Bill Text: NY S06162 | 2019-2020 | General Assembly | Introduced

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Bill Title: Relates to the special powers of the New York state environmental facilities corporation; moneys in certain funds may be utilized to fulfill obligations of governmental entities of another state that are backed by the full faith and credit of that state and rated in one of the two highest rating categories by at least one nationally recognized rating organization.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2020-12-28 - COMMITTED TO RULES [S06162 Detail]

Download: New_York-2019-S06162-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          6162

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 21, 2019
                                       ___________

        Introduced  by Sen. HARCKHAM -- (at request of the Environmental Facili-
          ties Corporation) -- read twice and ordered printed, and when  printed
          to  be  committed  to  the  Committee on Corporations, Authorities and
          Commissions

        AN ACT to amend the public authorities law, in relation to  the  special
          powers of the New York state environmental facilities corporation

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 6 of section 1285-j of the  public  authorities
     2  law,  as  amended by chapter 307 of the laws of 2005, is amended to read
     3  as follows:
     4    6. Moneys in  the  water  pollution  control  revolving  fund  may  be
     5  invested  as  provided  in  subdivision  four  of section twelve hundred
     6  eighty-four of this title and may be further invested (a) in  investment
     7  agreements  continuously  secured  by  obligations with any insurance or
     8  reinsurance company or corporate affiliate thereof rated by a nationally
     9  recognized rating agency in one of its two highest categories, any bank,
    10  trust company or broker or dealer, as defined by the securities exchange
    11  act of 1934, which is a dealer in government bonds,  which  reports  to,
    12  trades  with  and is recognized as a primary dealer by a federal reserve
    13  bank and is a member of the securities [investors]  investor  protection
    14  corporation,  if,  (i)  such obligations securing such investment agree-
    15  ments are obligations as set forth in section ten of the general munici-
    16  pal law, (ii) such obligations are delivered to a trustee for the  bene-
    17  fit  of  the  corporation  or,  with  respect to moneys pledged under an
    18  indenture of trust relating to bonds or notes of the corporation, to the
    19  trustee under such indenture, or are supported by a safe keeping receipt
    20  issued by a depository satisfactory to the  corporation  as  applicable,
    21  provided  that such investment agreements must provide that the value of
    22  the underlying obligations shall  be  maintained  at  a  current  market
    23  value,  calculated no less frequently than monthly, of not less than the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09425-01-9
        S. 6162                             2

     1  amount deposited thereunder, (iii) a prior perfected  security  interest
     2  in the obligations which are securing such agreement has been granted to
     3  the  corporation,  as applicable, and (iv) such obligations are free and
     4  clear  of  adverse  third  party  claims, [or] (b) in obligations as set
     5  forth in section ten of the general municipal law that are  rated  by  a
     6  nationally  recognized  rating  agency  in one of its two highest rating
     7  categories, or (c) in obligations of governmental  entities  of  another
     8  state  that  are  backed  by the full faith and credit of that state and
     9  rated in one of the two  highest  rating  categories  by  at  least  one
    10  nationally recognized rating organization.
    11    § 2. Subdivision 6 of section 1285-m of the public authorities law, as
    12  amended  by  chapter  307  of  the  laws  of 2005, is amended to read as
    13  follows:
    14    6. Moneys in the drinking water revolving  fund  may  be  invested  as
    15  provided  in  subdivision  four of section twelve hundred eighty-four of
    16  this title and may be further invested:
    17    (a) in investment agreements continuously secured by obligations  with
    18  any  insurance  company  or  reinsurance  company or corporate affiliate
    19  thereof rated by a nationally recognized rating agency in one of its two
    20  highest categories, any bank, trust company  or  broker  or  dealer,  as
    21  defined  by  the  securities  exchange act of 1934, which is a dealer in
    22  government bonds, which reports to, trades with and is recognized  as  a
    23  primary  dealer by a federal reserve bank and is a member of the securi-
    24  ties [investors] investor protection  corporation,  if  such  investment
    25  agreement provides that:
    26    (i)  such  obligations  securing  such investment agreements are obli-
    27  gations as set forth in section ten of the general municipal law;
    28    (ii) such obligations are to be delivered to a trustee for the benefit
    29  of the corporation or, with respect to moneys pledged under an indenture
    30  of trust or trust agreement relating to bonds or  notes  of  the  corpo-
    31  ration,  to  the trustee under such indenture or trust agreement, or are
    32  supported by a safe keeping receipt issued by a depository  satisfactory
    33  to  the  corporation as applicable, provided that such investment agree-
    34  ments must provide that the value of the underlying obligations shall be
    35  maintained at a current market value, calculated no less frequently than
    36  monthly, of not less than the amount deposited thereunder;
    37    (iii) a prior perfected security interest in the obligations which are
    38  securing such agreement has been granted to the corporation, such  trus-
    39  tee or such depository as applicable; and
    40    (iv)  such  obligations  are  free  and  clear  of adverse third party
    41  claims; [or]
    42    (b) in obligations as set forth in section ten of the general  munici-
    43  pal  law  that are rated by a nationally recognized rating agency in one
    44  of its two highest rating categories; or
    45    (c) in obligations of governmental entities of another state that  are
    46  backed  by  the  full faith and credit of that state and rated in one of
    47  the two highest rating categories by at least one nationally  recognized
    48  rating organization.
    49    §  3.  This  act shall take effect immediately; provided, however that
    50  the amendments to subdivision 6 of section 1285-j and subdivision  6  of
    51  section  1285-m  of  the public authorities law made by sections one and
    52  two of this act shall not affect the expiration and  reversion  of  such
    53  subdivisions and shall expire and be deemed repealed therewith.