§ 3 — Definitions

New York § 3

• Jurisdiction: New York
• Law TSF: Tobacco Settlement Financing Corporation Act

Text

§ 3. Definitions. 1. "Ancillary bond facility" means any interest rate\nexchange or similar agreement or any bond insurance policy, letter of\ncredit or other credit enhancement facility, liquidity facility,\nguaranteed investment or reinvestment agreement, or other similar\nagreement, arrangement or contract.\n 2. "Authority" means the state of New York municipal bond bank agency\nestablished in section 2433 of the public authorities law.\n 3. "Benefited party" means any person, firm or corporation that enters\ninto an ancillary bond facility with the corporation according to the\nprovisions of this act.\n 4. "Board" means the members of the corporation.\n 5. "Bonds" means any bonds, notes, certificates of participation and\nother evidence of indebtedness issued by the corporation pursuant to\nsection six of this act.\n 6. "Code" means the United States Internal Revenue Code of 1986, as\namended.\n 7. "Complementary legislation" means sections 480-b, paragraph (c) of\nsubdivision 1 of section 481 and subdivision (a-1) of section 1846 of\nthe tax law.\n 8. "Consent decree" means the consent decree and final judgment of the\nsupreme court of the state of New York, county of New York, dated\nDecember 23, 1998, as the same has been and may be corrected, amended or\nmodified, in the action entitled State of New York, et al. v. Philip\nMorris Incorporated, et al. (Index No. 400361/97).\n 9. "Contingent contractual obligation" means a contract under which\nthe obligation of the state is a contingent contractual obligation as\nsuch term is used in section 67-a of the state finance law.\n 10. "Costs of issuance" means any item of expense directly or\nindirectly payable or reimbursable by the corporation 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 11. "Director of the budget" means the director of the budget of the\nstate of New York.\n 12. "Financing costs" means all costs of issuance, capitalized\ninterest, capitalized operating expenses and debt service reserves,\nfees, cost of any ancillary bond facility, and any other fees,\ndiscounts, expenses and costs related to issuing, securing and marketing\nthe bonds including, without limitation, any net original issue\ndiscount.\n 13. "Investment securities" means, subject to or, as otherwise\nprovided in, the provisions of any contract with bondholders of the\ncorporation, (i) general obligations of, or obligations guaranteed by,\nany state of the United States of America or political subdivision\nthereof, or the District of Columbia or any agency or instrumentality of\nany of them, receiving one of the three highest long-term unsecured debt\nrating categories available for such securities of at least one\nindependent rating agency, or (ii) certificates of deposit, savings\naccounts, time deposits or other obligations or accounts of banks or\ntrust companies in the state, secured, if the corporation shall so\nrequire, in such manner as the corporation may so determine, or (iii)\notherwise, in the discretion of the corporation, obligations in which\nthe comptroller is authorized to invest, pursuant to either section 98\nor 98-a of the state finance law.\n 14. "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 15. "Master settlement agreement" means the master settlement\nagreement, dated November 23, 1998, among the attorneys general of 46\nstates, including the state, the District of Columbia, the Commonwealth\nof Puerto Rico, Guam, the United States Virgin Islands, American Samoa\nand the Territory of the Northern Mariana Islands, on the one hand, and\ncertain tobacco manufacturers, on the other hand, and the subject of the\nconsent decree.\n 16. "Member" means any director of the authority including each person\nthat has been duly appointed to represent such director at meetings of\nthe authority from which such director may be absent.\n 17. "Net proceeds" means the amount of proceeds remaining following\neach sale of bonds which are not required by the corporation to pay or\nprovide for the financing costs.\n 18. "Operating expenses" means the reasonable or necessary operating\nexpenses of the corporation, including, without limitation,\nadministrative expenses of the corporation or authority, the cost of\npreparation of accounting and other reports, costs of maintenance of the\nratings on the bonds, funding of any operating expense reserve fund, if\nany, insurance premiums, costs of any ancillary bond facilities, and\ncosts of annual meetings or other required activities of the\ncorporation, and fees and expenses incurred for professional consultants\nand fiduciaries.\n 19. "Other assets" means assets and/or revenues, constituting a\nportion of the state's share, other than the pledged tobacco revenues,\nthat are purchased pursuant to the sale agreement and pledged by the\ncorporation for the payment of bonds or an ancillary bond facility.\n 20. "Other participating jurisdictions" means the fifty-seven (57)\ncounties of the state and the city of New York, which together with the\nstate, are entitled to receive settlement payments under the consent\ndecree.\n 21. "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 22. "Participating manufacturer" means a tobacco product manufacturer\nthat is or becomes a signatory to the master settlement agreement.\n 23. "Pledged tobacco revenues" means each such portion of the state's\nshare constituting tobacco settlement payments sold to the corporation\npursuant to section four of this act and pledged by the corporation for\nthe payment of bonds or an ancillary bond facility.\n 24. "Qualifying statute" has the meaning given that term in the master\nsettlement agreement, constituting article 13-G of the public health law\nof the state.\n 25. "Residual interests" means the income of the corporation, and bond\nproceeds, if any, or reserves not previously paid to the state, that are\nin excess of the corporation's requirements to pay its operating\nexpenses, debt service, sinking fund or other redemption requirements,\nreserve fund, and any other contractual obligations under any resolution\nor any ancillary bond facility or that may be incurred in connection\nwith the issuance of the bonds.\n 26. "Sale agreement" means any agreement authorized pursuant to this\nsection in which the state provides for the sale of all or a portion of\nthe state's share to the corporation.\n 27. "State" means the state of New York.\n 28. "State representative" means the governor of the state acting\nthrough the director of the budget.\n 29. "State's share" means all tobacco settlement payments received by\nthe state on and after January 1, 2004 and required to be made, pursuant\nto the terms of the master settlement agreement, by participating\nmanufacturers to the state which have not otherwise been allocated to\nany other participating jurisdictions pursuant to the terms of the\nconsent decree, and the state's rights to receive such tobacco\nsettlement payments and other assets of the state and other payments\nreceived by the state on and after January 1, 2004 and the state's right\nto receive such payments, under any other agreement, contract, statute\nor other provision available for sale or authorized to be sold, and\ndetermined by the state representative to be included in the sale\nagreement.\n 30. "Tobacco settlement financing corporation" or "the corporation"\nmeans the corporation created by section two of this act.\n