Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 1266-G
Excess loss fund
Public Authorities (PBA) CHAPTER 43-A, ARTICLE 5, TITLE 11
§ 1266-g. Excess loss fund. 1. Subject to the provisions of this
section, the authority is authorized to issue bonds and notes, in
accordance with section twelve hundred sixty-nine of this title, in such
principal amounts not in excess of the seventy-five million dollar
limitation established in subdivision four of this section as, in the
opinion of the authority, shall be necessary to provide sufficient funds
to meet the capital and reserve requirements of a trust, pooling
arrangement or other entity established for the purpose of providing
reimbursement and funding to the authority and its subsidiaries, the New
York city transit authority and its subsidiaries and Triborough bridge
and tunnel authority for excess or extraordinary losses for damages to
real or personal property or for the destruction thereof or for personal
injuries or death and for certain property damage losses which may be
incurred or sustained by any of them in connection with the use and
operation of their respective facilities and in the conduct of their
respective activities (the trust, pooling arrangement or other entity
established in order to provide such benefits to such participants being
referred to in this section as the "excess loss fund"). Prior to the
issuance of any bonds or notes, other than refunding bonds or notes,
authorized by this section, the authority shall make a finding that such
issue is expected to result, on a present value basis, in a lower
effective cost to the participating authorities than funding the
requirements of the excess loss fund solely through the payment of
premiums and assessments by such participating authorities.

2. In order to effectuate the purposes of the excess loss fund, the
authority shall, subject to the provisions of this section, have all the
powers provided elsewhere in this title and may:

(a) accept the notes, bonds and other contractual obligations of the
excess loss fund for funds provided to it by the authority;

(b) obtain security for the payment by the excess loss fund of its
notes, bonds and other contractual obligations issued to the authority,
including a pledge of all or any part of the assets and revenues of the
excess loss fund, including its receipts and rights to receive premiums,
assessments, reimbursements and other payments from the participants in
the excess loss fund, which pledge may contain covenants with respect to
the charging and fixing by actuarial estimates, where appropriate, of
premiums, assessments, reimbursements and other payments and the use and
disposition thereof; and

(c) enter into contracts with the excess loss fund and with the
participants therein, on such terms and conditions as the parties may
agree, with respect to the payment of premiums, assessments,
reimbursements and other payments to the excess loss fund and the nature
and extent of the benefits to be paid by the excess loss fund to such
participants.

3. The bonds and notes of the authority authorized by this section
shall not constitute general obligations of the authority, but shall be
special obligations of the authority payable as to principal, redemption
premium, if any, and interest solely from the security, sources of
payment and funds obtained from or on behalf of the excess loss fund,
all in the manner more particularly provided by the authority in the
resolution under which such bonds and notes shall be authorized to be
issued.

4. The aggregate principal amount of bonds and notes issued for the
purposes enumerated in subdivision one of this section shall not exceed
seventy-five million dollars, excluding: (a) bonds and notes issued to
fund costs of issuance and any reasonably required debt service reserve
fund for such bonds or notes; (b) an amount equal to any original issue
discount from the principal amount of any bonds or notes issued; and (c)
bonds and notes issued to refund or otherwise repay bonds or notes
theretofore issued for such purposes, provided, however, that upon any
such refunding or repayment the total aggregate principal amount of
outstanding bonds and notes (including for purpose of such calculation
the principal amount of the refunding bonds or notes then to be issued
and excluding the principal amount of the bonds or notes so to be
refunded or repaid and any amounts excluded under paragraph (a) or (b)
of this subdivision) may be greater than seventy-five million dollars,
only if the present value of the aggregate debt service of the refunding
or repayment bonds or notes to be issued shall not exceed the present
value of the aggregate debt service of the bonds or notes so to be
refunded or repaid. For purposes of paragraph (c) of this subdivision,
the present values of the aggregate debt service of the refunding or
repayment bonds or notes and of the aggregate debt service of the bonds
or notes so to be refunded or repaid, shall be calculated by utilizing
the effective interest rate of the refunding or repayment bonds or
notes, which shall be that rate arrived at by doubling the semi-annual
interest rate (compounded semi-annually) necessary to discount the debt
service payments on the refunding or repayment bonds or notes from the
payment dates thereof to the date of issue of the refunding or repayment
bonds or notes and to the price bid including estimated accrued interest
or proceeds received by the authority including estimated accrued
interest from the sale thereof.

5. The term "excess loss fund" as used in this section shall not
include any trust, pooling arrangements or other entity (a) which
provides or offers to provide reimbursement or funding for losses or
liabilities to any entity other than the authority and its subsidiaries,
the New York city transit authority and its subsidiaries and Triborough
bridge and tunnel authority, or (b) in which any entity other than the
authority and its subsidiaries, the New York city transit authority and
its subsidiaries and Triborough bridge and tunnel authority holds an
equity interest.