§ 1266-G — Excess loss fund

§ 1266-g. Excess loss fund. 1. Subject to the provisions of this\nsection, the authority is authorized to issue bonds and notes, in\naccordance with section twelve hundred sixty-nine of this title, in such\nprincipal amounts not in excess of the seventy-five million dollar\nlimitation established in subdivision four of this section as, in the\nopinion of the authority, shall be necessary to provide sufficient funds\nto meet the capital and reserve requirements of a trust, pooling\narrangement or other entity established for the purpose of providing\nreimbursement and funding to the authority and its subsidiaries, the New\nYork city transit authority and its subsidiaries and Triborough bridge\nand tunnel authority for excess or extraordinary losses for damages to\nreal or personal property or for the destruction thereof or for personal\ninjuries or death and for certain property damage losses which may be\nincurred or sustained by any of them in connection with the use and\noperation of their respective facilities and in the conduct of their\nrespective activities (the trust, pooling arrangement or other entity\nestablished in order to provide such benefits to such participants being\nreferred to in this section as the "excess loss fund"). Prior to the\nissuance of any bonds or notes, other than refunding bonds or notes,\nauthorized by this section, the authority shall make a finding that such\nissue is expected to result, on a present value basis, in a lower\neffective cost to the participating authorities than funding the\nrequirements of the excess loss fund solely through the payment of\npremiums and assessments by such participating authorities.\n 2. In order to effectuate the purposes of the excess loss fund, the\nauthority shall, subject to the provisions of this section, have all the\npowers provided elsewhere in this title and may:\n (a) accept the notes, bonds and other contractual obligations of the\nexcess loss fund for funds provided to it by the authority;\n (b) obtain security for the payment by the excess loss fund of its\nnotes, bonds and other contractual obligations issued to the authority,\nincluding a pledge of all or any part of the assets and revenues of the\nexcess loss fund, including its receipts and rights to receive premiums,\nassessments, reimbursements and other payments from the participants in\nthe excess loss fund, which pledge may contain covenants with respect to\nthe charging and fixing by actuarial estimates, where appropriate, of\npremiums, assessments, reimbursements and other payments and the use and\ndisposition thereof; and\n (c) enter into contracts with the excess loss fund and with the\nparticipants therein, on such terms and conditions as the parties may\nagree, with respect to the payment of premiums, assessments,\nreimbursements and other payments to the excess loss fund and the nature\nand extent of the benefits to be paid by the excess loss fund to such\nparticipants.\n 3. The bonds and notes of the authority authorized by this section\nshall not constitute general obligations of the authority, but shall be\nspecial obligations of the authority payable as to principal, redemption\npremium, if any, and interest solely from the security, sources of\npayment and funds obtained from or on behalf of the excess loss fund,\nall in the manner more particularly provided by the authority in the\nresolution under which such bonds and notes shall be authorized to be\nissued.\n 4. The aggregate principal amount of bonds and notes issued for the\npurposes enumerated in subdivision one of this section shall not exceed\nseventy-five million dollars, excluding: (a) bonds and notes issued to\nfund costs of issuance and any reasonably required debt service reserve\nfund for such bonds or notes; (b) an amount equal to any original issue\ndiscount from the principal amount of any bonds or notes issued; and (c)\nbonds and notes issued to refund or otherwise repay bonds or notes\ntheretofore issued for such purposes, provided, however, that upon any\nsuch refunding or repayment the total aggregate principal amount of\noutstanding bonds and notes (including for purpose of such calculation\nthe principal amount of the refunding bonds or notes then to be issued\nand excluding the principal amount of the bonds or notes so to be\nrefunded or repaid and any amounts excluded under paragraph (a) or (b)\nof this subdivision) may be greater than seventy-five million dollars,\nonly if the present value of the aggregate debt service of the refunding\nor repayment bonds or notes to be issued shall not exceed the present\nvalue of the aggregate debt service of the bonds or notes so to be\nrefunded or repaid. For purposes of paragraph (c) of this subdivision,\nthe present values of the aggregate debt service of the refunding or\nrepayment bonds or notes and of the aggregate debt service of the bonds\nor notes so to be refunded or repaid, shall be calculated by utilizing\nthe effective interest rate of the refunding or repayment bonds or\nnotes, which shall be that rate arrived at by doubling the semi-annual\ninterest rate (compounded semi-annually) necessary to discount the debt\nservice payments on the refunding or repayment bonds or notes from the\npayment dates thereof to the date of issue of the refunding or repayment\nbonds or notes and to the price bid including estimated accrued interest\nor proceeds received by the authority including estimated accrued\ninterest from the sale thereof.\n 5. The term "excess loss fund" as used in this section shall not\ninclude any trust, pooling arrangements or other entity (a) which\nprovides or offers to provide reimbursement or funding for losses or\nliabilities to any entity other than the authority and its subsidiaries,\nthe New York city transit authority and its subsidiaries and Triborough\nbridge and tunnel authority, or (b) in which any entity other than the\nauthority and its subsidiaries, the New York city transit authority and\nits subsidiaries and Triborough bridge and tunnel authority holds an\nequity interest.\n