§ 50-C — Self-insured bonds

§ 50-c. Self-insured bonds. 1. The chair, with the commissioner of\ntaxation and finance, is authorized to enter into a financing agreement\nwith the dormitory authority, to be known as the "self-insured bond\nfinancing agreement". Such agreement shall set forth the process for\ncalculating the annual debt service of bonds issued by the dormitory\nauthority and any other associated costs in connection with the\nself-insurer offset fund, as set forth in section sixteen hundred\neighty-q of the public authorities law. For purposes of this section,\n"associated costs" may include a coverage factor, reserve fund\nrequirements, all costs of any nature incurred by the dormitory\nauthority in connection with the self-insured bond financing agreement\nor pursuant thereto, the costs of any independent audits undertaken\nunder this section, and any other costs for the implementation of this\nsubdivision and the issuance of bonds by the dormitory authority,\nincluding interest rate exchange payments, rebate payments, liquidity\nfees, credit provider fees, fiduciary fees, remarketing, dealer, auction\nagent and related fees and other similar bond-related expenses, unless\notherwise funded. By September first of each year, the dormitory\nauthority shall provide to the chair the calculation of the amount\nexpected to be paid by the dormitory authority in debt service and\nassociated costs for purposes of calculating the assessments for the\ndebt service portion of the assessment provided for under this chapter.\nAll monies received on account of such assessments shall be applied in\naccordance with this chapter and with the self-insured bond financing\nagreement until the financial obligations of the dormitory authority in\nrespect to its contract with its bondholders are met and all associated\ncosts payable to or by the dormitory authority have been paid,\nnotwithstanding any other provision of law respecting secured\ntransactions. This provision may be included by the dormitory authority\nin any contract of the dormitory authority with its bondholders. The\nself-insured bond financing agreement may restrict disbursements,\ninvestments, or rebates, and may prescribe a system of accounts\napplicable to the self-insurer offset fund as consistent with the\nprovisions of this chapter governing such fund, including custody of\nfunds and accounts with a trustee that may be prescribed by the\ndormitory authority as part of its contract with the bondholders. For\npurposes of this subdivision, the term "bonds" shall include notes\nissued in anticipation of the issuance of bonds, or notes issued\npursuant to a commercial paper program.\n 2. The chair is hereby authorized to receive and credit to the\nself-insurer offset fund any sum or sums that may at any time be\ncontributed to the state by the United States of America under any act\nof Congress, or otherwise, to which the state may be or become entitled\nby reason of any payments made out of such fund.\n 3. Notwithstanding any other law to the contrary, the chair shall be\nthe custodian of the self-insurer offset fund and, unless otherwise\nprovided for in the self-insured bond financing agreement, the\ncommissioner of taxation and finance shall invest any surplus or reserve\nmoneys thereof in securities which constitute legal investments for\nsavings banks under the laws of this state and in interest bearing\ncertificates of deposit of a bank or trust company located and\nauthorized to do business in this state or of a national bank located in\nthis state secured by a pledge of direct obligations of the United\nStates or of the state of New York in an amount equal to the amount of\nsuch certificates of deposit, and may sell any of the securities or\ncertificates of deposit in which such fund is invested if necessary for\nthe proper administration or in the best interest of such fund.\nDisbursements from such fund as provided by this subdivision shall be\nmade by the commissioner of taxation and finance unless the self-insured\nbond financing agreement provides for some other means of authorizing\nsuch disbursements that is no less protective of the fund. The\ncommissioner of taxation and finance as soon as practicable after\nJanuary first of each year, shall furnish to the chair a statement of\nthe fund, setting forth the balance of moneys in the said fund as of the\nbeginning of the calendar year, the income of the fund, the summary of\npayments out of the fund on account of reimbursements and other charges\nordered to be paid by the board, and all other charges against the fund\nand setting forth the balance of the fund remaining to its credit on the\nprior December thirty-first of each year. Such statement shall be open\nto public inspection in the office of the secretary of the board. The\nchair shall include in the reports to the governor, the speaker of the\nassembly and the temporary president of the senate as required by\nsection nine of part G of chapter fifty-seven of the laws of two\nthousand eleven, a summary of the status of the bonding program\nauthorized by this section. The commissioner of taxation and finance may\nestablish within the self-insurer offset fund such accounts and\nsub-accounts as he or she deems useful for the operation of the fund, or\nas necessary to segregate moneys within the fund, subject to the\nprovisions of the self-insured bond financing agreement and of this\nchapter.\n