New York Laws
Title 4 - Dormitory Authority
1680-L - The Special Disability Fund Financing.

(a) "Ancillary bond facility" means any interest rate exchange or
similar agreement or any bond insurance policy, letter of credit or
other credit enhancement facility, liquidity facility, guaranteed
investment or reinvestment agreement, or other similar agreement,
arrangement or contract.
(b) "Benefited party" means any person, firm or corporation that
enters into an ancillary bond facility with the authority according to
the provisions of this section.
(c) "Bonds" means any bonds, notes, certificates of participation and
other evidence of indebtedness issued by the authority pursuant to
subdivision five of this section.
(d) "Bond owners or owners of bonds" means any registered owners of
bonds.
(e) "Chair" means the chair of the workers' compensation board.
(f) "Code" means the United States Internal Revenue Code of 1986, as
amended.
(g) "Costs of issuance" means any item of expense directly or
indirectly payable or reimbursable by the authority and related to the
authorization, sale, or issuance of bonds, including, but not limited
to, underwriting fees and fees and expenses of professional consultants
and fiduciaries.
(h) "Debt service" means actual debt service, comprised of principal,
interest and associated costs, as defined in subparagraph five of
paragraph (h) of subdivision eight of section fifteen of the workers'
compensation law.
(i) "Director of the budget" or "director" means the director of the
budget of the state of New York.
(j) "Financing agreement" means any agreement authorized pursuant to
subdivision four of this section between the chair and the commissioner
of taxation and finance, and the authority.
(k) "Financing costs" means all costs of issuance, capitalized
interest, capitalized operating expenses of the authority and, pursuant
to the financing agreement, the initial capitalized operating expenses
of the waiver agreement management office and debt service reserves,
fees, cost of any ancillary bond facility, and any other fees,
discounts, expenses and costs related to issuing, securing and marketing
the bonds including, without limitation, any net original issue
discount.
(l) "Investment securities" means: (i) general obligations of, or
obligations guaranteed by, any state of the United States of America or
political subdivision thereof, or the District of Columbia or any agency
or instrumentality of any of them, receiving one of the three highest
long-term unsecured debt rating categories available for such securities
of at least one independent rating agency, or (ii) certificates of
deposit, savings accounts, time deposits or other obligations or
accounts of banks or trust companies in the state, secured, if the
authority shall so require, in such manner as the authority may so
determine, or (iii) obligations in which the comptroller is authorized
to invest pursuant to either section ninety-eight or ninety-eight-a of
the state finance law, or (iv) investments which the commissioner of
taxation and finance is permitted to make with surplus or reserve moneys
of the special disability fund under subparagraph seven of paragraph (h)
of subdivision eight of section fifteen of the workers' compensation
law.
(m) "Interest rate exchange or similar agreement" means a written
contract entered into in connection with the issuance of bonds or with

such bonds outstanding with a counterparty to provide for an exchange or
swap of payments based upon fixed and/or variable interest rates, and
shall be for exchanges in currency of the United States of America only.
(n) "Net proceeds" means the amount of proceeds remaining following
each sale of bonds which are not required by the authority for purposes
of this section to pay or provide for debt service or financing costs,
as provided in the financing agreement.
(o) "Operating expenses" means the reasonable or necessary operating
expenses of the authority for purposes of this section, including,
without limitation, the costs of: retention of auditors, preparation of
accounting and other reports, maintenance of the ratings on the bonds,
any operating expense reserve fund, insurance premiums, ancillary bond
facilities, rebate payments, annual meetings or other required
activities of the authority, and professional consultants and
fiduciaries.
(p) "Outstanding", when used with respect to bonds, shall exclude
bonds that shall have been paid in full at maturity, or shall have
otherwise been refunded, redeemed, defeased or discharged, or that may
be deemed not outstanding pursuant to agreements with the holders
thereof.
(q) "Pledged assessments revenues", "pledged revenues" or "pledged
assessments" means receipts of special disability fund assessments
imposed pursuant to subparagraph four of paragraph (h) of subdivision
eight of section fifteen of the workers' compensation law and pledged
for the payment of debt service on the bonds or amounts due pursuant to
an ancillary bond facility, including the right to receive same.
(r) "State" means the state of New York.
(s) "Special disability fund financing agreement" means an agreement
authorized and created pursuant to subparagraph five of paragraph (h) of
subdivision eight of section fifteen of the workers' compensation law,
as same by its terms and bond proceedings, may be amended.
(t) "Waiver agreement" means waiver agreements entered into pursuant
to section thirty-two of the workers' compensation law.
(u) "Waiver agreement management office" shall mean the office
described in paragraph (e) of section thirty-two of the workers'
compensation law.
2. The authority is hereby authorized to finance the special
disability fund established by paragraph (h) of subdivision eight of
section fifteen of the workers' compensation law and to enter into one
or more special disability fund financing agreements described in such
subdivision. All of the provisions of the authority relating to bonds
and notes which are not inconsistent with the provisions of this section
shall apply to obligations authorized by this section, including but not
limited to the power to establish adequate reserves therefor and to
issue renewal notes or refunding bonds thereof. The provisions of this
section shall apply solely to obligations authorized by this section and
shall not include liabilities, assets or revenues other than
liabilities, assets or revenues derived from the authority solely from
the special disability fund.
3. It is found and declared that the special disability fund no longer
serves the purposes for which it was created, adds to the time and
expense of proceedings before the workers' compensation board and to
employers' costs for workers' compensation insurance; that the creation
and operation of a waiver agreement management office of the workers'
compensation board, to manage, maintain and negotiate waiver agreements
on behalf of the special disability fund can reduce the special
disability fund's unfunded liability; that the reduction of such
liability and the closing of the fund to new claims will over the long

term reduce assessments paid to the fund by insurance carriers,
self-insurers and the state insurance fund, as well as the employers to
whom these costs are passed on; that in the absence of this section the
annual cost of such assessments is expected to rise; that the settlement
of claims and other actions undertaken by the waiver agreement
management office will lower the administrative costs of insurance
carriers, self-insurers and the state insurance fund; that revenue
obligations issued by the authority and secured by a special assessment
annually levied, imposed and collected on and from insurance carriers,
self-insurers and the state insurance fund for the governmental purpose
of funding waiver agreements amortized over a substantial period would
allow the state to settle and otherwise manage claims as a means for
reducing the fund's liabilities and the assessments needed to pay them,
thereby furthering the policy of the state to reduce the costs of
workers' compensation and to improve the business climate in the state
while compensating injured workers and honoring the obligations of the
special disability fund; that all costs of the authority in relation to
this section shall be paid from assessments set forth in paragraph (h)
of subdivision eight of section fifteen of the workers' compensation
law; and that, therefore, the provisions of this section are for the
public benefit and good and the authorization as provided in this
section of the issuance of revenue obligations of the authority is
declared to be for a public purpose and the exercise of an essential
governmental function.
4. (a) The authority, the commissioner of taxation and finance and the
chair, in consultation with the special disability fund advisory
committee shall execute a financing agreement prior to the issuance of
any bonds. Such agreement shall contain such terms and conditions as are
necessary to carry out and effectuate the purposes of this section,
including covenants with respect to the assessment and enforcement of
the assessments, the application and use of the proceeds of the sale of
bonds to preserve the tax-exemption on the bonds, the interest on which
is intended to be exempt from taxation. The state shall not be
authorized to make any covenant, pledge, promise or agreement purporting
to bind the state with respect to pledged revenues, except as otherwise
specifically authorized by this section.
(b) The net proceeds of the bonds shall be deposited in accordance
with the financing agreement and this section. The financing agreement
shall provide for the application of the net bond proceeds, and such
bond proceeds shall be used, for any of the following purposes: (i)
funding of waiver agreements, (ii) payment of financing costs, (iii)
funding anticipated liabilities of the special disability fund, (iv)
funding contract awards pursuant to subparagraph two of paragraph (h) of
section thirty-two of the workers' compensation law and (v) such other
purposes as are set forth in the financing agreement. Not inconsistent
with this section, the authority may provide restrictions on the use and
investment of net proceeds of the bonds and other amounts in the
financing agreement or otherwise in a tax regulatory agreement as
necessary or desirable to assure that they are exempt from taxation.
5. (a) (i) The authority shall have power and is hereby authorized to
issue its bonds at such times and in an aggregate principal amount not
to exceed an amount to be determined by the superintendent of financial
services as necessary to address all or a portion of the incurred
unfunded liabilities of the special disability fund, but in no case
exceeding twenty-five percent of the unfunded liability of the special
disability fund as of a date no later than July first, two thousand
seven, as certified to the authority by a qualified third party. The
bonds shall be issued for the following corporate purposes: (A) funding

of waiver agreements, (B) payment of financing costs, (C) funding
anticipated liabilities of the special disability fund, (D) funding
contract awards pursuant to paragraph two of subdivision (h) of section
thirty-two of the workers' compensation law and (E) such other purposes
as are set forth in the financing agreement. The foregoing limitation on
outstanding aggregate principal shall not apply to prevent the issuance
of bonds to refund bonds.
(ii) Each issuance of bonds shall be authorized by a resolution of the
authority, provided, however, that any such resolution authorizing the
issuance of bonds may delegate to an officer of the authority the power
to issue such bonds from time to time and to fix the details of any such
issues of bonds by an appropriate certificate of such authorized
officer. Every issue of the bonds of the authority for the special
disability fund shall be special revenue obligations payable from and
secured by a pledge of revenues and other assets, including those
proceeds of such bonds deposited in a reserve fund for the benefit of
bondholders, earnings on funds of the authority and such other funds and
assets as may become available, upon such terms and conditions as
specified by the authority in the resolution under which the bonds are
issued or in a related trust indenture.
(iii) The authority shall have the power and is hereby authorized from
time to time to issue bonds, in consultation with the special disability
fund advisory committee to refund any bonds issued under this section by
the issuance of new bonds, whether the bonds to be refunded have or have
not matured, and to issue bonds partly to refund bonds then outstanding
and partly for any of its other corporate purposes under this section.
The refunding bonds may be exchanged for the bonds to be refunded or
sold and the proceeds applied to the purchase, redemption or payment of
such bonds.
(b) The bonds of the authority of each issue shall be dated, shall
bear interest (which, in the opinion of bond counsel to the authority,
may be includable in or excludable from the gross income of the owners
for federal income tax purposes) at such fixed or variable rates,
payable at or prior to maturity, and shall mature at such time or times,
as may be determined by the authority and may be made redeemable before
maturity, at the option of the authority, at such price or prices and
under such terms and conditions as may be fixed by the authority. The
principal and interest of such bonds may be made payable in any lawful
medium. The resolution or the certificate of the authorized officer
shall determine the form of the bonds, either registered or book-entry
form, and the manner of execution of the bonds and shall fix the
denomination or denominations of the bonds and the place or places of
payment of principal and interest thereof, which may be at any bank or
trust company within or outside the state. If any officer whose
signature or a facsimile thereof appears on any bonds shall cease to be
such officer before the delivery of such bonds, such signature or
facsimile shall nevertheless be valid and sufficient for all purposes
the same as if such officer had remained in office until such delivery.
The authority may also provide for temporary bonds and for the
replacement of any bond that shall become mutilated or shall be
destroyed or lost.
(c) The authority may sell such bonds in such manner, either at a
public or private sale and either on a competitive or negotiated basis,
provided no such bonds may be sold by the authority at private sale
unless such sale and the terms thereof have been approved in writing by
the comptroller of the state of New York. The proceeds of such bonds
shall be disbursed for the purposes for which such bonds were issued
under such restrictions as the financing agreement and the resolution

authorizing the issuance of such bonds or the related trust indenture
may provide. Such bonds shall be issued upon approval of the authority
and without any other approvals, filings, proceedings or the happening
of any other conditions or things other than the approvals, findings,
proceedings, conditions, and things that are specified and required by
this section. Provided, however, that any issuance of bonds under the
authority of this section shall be considered a project for the purposes
of section fifty-one of this chapter, and subject to approval under such
section.
(d) Any pledge made by the authority shall be valid and binding at the
time the pledge is made. The assets, property, revenues, reserves or
earnings so pledged shall immediately be subject to the lien of such
pledge without any physical delivery thereof or further act and the lien
of any such pledge shall be valid and binding as against all parties
having claims of any kind against the authority, irrespective of whether
such parties have notice thereof. Notwithstanding any other provision of
law to the contrary, neither the bond resolution nor any indenture or
other instrument, including the financing agreement, by which a pledge
is created or by which the authority's interest in pledged assets,
property, revenues, reserves or earnings thereon is assigned need be
filed, perfected or recorded in any public records in order to protect
the pledge thereof or perfect the lien thereof as against third parties,
except that a copy thereof shall be filed in the records of the
authority.
(e) Whether or not the bonds of the authority 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 for
all purposes, subject only to the provisions of the bonds for
registration.
(f) At the sole discretion of the authority, any bonds issued by the
authority and any ancillary bond facility made under the provisions of
this subdivision may be secured by a resolution or trust indenture by
and between the authority and the trust indenture trustee, which may be
any trust company or bank having the powers of a trust company, whether
located within or outside the state, provided it is carried out in
accordance with section sixty-nine-d of the state finance law. Such
trust indenture or resolution providing for the issuance of such bonds
may provide for the creation and maintenance of such reserves as the
authority shall determine to be proper and may include covenants setting
forth the duties of the authority in relation to the bonds, the income
of the authority, or the financing agreement. Such trust indenture or
resolution may contain provisions: (i) respecting the custody,
safeguarding and application of all moneys and securities; (ii)
protecting and enforcing the rights and remedies (pursuant to the trust
indenture and the financing agreement) of the owners of the bonds and
any other benefited party as may be reasonable and proper and not in
violation of law; (iii) concerning the rights, powers and duties of the
trustee appointed by bondholders pursuant to paragraph (g) of this
subdivision; or (iv) limiting or abrogating the right of the bondholders
to appoint a trustee. It shall be lawful for any bank or trust company
which may act as depository of the proceeds of bonds or of any other
funds or obligations received on behalf of the authority to furnish such
indemnifying bonds or to pledge such securities as may be required by
the authority. Any such trust indenture or resolution may contain such
other provisions as the authority may deem reasonable and proper for
priorities and subordination among the owners of the bonds and other
beneficiaries. For purposes of this section, a "resolution" of the
authority shall include any trust indenture authorized thereby.
(g) The authority may enter into, amend or terminate, as it determines
to be necessary or appropriate, any ancillary bond facility in
consultation with the special disability fund advisory committee (i) to
facilitate the issuance, sale, resale, purchase, repurchase or payment
of bonds, interest rate savings or market diversification or the making
or performance of interest rate exchange or similar agreements,
including without limitation bond insurance, letters of credit and
liquidity facilities, (ii) to attempt to manage or hedge risk or achieve
a desirable effective interest rate or cash flow, or (iii) to place the
obligations or investments of the authority, as represented by the bonds
or the investment of reserved bond proceeds or other pledged revenues or
other assets, in whole or in part, on the interest rate, cash flow or
other basis decided in consultation with the special disability fund
advisory committee, which facility may include without limitation
contracts commonly known as interest rate exchange or similar
agreements, forward purchase contracts or guaranteed investment
contracts and futures or contracts providing for payments based on
levels of, or changes in, interest rates. These contracts or
arrangements may be entered into by the authority in connection with, or
incidental to, entering into, or maintaining any (i) agreement which
secures bonds of the authority or (ii) investment, or contract providing
for investment of reserves or similar facility guaranteeing an
investment rate for a period of years not to exceed the underlying term
of the bonds. The determination by the authority that an ancillary bond
facility or the amendment or termination thereof is necessary or
appropriate as aforesaid shall be conclusive. Any ancillary bond
facility may contain such payment, security, default, remedy, and
termination provisions and payments and other terms and conditions as
determined by the authority, after giving due consideration to the
creditworthiness of the counterparty or other obligated party, including
any rating by any nationally recognized rating agency, and any other
criteria as may be appropriate.
(h) The authority, subject to such agreements with bondholders as may
then exist (including provisions which restrict the power of the
authority to purchase bonds), or with the providers of any applicable
ancillary bond facility, shall have the power out of any funds available
therefor to purchase bonds of the authority, which may or may not
thereupon be cancelled, at a price not substantially exceeding:
(i) if the bonds are then redeemable, the redemption price then
applicable, including any accrued interest; or
(ii) if the bonds are not then redeemable, the redemption price and
accrued interest applicable on the first date after such purchase upon
which the bonds become subject to redemption.
(i) Neither the members of the authority nor any other person
executing the bonds or an ancillary bond facility of the authority shall
be subject to any personal liability by reason of the issuance or
execution and delivery thereof.
(j) The maturities of the bonds shall not exceed thirty years from
their respective issuance dates.
6. Neither any bond issued pursuant to this section nor any ancillary
bond facility of the authority shall constitute a debt or moral
obligation of the state or a state supported obligation within the
meaning of any constitutional or statutory provision or a pledge of the
faith and credit of the state or of the taxing power of the state, and
the state shall not be liable to make any payments thereon nor shall any
bond or any ancillary bond facility be payable out of any funds or
assets other than pledged revenues and other assets of the authority and
other funds and assets of or available to the authority pledged

therefor, and the bonds and any ancillary bond facility of the authority
shall contain on the face thereof or other prominent place thereon a
statement to the foregoing effect.
7. (a) Subject to the provisions of subdivision five of this section
in the event that the authority shall default in the payment of
principal of, or interest on, or sinking fund payment on, any issue of
bonds after the same shall become due, whether at maturity or upon call
for redemption, or in the event that the authority or the state shall
fail to comply with any agreement made with the holders of any issue of
bonds, the holders of twenty-five percent in aggregate principal amount
of the bonds of such issue then outstanding, by instrument or
instruments filed in the office of the clerk of the county of Albany and
proved or acknowledged in the same manner as a deed to be recorded, may
appoint a trustee to represent the holders of such bonds for the
purposes herein provided.
(b) Such trustee, may, and upon written request of the holders of
twenty-five percent in principal amount of such bonds then outstanding
shall, in his or its own name:
(i) by suit, action or proceeding in accordance with the civil
practice law and rules, enforce all rights of the bondholders, including
the right to require the authority to carry out any agreement with such
holders and to perform its duties under this section;
(ii) bring suit upon such bonds;
(iii) by action or suit, require the authority to account as if it
were the trustee of an express trust for the holders of such bonds;
(iv) by action or suit, enjoin any acts or things which may be
unlawful or in violation of the rights of the holders of such bonds; and
(v) declare all such bonds due and payable, and if all defaults shall
be made good, then, with the consent of the holders of twenty-five
percent of the principal amount of such bonds then outstanding, annul
such declaration and its consequences, provided, however, that nothing
in this subdivision shall preclude the authority from agreeing that
consent of the provider of an ancillary bond facility is required for an
acceleration of related bonds in the event of a default other than a
failure to pay principal of or interest on the bonds when due.
(c) The supreme court shall have jurisdiction of any suit, action or
proceeding by the trustee on behalf of such bondholders. The venue of
any such suit, action or proceeding shall be laid in the county of
Albany.
(d) Before declaring the principal of bonds due and payable, the
trustee shall first give thirty days notice in writing to the authority.
8. All monies of the authority from whatever source derived shall be
paid to the treasurer of the authority and shall be deposited forthwith
in a bank or banks designated by the authority. The monies in such
accounts shall be paid out or withdrawn on the order of such person or
persons as the authority may authorize to make such requisitions. All
deposits of such monies shall either be secured by obligations of the
United States or of the state or of any municipality of a market value
equal at all times to the amount on deposit, or monies of the authority
may be deposited in money market funds rated in the highest short-term
or long-term rating category by at least one nationally recognized
rating agency. To the extent practicable, and consistent with the
requirements of the authority, all such monies shall be deposited in
interest bearing accounts. The authority shall have power,
notwithstanding the provisions of this section, to contract with the
holders of any bonds as to the custody, collection, security, investment
and payment of any monies of the authority or any monies held in trust
or otherwise for the payment of bonds or any way to secure bonds, and

carry out any such contract notwithstanding that such contract may be
inconsistent with the provisions of this section. Monies held in trust
or otherwise for the payment of bonds or in any way to secure bonds and
deposits of such moneys may be secured in the same manner as monies of
the authority and all banks and trust companies are authorized to give
such security for such deposits. Any monies of the authority not
required for immediate use or disbursement may, at the discretion of the
authority, be invested in accordance with law and such guidelines as are
approved by the authority.
9. (a) It is hereby determined that the carrying out by the authority
of its corporate purposes under this section are in all respects for the
benefit of the people of the state of New York and are public purposes.
Accordingly, the authority shall be regarded as performing an essential
governmental function in the exercise of the powers conferred upon it by
this section. The property of the authority, its income and its
operations shall be exempt from taxation, assessments, special
assessments and ad valorem levies. The authority shall not be required
to pay any fees, taxes, special ad valorem levies or assessments of any
kind, whether state or local, including, but not limited to, real
property taxes, franchise taxes, sales taxes or other taxes, upon or
with respect to any property owned by it or under its jurisdiction,
control or supervision, or upon the uses thereof, or upon or with
respect to its activities or operations in furtherance of the powers
conferred upon it by this section, or upon or with respect to any
assessments, rates, charges, fees, revenues or other income received by
the authority.
(b) Any bonds issued pursuant to this section, their transfer and the
income therefrom shall, at all times, be exempt from taxation except for
estate or gift taxes and taxes on transfers.
(c) The state hereby covenants with the purchasers and with all
subsequent holders and transferees of bonds issued by the authority
pursuant to this section, in consideration of the acceptance of and
payment for the bonds, that the bonds of the authority issued pursuant
to this section and the income therefrom and all assessments, revenues,
moneys, and other property received by the authority and pledged to pay
or to secure the payment of such bonds shall at all times be exempt from
taxation.
(d) In the case of any bonds of the authority, interest on which is
intended to be exempt from federal income tax, the authority shall
prescribe restrictions on the use of the proceeds thereof and related
matters only as are necessary or desirable to assure such exemption, and
the recipients of such proceeds shall be bound thereby to the extent
such restrictions shall be made applicable to them. Any such recipient,
including, but not limited to, the state, the state insurance fund, a
public benefit corporation, and a school district or municipality is
authorized to execute a tax regulatory agreement with the authority or
the state, as the case may be, and the execution of such an agreement
may be treated by the authority or the state as a condition to receiving
any such proceeds.
10. (a) The state, solely with respect to the resources of the special
disability fund and as set forth in the special disability fund
financing agreement, covenants with the purchasers and all subsequent
owners and transferees of bonds issued by the authority pursuant to this
section in consideration of the acceptance of the payment of the bonds,
until the bonds, together with the interest thereon, with interest on
any unpaid installment of interest and all costs and expenses in
connection with any action or proceeding on behalf of the owners, are
fully met and discharged or unless expressly permitted or otherwise

authorized by the terms of each special disability fund financing
agreement and any contract made or entered into by the authority with or
for the benefit of such owners, (i) that in the event bonds of the
authority are sold as federally tax-exempt bonds, the state shall not
take any action or fail to take action that would result in the loss of
such federal tax exemption on said bonds, (ii) that the state will cause
the workers' compensation board to impose, charge, raise, levy, collect
and apply the pledged assessments and other revenues, receipts, funds or
moneys pledged for the payment of debt service requirements in each year
in which bonds are outstanding, and (iii) further, that the state (A)
will not materially limit or alter the duties imposed on the workers'
compensation board, the authority and other officers of the state by the
special disability fund financing agreement and the bond proceedings
authorizing the issuance of bonds with respect to application of pledged
assessments or other revenues, receipts, funds or moneys pledged for the
payment of debt service requirements, (B) will not issue any bonds,
notes or other evidences of indebtedness, other than the bonds, having
any rights arising out of paragraph (h) of subdivision eight of section
fifteen of the workers' compensation law or this section or secured by
any pledge of or other lien or charge on the pledged revenues or other
receipts, funds or moneys pledged for the payment of debt service
requirements, (C) will not create or cause to be created any lien or
charge on the pledged revenues, other than a lien or pledge created
thereon pursuant to said sections, (D) will carry out and perform, or
cause to be carried out and performed, each and every promise, covenant,
agreement or contract made or entered into by the special disability
fund financing agreement, by the authority or on its behalf with the
bond owners of any bonds, (E) will not in any way impair the rights,
exemptions or remedies of the bond owners, and (F) will not limit,
modify, rescind, repeal or otherwise alter the rights or obligations of
the appropriate officers of the state to impose, maintain, charge or
collect the assessments and other revenues or receipts constituting the
pledged revenues as may be necessary to produce sufficient revenues to
fulfill the terms of the proceedings authorizing the issuance of the
bonds, including pledged revenue coverage requirements, provided,
however, (i) the remedies available to the authority and the bondholders
for any breach of the pledges and agreements of the state set forth in
this subclause shall be limited to injunctive relief, (ii) nothing in
this subdivision shall prevent the authority from issuing evidences of
indebtedness (A) which are secured by a pledge or lien which is, and
shall on the face thereof, be expressly subordinate and junior in all
respects to every lien and pledge created by or pursuant to said
sections, or (B) which are secured by a pledge of or lien on moneys or
funds derived on or after the date every pledge or lien thereon created
by or pursuant to said sections shall be discharged and satisfied, and
(iii) nothing in this subdivision shall preclude the state from
exercising its power, through a change in law, to limit, modify,
rescind, repeal or otherwise alter the character of the pledged
assessments or revenues or to substitute like or different sources of
assessments, taxes, fees, charges or other receipts as pledged revenues
if and when adequate provision shall be made by law for the protection
of the holders of outstanding bonds pursuant to the proceedings under
which the bonds are issued, including changing or altering the method of
establishing the special assessments.
The authority is authorized to include this covenant of the state, as
a contract of the state, in any agreement with the owner of any bonds
issued pursuant to this section and in any credit facility or
reimbursement agreement with respect to such bonds. Notwithstanding

these pledges and agreements by the state, the attorney general may in
his or her discretion enforce any and all provisions related to the
special disability fund, without limitation.
(b) Prior to the date which is one year and one day after the
authority no longer has any bonds issued pursuant to this section
outstanding, the authority shall have no authority to file a voluntary
petition under chapter nine of the federal bankruptcy code or such
corresponding chapter or sections as may, from time to time, be in
effect, and neither any public officer nor any organization, entity or
other person shall authorize the authority to be or become a debtor
under chapter nine or any successor or corresponding chapter or sections
during such period. The state hereby covenants with the owners of the
bonds of the authority that the state will not limit or alter the denial
of authority under this subdivision during the period referred to in the
preceding sentence. The authority is authorized to include this covenant
of the state, as a contract of the state, in any agreement with the
owner of any bonds issued pursuant to this section.
(c) To the extent deemed appropriate by the authority any pledge and
agreement of the state with respect to the bonds as provided in this
section may be extended to, and included in, any ancillary bond facility
as a pledge and agreement of the state with the authority and the
benefited party.
11. The bonds of the authority are hereby made securities in which all
public officers and bodies of this state and all municipalities and
political subdivisions, all insurance companies and associations and
other persons carrying on an insurance business, all banks, bankers,
trust companies, savings banks and savings associations, including
savings and loan associations, building and loan associations,
investment companies and other persons carrying on a banking business,
all administrators, guardians, executors, trustees and other
fiduciaries, and all other persons whatsoever who are now or may
hereafter be authorized to invest in bonds or in other obligations of
the state, may properly and legally invest funds, including capital, in
their control or belonging to them. The bonds are also hereby made
securities which may be deposited with and may be received by all public
officers and bodies of the state and all municipalities, political
subdivisions and public corporations for any purpose for which the
deposit of bonds or other obligations of the state is now or may
hereafter be authorized.
12. (a) An action against the authority for death, personal injury or
property damage or founded on tort shall not be commenced more than one
year and ninety days after the cause of action thereof shall have
accrued nor unless a notice of claim shall have been served on a member
of the authority or officer or employee thereof designated by the
authority for such purpose, within the time limited by, and in
compliance with the requirements of section fifty-e of the general
municipal law.
(b) The venue of every action, suit or special proceeding brought
against the authority or concerning the validity of this section shall
be laid in the county of Albany.
(c) The bonds, and any obligation of the authority under any ancillary
bond facility, may contain a recital that they are issued or executed,
respectively, pursuant to this section, which recital shall be
conclusive evidence of the validity of the bonds and any such
obligation, respectively, and the regularity of the proceedings of the
authority relating thereto.
13. Any action or proceeding to which the authority or the people of
the state may be parties, in which any question arises as to the

validity of this section, shall be preferred over all other civil causes
of action or cases, except election causes of action or cases, in all
courts of the state and shall be heard and determined in preference to
all other civil business pending therein, except election causes,
irrespective of position on the calendar. The same preference shall be
granted upon application of the authority or its counsel in any action
or proceeding questioning the validity of this section in which the
authority may be allowed to intervene.

Structure New York Laws