S T A T E O F N E W Y O R K
________________________________________________________________________
8614
2009-2010 Regular Sessions
I N A S S E M B L Y
May 29, 2009
___________
Introduced by M. of A. FARRELL, COOK, KELLNER, ESPAILLAT, WRIGHT, BING,
POWELL -- Multi-Sponsored by -- M. of A. GOTTFRIED, O'DONNELL -- read
once and referred to the Committee on Corporations, Authorities and
Commissions
AN ACT to amend the public authorities law, in relation to bonds issued
by the New York city transitional finance authority
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 10 of section 2799-bb of the public authorities
law, as added by chapter 16 of the laws of 1997, is amended to read as
follows:
10. "Project capital costs" or "costs" means costs, appropriated in
the capital budget of the city pursuant to chapters nine and ten of the
New York city charter, as amended from time to time, providing for the
construction, reconstruction, acquisition or installation of physical
public betterments or improvements [which would be classified as capital
assets under generally accepted accounting principles for munici-
palities], or the costs of any preliminary studies, surveys, maps,
plans, estimates and hearings, or incidental costs, including, but not
limited to, legal fees, printing or engraving, publication of notices,
taking of title, apportionment of costs, and interest during
construction, or any underwriting or other costs incurred in connection
with the financing thereof.
S 2. Subdivision 1 and paragraph (b) of subdivision 3 of section
2799-gg of the public authorities law, as amended by chapter 411 of the
laws of 2006, are amended to read as follows:
1. The authority shall have the power and is hereby authorized from
time to time to issue bonds, in conformity with applicable provisions of
the uniform commercial code, in such principal amounts as it may deter-
mine to be necessary pursuant to section twenty-seven hundred ninety-
nine-ff of this title to pay the cost of any project and to fund
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11663-01-9
A. 8614 2
reserves to secure such bonds, including incidental expenses in
connection therewith.
The aggregate principal amount of such bonds, notes or other obli-
gations [so issued] OUTSTANDING shall not exceed thirteen billion, five
hundred million dollars ($13,500,000,000), excluding bonds, notes or
other obligations issued [to refund or otherwise repay bonds, notes or
other obligations theretofore issued for such purposes] PURSUANT TO
SECTIONS TWENTY-SEVEN HUNDRED NINETY-NINE-SS AND TWENTY-SEVEN HUNDRED
NINETY-NINE-TT OF THIS TITLE; provided, however, that upon any refunding
or repayment of bonds (which term shall not, for this purpose, include
bond anticipation notes), the total aggregate principal amount of
outstanding bonds, notes or other obligations may be greater than thir-
teen billion, five hundred million dollars ($13,500,000,000) only if the
refunding or repayment bonds, notes or other obligations were issued in
accordance with the provisions of subparagraph (a) of subdivision two of
paragraph b of section 90.10 of the local finance law, as amended from
time to time. NOTWITHSTANDING THE FOREGOING, BONDS, NOTES OR OTHER OBLI-
GATIONS ISSUED BY THE AUTHORITY MAY BE OUTSTANDING IN AN AMOUNT GREATER
THAN THE AMOUNT PERMITTED BY THE PRECEDING SENTENCE, PROVIDED THAT SUCH
ADDITIONAL AMOUNT AT ISSUANCE, TOGETHER WITH THE AMOUNT OF INDEBTEDNESS
CONTRACTED BY THE CITY OF NEW YORK, SHALL NOT EXCEED THE LIMIT
PRESCRIBED BY SECTION 104.00 OF THE LOCAL FINANCE LAW. The authority
shall have the power from time to time to refund any bonds of the
authority by the issuance of new bonds whether the bonds to be refunded
have or have not matured, and may issue bonds partly to refund bonds of
the authority then outstanding and partly to pay the cost of any project
pursuant to section twenty-seven hundred ninety-nine-ff of this title.
Bonds issued by the authority shall be payable solely out of particular
revenues or other moneys of the authority as may be designated in the
proceedings of the authority under which the bonds shall be authorized
to be issued, subject to any agreements entered into between the author-
ity and the city, and subject to any agreements with the holders of
outstanding bonds pledging any particular revenues or moneys.
(b) The authority shall not issue variable rate bonds [if the princi-
pal amount of its variable rate bonds outstanding after such issuance
would exceed two billion, seven hundred million dollars
($2,700,000,000)] PURSUANT TO THIS SECTION IN AN AMOUNT OUTSTANDING AT
ISSUANCE EXCEEDING TWENTY PERCENT OF THE LIMIT PRESCRIBED BY SUBDIVISION
ONE OF THIS SECTION, excluding bonds (i) bearing interest at rates and
for periods of time that are specified without reference to future
events or contingencies, OR (ii) the interest RATE on which is [econom-
ically fixed] REASONABLY EXPECTED TO BE EQUIVALENT TO A FIXED RATE OVER
TIME in conjunction with other bonds[,] or [(iii) the interest on which
is offset] by REASON OF PAYMENTS MADE PURSUANT TO agreements with finan-
cially responsible third parties.
S 3. Separability. If any clause, sentence, paragraph, section or part
of this act shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect, impair or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, section or part thereof directly involved in the
controversy in which such judgement shall have been rendered.
S 4. This act shall take effect immediately.