New York Laws
Title 4 - Dormitory Authority
1680-Q*2 - Self-Insured Bond 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 section fifty-c 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 costs" means all costs of issuance, capitalized
interest, capitalized operating expenses of the authority and, pursuant
to the self-insured bond financing agreement, 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.
(k) "Investment securities" shall have the same meaning as set forth
in section one thousand six hundred eighty-l of this title.
(l) "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.
(m) "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 self-insured bond financing agreement.
(n) "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.
(o) "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.
(p) "Pledged assessments revenues", "pledged revenues" or "pledged
assessments" means receipts of the assessments imposed pursuant to
section one hundred fifty-one 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.
(q) "Self-insurer offset fund" shall mean the fund composed of
revenues, including those obtained by the bonds issued under this
section, which shall be used solely for the purposes described in
subdivision four of this section.
(r) "Self-insured employer" means individual and group self-insured
employers established in accordance with section fifty of the workers'
compensation law.
(s) "State" means the state of New York.
(t) "Self-insured bond financing agreement" or "financing agreement"
means an agreement authorized and created pursuant to subdivision four
of this section and section fifty-c of the workers' compensation law, as
same by its terms and bond proceedings, may be amended.
2. The authority is hereby authorized to issue bonds to reduce
assessments imposed on self-insured employers under section fifty of the
workers' compensation law as a result of the unfunded claims of
individual and group self-insurers. The authority may enter into one or
more self-insured bond financing agreements described in section fifty-c
of the workers' compensation law. All of the provisions of the public
authorities law relating to bonds and notes of the dormitory authority
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.
3. It is found and declared that unfunded claims in either the
individual or group self-insurance trust program will, absent provision
for long-term financing, result in imposition of costs on all
self-insurers through assessments; that such unfunded claims and
assessments may have a detrimental impact on businesses and
not-for-profit corporations in New York state and on the provision of
services to New York residents; that without financing the board may be
required to impose higher assessments to pay such unfunded claims; that
financing will allow the workers' compensation board to purchase one or
more assumptions of workers' compensation liability policies that will
limit the long term losses from these unfunded claims; that the bonds
will provide a more efficient means of covering unfunded claims than the
current system of assessment on all self-insureds; that bonds issued by
the authority and secured by assessments levied, for the governmental
purpose of funding assumption of workers' compensation liability
policies, amortized over a substantial period would allow the state to
limit 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 and the
ability of not-for-profit corporations to perform essential services
while compensating injured workers; that all costs of the authority in
relation to this section shall be paid from assessments provided for in
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 for 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 director of the budget 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 assessments 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 self-insured bond financing agreement and this section. The
self-insured bond 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) to pay unmet compensation or benefits of
individual and group self-insured employers; (ii) to purchase one or
more assumption of workers' compensation liability policies to discharge
the liabilities incurred or to be incurred under subdivision three or
three-a of section fifty of the workers' compensation law; or (iii) to
pay financing costs of the bonds issued under this section. 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 self-insured bond 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 such aggregate principal amounts
not to exceed an amount to be determined by the chair as necessary to
fund the purposes of this section, but in no case exceeding nine hundred
million dollars exclusive of any bonds issued to refund bonds previously
issued pursuant to this chapter and any bonds issued to fund any reserve
funds cost of issuance or original issue premium. The bonds shall be
issued for the following corporate purposes: (A) to pay current unmet
compensation or benefits of individual and group self-insured employers;
(B) to purchase one or more assumptions of workers' compensation
liability policies to discharge the liabilities incurred or to be
incurred under subdivision three or three-a of section fifty of the
workers' compensation law; or (C) to pay financing costs of the bonds
issued under this section.
(ii) Each issuance of bonds shall be authorized by a resolution of the
authority, provided, however, that any such resolution 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 self-insurer offset 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 such funds 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 chair, the
commissioner of taxation and finance and the director of the budget, 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, 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 without any other approvals, filings, proceedings or the
happening of any other conditions other than any approvals, findings,
proceedings, or other conditions that are specified and expressly
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, or the
financing agreement. Such trust indenture or resolution may contain
provisions: (i) respecting the custody, safe-guarding 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 chair and director of the budget (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 chair and director of the
budget, 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 agreement which secures bonds of the authority or
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.
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
self-insurer offset fund and as set forth in the self-insured bond
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 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
for the payment of debt service requirements in each year in which bonds
are outstanding; and
(iii) that the state, subsequent to the issuance of bonds under this
section:
(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 self-insured bond financing agreement and the bond
proceedings authorizing the issuance of bonds with respect to
application of pledged assessments for the payment of debt service
requirements;
(B) will not issue any bonds, notes or other evidences of
indebtedness, other than the bonds authorized by this section, having
any rights arising out of subparagraph two of paragraph c of subdivision
five of section fifty of the workers' compensation law or this section
or secured by any pledge of or other lien or charge on the revenues
pledged for the payment of debt service requirements; except for bonds

authorized under subdivision eight of section fifteen of the workers'
compensation law.
(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 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 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.
(b) Notwithstanding the provisions of paragraph (a) of this
subdivision:
(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
subdivision 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.
(c) 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
self-insured bond fund, without limitation.
(d) 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 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.
(e) 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.
14. Notwithstanding any law to the contrary, no funds of the
self-insurer offset fund may be used for any purpose other than those
set forth in this section and section fifty-a of the workers'
compensation law.
* NB There are 2 § 1680-q's

Structure New York Laws