This bill has been amended

Bill S4099-2011

Creates the state infrastructure bank

Creates the state infrastructure bank.

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  • Jan 4, 2012: REFERRED TO BANKS
  • Mar 17, 2011: REFERRED TO BANKS

Memo

BILL NUMBER:S4099

TITLE OF BILL: An act to amend the banking law, in relation to creating a state infrastructure bank

PURPOSE: To create a method of funding highway, rail, transit, intermodal, and other transportation facilities 'and projects which produce revenue to amortize debt while contributing to the connectivity of New York's transportation system and further the goals such as corridor completion, economic development, competitiveness in a global economy, and quality of life.

SUMMARY OF PROVISIONS: Section one of the bill creates a state infrastructure bank within the New York State Department of Transportation. The department would be authorized, under the guidelines established by this act and the federal National Highway System (NHS) Designation Act of 1995, to use federal aid to make loans, provide credit enhancements, subsidize interest rates and offer additional financial tools in order to undertake highway, transit and economic development projects that would otherwise not move forward or be delayed.

Additionally. Section one establishes a board of directors and delineates the powers of such board. Section one would also require the department to assist those public and private entities eligible for assistance: where access to such assistance is unavailable or where such entities have been denied such assistance; where there is a measurable public benefit such as an increase in economic opportunities for persons who are unemployed; and, where such entities are considered small businesses or are minority-and women-owned business enterprises.

JUSTIFICATION: The SIB will provide local agencies and private entities low interest loans to fund important and merit-based rail, road, transit and port projects.

In 1995, Congress passed and the President signed into law the National Highway System (NHS) Designation Act. This act established a state infrastructure bank pilot program that allowed as many as ten states to allocate part of their Federal apportionment to capitalize or "seed" an infrastructure bank. The U.S. Department of Transportation solicited candidates for the pilot program and selected ten pilot states, including Ohio, Oregon, Arizona, Texas, California, Florida, Missouri, Oklahoma, South Carolina and Virginia.

In September 1996, Congress passed new legislation that enables the U.S. Department of Transportation to designate more than ten qualified states to participate in the infrastructure bank program. Congress also approved an additional $150 million to capitalize pilot infrastructure banks following enactment of the legislation.

Many major transportation projects, whether they be highway, transit, port or intermodal, are often costly and complex to finance. Under federal law states now apply to the u.s. Department of Transportation for designation as a state infrastructure bank. The State Department of Transportation, with federal designation as an Infrastructure bank and appropriate state legislation in place, would be able to function like a revolving loan fund, bond bank. or both. As a revolving loan for an infrastructure bank could make loans for infrastructure investments while borrowers replenish the funds as they repay the loans. Once repaid, these funds can be used by a multitude of project sponsors for a broad range of projects. As a bond bank, an infrastructure bank could provide the necessary bonding requirements, letters of credit or other credit enhancements to support transportation capital projects.

This bill will provide the necessary framework for the department to be designed as a state infrastructure bank and in turn leverage additional funding, encourage economic opportunity and provide the necessary improvement to the States transit, highway and intermodal facilities.

LEGISLATIVE HISTORY: New Bill.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4099 2011-2012 Regular Sessions IN SENATE March 17, 2011 ___________
Introduced by Sen. SMITH -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to creating a state infras- tructure bank THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new article 17 to read as follows: ARTICLE XVII STATE INFRASTRUCTURE BANK SECTION 9100. CREATION. 9101. BOARD OF DIRECTORS. 9102. FUNCTIONS AND DUTIES OF THE BOARD OF DIRECTORS. 9103. AUTHORITY OF THE BANK. 9104. SUBSTANCE OF BONDS. 9105. FINANCING FOR ECONOMIC DEVELOPMENT FACILITIES. 9106. TAX EXEMPTION. 9107. PLEDGE OF STATE. 9108. FEES. 9109. REPORT. 9110. APPLICATION FOR BANK FINANCING. 9111. MANDATORY RESOLUTION. 9112. ISSUANCE OF BONDS. 9113. AUTHORIZED FINANCING OF BONDS. 9114. BOND RESOLUTIONS. 9115. PURCHASE OF BONDS BY THE BANK. 9116. TRUST AGREEMENT. 9117. LIABILITY OF THE STATE. 9118. REFUNDING BONDS. 9119. SECURITY.
S 9100. CREATION. 1. THERE IS HEREBY CREATED THE STATE INFRASTRUCTURE BANK WHICH SHALL BE RESPONSIBLE FOR CARRYING OUT THE PROVISIONS OF THIS ARTICLE. 2. THE BANK SHALL BE UNDER THE DIRECTION OF AN EXECUTIVE DIRECTOR APPOINTED BY THE GOVERNOR, AND WHO SHALL SERVE AT THE PLEASURE OF THE GOVERNOR. THE APPOINTMENT SHALL BE SUBJECT TO CONFIRMATION BY THE SENATE. S 9101. BOARD OF DIRECTORS. 1. THE BANK SHALL BE GOVERNED AND ITS CORPORATE POWER EXERCISED BY A BOARD OF DIRECTORS THAT SHALL CONSIST OF THE FOLLOWING PERSONS: (A) THE DIRECTOR OF THE DIVISION OF THE BUDGET OR HIS OR HER DESIGNEE. (B) THE STATE COMPTROLLER OR HIS OR HER DESIGNEE. (C) THE COMMISSIONER OF THE DEPARTMENT OF TRANSPORTATION OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS CHAIR OF THE BOARD. (D) AN APPOINTEE OF THE GOVERNOR. (E) THE SECRETARY OF STATE OR HIS OR HER DESIGNEE. 2. ANY DESIGNATED DIRECTOR SHALL SERVE AT THE PLEASURE OF THE DESIG- NATING POWER. 3. THREE OF THE MEMBERS SHALL CONSTITUTE A QUORUM AND THE AFFIRMATIVE VOTE OF THREE BOARD MEMBERS SHALL BE NECESSARY FOR ANY ACTION TO BE TAKEN BY THE BOARD. 4. A MEMBER OF THE BOARD SHALL NOT PARTICIPATE IN ANY BANK ACTION OR ATTEMPT TO INFLUENCE ANY DECISION OR RECOMMENDATION BY ANY EMPLOYEE OF, OR CONSULTANT TO, THE BANK THAT INVOLVES A SPONSOR OF WHICH HE OR SHE IS A REPRESENTATIVE OR IN WHICH THE MEMBER OR A MEMBER OF HIS OR HER IMME- DIATE FAMILY HAS A PERSONAL FINANCIAL INTEREST. FOR PURPOSES OF THIS SECTION, "IMMEDIATE FAMILY" MEANS THE SPOUSE, CHILDREN, AND PARENTS OF THE MEMBER. 5. EXCEPT AS PROVIDED IN THIS SUBDIVISION, THE MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION, BUT SHALL BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES TO THE EXTENT THAT REIMBURSEMENT FOR THESE EXPENSES IS NOT OTHERWISE PROVIDED OR PAYABLE BY ANOTHER PUBLIC AGENCY, AND SHALL RECEIVE ONE HUNDRED DOLLARS FOR EACH FULL DAY OF ATTENDING MEETINGS OF THE AUTHORITY. S 9102. FUNCTIONS AND DUTIES OF THE BOARD OF DIRECTORS. 1. THE EXECU- TIVE DIRECTOR SHALL MANAGE AND CONDUCT THE BUSINESS AND AFFAIRS OF THE BANK, THE INFRASTRUCTURE BANK FUND, AND GUARANTEE TRUST FUND, SUBJECT TO THE DIRECTION OF THE BOARD. EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, THE BOARD MAY ASSIGN TO THE EXECUTIVE DIRECTOR, BY RESOLUTION, THOSE DUTIES GENERALLY NECESSARY OR CONVENIENT TO CARRY OUT ITS POWERS AND PURPOSES UNDER THIS CHAPTER. ANY ACTION INVOLVING FINAL APPROVAL OF ANY BONDS, NOTES, OR LOANS SHALL REQUIRE THE APPROVAL OF A MAJORITY OF THE MEMBERS OF THE BOARD. SUBJECT TO ANY CONDITIONS THAT THE BOARD MAY FROM TIME TO TIME PRESCRIBE, THE EXECUTIVE DIRECTOR MAY EXERCISE ANY POWER, FUNCTION, OR DUTY CONFERRED BY LAW ON THE BANK IN CONNECTION WITH THE ADMINISTRATION, MANAGEMENT, AND CONDUCT OF THE BUSINESS AND AFFAIRS OF THE BANK, THE INFRASTRUCTURE BANK FUND, AND THE GUARANTEE TRUST FUND. 2. THE DIRECTORS, ON BEHALF OF THE BANK MAY PURCHASE INSURANCE FOR ITS FIDUCIARIES OR FOR ITSELF TO COVER LIABILITY OR LOSSES OCCURRING BY REASON OF THE ACT OR OMISSION OF A FIDUCIARY, IF THE INSURANCE PERMITS RECOURSE BY THE INSURER AGAINST THE FIDUCIARY IN THE CASE OF A BREACH FIDUCIARY OBLIGATION BY THE FIDUCIARY. 3. IN ADMINISTERING AND DIRECTING THE DAY-TO-DAY OPERATIONS OF THE BANK, THE EXECUTIVE DIRECTOR, OR WHOEVER HE OR SHE SHALL ASSIGN, MAY DO ANY OF THE FOLLOWING IF AUTHORIZED BY RESOLUTION OF THE BOARD: (A) ENTER INTO CONTRACTS FOR INVESTMENT, GUARANTEE, OR ENHANCEMENT.
(B) ESTABLISH PROCEDURES, GUIDELINES, CRITERIA, TERMS, CONDITIONS, OR OTHER REQUIREMENTS OF ANY CONTRACT, BOND, GRANT, OR PROGRAM, AS THE CASE MAY BE, IN ORDER TO CARRY OUT THE INTENT AND PURPOSES OF THE BOARD IN AUTHORIZING ANY BOND, LOAN, OR GRANT PROGRAM PURSUANT TO THIS ARTICLE. (C) DECLINE TO GUARANTEE ANY RISK, OR TO ENTER INTO ANY CONTRACT, IN WHICH THE MINIMUM REQUIREMENTS OF THE GUARANTEE TRUST FUND OR THE INFRASTRUCTURE BANK FUND ARE NOT COMPLIED WITH. (D) REINSURE ANY RISK OR ANY PART OF ANY RISK. (E) MAKE RULES FOR PAYMENTS THROUGH THE INFRASTRUCTURE BANK FUND AND THE SETTLEMENT OF CLAIMS AGAINST THE GUARANTEE TRUST FUND AND DETERMINE TO WHOM AND THROUGH WHOM THE PAYMENTS ARE TO BE MADE. (F) ENTER INTO ANY CONTRACTS OR OBLIGATIONS RELATING TO THE INFRAS- TRUCTURE BANK FUND AND THE GUARANTEE TRUST FUND. (G) INVEST AND REINVEST THE MONEYS BELONGING TO THE INFRASTRUCTURE BANK FUND AND THE GUARANTEE TRUST FUND AS PROVIDED BY THIS ARTICLE. (H) ENTER INTO ANY CONTRACT OR AGREEMENT, EXECUTE ANY INSTRUMENT, CONDUCT ALL BUSINESS AND AFFAIRS, AND PERFORM ALL ACTS RELATING TO THE INFRASTRUCTURE BANK FUND AND THE GUARANTEE TRUST FUND WHETHER OR NOT SPECIFICALLY DESIGNATED IN THIS DIVISION. 4. THE BOARD MAY DELEGATE TO THE EXECUTIVE DIRECTOR, OR WHOMEVER HE OR SHE SHALL ASSIGN, THE AUTHORITY TO EXECUTE A CONTRACT OR AGREEMENT, EXECUTE AN INSTRUMENT, CONDUCT ALL BUSINESS AND AFFAIRS, AND PERFORM ALL ACTS RELATING TO THE INFRASTRUCTURE BANK FUND AND THE GUARANTEE TRUST FUND. 5. THE EXECUTIVE DIRECTOR MAY CONTRACT WITH ANY STATE AGENCY, PERSON, OR FIRM TO ENABLE THE BANK TO PROPERLY PERFORM THE DUTIES IMPOSED BY THIS ARTICLE. 6. THE BANK BOARD SHALL DO THE FOLLOWING: (A) ADOPT BYLAWS FOR THE REGULATION OF ITS AFFAIRS AND THE CONDUCT OF ITS BUSINESS. (B) ADOPT AN OFFICIAL SEAL. 7. THE BANK BOARD MAY DO OR DELEGATE THE FOLLOWING TO THE EXECUTIVE DIRECTOR: (A) SUE AND BE SUED IN ITS OWN NAME. (B) ISSUE BONDS AND AUTHORIZE SPECIAL PURPOSE TRUSTS TO ISSUE BONDS, INCLUDING, AT THE OPTION OF THE BOARD, BONDS BEARING INTEREST THAT IS TAXABLE FOR THE PURPOSE OF FEDERAL INCOME TAXATION, OR BORROW MONEY TO PAY ALL OR ANY PART OF THE COST OF ANY PROJECT, OR TO OTHERWISE CARRY OUT THE PURPOSES OF THIS ARTICLE. (C) ENGAGE THE SERVICES OF PRIVATE CONSULTANTS TO RENDER PROFESSIONAL AND TECHNICAL ASSISTANCE AND ADVICE IN CARRYING OUT THE PURPOSES OF THIS ARTICLE. (D) EMPLOY ATTORNEYS, FINANCIAL CONSULTANTS, AND OTHER ADVISERS AS MAY, IN THE BANK'S JUDGMENT, BE NECESSARY IN CONNECTION WITH THE ISSU- ANCE AND SALE, OR AUTHORIZATION OF SPECIAL PURPOSE TRUSTS FOR THE ISSU- ANCE AND SALE, OF ANY BONDS. (E) CONTRACT FOR ENGINEERING, ARCHITECTURAL, ACCOUNTING, OR OTHER SERVICES OF APPROPRIATE STATE AGENCIES AS MAY, IN ITS JUDGMENT, BE NECESSARY FOR THE SUCCESSFUL DEVELOPMENT OF A PROJECT. (F) PAY THE REASONABLE COSTS OF CONSULTING ENGINEERS, ARCHITECTS, ACCOUNTANTS, AND CONSTRUCTION, LAND USE, RECREATION, AND ENVIRONMENTAL EXPERTS EMPLOYED BY ANY SPONSOR OR PARTICIPATING PARTY IF, IN THE BANK'S JUDGMENT, THOSE SERVICES ARE NECESSARY FOR THE SUCCESSFUL DEVELOPMENT OF A PROJECT. (G) ACQUIRE, TAKE TITLE TO, AND SELL BY INSTALLMENT SALE OR OTHERWISE, LANDS, STRUCTURES, REAL OR PERSONAL PROPERTY, RIGHTS, RIGHTS-OF-WAY,
FRANCHISES, EASEMENTS, AND OTHER INTERESTS IN LANDS THAT ARE LOCATED WITHIN THE STATE, OR TRANSITION PROPERTY AS THE BANK MAY DEEM NECESSARY OR CONVENIENT FOR THE FINANCING OF THE PROJECT, UPON TERMS AND CONDI- TIONS THAT IT CONSIDERS TO BE REASONABLE. (H) RECEIVE AND ACCEPT FROM ANY SOURCE INCLUDING, BUT NOT LIMITED TO, THE FEDERAL GOVERNMENT, THE STATE, OR ANY AGENCY THEREOF, LOANS, CONTRIBUTIONS, OR GRANTS, IN MONEY, PROPERTY, LABOR, OR OTHER THINGS OF VALUE, FOR, OR IN AID OF, A PROJECT, OR ANY PORTION THEREOF. (I) MAKE LOANS TO ANY SPONSOR OR PARTICIPATING PARTY, EITHER DIRECTLY OR BY MAKING A LOAN TO A LENDING INSTITUTION, IN CONNECTION WITH THE FINANCING OF A PROJECT IN ACCORDANCE WITH AN AGREEMENT BETWEEN THE BANK AND THE SPONSOR OR A PARTICIPATING PARTY, EITHER AS A SOLE LENDER OR IN PARTICIPATION WITH OTHER LENDERS. HOWEVER, NO LOAN SHALL EXCEED THE TOTAL COST OF THE PROJECT AS DETERMINED BY THE SPONSOR OR THE PARTIC- IPATING PARTY AND APPROVED BY THE BANK. (J) MAKE LOANS TO ANY SPONSOR OR PARTICIPATING PARTY, EITHER DIRECTLY OR BY MAKING A LOAN TO A LENDING INSTITUTION, IN ACCORDANCE WITH AN AGREEMENT BETWEEN THE BANK AND THE SPONSOR OR PARTICIPATING PARTY TO REFINANCE INDEBTEDNESS INCURRED BY THE SPONSOR OR PARTICIPATING PARTY IN CONNECTION WITH PROJECTS UNDERTAKEN AND COMPLETED PRIOR TO ANY AGREEMENT WITH THE BANK OR EXPECTATION THAT THE BANK WOULD PROVIDE FINANCING, EITHER AS A SOLE LENDER OR IN PARTICIPATION WITH OTHER LENDERS. (K) MORTGAGE ALL OR ANY PORTION OF THE BANK'S INTEREST IN A PROJECT AND THE PROPERTY ON WHICH ANY PROJECT IS LOCATED, WHETHER OWNED OR THER- EAFTER ACQUIRED, INCLUDING THE GRANTING OF A SECURITY INTEREST IN ANY PROPERTY, TANGIBLE OR INTANGIBLE. (L) ASSIGN OR PLEDGE ALL OR ANY PORTION OF THE BANK'S INTERESTS IN TRANSITION PROPERTY AND THE REVENUES THEREFROM, OR ASSETS, THINGS OF VALUE, MORTGAGES, DEEDS OF TRUST, BONDS, BOND PURCHASE AGREEMENTS, LOAN AGREEMENTS, INDENTURES OF MORTGAGE OR TRUST, OR SIMILAR INSTRUMENTS, NOTES, AND SECURITY INTERESTS IN PROPERTY, TANGIBLE OR INTANGIBLE AND THE REVENUES THEREFROM, OF A SPONSOR OR A PARTICIPATING PARTY TO WHICH THE BANK HAS MADE LOANS, AND THE REVENUES THEREFROM, INCLUDING PAYMENT OR INCOME FROM ANY INTEREST OWNED OR HELD BY THE BANK, FOR THE BENEFIT OF THE HOLDERS OF BONDS. (M) MAKE, RECEIVE, OR SERVE AS A CONDUIT FOR THE MAKING OF, OR OTHER- WISE PROVIDE FOR, GRANTS, CONTRIBUTIONS, GUARANTEES, INSURANCE, CREDIT ENHANCEMENTS OR LIQUIDITY FACILITIES, OR OTHER FINANCIAL ENHANCEMENTS TO A SPONSOR OR A PARTICIPATING PARTY AS FINANCIAL ASSISTANCE FOR A PROJECT. (N) LEASE THE PROJECT BEING FINANCED TO A SPONSOR OR A PARTICIPATING PARTY, UPON TERMS AND CONDITIONS THAT THE BANK DEEMS PROPER BUT SHALL NOT BE LEASED AT A LOSS; CHARGE AND COLLECT RENTS THEREFOR; TERMINATE ANY LEASE UPON THE FAILURE OF THE LESSEE TO COMPLY WITH ANY OF THE OBLI- GATIONS THEREOF; INCLUDE IN ANY LEASE, IF DESIRED, PROVISIONS THAT THE LESSEE SHALL HAVE OPTIONS TO RENEW THE LEASE FOR A PERIOD OR PERIODS, AND AT RENTS DETERMINED BY THE BANK; PURCHASE ANY OR ALL OF THE PROJECT; OR, UPON PAYMENT OF ALL THE INDEBTEDNESS INCURRED BY THE BANK FOR THE FINANCING OF THE PROJECT, THE BANK MAY CONVEY ANY OR ALL OF THE PROJECT TO THE LESSEE OR LESSEES. (O) CHARGE AND EQUITABLY APPORTION AMONG SPONSORS AND PARTICIPATING PARTIES THE BANK'S ADMINISTRATIVE COSTS AND EXPENSES INCURRED IN THE EXERCISE OF THE POWERS AND DUTIES CONFERRED BY THIS ARTICLE. (P) ISSUE, OBTAIN, OR AID IN OBTAINING, FROM ANY DEPARTMENT OR AGENCY OF THE UNITED STATES, FROM OTHER AGENCIES OF THE STATE, OR FROM ANY PRIVATE COMPANY, ANY INSURANCE OR GUARANTEE TO, OR FOR, THE PAYMENT OR
REPAYMENT OF INTEREST OR PRINCIPAL, OR BOTH, OR ANY PART THEREOF, ON ANY LOAN, LEASE, OR OBLIGATION OR ANY INSTRUMENT EVIDENCING OR SECURING THE SAME, MADE OR ENTERED INTO PURSUANT TO THIS ARTICLE. (Q) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ARTICLE, ENTER INTO ANY AGREEMENT, CONTRACT, OR ANY OTHER INSTRUMENT WITH RESPECT TO ANY INSURANCE OR GUARANTEE; ACCEPT PAYMENT IN THE MANNER AND FORM AS PROVIDED THEREIN IN THE EVENT OF DEFAULT BY A SPONSOR OR A PARTICIPATING PARTY; AND ISSUE OR ASSIGN ANY INSURANCE OR GUARANTEE AS SECURITY FOR THE BANK'S BONDS. (R) ENTER INTO ANY AGREEMENT OR CONTRACT, EXECUTE ANY INSTRUMENT, AND PERFORM ANY ACT OR THING NECESSARY OR CONVENIENT TO, DIRECTLY OR INDI- RECTLY, SECURE THE BANK'S BONDS, THE BONDS ISSUED BY A SPECIAL PURPOSE TRUST, OR A SPONSOR'S OBLIGATIONS TO THE BANK OR TO A SPECIAL PURPOSE TRUST, INCLUDING, BUT NOT LIMITED TO, BONDS OF A SPONSOR PURCHASED BY THE BANK OR A SPECIAL PURPOSE TRUST FOR RETENTION OR SALE, WITH FUNDS OR MONEYS THAT ARE LEGALLY AVAILABLE AND THAT ARE DUE OR PAYABLE TO THE SPONSOR BY REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT OR APPROPRI- ATION OF THE STATE OR AGENCIES THEREOF, TO THE EXTENT THAT THE COMP- TROLLER SHALL BE THE CUSTODIAN AT ANY TIME OF THESE FUNDS OR MONEYS, OR WITH FUNDS OR MONEYS THAT ARE OR WILL BE LEGALLY AVAILABLE TO THE SPON- SOR, THE BANK, OR THE STATE OR ANY AGENCIES THEREOF BY REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT, OR APPROPRIATION OF THE FEDERAL GOVERNMENT OR AGENCIES THEREOF; AND IN THE EVENT OF WRITTEN NOTICE THAT THE SPONSOR HAS NOT PAID OR IS IN DEFAULT ON ITS OBLIGATIONS TO THE BANK OR A SPECIAL PURPOSE TRUST, DIRECT THE COMPTROLLER TO WITHHOLD PAYMENT OF THOSE FUNDS OR MONEYS FROM THE SPONSOR OVER WHICH IT IS OR WILL BE CUSTODIAN AND TO PAY THE SAME TO THE BANK OR SPECIAL PURPOSE TRUST OR THEIR ASSIGNEE, OR DIRECT THE STATE OR ANY AGENCIES THEREOF TO WHICH ANY GRANT, ALLOCATION, APPORTIONMENT OR APPROPRIATION OF THE FEDERAL GOVERN- MENT OR AGENCIES THEREOF IS OR WILL BE LEGALLY AVAILABLE TO PAY THE SAME UPON RECEIPT BY THE BANK OR SPECIAL PURPOSE TRUST OR THEIR ASSIGNEE, UNTIL THE DEFAULT HAS BEEN CURED AND THE AMOUNTS THEN DUE AND UNPAID HAVE BEEN PAID TO THE BANK OR SPECIAL PURPOSE TRUST OR THEIR ASSIGNEE, OR UNTIL ARRANGEMENTS SATISFACTORY TO THE BANK OR SPECIAL PURPOSE TRUST HAVE BEEN MADE TO CURE THE DEFAULT. (S) ENTER INTO ANY AGREEMENT OR CONTRACT, EXECUTE ANY INSTRUMENT, AND PERFORM ANY ACT OR THING NECESSARY, CONVENIENT, OR APPROPRIATE TO CARRY OUT ANY POWER EXPRESSLY GIVEN TO THE BANK BY THIS ARTICLE, INCLUDING, BUT NOT LIMITED TO, AGREEMENTS FOR THE SALE OF ALL OR ANY PART, INCLUD- ING PRINCIPAL, INTEREST, REDEMPTION RIGHTS OR ANY OTHER RIGHTS OR OBLI- GATIONS, OF BONDS OF THE BANK OR OF A SPECIAL PURPOSE TRUST, LIQUIDITY AGREEMENTS, CONTRACTS COMMONLY KNOWN AS INTEREST RATE SWAP AGREEMENTS, FORWARD PAYMENT CONVERSION AGREEMENTS, FUTURES OR CONTRACTS PROVIDING FOR PAYMENTS BASED ON LEVELS OF, OR CHANGES IN, INTEREST RATES OR CURRENCY EXCHANGE RATES, OR CONTRACTS TO EXCHANGE CASH-FLOWS OR A SERIES OF PAYMENTS, OR CONTRACTS, INCLUDING OPTIONS, PUTS OR CALLS TO HEDGE PAYMENTS, RATE, SPREAD, CURRENCY EXCHANGE, OR SIMILAR EXPOSURE, OR ANY OTHER FINANCIAL INSTRUMENT COMMONLY KNOWN AS A STRUCTURED FINANCIAL PRODUCT. (T) PURCHASE, WITH THE PROCEEDS OF THE BANK'S BONDS, TRANSITION PROP- ERTY OR BONDS ISSUED BY, OR FOR THE BENEFIT OF, ANY SPONSOR IN CONNECTION WITH A PROJECT, PURSUANT TO A BOND PURCHASE AGREEMENT OR OTHERWISE. BONDS OR TRANSITION PROPERTY PURCHASED PURSUANT TO THIS ARTI- CLE MAY BE HELD BY THE BANK, PLEDGED OR ASSIGNED BY THE BANK, OR SOLD TO PUBLIC OR PRIVATE PURCHASERS AT PUBLIC OR NEGOTIATED SALE, IN WHOLE OR IN PART, SEPARATELY OR TOGETHER WITH OTHER BONDS ISSUED BY THE BANK, AND
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, MAY BE BOUGHT BY THE BANK AT PRIVATE SALE. (U) ENTER INTO PURCHASE AND SALE AGREEMENTS WITH ALL ENTITIES, PUBLIC AND PRIVATE, INCLUDING STATE AND LOCAL GOVERNMENT PENSION FUNDS, WITH RESPECT TO THE SALE OR PURCHASE OF BONDS OR TRANSITION PROPERTY. (V) INVEST ANY MONEYS HELD IN RESERVE OR SINKING FUNDS, OR ANY MONEYS NOT REQUIRED FOR IMMEDIATE USE OR DISBURSEMENT, IN OBLIGATIONS THAT ARE AUTHORIZED BY LAW FOR THE INVESTMENT OF TRUST FUNDS IN THE CUSTODY OF THE STATE COMPTROLLER. (W) AUTHORIZE A SPECIAL PURPOSE TRUST OR TRUSTS TO PURCHASE OR RETAIN, WITH THE PROCEEDS OF THE BONDS OF A SPECIAL PURPOSE TRUST, TRANSITION PROPERTY OR BONDS ISSUED BY, OR FOR THE BENEFIT OF, ANY SPONSOR IN CONNECTION WITH A PROJECT OR ISSUED BY THE BANK OR A SPECIAL PURPOSE TRUST, PURSUANT TO A BOND PURCHASE AGREEMENT OR OTHERWISE. BONDS OR TRANSITION PROPERTY PURCHASED PURSUANT TO THIS ARTICLE MAY BE HELD BY A SPECIAL PURPOSE ENTITY, PLEDGED OR ASSIGNED BY A SPECIAL PURPOSE ENTITY, OR SOLD TO PUBLIC OR PRIVATE PURCHASERS AT PUBLIC OR NEGOTIATED SALE, IN WHOLE OR IN PART, WITH OR WITHOUT STRUCTURING, SUBORDINATION OR CREDIT ENHANCEMENT, SEPARATELY OR TOGETHER WITH OTHER BONDS ISSUED BY A SPECIAL PURPOSE TRUST, AND NOTWITHSTANDING ANY OTHER PROVISION OF LAW, MAY BE BOUGHT BY THE BANK OR BY A SPECIAL PURPOSE TRUST AT PRIVATE SALE. (X) APPLY FOR AND ACCEPT SUBVENTIONS, GRANTS, LOANS, ADVANCES, AND CONTRIBUTIONS FROM ANY SOURCE OF MONEY, PROPERTY, LABOR, OR OTHER THINGS OF VALUE. THE SOURCES MAY INCLUDE BOND PROCEEDS, DEDICATED TAXES, STATE APPROPRIATIONS, FEDERAL APPROPRIATIONS, FEDERAL GRANT AND LOAN FUNDS, PUBLIC AND PRIVATE SECTOR RETIREMENT SYSTEM FUNDS. (Y) DO ALL THINGS NECESSARY AND CONVENIENT TO CARRY OUT ITS PURPOSES AND EXERCISE ITS POWERS, PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO AUTHORIZE THE BANK TO ENGAGE DIRECTLY IN THE BUSINESS OF A MANUFACTURING, INDUSTRIAL, REAL ESTATE DEVELOPMENT, OR NONGOVERNMENTAL SERVICE ENTERPRISE. FURTHER, THE BANK SHALL NOT BE ORGANIZED TO ACCEPT DEPOSITS OF MONEY FOR TIME OR DEMAND DEPOSITS OR TO CONSTITUTE A BANK OR TRUST COMPANY. 8. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO EXTEND OR LIMIT ANY AUTHORITY OF THE BANK PREVIOUSLY AUTHORIZED UNDER THIS CHAPTER. S 9103. AUTHORITY OF THE BANK. 1. THE BANK MAY PROVIDE INSURANCE OR REINSURANCE OF LOANS OR PORTIONS THEREOF, OR THEIR DEBT SERVICE, INCLUD- ING AMOUNTS PAYABLE AS PREMIUMS OF PENALTIES IN THE EVENT OF MANDATORY OR OPTIONAL PREPAYMENT, MADE TO FINANCE A PROJECT, AND TO PROVIDE INSUR- ANCE OR REINSURANCE OR RESERVES, OR PORTIONS THEREOF, OR THE YIELD THER- EFROM, ESTABLISHED TO SECURE BONDS ISSUED TO FUND THOSE LOANS OR RESERVES. 2. THE BANK MAY ENTER INTO OR ARRANGE AGREEMENTS FOR INSURANCE OR REINSURANCE WITH USERS, MORTGAGORS, LENDING INSTITUTIONS, INSURERS, AND OTHERS, THE BANK BEING AUTHORIZED TO REINSURE OR CEDE RISKS TO THE INSURERS IN ANY AMOUNTS AS THE BANK MAY DETERMINE AND THE INSURERS, IF OTHERWISE AUTHORIZED TO REINSURE OR INSURE THOSE RISKS IN NEW YORK, BEING HEREBY AUTHORIZED TO REINSURE THE BANK OR CEDE RISKS TO THE BANK TO THE SAME EXTENT AS IF THE BANK WERE A COMPANY AUTHORIZED TO REINSURE OR INSURE THOSE RISKS. 3. THE BANK MAY FIX A RATE OR RATES OF PREMIUM FOR INSURANCE OR REIN- SURANCE, WHICH NEED NOT BE UNIFORM, AND MAY REFLECT ANY RISKS AND CLAS- SIFICATIONS OF RISK AS THE BANK DETERMINES TO BE REASONABLE. 4. THE BANK MAY EXERCISE THOSE OTHER POWERS AS ARE NECESSARY OR INCI- DENTAL TO INSURANCE, REINSURANCE, AND RELATED MATTERS.
5. THE BANK SHALL MAKE REASONABLE PROVISIONS FOR THE SECURITY OF LOANS MADE BY THE BANK, AND ANY INSURANCE, REINSURANCE, AND OTHER FINANCING ARRANGEMENTS NEGOTIATED BY THE BANK. 6. THE INSURANCE OR REINSURANCE PROVIDED FOR BY THE BANK SHALL NOT CONSTITUTE A DEBT OR PLEDGE OF THE FAITH AND CREDIT OF THE STATE OR ANY SUBDIVISION OF THE STATE. S 9104. SUBSTANCE OF BONDS. 1. BONDS ISSUED BY THE BANK OR A SPECIAL PURPOSE TRUST ARE LEGAL INVESTMENTS FOR ALL TRUST FUNDS, THE FUNDS OF ALL INSURANCE COMPANIES, BANKS, BOTH COMMERCIAL AND SAVINGS, TRUST COMPANIES, EXECUTORS, ADMINISTRATORS, TRUSTEES, AND OTHER FIDUCIARIES, FOR STATE SCHOOL FUNDS, PENSION FUNDS, AND FOR ANY FUNDS THAT MAY BE INVESTED IN COUNTY, SCHOOL, OR MUNICIPAL BONDS. THESE BONDS ARE SECURI- TIES THAT MAY LEGALLY BE DEPOSITED WITH, AND RECEIVED BY, ANY STATE OR MUNICIPAL OFFICER OR AGENCY OR POLITICAL SUBDIVISION OF THE STATE FOR ANY PURPOSE FOR WHICH THE DEPOSIT OF BONDS OR OBLIGATIONS OF THE STATE IS NOW, OR MAY HEREAFTER BE, AUTHORIZED BY LAW, INCLUDING, DEPOSITS TO SECURE PUBLIC FUNDS. 2. NO LIABILITY SHALL BE INCURRED BY THE BANK BEYOND THE EXTENT TO WHICH FUNDS HAVE BEEN PROVIDED UNDER THIS ARTICLE. HOWEVER, FOR THE PURPOSES OF MEETING THE NECESSARY EXPENSES OF INITIAL ORGANIZATION AND OPERATION UNTIL THE DATE THAT THE BANK DERIVES REVENUES OR PROCEEDS FROM BONDS AS PROVIDED UNDER THIS ARTICLE, THE BANK MAY BORROW MONEY AS NEED- ED FOR THE PURPOSES OF MEETING THE NECESSARY EXPENSES OF INITIAL ORGAN- IZATION. THE BORROWED MONEY SHALL BE REPAID WITH INTEREST WITHIN A REASONABLE TIME AFTER THE BANK RECEIVES REVENUES OR PROCEEDS FROM BONDS AS PROVIDED UNDER THIS ARTICLE. S 9105. FINANCING FOR ECONOMIC DEVELOPMENT FACILITIES. 1. NOTWITH- STANDING ANY OTHER PROVISION OF THIS ARTICLE, SECTION NINETY-ONE HUNDRED TEN OF THIS ARTICLE SHALL NOT APPLY TO ANY CONDUIT FINANCING FOR ECONOM- IC DEVELOPMENT FACILITIES BY THE BANK DIRECTLY FOR THE BENEFIT OF A PARTICIPATING PARTY. 2. THE BANK SHALL CONSIDER A PROJECT FOR CONDUIT FINANCING FOR ECONOM- IC DEVELOPMENT FACILITIES UPON FILING OF AN APPLICATION WITH THE BANK BY AN APPROPRIATE PARTICIPATING PARTY, ON THE TERMS AND CONDITIONS THE BANK SHALL DETERMINE. THE BANK SHALL ESTABLISH PROCEDURES FOR THE EXPEDITIOUS REVIEW OF APPLICATIONS FOR THE ISSUANCE OR APPROVAL OF BONDS TO FINANCE ECONOMIC DEVELOPMENT FACILITIES. 3. IN ORDER TO PROVIDE OR ARRANGE FOR THE FINANCING OF ECONOMIC DEVEL- OPMENT FACILITIES, THE BANK MAY: (A) ISSUE TAXABLE REVENUE BONDS PURSUANT TO SECTION NINETY-ONE HUNDRED TWELVE OF THIS ARTICLE TO PROVIDE FINANCING FOR ECONOMIC DEVELOPMENT PROJECTS COMPATIBLE WITH THE PUBLIC INTEREST AS SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION. (B) ISSUE TAXABLE REVENUE BONDS PURSUANT TO SECTION NINETY-ONE HUNDRED TWELVE OF THIS ARTICLE TO PROVIDE FINANCING FOR THE REVOLVING LOAN FUNDS AND ECONOMIC DEVELOPMENT PROJECTS OF SMALL BUSINESS DEVELOPMENT CORPO- RATIONS, LOCAL ECONOMIC DEVELOPMENT CORPORATIONS, COMMUNITY DEVELOPMENT CORPORATIONS, AND NONPROFIT ORGANIZATIONS, WHICH REVOLVING LOAN FUNDS AND ECONOMIC DEVELOPMENT PROJECTS SHALL BE COMPATIBLE WITH THE PUBLIC INTEREST. (C) ISSUE TAX-EXEMPT REVENUE BONDS PURSUANT TO SECTION NINETY-ONE HUNDRED TWELVE OF THIS ARTICLE TO PROVIDE FINANCING FOR ECONOMIC DEVEL- OPMENT FACILITIES AS PERMITTED BY FEDERAL LAW AND IN ACCORDANCE WITH APPLICABLE STATE LAW RELATING TO THE DISTRIBUTION OF STATE ALLOCATIONS FOR PRIVATE ACTIVITY BONDS. PROJECTS SO FINANCED SHALL BE COMPATIBLE
WITH THE PUBLIC INTEREST AS SPECIFIED IN SUBDIVISION FOUR OF THIS SECTION. (D) ISSUE TAX-EXEMPT REVENUE BONDS PURSUANT TO SECTION NINETY-ONE HUNDRED TWELVE OF THIS ARTICLE FOR ECONOMIC DEVELOPMENT FACILITIES OF PUBLIC SECTOR AND NONPROFIT ORGANIZATIONS QUALIFYING FOR EXEMPTION UNDER FEDERAL LAW. 4. NO FINANCING SHALL BE MADE BY THE BANK UNDER THIS SECTION UNLESS THE BANK SHALL HAVE FIRST DETERMINED THAT THE FINANCING OR ASSISTANCE MEETS THE FOLLOWING PUBLIC INTEREST CRITERIA: (A) THE FINANCING, LOAN, GRANT, OR OTHER ASSISTANCE IS FOR A PROJECT OR A USE IN THE STATE OF NEW YORK. (B) THOSE SEEKING FUNDS OR OTHER ASSISTANCE ARE CAPABLE OF MEETING OBLIGATIONS INCURRED UNDER RELEVANT AGREEMENTS. (C) IN THE CASE OF LOANS OR BONDS, PAYMENTS TO BE MADE UNDER APPLICA- BLE FINANCING DOCUMENTS ARE ADEQUATE TO PAY THE CURRENT EXPENSES OF THE BANK IN CONNECTION WITH THE FINANCING AND TO MAKE PAYMENTS ON THE BONDS. (D) THE PROPOSED FINANCING IS APPROPRIATE FOR THE SPECIFIC PROJECT. 5. (A) ANY LOAN ENTERED INTO PURSUANT TO THIS SECTION MAY CONTAIN PROVISIONS FOR PAYMENT OF A PENALTY IF ANY RECIPIENT OF FUNDS UNDER THIS SECTION LEAVES THIS STATE PRIOR TO THE COMPLETION OF THE FULL TERM OF THE LOAN. (B) PROJECTS THAT THE BOARD DETERMINES WILL PRODUCE LONG-TERM EMPLOY- MENT CREATION OR RETENTION SHALL RECEIVE FIRST PRIORITY FOR FINANCING. (C) THE BANK SHALL REQUIRE THAT THE PROPOSED ECONOMIC DEVELOPMENT FACILITIES BE CONSISTENT WITH ANY EXISTING LOCAL OR REGIONAL COMPREHEN- SIVE PLAN. (D) THE BANK SHALL DEVELOP A POLICY REGARDING FINANCING COMPANIES THAT MOVE WITHIN THIS STATE SO AS TO MINIMIZE ANY DISPLACEMENT OF JOBS. (E) IN ADDITION TO ANY OTHER METHODS THE BANK MAY USE TO IDENTIFY ECONOMIC DEVELOPMENT PROJECTS, THE BANK SHALL UTILIZE EXISTING LOCAL ECONOMIC DEVELOPMENT NETWORKS TO IDENTIFY THESE PROJECTS AND PREPARE A PLAN, IN CONSULTATION WITH LOCAL ECONOMIC DEVELOPMENT NETWORKS AND THEIR ORGANIZATIONS AND REPRESENTATIVES, TO IMPLEMENT THIS POLICY. S 9106. TAX EXEMPTION. 1. NEITHER THE BANK NOR A SPECIAL PURPOSE TRUST AUTHORIZED BY THE BANK SHALL BE REQUIRED TO PAY ANY PROPERTY TAXES OR ASSESSMENTS UPON, OR WITH RESPECT TO, ANY PROJECT OR ANY PROPERTY ACQUIRED BY, OR FOR, THE BANK UNDER THIS ARTICLE, OR UPON THE INCOME THEREFROM, SO LONG AS THE BANK, ON BEHALF OF THE STATE, HOLDS TITLE TO THE PROJECT OR TO THE PROPERTY CONTAINED IN THE PROJECT. 2. THE EXEMPTION OF THE BANK OR OF A SPECIAL PURPOSE TRUST FROM TAXA- TION OF ANY PROPERTY SHALL CEASE WHEN TITLE TO THE PROPERTY IS TRANS- FERRED FROM THE BANK TO ANY TAXABLE PERSON OR ENTITY. THIS SECTION SHALL NOT EXEMPT ANY TAXABLE PERSON OR ENTITY FROM TAXATION, INCLUDING, BUT NOT LIMITED TO, TAXATION UPON A POSSESSORY INTEREST, WITH RESPECT TO ANY PROJECT, OR THE PROPERTY OF FACILITIES CONTAINED IN ANY PROJECT THAT MAY OTHERWISE BE APPLICABLE TO THE PERSON. S 9107. PLEDGE OF STATE. THE STATE SHALL HEREBY PLEDGE TO, AND AGREES WITH, THE HOLDERS OF ANY BONDS ISSUED UNDER THIS ARTICLE, AND WITH THOSE PARTIES WHO MAY ENTER INTO CONTRACTS WITH THE BANK PURSUANT TO THIS ARTICLE, THAT THE STATE SHALL NOT LIMIT OR ALTER THE RIGHTS HEREBY VEST- ED IN THE BANK TO FINANCE ANY PROJECT AND TO FULFILL THE TERMS OF ANY LOAN AGREEMENT, LEASE, OR OTHER CONTRACT WITH THE AGENCY PURSUANT TO THIS ARTICLE, OR IN ANY WAY IMPAIR THE RIGHTS OR REMEDIES OF THE BOND- HOLDERS OR OF THE PARTIES UNTIL THOSE BONDS, TOGETHER WITH INTEREST THEREON, ARE FULLY DISCHARGED OR PROVISION FOR THIS DISCHARGE HAS BEEN MADE AND THOSE CONTRACTS ARE FULLY PERFORMED ON THE PART OF THE BANK.
THE BANK, AS AGENT FOR THE STATE, MAY INCLUDE THIS PLEDGE AND UNDERTAK- ING FOR THE STATE IN ITS OBLIGATIONS OR CONTRACTS. S 9108. FEES. THE BANK SHALL ESTABLISH A REASONABLE SCHEDULE OF ADMIN- ISTRATIVE FEES, WHICH SHALL BE PAID BY THE SPONSOR OR THE PARTICIPATING PARTY PURSUANT TO SECTION NINETY-ONE HUNDRED THIRTEEN OF THIS ARTICLE, TO REIMBURSE THE STATE FOR THE COSTS OF ADMINISTERING THIS ARTICLE. S 9109. REPORT. 1. THE BANK SHALL, NO LATER THAN NOVEMBER FIRST OF EACH YEAR, SUBMIT TO THE GOVERNOR, THE DIRECTOR OF THE BUDGET, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY, A REPORT OF ITS ACTIVITIES PURSUANT TO THIS ARTICLE FOR THE PRECEDING FISCAL YEAR. THE REPORT SHALL INCLUDE ALL OF THE FOLLOWING: (A) A LISTING OF APPLICATIONS ACCEPTED, INCLUDING A DESCRIPTION OF THE EXPECTED EMPLOYMENT IMPACT OF EACH PROJECT. (B) A SPECIFICATION OF BONDS SOLD AND INTEREST RATES THEREON. (C) THE AMOUNT OF OTHER PUBLIC AND PRIVATE FUNDS LEVERAGED BY THE ASSISTANCE PROVIDED. (D) A REPORT OF REVENUES AND EXPENDITURES FOR THE PRECEDING FISCAL YEAR, INCLUDING ALL OF THE COSTS OF THE BANK. (E) A PROJECTION OF THE NEEDS AND REQUIREMENTS OF THE BANK FOR THE COMING YEAR. (F) RECOMMENDATIONS FOR CHANGES IN STATE AND FEDERAL LAW NECESSARY TO MEET THE OBJECTIVES OF THIS ARTICLE. 2. THE REPORT REQUIRED BY THIS SECTION SHALL BE SUBMITTED TO THE GOVERNOR AND THE LEGISLATURE ON A QUARTERLY BASIS DURING THE TWO THOU- SAND TWELVE--TWO THOUSAND THIRTEEN FISCAL YEAR AND THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN FISCAL YEAR. S 9110. APPLICATION FOR BANK FINANCING. 1. FOLLOWING CONSULTATION WITH APPROPRIATE STATE AND LOCAL AGENCIES, THE BANK SHALL ESTABLISH CRITERIA, PRIORITIES, AND GUIDELINES FOR THE SELECTION OF PROJECTS TO RECEIVE ASSISTANCE FROM THE BANK. PROJECTS SHALL COMPLY WITH THE CRITERIA, PRIORITIES, AND GUIDELINES ADOPTED BY THE BANK. 2. THE CRITERIA, PRIORITIES, AND GUIDELINES SHALL, AT A MINIMUM, BE BASED UPON THE PLANS AND POLICIES OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION. 3. WHEN THE BANK ESTABLISHES OR MAKES CHANGES TO THE CRITERIA, PRIORI- TIES, AND GUIDELINES, THE BANK SHALL NOTIFY THE GOVERNOR, THE FISCAL AND POLICY COMMITTEES OF THE LEGISLATURE THAT EXERCISE LEGISLATIVE OVERSIGHT OF THE BANK, AND APPROPRIATE STATE AND LOCAL AGENCIES. 4. THE RESOLUTION REQUIRED IN SECTION NINETY-ONE HUNDRED ELEVEN OF THIS ARTICLE SHALL HAVE BEEN ADOPTED PRIOR TO THE PROJECT'S SELECTION BY THE BANK. S 9111. MANDATORY RESOLUTION. 1. PRIOR TO SUBMITTING A PROJECT TO THE BANK FOR CONSIDERATION, THE LEGISLATIVE BODY OR BODIES OF THE SPONSOR OR SPONSORS OF THE PROJECT SHALL FIND, BY RESOLUTION, EACH OF THE FOLLOW- ING: (A) THE PROJECT IS CONSISTENT WITH THE GENERAL PLAN OF BOTH THE CITY AND COUNTY, OR ONLY THE COUNTY FOR PROJECTS IN UNINCORPORATED AREAS IN WHICH THE PROJECT IS LOCATED. (B) THE PROPOSED FINANCING IS APPROPRIATE FOR THE SPECIFIC PROJECT. (C) THE PROJECT FACILITATES EFFECTIVE AND EFFICIENT USE OF EXISTING AND FUTURE PUBLIC RESOURCES SO AS TO PROMOTE BOTH ECONOMIC DEVELOPMENT AND CONSERVATION OF NATURAL RESOURCES. THE PROJECT DEVELOPS AND ENHANCES PUBLIC INFRASTRUCTURE IN A MANNER THAT WILL ATTRACT, CREATE, AND SUSTAIN LONG-TERM EMPLOYMENT OPPORTUNITIES.
(D) THE PROJECT IS CONSISTENT WITH THE CRITERIA, PRIORITIES, AND GUIDELINES FOR THE SELECTION OF PROJECTS ADOPTED PURSUANT TO THIS ARTI- CLE. 2. UPON THE ADOPTION OF THE RESOLUTION IN SUBDIVISION ONE OF THIS SECTION BY THE LEGISLATIVE BODY, THE LEGISLATIVE BODY SHALL TRANSMIT THE RESOLUTION TO THE EXECUTIVE DIRECTOR OF THE INFRASTRUCTURE BANK. S 9112. ISSUANCE OF BONDS. 1. (A) THE BANK MAY, FROM TIME TO TIME, ISSUE ITS REVENUE BONDS IN A PRINCIPAL AMOUNT THAT THE BANK SHALL DETER- MINE TO BE NECESSARY TO PROVIDE SUFFICIENT FUNDS FOR ITS PURPOSES, WHICH MAY INCLUDE, BUT SHALL NOT BE LIMITED TO, PROVIDING FUNDS FOR THE PAYMENT OF COSTS OF A PROJECT, FOR THE PURCHASE OF BONDS OF A SPECIAL PURPOSE TRUST OR A SPONSOR, PAYMENT OF INTEREST ON BONDS OF THE BANK OR OF A SPECIAL PURPOSE TRUST, ESTABLISHMENT OF RESERVES TO SECURE BONDS, REFUNDING PREVIOUSLY ISSUED BONDS OR REFUNDING BONDS OF THE BANK, SPECIAL PURPOSE TRUST, OR A SPONSOR, AND PAYMENT OF OTHER EXPENDITURES OF THE BANK OR SPECIAL PURPOSE TRUST INCIDENT TO ISSUANCE OF BONDS OR REFUNDING BONDS OF THE BANK. (B) THE BANK, BY PRIVATE SALE PURSUANT TO A BOND PURCHASE AGREEMENT, MAY PURCHASE THE BONDS OF ANY LOCAL SPONSOR OR OF ANY SPECIAL PURPOSE TRUST THAT ARE ISSUED PURSUANT TO ANY OTHER PROVISION OF APPLICABLE LAW, AND MAY BE SECURED WITH ANY FUNDS, MONEYS, OR REVENUES THAT ARE LEGALLY AVAILABLE. (C) THE BANK MAY ALSO ISSUE BONDS OR AUTHORIZE A SPECIAL PURPOSE TRUST TO ISSUE BONDS FOR THE PURPOSE OF MAKING LOANS TO A SPONSOR TO BE USED BY A SPONSOR TO PAY FOR THE COST OF A PROJECT, AND THAT LOAN MAY BE SECURED WITH ANY FUNDS, MONEYS, OR REVENUES THAT ARE LEGALLY AVAILABLE, INCLUDING, BUT NOT LIMITED TO, ANY LEGALLY AVAILABLE FUNDS OR MONEYS THAT ARE DUE OR PAYABLE TO THE SPONSOR BY REASON OF ANY GRANT, ALLO- CATION, OR APPROPRIATION OF THE STATE OR AGENCIES THEREOF, TO THE EXTENT THAT THE COMPTROLLER SHALL BE THE CUSTODIAN AT ANY TIME OF THESE FUNDS OR MONEYS, AND ANY LEGALLY AVAILABLE FUNDS OR MONEYS THAT ARE OR WILL BE DUE OR PAYABLE TO ANY SPONSOR, THE BANK, OR THE STATE OR THE AGENCIES THEREOF BY REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT, OR APPROPRI- ATION OF THE FEDERAL GOVERNMENT OR AGENCIES THEREOF. 2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, BUT CONSISTENT WITH THE STATE CONSTITUTION, A SPONSOR MAY ISSUE BONDS FOR PURCHASE BY THE BANK PURSUANT TO A BOND PURCHASE AGREEMENT. THE BANK MAY ISSUE BONDS OR AUTHORIZE A SPECIAL PURPOSE TRUST TO ISSUE BONDS. THESE BONDS MAY BE ISSUED PURSUANT TO THE CHARTER OF ANY CITY OR ANY CITY AND COUNTY THAT AUTHORIZED THE ISSUANCE OF THESE BONDS AS A SPONSOR TO PAY THE COSTS AND EXPENSES PURSUANT TO THIS ARTICLE, SUBJECT TO THE FOLLOWING CONDITIONS: (A) WITH THE PRIOR APPROVAL OF THE BANK, THE SPONSOR MAY SELL THESE BONDS IN ANY MANNER AS IT MAY DETERMINE, EITHER BY PRIVATE SALE OR BY MEANS OF COMPETITIVE BID. (B) BONDS MAY BE SOLD AT A DISCOUNT AT ANY RATE AS THE BANK AND SPON- SOR SHALL DETERMINE. (C) BONDS SHALL BEAR INTEREST AT ANY RATE AND BE PAYABLE AT ANY TIME AS THE SPONSOR SHALL DETERMINE WITH THE CONSENT OF THE BANK. 3. THE TOTAL AMOUNT OF BONDS ISSUED TO FINANCE PUBLIC DEVELOPMENT FACILITIES THAT MAY BE OUTSTANDING AT ANY ONE TIME UNDER THIS CHAPTER SHALL NOT EXCEED FIVE BILLION DOLLARS. THE TOTAL AMOUNT OF RATE REDUCTION BONDS THAT MAY BE OUTSTANDING AT ANY ONE TIME UNDER THIS CHAP- TER SHALL NOT EXCEED TEN BILLION DOLLARS. 4. BONDS FOR WHICH MONEYS OR SECURITIES HAVE BEEN DEPOSITED IN TRUST, IN AMOUNTS NECESSARY TO PAY OR REDEEM THE PRINCIPAL, INTEREST, AND ANY
REDEMPTION PREMIUM THEREON, SHALL BE DEEMED NOT TO BE OUTSTANDING FOR PURPOSES OF THIS SECTION. 5. THE BANK MAY GIVE FINAL APPROVAL FOR THE ISSUANCE OF THE BONDS OR OF THE AUTHORIZATION OF A SPECIAL PURPOSE TRUST UPON TERMS IT DEEMS NECESSARY OR DESIRABLE. (A) THE EXECUTIVE DIRECTOR MAY ESTABLISH THE TERMS AND CONDITIONS FOR THE ISSUANCE OF THE BONDS OR OF THE AUTHORIZATION OF A SPECIAL PURPOSE TRUST AND TAKE ANY OTHER ACTION NECESSARY OR DESIRABLE FOR THE ISSUANCE OF THE BONDS OR OF A SPECIAL PURPOSE TRUST AUTHORIZED BY THE BANK. (B) ANY ACTION UNDER THIS SECTION SHALL BE AT THE DISCRETION OF THE BANK. 6. THE COMPTROLLER, THE GOVERNOR, OR THE LIEUTENANT GOVERNOR IS AN ELECTED REPRESENTATIVE OF THE STATE AUTHORIZED TO FULFILL THE PUBLIC APPROVAL REQUIREMENT OF SECTION 147(F) OF TITLE 26 OF THE INTERNAL REVENUE CODE (26 U.S.C.A. SEC. 147(F)), INCLUDING SUBSEQUENT AMENDMENTS THERETO, OR ITS SUCCESSOR PROVISION, FOR THE ISSUANCE OF TAX-EXEMPT BONDS ISSUED BY THE BANK, A SPECIAL PURPOSE TRUST, OR A SPONSOR PURSUANT TO THIS CHAPTER. S 9113. AUTHORIZED FINANCING OF BONDS. 1. BONDS MAY BE AUTHORIZED TO FINANCE A SINGLE PROJECT FOR A SINGLE SPONSOR OR A PARTICIPATING PARTY, A SERIES OF PROJECTS FOR A SINGLE SPONSOR OR A PARTICIPATING PARTY, A SINGLE PROJECT FOR SEVERAL SPONSORS OR PARTICIPATING PARTIES, OR SEVERAL PROJECTS FOR SEVERAL SPONSORS OR PARTICIPATING PARTIES. 2. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED BY THE BANK, EVERY ISSUE OF ITS BONDS SHALL BE PAYABLE FROM ANY REVENUES OR OTHER MONEYS OF THE BANK AVAILABLE THEREFOR AND NOT OTHERWISE PLEDGED. THESE REVENUES OR MONEYS MAY INCLUDE THE PROCEEDS OF ADDITIONAL BONDS, SUBJECT ONLY TO ANY AGREE- MENTS WITH THE HOLDERS OF PARTICULAR BONDS PLEDGING ANY PARTICULAR REVENUES OR MONEYS. NOTWITHSTANDING THAT THE BONDS MAY BE PAYABLE FROM A SPECIAL FUND, THESE BONDS SHALL BE DEEMED TO BE NEGOTIABLE INSTRUMENTS FOR ALL PURPOSES. 3. BONDS MAY BE ISSUED IN ONE OR MORE SERIES, MAY BE ISSUED AS SERIAL BONDS OR AS TERM BONDS OR AS A COMBINATION THEREOF. THE BONDS SHALL BE AUTHORIZED BY RESOLUTION OF THE BANK AND SHALL, AS PROVIDED BY THE RESOLUTION, BEAR THE DATE OF ISSUANCE, THE TIME OF MATURITY, WHICH SHALL NOT EXCEED FIFTY YEARS FROM THE DATE OF ISSUANCE, BEAR THE RATE OR RATES OF INTEREST, BE PAYABLE AT THE TIME OR TIMES PROVIDED, BE IN THE DENOMI- NATIONS PROVIDED, BE IN THE FORM OR FORMS PROVIDED, CARRY THE REGISTRA- TION PRIVILEGES PROVIDED, BE EXECUTED IN THE MANNER PROVIDED, BE PAYABLE IN LAWFUL MONEY OF THE UNITED STATES, OR OTHER DESIGNATED CURRENCY, AT THE PLACE OR PLACES PROVIDED, AND BE SUBJECT TO ANY TERMS OF REDEMPTION PROVIDED THEREIN. 4. SALE OF THE BONDS OF THE BANK OR OF A SPECIAL PURPOSE TRUST SHALL BE COORDINATED BY THE COMPTROLLER. THE COMPTROLLER SHALL SELL THE BONDS WITHIN NINETY DAYS OF RECEIVING A CERTIFIED COPY OF THE RESOLUTION AUTHORIZING THE SALE OF BONDS, UNLESS THE BOARD ADOPTS A RESOLUTION EXTENDING THE NINETY-DAY PERIOD. 5. THE SALE MAY BE A PUBLIC OR PRIVATE SALE, AND FOR ANY PRICE OR PRICES, AND ON ANY TERMS AND CONDITIONS, AS THE BANK DETERMINES PROPER, AFTER GIVING DUE CONSIDERATION TO THE RECOMMENDATIONS OF ANY SPECIAL PURPOSE TRUST AND ANY SPONSOR TO BE ASSISTED FROM THE PROCEEDS OF THE BONDS. PENDING PREPARATION OF DEFINITIVE BONDS, THE COMPTROLLER MAY ISSUE INTERIM RECEIPTS, CERTIFICATES, OR TEMPORARY BONDS THAT SHALL BE EXCHANGED FOR DEFINITIVE BONDS. S 9114. BOND RESOLUTIONS. ANY RESOLUTION AUTHORIZING ANY BONDS OR THE AUTHORIZATION OF A SPECIAL PURPOSE TRUST OR ANY ISSUE OF BONDS OF THE
BANK OR A SPECIAL PURPOSE TRUST MAY CONTAIN THE FOLLOWING PROVISIONS, WHICH SHALL BE A PART OF THE CONTRACT WITH THE HOLDERS OF THE BONDS TO BE AUTHORIZED: 1. PROVISIONS PLEDGING THE FULL FAITH AND CREDIT OF THE BANK, OR PLEDGING ALL OR ANY PART OF THE REVENUES OF ANY PROJECT, OR ANY REVEN- UE-PRODUCING CONTRACT OR CONTRACTS MADE BY THE BANK WITH ANY SPONSOR, OR ANY OTHER MONEYS OF THE BANK, TO SECURE THE PAYMENT OF THE BONDS OR OF ANY PARTICULAR ISSUE OF BONDS, SUBJECT TO THOSE AGREEMENTS WITH BOND- HOLDERS AS MAY THEN EXIST AND CONSISTENT WITH THE STATE CONSTITUTION. 2. PROVISIONS SETTING OUT THE RENTALS, FEES, PURCHASE PAYMENTS, LOAN REPAYMENTS, AND OTHER CHARGES, AND THE AMOUNTS TO BE RAISED IN EACH YEAR THEREBY, AND THE USE AND DISPOSITION OF THE REVENUES. 3. PROVISIONS SETTING ASIDE RESERVES OR SINKING FUNDS, OR PROVIDING FOR THE USE OF SUBORDINATED CLASSES OF BONDS BY THE BANK OR A SPECIAL PURPOSE TRUST, AND THE REGULATION AND DISPOSITION THEREOF. 4. LIMITATIONS ON THE ISSUANCE OF ADDITIONAL BONDS, THE TERMS UPON WHICH ADDITIONAL BONDS MAY BE ISSUED AND SECURED, AND THE REFUNDING OF OUTSTANDING BONDS. 5. THE PROCEDURE, IF ANY, BY WHICH THE TERMS OF ANY CONTRACT WITH BONDHOLDERS MAY BE AMENDED OR ABROGATED, THE AMOUNT OF BONDS AND THE HOLDERS THEREOF THAT ARE REQUIRED TO GIVE CONSENT THERETO, AND THE MANNER IN WHICH THE CONSENT MAY BE GIVEN. 6. LIMITATIONS ON THE BANK'S EXPENDITURES FOR OPERATION AND ADMINIS- TRATION, OR OTHER EXPENSES. 7. DEFINITIONS OF ACTS OR OMISSIONS TO ACT THAT CONSTITUTE A DEFAULT IN THE DUTIES OF THE BANK TO HOLDERS OF ITS OBLIGATIONS, AND PROVIDING THE RIGHTS AND REMEDIES OF THE HOLDERS IN THE EVENT OF A DEFAULT. 8. THE MORTGAGING OF ANY PROJECT AND THE SITE THEREOF FOR THE PURPOSE OF SECURING THE INTERESTS OF THE BONDHOLDERS. 9. THE MORTGAGING OF LAND, IMPROVEMENTS, OR OTHER ASSETS OWNED BY A SPONSOR OR PARTICIPATING PARTY FOR THE PURPOSE OF SECURING THE INTERESTS OF THE BONDHOLDERS. S 9115. PURCHASE OF BONDS BY THE BANK. THE BANK, A SPECIAL PURPOSE TRUST, OR ANY SPONSOR OR PARTICIPATING PARTY MAY, OUT OF ANY FUNDS AVAILABLE THEREFOR, PURCHASE THEIR RESPECTIVE BONDS. THE BANK AND A SPECIAL PURPOSE TRUST MAY HOLD, PLEDGE, CANCEL, OR RESELL THEIR BONDS, SUBJECT TO AND IN ACCORDANCE WITH AGREEMENTS WITH BONDHOLDERS. S 9116. TRUST AGREEMENT. IN THE DISCRETION OF THE BANK, A SPECIAL PURPOSE TRUST, OR THE SPONSOR, AS THE CASE MAY BE, ANY BONDS ISSUED UNDER THIS ARTICLE MAY BE SECURED BY A TRUST AGREEMENT BETWEEN THE BANK, A SPECIAL PURPOSE TRUST, OR THE SPONSOR AND A CORPORATE TRUSTEE OR TRUS- TEES, THAT MAY INCLUDE THE COMPTROLLER OR ANY TRUST COMPANY OR BANK HAVING THE POWERS OF A TRUST COMPANY WITHIN OR WITHOUT THE STATE. 1. THE TRUST AGREEMENT OR THE RESOLUTION PROVIDING FOR THE ISSUANCE OF THE BONDS MAY PLEDGE OR ASSIGN ANY FUNDS OR ASSETS OF THE BANK OR SPECIAL PURPOSE TRUST LEGALLY AVAILABLE FOR PLEDGE OR ASSIGNMENT, ALL OR A PORTION OF THE REVENUES TO BE RECEIVED BY THE BANK, DIRECTLY OR INDI- RECTLY, WITH RESPECT TO THE PROJECT, OR THE PROCEEDS OF ANY CONTRACT OR CONTRACTS, LOAN OR LOAN AGREEMENTS, BOND OR BOND PURCHASE AGREEMENTS, AND MAY CONVEY OR MORTGAGE THE PROJECT OR PROJECTS, OR ANY PORTION THER- EOF, TO BE FINANCED OUT OF THE PROCEEDS OF THE BONDS. THE TRUST AGREE- MENT OR RESOLUTION PROVIDING FOR THE ISSUANCE OF THE BONDS MAY CONTAIN PROVISIONS FOR PROTECTING AND ENFORCING THE RIGHTS AND REMEDIES OF BOND- HOLDERS AS MAY BE REASONABLE AND PROPER AND NOT IN VIOLATION OF LAW, INCLUDING PROVISIONS SPECIFICALLY AUTHORIZED TO BE INCLUDED IN ANY RESOLUTION OR RESOLUTIONS OF THE BANK OR A SPONSOR AUTHORIZING BONDS.
2. ANY BANK OR TRUST COMPANY DOING BUSINESS UNDER THE LAWS OF THE STATE THAT MAY ACT AS A DEPOSITORY OF THE PROCEEDS OF BONDS OR OF REVEN- UES OR OTHER MONEYS SHALL FURNISH INDEMNIFYING BONDS OR PLEDGE SECURI- TIES WHEN REQUIRED BY THE BANK, A SPECIAL PURPOSE TRUST, OR A SPONSOR. 3. THE TRUST AGREEMENT MAY SET FORTH THE RIGHTS AND REMEDIES OF THE BONDHOLDERS AND OF THE TRUSTEE OR TRUSTEES, AND MAY RESTRICT THE INDI- VIDUAL RIGHT OF ACTION BY BONDHOLDERS. IN ADDITION, ANY TRUST AGREEMENT OR RESOLUTION MAY CONTAIN OTHER PROVISIONS THAT THE BANK MAY DEEM REASONABLE AND PROPER FOR THE SECURITY OF THE BONDHOLDERS. 4. THE TRUST AGREEMENT MAY PROVIDE FOR THE PLEDGE OR ASSIGNMENT OF FUNDS OR MONEYS IN THE CUSTODY OF THE COMPTROLLER THAT ARE LEGALLY AVAILABLE TO A SPONSOR AND THAT ARE DUE OR PAYABLE TO THE SPONSOR BY REASON OF ANY GRANT, ALLOCATION, APPORTIONMENT, OR APPROPRIATION OF THE STATE OR AGENCIES THEREOF, AND ANY LEGALLY AVAILABLE FUNDS OR MONEYS THAT ARE OR WILL BE DUE OR PAYABLE, TO ANY SPONSOR, THE BANK, THE STATE OR THE AGENCIES THEREOF BY REASON OF ANY GRANT, ALLOCATION, APPORTION- MENT, OR APPROPRIATION OF THE FEDERAL GOVERNMENT OR AGENCIES THEREOF. S 9117. LIABILITY OF THE STATE. 1. BONDS ISSUED UNDER THIS ARTICLE DO NOT CONSTITUTE A DEBT OR LIABILITY OF THE STATE OR OF ANY POLITICAL SUBDIVISION THEREOF, OTHER THAN THE BANK OR A SPECIAL PURPOSE TRUST, AND DO NOT CONSTITUTE A PLEDGE OF THE FULL FAITH AND CREDIT OF THE STATE OR ANY OF ITS POLITICAL SUBDIVISIONS, OTHER THAN THE BANK OR SPECIAL PURPOSE TRUST, BUT ARE PAYABLE SOLELY FROM THE FUNDS PROVIDED THEREFOR UNDER THIS ARTICLE AND SHALL BE CONSISTENT WITH THE STATE CONSTITUTION. THIS SECTION SHALL IN NO WAY PRECLUDE BOND GUARANTEES OR ENHANCEMENTS PURSUANT TO THIS TITLE. ALL THE BONDS SHALL CONTAIN ON THE FACE THEREOF A STATEMENT TO THE FOLLOWING EFFECT: "NEITHER THE FULL FAITH AND CREDIT NOR THE TAXING POWER OF THE STATE OF NEW YORK IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, OR INTEREST ON, THIS BOND." 2. THE ISSUANCE OF BONDS UNDER THIS ARTICLE SHALL NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE STATE OR ANY POLITICAL SUBDIVI- SION THEREOF TO LEVY OR TO PLEDGE ANY FORM OF TAXATION THEREFOR OR TO MAKE ANY APPROPRIATION FOR THEIR PAYMENT. NOTHING IN THIS SECTION SHALL PREVENT, OR BE CONSTRUED TO PREVENT, THE BANK FROM PLEDGING THE FULL FAITH AND CREDIT OF THE INFRASTRUCTURE BANK FUND TO THE PAYMENT OF BONDS OR ISSUANCE OF BONDS AUTHORIZED PURSUANT TO THIS ARTICLE. S 9118. REFUNDING BONDS. 1. THE BANK OR A SPECIAL PURPOSE TRUST MAY ISSUE BONDS FOR THE PURPOSE OF REFUNDING ANY BONDS, NOTES, OR OTHER SECURITIES OF THE BANK, A SPECIAL PURPOSE TRUST, OR A SPONSOR THEN OUTSTANDING, INCLUDING THE PAYMENT OF ANY REDEMPTION PREMIUM THEREON AND ANY INTEREST ACCRUED, OR TO ACCRUE, ON THEIR EARLIEST OR ANY SUBSEQUENT DATE OF REDEMPTION, PURCHASE, OR MATURITY OF THESE BONDS. THE BANK, OR A SPONSOR, IF IT DEEMS ADVISABLE, MAY ISSUE OR AUTHORIZE A SPONSOR TO ISSUE BONDS FOR THE ADDITIONAL PURPOSE OF PAYING ALL OR ANY PART OF THE COST OF CONSTRUCTING AND ACQUIRING ADDITIONS, IMPROVEMENTS, EXTENSIONS, OR ENLARGEMENTS OF ANY PROJECT OR ANY PORTION THEREOF. 2. THE PROCEEDS OF ANY BONDS ISSUED FOR THE PURPOSE OF REFUNDING OUTSTANDING BONDS AS PROVIDED IN SUBDIVISION ONE OF THIS SECTION MAY, IN THE DISCRETION OF THE BANK, BE APPLIED TO THE PURCHASE OR RETIREMENT AT MATURITY OR REDEMPTION OF THOSE OUTSTANDING BONDS EITHER ON THEIR EARLI- EST OR ANY SUBSEQUENT REDEMPTION DATE OR UPON THE PURCHASE OR RETIREMENT AT THE MATURITY THEREOF AND MAY, PENDING THIS APPLICATION, BE PLACED IN ESCROW TO BE APPLIED TO THE PURCHASE OR RETIREMENT AT MATURITY OR REDEMPTION OF THOSE OUTSTANDING BONDS ON THE DATE OR DATES AS MAY BE DETERMINED BY THE BANK.
3. PENDING THIS USE, THE ESCROWED PROCEEDS MAY BE INVESTED AND REIN- VESTED BY THE COMPTROLLER OR A TRUSTEE IN OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES, OR IN CERTIFICATES OF DEPOSIT OR TIME DEPOSITS SECURED BY OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES, MATURING AT THE TIME OR TIMES APPROPRIATE TO ASSURE PROMPT PAYMENT, OF THE PRIN- CIPAL, INTEREST, AND REDEMPTION PREMIUM, IF ANY, OF THE OUTSTANDING BONDS TO BE REFUNDED. THE INTEREST, INCOME, AND PROFITS, IF ANY, EARNED OR REALIZED ON THE INVESTMENT MAY ALSO BE APPLIED TO THE PAYMENT OF THE OUTSTANDING BONDS TO BE REFUNDED. AFTER THE TERMS OF THE ESCROW HAVE BEEN FULLY SATISFIED AND CARRIED OUT, ANY BALANCE OF THE PROCEEDS AND INTEREST, INCOME, AND PROFITS, IF ANY, EARNED OR REALIZED ON THE INVEST- MENTS THEREOF, SHALL BE RETURNED TO THE AGENCY FOR USE IN CARRYING OUT THE PURPOSES OF THIS ARTICLE. 4. THE PORTION OF THE PROCEEDS OF THE BONDS ISSUED FOR THE ADDITIONAL PURPOSE OF PAYING ALL OR ANY PART OF THE COST OF CONSTRUCTION AND ACQUIRING ADDITIONS, IMPROVEMENTS, EXTENSIONS, OR ENLARGEMENTS OF ANY PROJECT MAY BE INVESTED AND REINVESTED BY THE COMPTROLLER OR A TRUSTEE IN OBLIGATIONS OF, OR GUARANTEED BY, THE UNITED STATES, OR IN CERTIF- ICATES OF DEPOSIT OR TIME DEPOSITS SECURED BY OBLIGATIONS OF, OR GUARAN- TEED BY, THE UNITED STATES, MATURING NOT LATER THAN THE TIME OR TIMES WHEN THESE PROCEEDS WILL BE NEEDED FOR THE PURPOSE OF PAYING ALL OR ANY PART OF THE COST. THE INTEREST, INCOME, AND PROFITS, IF ANY, EARNED OR REALIZED ON THIS INVESTMENT MAY BE APPLIED TO THE PAYMENT OF ALL, OR ANY PART OF, THE COST OR MAY BE USED BY THE BANK IN CARRYING OUT THE PURPOSES OF THIS ARTICLE. S 9119. SECURITY. 1. ANY ISSUE OF REVENUE BONDS BY THE BANK MAY BE SECURED AND MADE MORE ATTRACTIVE TO CAPITAL MARKETS THROUGH FINANCIAL INSTRUMENTS, INCLUDING, BUT NOT LIMITED TO: (A) DEEDS OF TRUST ON THE RESOURCES, FACILITIES, AND REVENUES OF THE PROJECTS. (B) CREDIT ENHANCEMENTS, INCLUDING, BUT NOT LIMITED TO, LETTERS OF CREDIT, BOND INSURANCE, AND SURETY BONDS PROVIDED BY PRIVATE FINANCIAL INSTITUTIONS. (C) INSURANCE AND GUARANTEES PROVIDED BY THE BANK ITSELF. 2. THE BANK MAY MAKE LOANS TO HELP ESTABLISH AND SUPPORT THE REVOLVING LOAN FUNDS OF SMALL BUSINESS DEVELOPMENT CORPORATIONS, ECONOMIC DEVELOP- MENT CORPORATIONS, COMMUNITY DEVELOPMENT CORPORATIONS, AND NONPROFIT CORPORATIONS. THE LOANS MAY BE MADE FROM ANY MONEYS AVAILABLE TO THE BANK. S 2. This act shall take effect immediately.

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