S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   420

                      Seventh Extraordinary Session

                            I N  S E N A T E

                              June 28, 2009
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of the Governor) -- read
  twice  and  ordered  printed,  and when printed to be committed to the
  Committee on Rules

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

              

S. 420                              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.