STATE OF NEW YORK
________________________________________________________________________
6985--A
Cal. No. 1086
IN SENATE
April 11, 2014
___________
Introduced by Sen. GRISANTI -- (at request of the Environmental Facili-
ties Corporation) -- read twice and ordered printed, and when printed
to be committed to the Committee on Corporations, Authorities and
Commissions -- reported favorably from said committee and committed to
the Committee on Finance -- reported favorably from said committee,
ordered to first and second report, ordered to a third reading,
amended and ordered reprinted, retaining its place in the order of
third reading
AN ACT to amend the public authorities law, in relation to the special
powers of the New York state environmental facilities corporation; and
providing for the repeal of such provisions upon the expiration there-
of
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 6 of section 1285-j of the public authorities
2 law, as amended by chapter 307 of the laws of 2005, is amended to read
3 as follows:
4 6. Moneys in the water pollution control revolving fund may be
5 invested as provided in subdivision four of section twelve hundred
6 eighty-four of this title and may be further invested (a) in investment
7 agreements continuously secured by obligations with any insurance or
8 reinsurance company or corporate affiliate thereof rated by a nationally
9 recognized rating agency in one of its two highest categories, any bank,
10 trust company or broker or dealer, as defined by the securities exchange
11 act of 1934, which is a dealer in government bonds, which reports to,
12 trades with and is recognized as a primary dealer by a federal reserve
13 bank and is a member of the securities investors protection corporation,
14 if, (i) such obligations securing such investment agreements are obli-
15 gations as set forth in section ten of the general municipal law, (ii)
16 such obligations are delivered to a trustee for the benefit of the
17 corporation or, with respect to moneys pledged under an indenture of
18 trust relating to bonds or notes of the corporation, to the trustee
19 under such indenture, or are supported by a safe keeping receipt issued
20 by a depository satisfactory to the corporation as applicable, provided
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
S LBD13980-05-4
S. 6985--A 2
1 that such investment agreements must provide that the value of the
2 underlying obligations shall be maintained at a current market value,
3 calculated no less frequently than monthly, of not less than the amount
4 deposited thereunder, (iii) a prior perfected security interest in the
5 obligations which are securing such agreement has been granted to the
6 corporation, as applicable, and (iv) such obligations are free and clear
7 of adverse third party claims, or (b) in obligations as set forth in
8 section ten of the general municipal law, other than those obligations
9 set forth in subparagraph (iv) of paragraph f of subdivision one of
10 section ten of the general municipal law, that are rated by a nationally
11 recognized rating agency in one of its two highest rating categories, or
12 (c) in obligations as set forth in subparagraph (iv) of paragraph f of
13 subdivision one of section ten of the general municipal law that are
14 rated by a nationally recognized rating agency in one of its three high-
15 est rating categories, or (d) in obligations of any agency, instrumen-
16 tality or governmental entity of another state that are rated by at
17 least one nationally recognized rating agency in one of its two highest
18 rating categories.
19 § 2. Subdivision 6 of section 1285-m of the public authorities law, as
20 amended by chapter 307 of the laws of 2005, is amended to read as
21 follows:
22 6. Moneys in the drinking water revolving fund may be invested as
23 provided in subdivision four of section twelve hundred eighty-four of
24 this title and may be further invested:
25 (a) in investment agreements continuously secured by obligations with
26 any insurance company or reinsurance company or corporate affiliate
27 thereof rated by a nationally recognized rating agency in one of its two
28 highest categories, any bank, trust company or broker or dealer, as
29 defined by the securities exchange act of 1934, which is a dealer in
30 government bonds, which reports to, trades with and is recognized as a
31 primary dealer by a federal reserve bank and is a member of the securi-
32 ties investors protection corporation, if such investment agreement
33 provides that:
34 (i) such obligations securing such investment agreements are obli-
35 gations as set forth in section ten of the general municipal law;
36 (ii) such obligations are to be delivered to a trustee for the benefit
37 of the corporation or, with respect to moneys pledged under an indenture
38 of trust or trust agreement relating to bonds or notes of the corpo-
39 ration, to the trustee under such indenture or trust agreement, or are
40 supported by a safe keeping receipt issued by a depository satisfactory
41 to the corporation as applicable, provided that such investment agree-
42 ments must provide that the value of the underlying obligations shall be
43 maintained at a current market value, calculated no less frequently than
44 monthly, of not less than the amount deposited thereunder;
45 (iii) a prior perfected security interest in the obligations which are
46 securing such agreement has been granted to the corporation, such trus-
47 tee or such depository as applicable; and
48 (iv) such obligations are free and clear of adverse third party
49 claims; or
50 (b) in obligations as set forth in section ten of the general munici-
51 pal law, other than those obligations set forth in subparagraph (iv) of
52 paragraph f of subdivision one of section ten of the general municipal
53 law, that are rated by a nationally recognized rating agency in one of
54 its two highest rating categories; or
55 (c) in obligations as set forth in subparagraph (iv) of paragraph f of
56 subdivision one of section ten of the general municipal law that are
S. 6985--A 3
1 rated by a nationally recognized rating agency in one of its three high-
2 est rating categories; or
3 (d) in obligations of any agency, instrumentality or governmental
4 entity of another state that are rated by at least one nationally recog-
5 nized rating agency in one of its two highest rating categories.
6 § 3. This act shall take effect immediately; provided, however that
7 the amendments to subdivision 6 of section 1285-j and subdivision 6 of
8 section 1285-m of the public authorities law made by sections one and
9 two of this act shall not affect the expiration and reversion of such
10 subdivisions and shall expire and be deemed repealed therewith; provided
11 further that nothing contained in this act shall be construed so as to
12 extend the provisions of this act beyond September 30, 2017, when upon
13 such date this act shall expire and the provisions contained herein
14 shall be deemed repealed.
