTHORITY  WOULD  HAVE  THE
 RIGHT  TO DO IN THE ABSENCE OF SUCH AGREEMENTS. THE AUTHORITY SHALL HAVE
 POWER TO ENTER INTO AMENDMENTS OF ANY SUCH AGREEMENTS WITHIN THE  POWERS
 GRANTED  TO  THE AUTHORITY 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, NOTES OR OTHER OBLIGATIONS OF THE AUTHORITY.
   8. WHENEVER A SERIES OF BONDS,  NOTES  OR  OTHER  OBLIGATIONS  OF  THE
 AUTHORITY  IS  ISSUED  PURSUANT  TO THIS SECTION FOR PURPOSES OTHER THAN
 DEFICIT FINANCING AUTHORIZED BY SECTION THIRTY-EIGHT HUNDRED FIFTY-SEVEN
 OF THIS TITLE, THE PAYMENT OF THE PROCEEDS  OF  SUCH  SERIES  OF  BONDS,
 NOTES  OR  OTHER  OBLIGATIONS  TO THE CITY MAY BE, AT THE REQUEST OF THE
 AUTHORITY, EVIDENCED BY OBLIGATIONS OF THE  CITY  ISSUED  IN  ACCORDANCE
 WITH  APPLICABLE  PROVISIONS OF THE STATE CONSTITUTION AND LOCAL FINANCE
 LAW THEN IN EFFECT AT THE TIME ANY SUCH OBLIGATIONS ARE ISSUED, PROVIDED
 THAT THE PRINCIPAL AMOUNT OF THE AUTHORITY'S BONDS, NOTES OR OTHER OBLI-
 GATIONS ISSUED IN CONNECTION WITH ANY SUCH EXCHANGE SHALL NOT EXCEED THE
 PRINCIPAL AMOUNT OF SUCH OBLIGATIONS OF THE CITY  AND  ACCRUED  INTEREST
 THEREON  AT  THE  STATED RATE TO THE DATE OF SUCH EXCHANGE, AND PROVIDED
 S. 9161--A                          4
 
 FURTHER, HOWEVER, THAT THE PRINCIPAL PAYMENTS ON ANY SUCH ISSUE OF  CITY
 OBLIGATIONS  SHALL IN NO EVENT BE SCHEDULED TO FALL ON A DATE LATER THAN
 THE DATE ON WHICH FALLS A CORRESPONDING AMOUNT  OF  SCHEDULED  PRINCIPAL
 PAYMENTS  ON  THE  SERIES  OF  BONDS,  NOTES OR OTHER OBLIGATIONS OF THE
 AUTHORITY ORIGINALLY ISSUED TO PROVIDE SUCH PROCEEDS OR ISSUED TO REFUND
 BONDS, NOTES OR OTHER OBLIGATIONS ISSUED TO PROVIDE SUCH PROCEEDS.
   9. 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  AUTHORITY  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  AUTHORITY  IRRE-
 SPECTIVE  OF  WHETHER SUCH PARTIES HAVE NOTICE THEREOF. NO INSTRUMENT BY
 WHICH SUCH A PLEDGE OR SECURITY INTEREST IS CREATED  NOR  ANY  FINANCING
 STATEMENT NEED BE RECORDED OR FILED TO BE VALID AND BINDING.
   10.  WHETHER  OR  NOT  THE  BONDS,  NOTES  OR OTHER OBLIGATIONS OF THE
 AUTHORITY ARE OF SUCH FORM AND CHARACTER AS TO BE NEGOTIABLE INSTRUMENTS
 UNDER THE TERMS OF THE UNIFORM COMMERCIAL  CODE,  THE  BONDS,  NOTES  OR
 OTHER  OBLIGATIONS  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.
   11.  NEITHER  THE  DIRECTORS OF THE AUTHORITY NOR ANY PERSON EXECUTING
 BONDS, NOTES OR OTHER OBLIGATIONS SHALL BE LIABLE PERSONALLY THEREON  OR
 BE  SUBJECT TO ANY PERSONAL LIABILITY OR ACCOUNTABILITY SOLELY BY REASON
 OF THE ISSUANCE THEREOF. THE BONDS, NOTES OR OTHER  OBLIGATIONS  OF  THE
 AUTHORITY  SHALL  NOT  BE  A  DEBT  OF EITHER THE STATE OR THE CITY, AND
 NEITHER THE STATE NOR THE CITY SHALL BE LIABLE THEREON, NOR  SHALL  THEY
 BE  PAYABLE OUT OF ANY FUNDS OTHER THAN THOSE OF THE AUTHORITY; AND SUCH
 BONDS, NOTES OR OTHER OBLIGATIONS SHALL CONTAIN ON THE  FACE  THEREOF  A
 STATEMENT TO SUCH EFFECT.
   12. THE AUTHORITY, SUBJECT TO SUCH AGREEMENTS WITH BONDHOLDERS AS THEN
 MAY  EXIST,  SHALL  HAVE  POWER  TO PURCHASE BONDS, NOTES OR OTHER OBLI-
 GATIONS OF THE AUTHORITY OUT OF ANY  MONEYS  AVAILABLE  THEREFOR,  WHICH
 SHALL THEREUPON BE CANCELED.
   13. NOTWITHSTANDING ANY PROVISION OF THIS TITLE TO THE CONTRARY, NOTH-
 ING  IN  THIS  SECTION  MAY  BE CONSTRUED AS AUTHORIZATION TO REIMPOSE A
 CONTROL PERIOD OF  THE  AUTHORITY  UNDER  SECTION  THIRTY-EIGHT  HUNDRED
 FIFTY-EIGHT OF THIS TITLE.
   §  3.  Subdivision 9 of section 3854 of the public authorities law, as
 added by chapter 122 of the laws of 2003, is amended to read as follows:
   9. to enter into interest rate exchange or similar  arrangements  with
 any  person  under such terms and conditions as the authority may deter-
 mine, not inconsistent with the general laws of  this  state  and  other
 provisions  of  this title, including, without limitation, provisions as
 to default or early termination and indemnification by the authority  or
 any  other  party  thereto  for  loss  of  benefits as a result thereof;
 provided, however, that such exchanges or similar arrangements shall  be
 limited  to  twenty-five percent of the amount authorized in subdivision
 one of section thirty-eight hundred sixty-two of this title to  pay  the
 financeable  costs described in paragraph (a), (c), (d) or (e) of subdi-
 vision fifteen of section thirty-eight hundred fifty-one of this  title,
 OR TO TWENTY-FIVE PERCENT OF THE AMOUNT AUTHORIZED IN SUBDIVISION ONE OF
 SECTION  THIRTY-EIGHT  HUNDRED  SIXTY-TWO-A  OF  THIS   TITLE TO PAY THE
 S. 9161--A                          5
 
 FINANCEABLE COSTS DESCRIBED IN PARAGRAPH (A), (C), (D) OR (E) OF  SUBDI-
 VISION  FIFTEEN OF SECTION THIRTY-EIGHT HUNDRED FIFTY-ONE OF THIS TITLE,
 AS APPLICABLE;
   §  4.  The opening paragraph of section 3863 of the public authorities
 law, as added by chapter 122 of the laws of 2003, is amended to read  as
 follows:
   Subject to any resolution or resolutions adopted pursuant to paragraph
 (f)  of  subdivision  six  of  section thirty-eight hundred sixty-two OR
 PARAGRAPH (F) OF SUBDIVISION SIX OF SECTION THIRTY-EIGHT HUNDRED  SIXTY-
 TWO-A of this title, AS APPLICABLE:
   § 5. This act shall take effect immediately.

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Senate Bill S9161A

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Sponsored By

April Baskin

Current Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

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