§ 1680-Q*2 — Self-insured bond financing

New York § 1680-Q*2

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: Dormitory Authority
• Art. 8: Miscellaneous Authorities

Text

* § 1680-q. Self-insured bond financing. 1. As used in this section\nthe following terms shall have the following meanings:\n (a) "Ancillary bond facility" means any interest rate exchange or\nsimilar agreement or any bond insurance policy, letter of credit or\nother credit enhancement facility, liquidity facility, guaranteed\ninvestment or reinvestment agreement, or other similar agreement,\narrangement or contract.\n (b) "Benefited party" means any person, firm or corporation that\nenters into an ancillary bond facility with the authority according to\nthe provisions of this section.\n (c) "Bonds" means any bonds, notes, certificates of participation and\nother evidence of indebtedness issued by the authority pursuant to\nsubdivision five of this section.\n (d) "Bond owners or owners of bonds" means any registered owners of\nbonds.\n (e) "Chair" means the chair of the workers' compensation board.\n (f) "Code" means the United States Internal Revenue Code of 1986, as\namended.\n (g) "Costs of issuance" means any item of expense directly or\nindirectly payable or reimbursable by the authority and related to the\nauthorization, sale, or issuance of bonds, including, but not limited\nto, underwriting fees and fees and expenses of professional consultants\nand fiduciaries.\n (h) "Debt service" means actual debt service, comprised of principal,\ninterest and associated costs, as defined in section fifty-c of the\nworkers' compensation law.\n (i) "Director of the budget" or "director" means the director of the\nbudget of the state of New York.\n (j) "Financing costs" means all costs of issuance, capitalized\ninterest, capitalized operating expenses of the authority and, pursuant\nto the self-insured bond financing agreement, fees, cost of any\nancillary bond facility, and any other fees, discounts, expenses and\ncosts related to issuing, securing and marketing the bonds including,\nwithout limitation, any net original issue discount.\n (k) "Investment securities" shall have the same meaning as set forth\nin section one thousand six hundred eighty-l of this title.\n (l) "Interest rate exchange or similar agreement" means a written\ncontract entered into in connection with the issuance of bonds or with\nsuch bonds outstanding with a counterparty to provide for an exchange or\nswap of payments based upon fixed and/or variable interest rates, and\nshall be for exchanges in currency of the United States of America only.\n (m) "Net proceeds" means the amount of proceeds remaining following\neach sale of bonds which are not required by the authority for purposes\nof this section to pay or provide for debt service or financing costs,\nas provided in the self-insured bond financing agreement.\n (n) "Operating expenses" means the reasonable or necessary operating\nexpenses of the authority for purposes of this section, including,\nwithout limitation, the costs of: retention of auditors, preparation of\naccounting and other reports, maintenance of the ratings on the bonds,\nany operating expense reserve fund, insurance premiums, ancillary bond\nfacilities, rebate payments, annual meetings or other required\nactivities of the authority, and professional consultants and\nfiduciaries.\n (o) "Outstanding", when used with respect to bonds, shall exclude\nbonds that shall have been paid in full at maturity, or shall have\notherwise been refunded, redeemed, defeased or discharged, or that may\nbe deemed not outstanding pursuant to agreements with the holders\nthereof.\n (p) "Pledged assessments revenues", "pledged revenues" or "pledged\nassessments" means receipts of the assessments imposed pursuant to\nsection one hundred fifty-one of the workers' compensation law and\npledged for the payment of debt service on the bonds or amounts due\npursuant to an ancillary bond facility, including the right to receive\nsame.\n (q) "Self-insurer offset fund" shall mean the fund composed of\nrevenues, including those obtained by the bonds issued under this\nsection, which shall be used solely for the purposes described in\nsubdivision four of this section.\n (r) "Self-insured employer" means individual and group self-insured\nemployers established in accordance with section fifty of the workers'\ncompensation law.\n (s) "State" means the state of New York.\n (t) "Self-insured bond financing agreement" or "financing agreement"\nmeans an agreement authorized and created pursuant to subdivision four\nof this section and section fifty-c of the workers' compensation law, as\nsame by its terms and bond proceedings, may be amended.\n 2. The authority is hereby authorized to issue bonds to reduce\nassessments imposed on self-insured employers under section fifty of the\nworkers' compensation law as a result of the unfunded claims of\nindividual and group self-insurers. The authority may enter into one or\nmore self-insured bond financing agreements described in section fifty-c\nof the workers' compensation law. All of the provisions of the public\nauthorities law relating to bonds and notes of the dormitory authority\nwhich are not inconsistent with the provisions of this section shall\napply to obligations authorized by this section, including but not\nlimited to the power to establish adequate reserves therefor and to\nissue renewal notes or refunding bonds thereof. The provisions of this\nsection shall apply solely to obligations authorized by this section.\n 3. It is found and declared that unfunded claims in either the\nindividual or group self-insurance trust program will, absent provision\nfor long-term financing, result in imposition of costs on all\nself-insurers through assessments; that such unfunded claims and\nassessments may have a detrimental impact on businesses and\nnot-for-profit corporations in New York state and on the provision of\nservices to New York residents; that without financing the board may be\nrequired to impose higher assessments to pay such unfunded claims; that\nfinancing will allow the workers' compensation board to purchase one or\nmore assumptions of workers' compensation liability policies that will\nlimit the long term losses from these unfunded claims; that the bonds\nwill provide a more efficient means of covering unfunded claims than the\ncurrent system of assessment on all self-insureds; that bonds issued by\nthe authority and secured by assessments levied, for the governmental\npurpose of funding assumption of workers' compensation liability\npolicies, amortized over a substantial period would allow the state to\nlimit liabilities and the assessments needed to pay them, thereby\nfurthering the policy of the state to reduce the costs of workers'\ncompensation and to improve the business climate in the state and the\nability of not-for-profit corporations to perform essential services\nwhile compensating injured workers; that all costs of the authority in\nrelation to this section shall be paid from assessments provided for in\nthe workers' compensation law; and that, therefore, the provisions of\nthis section are for the public benefit and good and the authorization\nas provided in this section for the issuance of revenue obligations of\nthe authority is declared to be for a public purpose and the exercise of\nan essential governmental function.\n 4. (a) The authority, the commissioner of taxation and finance and the\nchair, in consultation with the director of the budget shall execute a\nfinancing agreement prior to the issuance of any bonds. Such agreement\nshall contain such terms and conditions as are necessary to carry out\nand effectuate the purposes of this section, including covenants with\nrespect to the assessments and enforcement of the assessments, the\napplication and use of the proceeds of the sale of bonds to preserve the\ntax exemption on the bonds, the interest on which is intended to be\nexempt from taxation. The state shall not be authorized to make any\ncovenant, pledge, promise or agreement purporting to bind the state with\nrespect to pledged revenues, except as otherwise specifically authorized\nby this section.\n (b) The net proceeds of the bonds shall be deposited in accordance\nwith the self-insured bond financing agreement and this section. The\nself-insured bond financing agreement shall provide for the application\nof the net bond proceeds, and such bond proceeds shall be used, for any\nof the following purposes: (i) to pay unmet compensation or benefits of\nindividual and group self-insured employers; (ii) to purchase one or\nmore assumption of workers' compensation liability policies to discharge\nthe liabilities incurred or to be incurred under subdivision three or\nthree-a of section fifty of the workers' compensation law; or (iii) to\npay financing costs of the bonds issued under this section. Not\ninconsistent with this section, the authority may provide restrictions\non the use and investment of net proceeds of the bonds and other amounts\nin the self-insured bond financing agreement or otherwise in a tax\nregulatory agreement as necessary or desirable to assure that they are\nexempt from taxation.\n 5. (a) (i) The authority shall have power and is hereby authorized to\nissue its bonds at such times and in such aggregate principal amounts\nnot to exceed an amount to be determined by the chair as necessary to\nfund the purposes of this section, but in no case exceeding nine hundred\nmillion dollars exclusive of any bonds issued to refund bonds previously\nissued pursuant to this chapter and any bonds issued to fund any reserve\nfunds cost of issuance or original issue premium. The bonds shall be\nissued for the following corporate purposes: (A) to pay current unmet\ncompensation or benefits of individual and group self-insured employers;\n(B) to purchase one or more assumptions of workers' compensation\nliability policies to discharge the liabilities incurred or to be\nincurred under subdivision three or three-a of section fifty of the\nworkers' compensation law; or (C) to pay financing costs of the bonds\nissued under this section.\n (ii) Each issuance of bonds shall be authorized by a resolution of the\nauthority, provided, however, that any such resolution may delegate to\nan officer of the authority the power to issue such bonds from time to\ntime and to fix the details of any such issues of bonds by an\nappropriate certificate of such authorized officer. Every issue of the\nbonds of the authority for the self-insurer offset fund shall be special\nrevenue obligations payable from and secured by a pledge of revenues and\nother assets, including those proceeds of such bonds deposited in a\nreserve fund for the benefit of bondholders, earnings on such funds and\nsuch other funds and assets as may become available, upon such terms and\nconditions as specified by the authority in the resolution under which\nthe bonds are issued or in a related trust indenture.\n (iii) The authority shall have the power and is hereby authorized from\ntime to time to issue bonds, in consultation with the chair, the\ncommissioner of taxation and finance and the director of the budget, to\nrefund any bonds issued under this section by the issuance of new bonds,\nwhether the bonds to be refunded have or have not matured, and to issue\nbonds partly to refund bonds then outstanding and partly for any of its\nother corporate purposes under this section. The refunding bonds may be\nexchanged for the bonds to be refunded or sold and the proceeds applied\nto the purchase, redemption or payment of such bonds.\n (b) The bonds of the authority of each issue shall be dated, shall\nbear interest (which, in the opinion of bond counsel to the authority,\nmay be includable in or excludable from the gross income of the owners\nfor federal income tax purposes) at such fixed or variable rates,\npayable at or prior to maturity, and shall mature at such time or times,\nas may be determined by the authority and may be made redeemable before\nmaturity, at the option of the authority, at such price or prices and\nunder such terms and conditions as may be fixed by the authority. The\nprincipal and interest of such bonds may be made payable in any lawful\nmedium. The resolution or the certificate of the authorized officer\nshall determine the form of the bonds, either registered or book-entry\nform, and the manner of execution of the bonds and shall fix the\ndenomination or denominations of the bonds and the place or places of\npayment of principal and interest thereof, which may be at any bank or\ntrust company within or outside the state. If any officer whose\nsignature or a facsimile thereof appears on any bonds shall cease to be\nsuch officer before the delivery of such bonds, such signature or\nfacsimile shall nevertheless be valid and sufficient for all purposes\nthe same as if such officer had remained in office until such delivery.\nThe authority may also provide for temporary bonds and for the\nreplacement of any bond that shall become mutilated or shall be\ndestroyed or lost.\n (c) The authority may sell such bonds, either at a public or private\nsale and either on a competitive or negotiated basis, provided no such\nbonds may be sold by the authority at private sale unless such sale and\nthe terms thereof have been approved in writing by the comptroller of\nthe state of New York. The proceeds of such bonds shall be disbursed for\nthe purposes for which such bonds were issued under such restrictions as\nthe financing agreement and the resolution authorizing the issuance of\nsuch bonds or the related trust indenture may provide. Such bonds shall\nbe issued without any other approvals, filings, proceedings or the\nhappening of any other conditions other than any approvals, findings,\nproceedings, or other conditions that are specified and expressly\nrequired by this section; provided, however, that any issuance of bonds\nunder the authority of this section shall be considered a project for\nthe purposes of section fifty-one of this chapter and subject to\napproval under such section.\n (d) Any pledge made by the authority shall be valid and binding at the\ntime the pledge is made. The assets, property, revenues, reserves or\nearnings so pledged shall immediately be subject to the lien of such\npledge without any physical delivery thereof or further act and the lien\nof any such pledge shall be valid and binding as against all parties\nhaving claims of any kind against the authority, irrespective of whether\nsuch parties have notice thereof. Notwithstanding any other provision of\nlaw to the contrary, neither the bond resolution nor any indenture or\nother instrument, including the financing agreement, by which a pledge\nis created or by which the authority's interest in pledged assets,\nproperty, revenues, reserves or earnings thereon is assigned need be\nfiled, perfected or recorded in any public records in order to protect\nthe pledge thereof or perfect the lien thereof as against third parties,\nexcept that a copy thereof shall be filed in the records of the\nauthority.\n (e) Whether or not the bonds of the authority are of such form and\ncharacter as to be negotiable instruments under the terms of the uniform\ncommercial code, the bonds are hereby made negotiable instruments for\nall purposes, subject only to the provisions of the bonds for\nregistration.\n (f) At the sole discretion of the authority, any bonds issued by the\nauthority and any ancillary bond facility made under the provisions of\nthis subdivision may be secured by a resolution or trust indenture by\nand between the authority and the trust indenture trustee, which may be\nany trust company or bank having the powers of a trust company, whether\nlocated within or outside the state, provided it is carried out in\naccordance with section sixty-nine-d of the state finance law. Such\ntrust indenture or resolution providing for the issuance of such bonds\nmay provide for the creation and maintenance of such reserves as the\nauthority shall determine to be proper and may include covenants setting\nforth the duties of the authority in relation to the bonds, or the\nfinancing agreement. Such trust indenture or resolution may contain\nprovisions: (i) respecting the custody, safe-guarding and application of\nall moneys and securities; (ii) protecting and enforcing the rights and\nremedies (pursuant to the trust indenture and the financing agreement)\nof the owners of the bonds and any other benefited party as may be\nreasonable and proper and not in violation of law; (iii) concerning the\nrights, powers and duties of the trustee appointed by bondholders\npursuant to paragraph (g) of this subdivision; or (iv) limiting or\nabrogating the right of the bondholders to appoint a trustee. It shall\nbe lawful for any bank or trust company which may act as depository of\nthe proceeds of bonds or of any other funds or obligations received on\nbehalf of the authority to furnish such indemnifying bonds or to pledge\nsuch securities as may be required by the authority. Any such trust\nindenture or resolution may contain such other provisions as the\nauthority may deem reasonable and proper for priorities and\nsubordination among the owners of the bonds and other beneficiaries. For\npurposes of this section, a "resolution" of the authority shall include\nany trust indenture authorized thereby.\n (g) The authority may enter into, amend or terminate, as it determines\nto be necessary or appropriate, any ancillary bond facility in\nconsultation with the chair and director of the budget (i) to facilitate\nthe issuance, sale, resale, purchase, repurchase or payment of bonds,\ninterest rate savings or market diversification or the making or\nperformance of interest rate exchange or similar agreements, including\nwithout limitation bond insurance, letters of credit and liquidity\nfacilities, (ii) to attempt to manage or hedge risk or achieve a\ndesirable effective interest rate or cash flow, or (iii) to place the\nobligations or investments of the authority, as represented by the bonds\nor the investment of reserved bond proceeds or other pledged revenues or\nother assets, in whole or in part, on the interest rate, cash flow or\nother basis decided in consultation with the chair and director of the\nbudget, which facility may include without limitation contracts commonly\nknown as interest rate exchange or similar agreements, forward purchase\ncontracts or guaranteed investment contracts and futures or contracts\nproviding for payments based on levels of, or changes in, interest\nrates. These contracts or arrangements may be entered into by the\nauthority in connection with, or incidental to, entering into, or\nmaintaining any agreement which secures bonds of the authority or\ninvestment, or contract providing for investment of reserves or similar\nfacility guaranteeing an investment rate for a period of years not to\nexceed the underlying term of the bonds. The determination by the\nauthority that an ancillary bond facility or the amendment or\ntermination thereof is necessary or appropriate as aforesaid shall be\nconclusive. Any ancillary bond facility may contain such payment,\nsecurity, default, remedy, and termination provisions and payments and\nother terms and conditions as determined by the authority, after giving\ndue consideration to the creditworthiness of the counterparty or other\nobligated party, including any rating by any nationally recognized\nrating agency, and any other criteria as may be appropriate.\n (h) The authority, subject to such agreements with bondholders as may\nthen exist (including provisions which restrict the power of the\nauthority to purchase bonds), or with the providers of any applicable\nancillary bond facility, shall have the power out of any funds available\ntherefor to purchase bonds of the authority, which may or may not\nthereupon be cancelled, at a price not substantially exceeding:\n (i) if the bonds are then redeemable, the redemption price then\napplicable, including any accrued interest; or\n (ii) if the bonds are not then redeemable, the redemption price and\naccrued interest applicable on the first date after such purchase upon\nwhich the bonds become subject to redemption.\n (i) Neither the members of the authority nor any other person\nexecuting the bonds or an ancillary bond facility of the authority shall\nbe subject to any personal liability by reason of the issuance or\nexecution and delivery thereof.\n (j) The maturities of the bonds shall not exceed thirty years from\ntheir respective issuance.\n 6. Neither any bond issued pursuant to this section nor any ancillary\nbond facility of the authority shall constitute a debt or moral\nobligation of the state or a state supported obligation within the\nmeaning of any constitutional or statutory provision or a pledge of the\nfaith and credit of the state or of the taxing power of the state, and\nthe state shall not be liable to make any payments thereon nor shall any\nbond or any ancillary bond facility be payable out of any funds or\nassets other than pledged revenues and other assets of the authority and\nother funds and assets of or available to the authority pledged\ntherefor, and the bonds and any ancillary bond facility of the authority\nshall contain on the face thereof or other prominent place thereon a\nstatement to the foregoing effect.\n 7. (a) Subject to the provisions of subdivision five of this section\nin the event that the authority shall default in the payment of\nprincipal of, or interest on, or sinking fund payment on, any issue of\nbonds after the same shall become due, whether at maturity or upon call\nfor redemption, or in the event that the authority or the state shall\nfail to comply with any agreement made with the holders of any issue of\nbonds, the holders of twenty-five percent in aggregate principal amount\nof the bonds of such issue then outstanding, by instrument or\ninstruments filed in the office of the clerk of the county of Albany and\nproved or acknowledged in the same manner as a deed to be recorded, may\nappoint a trustee to represent the holders of such bonds for the\npurposes herein provided.\n (b) Such trustee, may, and upon written request of the holders of\ntwenty-five percent in principal amount of such bonds then outstanding\nshall, in his or its own name:\n (i) by suit, action or proceeding in accordance with the civil\npractice law and rules, enforce all rights of the bondholders, including\nthe right to require the authority to carry out any agreement with such\nholders and to perform its duties under this section;\n (ii) bring suit upon such bonds;\n (iii) by action or suit, require the authority to account as if it\nwere the trustee of an express trust for the holders of such bonds;\n (iv) by action or suit, enjoin any acts or things which may be\nunlawful or in violation of the rights of the holders of such bonds; and\n (v) declare all such bonds due and payable, and if all defaults shall\nbe made good, then, with the consent of the holders of twenty-five\npercent of the principal amount of such bonds then outstanding, annul\nsuch declaration and its consequences, provided, however, that nothing\nin this subdivision shall preclude the authority from agreeing that\nconsent of the provider of an ancillary bond facility is required for an\nacceleration of related bonds in the event of a default other than a\nfailure to pay principal of or interest on the bonds when due.\n (c) The supreme court shall have jurisdiction of any suit, action or\nproceeding by the trustee on behalf of such bondholders. The venue of\nany such suit, action or proceeding shall be laid in the county of\nAlbany.\n (d) Before declaring the principal of bonds due and payable, the\ntrustee shall first give thirty days notice in writing to the authority.\n 8. All monies of the authority from whatever source derived shall be\npaid to the treasurer of the authority and shall be deposited forthwith\nin a bank or banks designated by the authority. The monies in such\naccounts shall be paid out or withdrawn on the order of such person or\npersons as the authority may authorize to make such requisitions. All\ndeposits of such monies shall either be secured by obligations of the\nUnited States or of the state or of any municipality of a market value\nequal at all times to the amount on deposit, or monies of the authority\nmay be deposited in money market funds rated in the highest short-term\nor long-term rating category by at least one nationally recognized\nrating agency. To the extent practicable, and consistent with the\nrequirements of the authority, all such monies shall be deposited in\ninterest bearing accounts. The authority shall have power,\nnotwithstanding the provisions of this section, to contract with the\nholders of any bonds as to the custody, collection, security, investment\nand payment of any monies of the authority or any monies held in trust\nor otherwise for the payment of bonds or any way to secure bonds, and\ncarry out any such contract notwithstanding that such contract may be\ninconsistent with the provisions of this section. Monies held in trust\nor otherwise for the payment of bonds or in any way to secure bonds and\ndeposits of such moneys may be secured in the same manner as monies of\nthe authority and all banks and trust companies are authorized to give\nsuch security for such deposits. Any monies of the authority not\nrequired for immediate use or disbursement may, at the discretion of the\nauthority, be invested in accordance with law and such guidelines as are\napproved by the authority.\n 9. (a) It is hereby determined that the carrying out by the authority\nof its corporate purposes under this section are in all respects for the\nbenefit of the people of the state of New York and are public purposes.\nAccordingly, the authority shall be regarded as performing an essential\ngovernmental function in the exercise of the powers conferred upon it by\nthis section. The property of the authority, its income and its\noperations shall be exempt from taxation, assessments, special\nassessments and ad valorem levies. The authority shall not be required\nto pay any fees, taxes, special ad valorem levies or assessments of any\nkind, whether state or local, including, but not limited to, real\nproperty taxes, franchise taxes, sales taxes or other taxes, upon or\nwith respect to any property owned by it or under its jurisdiction,\ncontrol or supervision, or upon the uses thereof, or upon or with\nrespect to its activities or operations in furtherance of the powers\nconferred upon it by this section, or upon or with respect to any\nassessments, rates, charges, fees, revenues or other income received by\nthe authority.\n (b) Any bonds issued pursuant to this section, their transfer and the\nincome therefrom shall, at all times, be exempt from taxation except for\nestate or gift taxes and taxes on transfers.\n (c) The state hereby covenants with the purchasers and with all\nsubsequent holders and transferees of bonds issued by the authority\npursuant to this section, in consideration of the acceptance of and\npayment for the bonds, that the bonds of the authority issued pursuant\nto this section and the income therefrom and all assessments, revenues,\nmoneys, and other property received by the authority and pledged to pay\nor to secure the payment of such bonds shall at all times be exempt from\ntaxation.\n (d) In the case of any bonds of the authority, interest on which is\nintended to be exempt from federal income tax, the authority shall\nprescribe restrictions on the use of the proceeds thereof and related\nmatters only as are necessary or desirable to assure such exemption, and\nthe recipients of such proceeds shall be bound thereby to the extent\nsuch restrictions shall be made applicable to them. Any such recipient,\nincluding, but not limited to, the state, the state insurance fund, a\npublic benefit corporation, and a school district or municipality is\nauthorized to execute a tax regulatory agreement with the authority or\nthe state, as the case may be, and the execution of such an agreement\nmay be treated by the authority or the state as a condition to receiving\nany such proceeds.\n 10. (a) The state, solely with respect to the resources of the\nself-insurer offset fund and as set forth in the self-insured bond\nfinancing agreement, covenants with the purchasers and all subsequent\nowners and transferees of bonds issued by the authority pursuant to this\nsection in consideration of the acceptance of the payment of the bonds,\nuntil the bonds, together with the interest thereon, with interest on\nany unpaid installment of interest and all costs and expenses in\nconnection with any action or proceeding on behalf of the owners, are\nfully met and discharged or unless expressly permitted or otherwise\nauthorized by the terms of each financing agreement and any contract\nmade or entered into by the authority with or for the benefit of such\nowners:\n (i) that in the event bonds of the authority are sold as federally\ntax-exempt bonds, the state shall not take any action or fail to take\naction that would result in the loss of such federal tax exemption on\nsaid bonds;\n (ii) that the state will cause the workers' compensation board to\nimpose, charge, raise, levy, collect and apply the pledged assessments\nfor the payment of debt service requirements in each year in which bonds\nare outstanding; and\n (iii) that the state, subsequent to the issuance of bonds under this\nsection:\n (A) will not materially limit or alter the duties imposed on the\nworkers' compensation board, the authority, and other officers of the\nstate by the self-insured bond financing agreement and the bond\nproceedings authorizing the issuance of bonds with respect to\napplication of pledged assessments for the payment of debt service\nrequirements;\n (B) will not issue any bonds, notes or other evidences of\nindebtedness, other than the bonds authorized by this section, having\nany rights arising out of subparagraph two of paragraph c of subdivision\nfive of section fifty of the workers' compensation law or this section\nor secured by any pledge of or other lien or charge on the revenues\npledged for the payment of debt service requirements; except for bonds\nauthorized under subdivision eight of section fifteen of the workers'\ncompensation law.\n (C) will not create or cause to be created any lien or charge on the\npledged revenues, other than a lien or pledge created thereon pursuant\nto said sections;\n (D) will carry out and perform, or cause to be carried out and\nperformed, each and every promise, covenant, agreement or contract made\nor entered into by the financing agreement, by the authority or on its\nbehalf with the bond owners of any bonds;\n (E) will not in any way impair the rights, exemptions or remedies of\nthe bond owners; and\n (F) will not limit, modify, rescind, repeal or otherwise alter the\nrights or obligations of the appropriate officers of the state to\nimpose, maintain, charge or collect the assessments constituting the\npledged revenues as may be necessary to produce sufficient revenues to\nfulfill the terms of the proceedings authorizing the issuance of the\nbonds, including pledged revenue coverage requirements.\n (b) Notwithstanding the provisions of paragraph (a) of this\nsubdivision:\n (i) the remedies available to the authority and the bondholders for\nany breach of the pledges and agreements of the state set forth in this\nsubdivision shall be limited to injunctive relief;\n (ii) nothing in this subdivision shall prevent the authority from\nissuing evidences of indebtedness:\n (A) which are secured by a pledge or lien which is, and shall on the\nface thereof, be expressly subordinate and junior in all respects to\nevery lien and pledge created by or pursuant to said sections; or\n (B) which are secured by a pledge of or lien on moneys or funds\nderived on or after the date every pledge or lien thereon created by or\npursuant to said sections shall be discharged and satisfied; and\n (iii) nothing in this subdivision shall preclude the state from\nexercising its power, through a change in law, to limit, modify,\nrescind, repeal or otherwise alter the character of the pledged\nassessments or revenues or to substitute like or different sources of\nassessments, taxes, fees, charges or other receipts as pledged revenues\nif and when adequate provision shall be made by law for the protection\nof the holders of outstanding bonds pursuant to the proceedings under\nwhich the bonds are issued, including changing or altering the method of\nestablishing the special assessments.\n (c) The authority is authorized to include this covenant of the state,\nas a contract of the state, in any agreement with the owner of any bonds\nissued pursuant to this section and in any credit facility or\nreimbursement agreement with respect to such bonds. Notwithstanding\nthese pledges and agreements by the state, the attorney general may in\nhis or her discretion enforce any and all provisions related to the\nself-insured bond fund, without limitation.\n (d) Prior to the date which is one year and one day after the\nauthority no longer has any bonds issued pursuant to this section\noutstanding, the authority shall have no authority to file a voluntary\npetition under chapter nine of the federal bankruptcy code or such\ncorresponding chapter or sections as may be in effect, and neither any\npublic officer nor any organization, entity or other person shall\nauthorize the authority to be or become a debtor under chapter nine or\nany successor or corresponding chapter or sections during such period.\nThe state hereby covenants with the owners of the bonds of the authority\nthat the state will not limit or alter the denial of authority under\nthis subdivision during the period referred to in the preceding\nsentence. The authority is authorized to include this covenant of the\nstate, as a contract of the state, in any agreement with the owner of\nany bonds issued pursuant to this section.\n (e) To the extent deemed appropriate by the authority any pledge and\nagreement of the state with respect to the bonds as provided in this\nsection may be extended to, and included in, any ancillary bond facility\nas a pledge and agreement of the state with the authority and the\nbenefited party.\n 11. The bonds of the authority are hereby made securities in which all\npublic officers and bodies of this state and all municipalities and\npolitical subdivisions, all insurance companies and associations and\nother persons carrying on an insurance business, all banks, bankers,\ntrust companies, savings banks and savings associations, including\nsavings and loan associations, building and loan associations,\ninvestment companies and other persons carrying on a banking business,\nall administrators, guardians, executors, trustees and other\nfiduciaries, and all other persons whatsoever who are now or may\nhereafter be authorized to invest in bonds or in other obligations of\nthe state, may properly and legally invest funds, including capital, in\ntheir control or belonging to them. The bonds are also hereby made\nsecurities which may be deposited with and may be received by all public\nofficers and bodies of the state and all municipalities, political\nsubdivisions and public corporations for any purpose for which the\ndeposit of bonds or other obligations of the state is now or may\nhereafter be authorized.\n 12. (a) An action against the authority for death, personal injury or\nproperty damage or founded on tort shall not be commenced more than one\nyear and ninety days after the cause of action thereof shall have\naccrued nor unless a notice of claim shall have been served on a member\nof the authority or officer or employee thereof designated by the\nauthority for such purpose, within the time limited by, and in\ncompliance with the requirements of section fifty-e of the general\nmunicipal law.\n (b) The venue of every action, suit or special proceeding brought\nagainst the authority or concerning the validity of this section shall\nbe laid in the county of Albany.\n (c) The bonds, and any obligation of the authority under any ancillary\nbond facility, may contain a recital that they are issued or executed,\nrespectively, pursuant to this section, which recital shall be\nconclusive evidence of the validity of the bonds and any such\nobligation, respectively, and the regularity of the proceedings of the\nauthority relating thereto.\n 13. Any action or proceeding to which the authority or the people of\nthe state may be parties, in which any question arises as to the\nvalidity of this section, shall be preferred over all other civil causes\nof action or cases, except election causes of action or cases, in all\ncourts of the state and shall be heard and determined in preference to\nall other civil business pending therein, except election causes,\nirrespective of position on the calendar. The same preference shall be\ngranted upon application of the authority or its counsel in any action\nor proceeding questioning the validity of this section in which the\nauthority may be allowed to intervene.\n 14. Notwithstanding any law to the contrary, no funds of the\nself-insurer offset fund may be used for any purpose other than those\nset forth in this section and section fifty-a of the workers'\ncompensation law.\n * NB There are 2 § 1680-q's\n