§ 66-H — Restriction on sale in the event of nonappropriation

§ 66-h. Restriction on sale in the event of nonappropriation. 1. Any\nagreement for the issuance of certificates of participation to fund\ninstallment purchases or lease purchases by the state may provide that\nthe certificates are secured by the underlying property and that, in the\nevent that the legislature fails to appropriate funds sufficient for the\nunderlying installment payments, the financed property may be sold on\nbehalf of the holders of the certificates, provided that any excess\nproceeds from such a sale, after deduction for and payment of fees,\nexpenses and any taxes levied on the sale, and distribution to the\nholders of the certificates in the amount of the face value of the\ncertificates plus accrued interest, or in the case of a certificate\nissued with an original issue discount, its accreted value, shall be\npaid to the state.\n 2. Any security interest in personal property made or created by any\nsuch agreement shall be valid, binding and perfected from the time when\nsuch security interest attaches, without any physical delivery of the\ncollateral or further act. The lien of any such security interest shall\nbe valid, binding and perfected as against all parties having claims of\nany kind in tort, contract or otherwise against the state irrespective\nof whether or not such parties have notice hereof. No instrument by\nwhich such security interest is created nor any financing statement or\nother document need be recorded or filed. This section shall apply\nnotwithstanding the provisions of the uniform commercial code and the\nvehicle and traffic law.\n