§ 50-c. Self-insured bonds. 1. The chair, with the commissioner of
taxation and finance, is authorized to enter into a financing agreement
with the dormitory authority, to be known as the "self-insured bond
financing agreement". Such agreement shall set forth the process for
calculating the annual debt service of bonds issued by the dormitory
authority and any other associated costs in connection with the
self-insurer offset fund, as set forth in section sixteen hundred
eighty-q of the public authorities law. For purposes of this section,
"associated costs" may include a coverage factor, reserve fund
requirements, all costs of any nature incurred by the dormitory
authority in connection with the self-insured bond financing agreement
or pursuant thereto, the costs of any independent audits undertaken
under this section, and any other costs for the implementation of this
subdivision and the issuance of bonds by the dormitory authority,
including interest rate exchange payments, rebate payments, liquidity
fees, credit provider fees, fiduciary fees, remarketing, dealer, auction
agent and related fees and other similar bond-related expenses, unless
otherwise funded. By September first of each year, the dormitory
authority shall provide to the chair the calculation of the amount
expected to be paid by the dormitory authority in debt service and
associated costs for purposes of calculating the assessments for the
debt service portion of the assessment provided for under this chapter.
All monies received on account of such assessments shall be applied in
accordance with this chapter and with the self-insured bond financing
agreement until the financial obligations of the dormitory authority in
respect to its contract with its bondholders are met and all associated
costs payable to or by the dormitory authority have been paid,
notwithstanding any other provision of law respecting secured
transactions. This provision may be included by the dormitory authority
in any contract of the dormitory authority with its bondholders. The
self-insured bond financing agreement may restrict disbursements,
investments, or rebates, and may prescribe a system of accounts
applicable to the self-insurer offset fund as consistent with the
provisions of this chapter governing such fund, including custody of
funds and accounts with a trustee that may be prescribed by the
dormitory authority as part of its contract with the bondholders. For
purposes of this subdivision, the term "bonds" shall include notes
issued in anticipation of the issuance of bonds, or notes issued
pursuant to a commercial paper program.

2. The chair is hereby authorized to receive and credit to the
self-insurer offset fund any sum or sums that may at any time be
contributed to the state by the United States of America under any act
of Congress, or otherwise, to which the state may be or become entitled
by reason of any payments made out of such fund.

3. Notwithstanding any other law to the contrary, the chair shall be
the custodian of the self-insurer offset fund and, unless otherwise
provided for in the self-insured bond financing agreement, the
commissioner of taxation and finance shall invest any surplus or reserve
moneys thereof in securities which constitute legal investments for
savings banks under the laws of this state and in interest bearing
certificates of deposit of a bank or trust company located and
authorized to do business in this state or of a national bank located in
this state secured by a pledge of direct obligations of the United
States or of the state of New York in an amount equal to the amount of
such certificates of deposit, and may sell any of the securities or
certificates of deposit in which such fund is invested if necessary for
the proper administration or in the best interest of such fund.
Disbursements from such fund as provided by this subdivision shall be
made by the commissioner of taxation and finance unless the self-insured
bond financing agreement provides for some other means of authorizing
such disbursements that is no less protective of the fund. The
commissioner of taxation and finance as soon as practicable after
January first of each year, shall furnish to the chair a statement of
the fund, setting forth the balance of moneys in the said fund as of the
beginning of the calendar year, the income of the fund, the summary of
payments out of the fund on account of reimbursements and other charges
ordered to be paid by the board, and all other charges against the fund
and setting forth the balance of the fund remaining to its credit on the
prior December thirty-first of each year. Such statement shall be open
to public inspection in the office of the secretary of the board. The
chair shall include in the reports to the governor, the speaker of the
assembly and the temporary president of the senate as required by
section nine of part G of chapter fifty-seven of the laws of two
thousand eleven, a summary of the status of the bonding program
authorized by this section. The commissioner of taxation and finance may
establish within the self-insurer offset fund such accounts and
sub-accounts as he or she deems useful for the operation of the fund, or
as necessary to segregate moneys within the fund, subject to the
provisions of the self-insured bond financing agreement and of this
chapter.