New York Laws
Title 12 - Miscellaneous Provisions
168.00 - Agreements for Credit Enhancement.

(1) consider the ability of the credit or liquidity enhancement
provider to make required payments as and when due under the terms of
the appropriate governing instruments;
(2) consider the business reputation of the credit or liquidity
enhancement provider;
(3) consider the maximum term of the credit or liquidity enhancement
relative to the maturity of the bonds, notes or other obligations being
credit or liquidity enhanced;
(4) provide for the right of substitution for the credit or liquidity
enhancement provider in all agreements, including a provision permitting
such substitution when the rating of the credit or liquidity enhancement
provider falls below the probable credit rating of the issue without
considering the credit or liquidity enhancer; and
(5) consider the cost of the credit or liquidity enhancement relative
to the savings or other benefit likely to be achieved through the
utilization of the credit or liquidity enhancement.
d. Where the credit or liquidity enhancement procured is an
irrevocable letter of credit or an acquisition arrangement with a
banking organization, such instrument shall be:
(1) issued or confirmed by a bank holding company or its direct
subsidiaries, a federally chartered bank or its subsidiaries, or a state

chartered bank or its subsidiaries, licensed or authorized to do
business in this state or
(2) issued or confirmed by an agency or branch of a foreign banking
institution licensed to do business in this state with total worldwide
assets in excess of five billion dollars.
e. Any such issuing banking organization referred to in paragraph d of
this section shall meet the regulatory guidelines for capital adequacy
as promulgated by the appropriate federal banking agency as defined in
the Federal Deposit Insurance Act, 12 U.S.C. 1813(q).
f. (1) Where the credit or liquidity enhancement procured is provided
by an insurance company, such insurer shall be licensed to write
financial guarantee insurance in this state.
(2) Where the credit or liquidity enhancement procured is from other
than an entity described in paragraph d of this section or subdivision
one of this paragraph, the provider shall be a financially responsible
party, incorporated or authorized to do business in this state and
having total assets in excess of ten billion dollars.
g. The failure of a public body to comply with paragraphs c through f
of this section shall not invalidate or impair any credit or liquidity
enhancement contract or instrument.
h. The finance board may, by resolution, delegate its authority under
this section to the chief fiscal officer of such public body in which
event the chief fiscal officer shall exercise such power until the
finance board, by resolution, shall elect to reassume the same.