NY Pub Auth L § 1680-Q-2 (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 4 - Dormitory Authority 1680-Q*2 - Self-Insured Bond Financing.

* §  1680-q.  Self-insured  bond financing. 1. As used in this section the following terms shall have the following meanings:  (a) "Ancillary bond facility" means  any  interest  rate  exchange  or similar  agreement  or  any  bond  insurance policy, letter of credit or other  credit  enhancement  facility,  liquidity  facility,   guaranteed investment  or  reinvestment  agreement,  or  other  similar  agreement, arrangement or contract.  (b) "Benefited party" means  any  person,  firm  or  corporation  that enters  into  an ancillary bond facility with the authority according to the provisions of this section.  (c) "Bonds" means any bonds, notes, certificates of participation  and other  evidence  of  indebtedness  issued  by  the authority pursuant to subdivision five of this section.  (d) "Bond owners or owners of bonds" means any  registered  owners  of bonds.  (e) "Chair" means the chair of the workers' compensation board.  (f)  "Code"  means the United States Internal Revenue Code of 1986, as amended.  (g) "Costs  of  issuance"  means  any  item  of  expense  directly  or indirectly  payable  or reimbursable by the authority and related to the authorization, sale, or issuance of bonds, including,  but  not  limited to,  underwriting fees and fees and expenses of professional consultants and fiduciaries.  (h) "Debt service" means actual debt service, comprised of  principal, interest  and  associated  costs,  as  defined in section fifty-c of the workers' compensation law.  (i) "Director of the budget" or "director" means the director  of  the budget of the state of New York.  (j)  "Financing  costs"  means  all  costs  of  issuance,  capitalized interest, capitalized operating expenses of the authority and,  pursuant to  the  self-insured  bond  financing  agreement,  fees,  cost  of  any ancillary bond facility, and any other  fees,  discounts,  expenses  and costs  related  to  issuing, securing and marketing the bonds including, without limitation, any net original issue discount.  (k) "Investment securities" shall have the same meaning as  set  forth in section one thousand six hundred eighty-l of this title.  (l)  "Interest  rate  exchange  or  similar agreement" means a written contract entered into in connection with the issuance of bonds  or  with such bonds outstanding with a counterparty to provide for an exchange or swap  of  payments  based upon fixed and/or variable interest rates, and shall be for exchanges in currency of the United States of America only.  (m) "Net proceeds" means the amount of  proceeds  remaining  following each  sale of bonds which are not required by the authority for purposes of this section to pay or provide for debt service or  financing  costs, as provided in the self-insured bond financing agreement.  (n)  "Operating  expenses" means the reasonable or necessary operating expenses of the authority  for  purposes  of  this  section,  including, without  limitation, the costs of: retention of auditors, preparation of accounting and other reports, maintenance of the ratings on  the  bonds, any  operating  expense reserve fund, insurance premiums, ancillary bond facilities,  rebate  payments,  annual  meetings   or   other   required activities   of   the   authority,   and  professional  consultants  and fiduciaries.  (o) "Outstanding", when used with  respect  to  bonds,  shall  exclude bonds  that  shall  have  been  paid  in full at maturity, or shall have otherwise been refunded, redeemed, defeased or discharged, or  that  may be  deemed  not  outstanding  pursuant  to  agreements  with the holders thereof.  (p) "Pledged assessments revenues",  "pledged  revenues"  or  "pledged assessments"  means  receipts  of  the  assessments  imposed pursuant to section one hundred fifty-one  of  the  workers'  compensation  law  and pledged  for  the  payment  of  debt service on the bonds or amounts due pursuant  to  an ancillary bond facility, including the right to receive same.  (q) "Self-insurer  offset  fund"  shall  mean  the  fund  composed  of revenues,  including  those  obtained  by  the  bonds  issued under this section, which shall be  used  solely  for  the  purposes  described  in subdivision four of this section.  (r)  "Self-insured  employer"  means individual and group self-insured employers established in accordance with section fifty of  the  workers' compensation law.  (s) "State" means the state of New York.  (t)  "Self-insured  bond financing agreement" or "financing agreement" means an agreement authorized and created pursuant to  subdivision  four of this section and section fifty-c of the workers' compensation law, as same by its terms and bond proceedings, may be amended.   2.  The  authority  is  hereby  authorized  to  issue  bonds to reduce assessments imposed on self-insured employers under section fifty of the workers' compensation  law  as  a  result  of  the  unfunded  claims  of individual  and group self-insurers. The authority may enter into one or more self-insured bond financing agreements described in section fifty-c of the workers' compensation law. All of the provisions  of  the  public authorities  law  relating to bonds and notes of the dormitory authority which are not inconsistent with the provisions  of  this  section  shall apply  to  obligations  authorized  by  this  section, including but not limited to the power to establish  adequate  reserves  therefor  and  to issue  renewal  notes or refunding bonds thereof. The provisions of this section shall apply solely to obligations authorized by this section.   3. It is found  and  declared  that  unfunded  claims  in  either  the individual  or group self-insurance trust program will, absent provision for  long-term  financing,  result  in  imposition  of  costs   on   all self-insurers   through  assessments;  that  such  unfunded  claims  and assessments  may  have  a   detrimental   impact   on   businesses   and not-for-profit  corporations  in  New York state and on the provision of services to New York residents; that without financing the board may  be required  to impose higher assessments to pay such unfunded claims; that financing will allow the workers' compensation board to purchase one  or more  assumptions  of workers' compensation liability policies that will limit the long term losses from these unfunded claims;  that  the  bonds will provide a more efficient means of covering unfunded claims than the current  system of assessment on all self-insureds; that bonds issued by the authority and secured by assessments levied,  for  the  governmental purpose   of  funding  assumption  of  workers'  compensation  liability policies, amortized over a substantial period would allow the  state  to limit  liabilities  and  the  assessments  needed  to  pay them, thereby furthering the policy of the state  to  reduce  the  costs  of  workers' compensation  and  to  improve the business climate in the state and the ability of not-for-profit corporations  to  perform  essential  services while  compensating  injured workers; that all costs of the authority in relation to this section shall be paid from assessments provided for  in the  workers'  compensation  law; and that, therefore, the provisions of this section are for the public benefit and good and  the  authorization as  provided  in this section for the issuance of revenue obligations of the authority is declared to be for a public purpose and the exercise of an essential governmental function.    4. (a) The authority, the commissioner of taxation and finance and the chair, in consultation with the director of the budget shall  execute  a financing  agreement  prior to the issuance of any bonds. Such agreement shall contain such terms and conditions as are necessary  to  carry  out and  effectuate  the  purposes of this section, including covenants with respect to the assessments  and  enforcement  of  the  assessments,  the application and use of the proceeds of the sale of bonds to preserve the tax  exemption  on  the  bonds,  the interest on which is intended to be exempt from taxation. The state shall not  be  authorized  to  make  any covenant, pledge, promise or agreement purporting to bind the state with respect to pledged revenues, except as otherwise specifically authorized by this section.  (b)  The  net  proceeds  of the bonds shall be deposited in accordance with the self-insured bond financing agreement  and  this  section.  The self-insured  bond financing agreement shall provide for the application of the net bond proceeds, and such bond proceeds shall be used, for  any of  the following purposes: (i) to pay unmet compensation or benefits of individual and group self-insured employers; (ii)  to  purchase  one  or more assumption of workers' compensation liability policies to discharge the  liabilities  incurred  or to be incurred under subdivision three or three-a of section fifty of the workers' compensation law; or  (iii)  to pay  financing  costs  of  the  bonds  issued  under  this  section. Not inconsistent with this section, the authority may  provide  restrictions on the use and investment of net proceeds of the bonds and other amounts in  the  self-insured  bond  financing  agreement  or otherwise in a tax regulatory agreement as necessary or desirable to assure that  they  are exempt from taxation.   5.  (a) (i) The authority shall have power and is hereby authorized to issue its bonds at such times and in such  aggregate  principal  amounts not  to  exceed  an amount to be determined by the chair as necessary to fund the purposes of this section, but in no case exceeding nine hundred million dollars exclusive of any bonds issued to refund bonds previously issued pursuant to this chapter and any bonds issued to fund any reserve funds cost of issuance or original issue premium.  The  bonds  shall  be issued  for  the  following corporate purposes: (A) to pay current unmet compensation or benefits of individual and group self-insured employers; (B) to  purchase  one  or  more  assumptions  of  workers'  compensation liability  policies  to  discharge  the  liabilities  incurred  or to be incurred under subdivision three or three-a  of  section  fifty  of  the workers'  compensation  law;  or (C) to pay financing costs of the bonds issued under this section.  (ii) Each issuance of bonds shall be authorized by a resolution of the authority, provided, however, that any such resolution may  delegate  to an  officer  of the authority the power to issue such bonds from time to time and to  fix  the  details  of  any  such  issues  of  bonds  by  an appropriate  certificate  of such authorized officer. Every issue of the bonds of the authority for the self-insurer offset fund shall be special revenue obligations payable from and secured by a pledge of revenues and other assets, including those proceeds of  such  bonds  deposited  in  a reserve  fund for the benefit of bondholders, earnings on such funds and such other funds and assets as may become available, upon such terms and conditions as specified by the authority in the resolution  under  which the bonds are issued or in a related trust indenture.  (iii) The authority shall have the power and is hereby authorized from time  to  time  to  issue  bonds,  in  consultation  with the chair, the commissioner of taxation and finance and the director of the budget,  to refund any bonds issued under this section by the issuance of new bonds, whether  the bonds to be refunded have or have not matured, and to issue  bonds partly to refund bonds then outstanding and partly for any of  its other  corporate purposes under this section. The refunding bonds may be exchanged for the bonds to be refunded or sold and the proceeds  applied to the purchase, redemption or payment of such bonds.  (b)  The  bonds  of  the authority of each issue shall be dated, shall bear interest (which, in the opinion of bond counsel to  the  authority, may  be  includable in or excludable from the gross income of the owners for federal income tax  purposes)  at  such  fixed  or  variable  rates, payable at or prior to maturity, and shall mature at such time or times, as  may be determined by the authority and may be made redeemable before maturity, at the option of the authority, at such price  or  prices  and under  such  terms  and conditions as may be fixed by the authority. The principal and interest of such bonds may be made payable in  any  lawful medium.  The  resolution  or  the  certificate of the authorized officer shall determine the form of the bonds, either registered  or  book-entry form,  and  the  manner  of  execution  of  the  bonds and shall fix the denomination or denominations of the bonds and the place  or  places  of payment  of  principal and interest thereof, which may be at any bank or trust company  within  or  outside  the  state.  If  any  officer  whose signature  or a facsimile thereof appears on any bonds shall cease to be such officer before the  delivery  of  such  bonds,  such  signature  or facsimile  shall  nevertheless  be valid and sufficient for all purposes the same as if such officer had remained in office until such  delivery. The  authority  may  also  provide  for  temporary  bonds  and  for  the replacement of  any  bond  that  shall  become  mutilated  or  shall  be destroyed or lost.  (c)  The  authority may sell such bonds, either at a public or private sale and either on a competitive or negotiated basis, provided  no  such bonds  may be sold by the authority at private sale unless such sale and the terms thereof have been approved in writing by  the  comptroller  of the state of New York. The proceeds of such bonds shall be disbursed for the purposes for which such bonds were issued under such restrictions as the  financing  agreement and the resolution authorizing the issuance of such bonds or the related trust indenture may provide. Such bonds  shall be  issued  without  any  other  approvals,  filings, proceedings or the happening of any other conditions other than  any  approvals,  findings, proceedings,  or  other  conditions  that  are  specified  and expressly required by this section; provided, however, that any issuance of  bonds under  the  authority  of this section shall be considered a project for the purposes of  section  fifty-one  of  this  chapter  and  subject  to approval under such section.  (d) Any pledge made by the authority shall be valid and binding at the time  the  pledge  is  made. The assets, property, revenues, reserves or earnings so pledged shall immediately be subject to  the  lien  of  such pledge without any physical delivery thereof or further act and the lien of  any  such  pledge  shall be valid and binding as against all parties having claims of any kind against the authority, irrespective of whether such parties have notice thereof. Notwithstanding any other provision of law to the contrary, neither the bond resolution nor  any  indenture  or other  instrument,  including the financing agreement, by which a pledge is created or by which  the  authority's  interest  in  pledged  assets, property,  revenues,  reserves  or  earnings thereon is assigned need be filed, perfected or recorded in any public records in order  to  protect the pledge thereof or perfect the lien thereof as against third parties, except  that  a  copy  thereof  shall  be  filed  in  the records of the authority.  (e) Whether or not the bonds of the authority are  of  such  form  and character as to be negotiable instruments under the terms of the uniform  commercial  code,  the  bonds are hereby made negotiable instruments for all  purposes,  subject  only  to  the  provisions  of  the  bonds   for registration.  (f)  At  the sole discretion of the authority, any bonds issued by the authority and any ancillary bond facility made under the  provisions  of this  subdivision  may  be secured by a resolution or trust indenture by and between the authority and the trust indenture trustee, which may  be any  trust company or bank having the powers of a trust company, whether located within or outside the state,  provided  it  is  carried  out  in accordance  with  section  sixty-nine-d  of  the state finance law. Such trust indenture or resolution providing for the issuance of  such  bonds may  provide  for  the  creation and maintenance of such reserves as the authority shall determine to be proper and may include covenants setting forth the duties of the authority in  relation  to  the  bonds,  or  the financing  agreement.  Such  trust  indenture  or resolution may contain provisions: (i) respecting the custody, safe-guarding and application of all moneys and securities; (ii) protecting and enforcing the rights  and remedies  (pursuant  to the trust indenture and the financing agreement) of the owners of the bonds and any  other  benefited  party  as  may  be reasonable  and proper and not in violation of law; (iii) concerning the rights, powers and  duties  of  the  trustee  appointed  by  bondholders pursuant  to  paragraph  (g)  of  this  subdivision; or (iv) limiting or abrogating the right of the bondholders to appoint a trustee.  It  shall be  lawful  for any bank or trust company which may act as depository of the proceeds of bonds or of any other funds or obligations  received  on behalf  of the authority to furnish such indemnifying bonds or to pledge such securities as may be required by  the  authority.  Any  such  trust indenture  or  resolution  may  contain  such  other  provisions  as the authority  may  deem  reasonable   and   proper   for   priorities   and subordination among the owners of the bonds and other beneficiaries. For purposes  of this section, a "resolution" of the authority shall include any trust indenture authorized thereby.  (g) The authority may enter into, amend or terminate, as it determines to  be  necessary  or  appropriate,  any  ancillary  bond  facility   in consultation with the chair and director of the budget (i) to facilitate the  issuance,  sale,  resale, purchase, repurchase or payment of bonds, interest rate  savings  or  market  diversification  or  the  making  or performance  of  interest rate exchange or similar agreements, including without limitation bond  insurance,  letters  of  credit  and  liquidity facilities,  (ii)  to  attempt  to  manage  or  hedge  risk or achieve a desirable effective interest rate or cash flow, or (iii)  to  place  the obligations or investments of the authority, as represented by the bonds or the investment of reserved bond proceeds or other pledged revenues or other  assets,  in  whole or in part, on the interest rate, cash flow or other basis decided in consultation with the chair and director  of  the budget, which facility may include without limitation contracts commonly known  as interest rate exchange or similar agreements, forward purchase contracts or guaranteed investment contracts and  futures  or  contracts providing  for  payments  based  on  levels  of, or changes in, interest rates. These contracts or  arrangements  may  be  entered  into  by  the authority  in  connection  with,  or  incidental  to,  entering into, or maintaining any agreement  which  secures  bonds  of  the  authority  or investment,  or contract providing for investment of reserves or similar facility guaranteeing an investment rate for a period of  years  not  to exceed  the  underlying  term  of  the  bonds.  The determination by the authority  that  an  ancillary  bond  facility  or  the   amendment   or termination  thereof  is  necessary or appropriate as aforesaid shall be conclusive. Any  ancillary  bond  facility  may  contain  such  payment,  security,  default,  remedy, and termination provisions and payments and other terms and conditions as determined by the authority, after  giving due  consideration  to the creditworthiness of the counterparty or other obligated  party,  including  any  rating  by  any nationally recognized rating agency, and any other criteria as may be appropriate.  (h) The authority, subject to such agreements with bondholders as  may then  exist  (including  provisions  which  restrict  the  power  of the authority to purchase bonds), or with the providers  of  any  applicable ancillary bond facility, shall have the power out of any funds available therefor  to  purchase  bonds  of  the  authority,  which may or may not thereupon be cancelled, at a price not substantially exceeding:  (i) if the bonds  are  then  redeemable,  the  redemption  price  then applicable, including any accrued interest; or  (ii)  if  the  bonds are not then redeemable, the redemption price and accrued interest applicable on the first date after such  purchase  upon which the bonds become subject to redemption.  (i)  Neither  the  members  of  the  authority  nor  any  other person executing the bonds or an ancillary bond facility of the authority shall be subject to any personal  liability  by  reason  of  the  issuance  or execution and delivery thereof.  (j)  The  maturities  of  the bonds shall not exceed thirty years from their respective issuance.   6. Neither any bond issued pursuant to this section nor any  ancillary bond  facility  of  the  authority  shall  constitute  a  debt  or moral obligation of the state or  a  state  supported  obligation  within  the meaning  of any constitutional or statutory provision or a pledge of the faith and credit of the state or of the taxing power of the  state,  and the state shall not be liable to make any payments thereon nor shall any bond  or  any  ancillary  bond  facility  be payable out of any funds or assets other than pledged revenues and other assets of the authority and other funds  and  assets  of  or  available  to  the  authority  pledged therefor, and the bonds and any ancillary bond facility of the authority shall  contain  on  the  face thereof or other prominent place thereon a statement to the foregoing effect.   7. (a) Subject to the provisions of subdivision five of  this  section in  the  event  that  the  authority  shall  default  in  the payment of principal of, or interest on, or sinking fund payment on, any  issue  of bonds  after the same shall become due, whether at maturity or upon call for redemption, or in the event that the authority or  the  state  shall fail  to comply with any agreement made with the holders of any issue of bonds, the holders of twenty-five percent in aggregate principal  amount of   the  bonds  of  such  issue  then  outstanding,  by  instrument  or instruments filed in the office of the clerk of the county of Albany and proved or acknowledged in the same manner as a deed to be recorded,  may appoint  a  trustee  to  represent  the  holders  of  such bonds for the purposes herein provided.  (b) Such trustee, may, and upon written  request  of  the  holders  of twenty-five  percent  in principal amount of such bonds then outstanding shall, in his or its own name:  (i) by suit,  action  or  proceeding  in  accordance  with  the  civil practice law and rules, enforce all rights of the bondholders, including the  right to require the authority to carry out any agreement with such holders and to perform its duties under this section;  (ii) bring suit upon such bonds;  (iii) by action or suit, require the authority to  account  as  if  it were the trustee of an express trust for the holders of such bonds;  (iv)  by  action  or  suit,  enjoin  any  acts  or things which may be unlawful or in violation of the rights of the holders of such bonds; and  (v) declare all such bonds due and payable, and if all defaults  shall be  made  good,  then,  with  the  consent of the holders of twenty-five percent of the principal amount of such bonds  then  outstanding,  annul such  declaration  and its consequences, provided, however, that nothing in  this  subdivision  shall  preclude  the authority from agreeing that consent of the provider of an ancillary bond facility is required for an acceleration of related bonds in the event of a  default  other  than  a failure to pay principal of or interest on the bonds when due.  (c)  The  supreme court shall have jurisdiction of any suit, action or proceeding by the trustee on behalf of such bondholders.  The  venue  of any  such  suit,  action  or  proceeding  shall be laid in the county of Albany.  (d) Before declaring the principal  of  bonds  due  and  payable,  the trustee shall first give thirty days notice in writing to the authority.   8.  All  monies of the authority from whatever source derived shall be paid to the treasurer of the authority and shall be deposited  forthwith in  a  bank  or  banks  designated  by the authority. The monies in such accounts shall be paid out or withdrawn on the order of such  person  or persons  as  the  authority may authorize to make such requisitions. All deposits of such monies shall either be secured by  obligations  of  the United  States  or of the state or of any municipality of a market value equal at all times to the amount on deposit, or monies of the  authority may  be  deposited in money market funds rated in the highest short-term or long-term rating category  by  at  least  one  nationally  recognized rating  agency.  To  the  extent  practicable,  and  consistent with the requirements of the authority, all such monies  shall  be  deposited  in interest   bearing   accounts.   The   authority   shall   have   power, notwithstanding the provisions of this section,  to  contract  with  the holders of any bonds as to the custody, collection, security, investment and  payment  of any monies of the authority or any monies held in trust or otherwise for the payment of bonds or any way to  secure  bonds,  and carry  out  any  such contract notwithstanding that such contract may be inconsistent with the provisions of this section. Monies held  in  trust or  otherwise for the payment of bonds or in any way to secure bonds and deposits of such moneys may be secured in the same manner as  monies  of the  authority  and all banks and trust companies are authorized to give such security for  such  deposits.  Any  monies  of  the  authority  not required for immediate use or disbursement may, at the discretion of the authority, be invested in accordance with law and such guidelines as are approved by the authority.   9.  (a) It is hereby determined that the carrying out by the authority of its corporate purposes under this section are in all respects for the benefit of the people of the state of New York and are public  purposes. Accordingly,  the authority shall be regarded as performing an essential governmental function in the exercise of the powers conferred upon it by this section.  The  property  of  the  authority,  its  income  and  its operations   shall   be   exempt  from  taxation,  assessments,  special assessments and ad valorem levies. The authority shall not  be  required to  pay any fees, taxes, special ad valorem levies or assessments of any kind, whether state or  local,  including,  but  not  limited  to,  real property  taxes,  franchise  taxes,  sales taxes or other taxes, upon or with respect to any property owned by  it  or  under  its  jurisdiction, control  or  supervision,  or  upon  the  uses  thereof, or upon or with respect to its activities or operations in  furtherance  of  the  powers conferred  upon  it  by  this  section,  or  upon or with respect to any assessments, rates, charges, fees, revenues or other income received  by the authority.  (b)  Any bonds issued pursuant to this section, their transfer and the income therefrom shall, at all times, be exempt from taxation except for estate or gift taxes and taxes on transfers.  (c)  The  state  hereby  covenants  with  the  purchasers and with all subsequent holders and transferees of  bonds  issued  by  the  authority pursuant  to  this  section,  in  consideration of the acceptance of and payment for the bonds, that the bonds of the authority  issued  pursuant to  this section and the income therefrom and all assessments, revenues, moneys, and other property received by the authority and pledged to  pay or to secure the payment of such bonds shall at all times be exempt from taxation.  (d)  In  the  case of any bonds of the authority, interest on which is intended to be exempt from  federal  income  tax,  the  authority  shall prescribe  restrictions  on  the use of the proceeds thereof and related matters only as are necessary or desirable to assure such exemption, and the recipients of such proceeds shall be bound  thereby  to  the  extent such  restrictions shall be made applicable to them. Any such recipient, including, but not limited to, the state, the state  insurance  fund,  a public  benefit  corporation,  and  a school district or municipality is authorized to execute a tax regulatory agreement with the  authority  or the  state,  as  the case may be, and the execution of such an agreement may be treated by the authority or the state as a condition to receiving any such proceeds.   10. (a) The state,  solely  with  respect  to  the  resources  of  the self-insurer  offset  fund  and  as  set  forth in the self-insured bond financing agreement, covenants with the purchasers  and  all  subsequent owners and transferees of bonds issued by the authority pursuant to this section  in consideration of the acceptance of the payment of the bonds, until the bonds, together with the interest thereon,  with  interest  on any  unpaid  installment  of  interest  and  all  costs  and expenses in connection with any action or proceeding on behalf of  the  owners,  are fully  met  and  discharged  or  unless expressly permitted or otherwise authorized by the terms of each financing  agreement  and  any  contract made  or  entered  into by the authority with or for the benefit of such owners:  (i) that in the event bonds of the authority  are  sold  as  federally tax-exempt  bonds,  the  state shall not take any action or fail to take action that would result in the loss of such federal  tax  exemption  on said bonds;  (ii)  that  the  state  will  cause the workers' compensation board to impose, charge, raise, levy, collect and apply the  pledged  assessments for the payment of debt service requirements in each year in which bonds are outstanding; and  (iii)  that  the state, subsequent to the issuance of bonds under this section:  (A) will not materially limit or  alter  the  duties  imposed  on  the workers'  compensation  board,  the authority, and other officers of the state  by  the  self-insured  bond  financing  agreement  and  the  bond proceedings   authorizing   the   issuance  of  bonds  with  respect  to application of pledged assessments  for  the  payment  of  debt  service requirements;  (B)   will   not   issue  any  bonds,  notes  or  other  evidences  of indebtedness, other than the bonds authorized by  this  section,  having any rights arising out of subparagraph two of paragraph c of subdivision five  of  section fifty of the workers' compensation law or this section or secured by any pledge of or other lien  or  charge  on  the  revenues pledged  for  the payment of debt service requirements; except for bonds  authorized under subdivision eight of section fifteen  of  the  workers' compensation law.  (C)  will  not create or cause to be created any lien or charge on the pledged revenues, other than a lien or pledge created  thereon  pursuant to said sections;  (D)  will  carry  out  and  perform,  or  cause  to be carried out and performed, each and every promise, covenant, agreement or contract  made or  entered  into by the financing agreement, by the authority or on its behalf with the bond owners of any bonds;  (E) will not in any way impair the rights, exemptions or  remedies  of the bond owners; and  (F)  will  not  limit,  modify, rescind, repeal or otherwise alter the rights or obligations of  the  appropriate  officers  of  the  state  to impose,  maintain,  charge  or  collect the assessments constituting the pledged revenues as may be necessary to produce sufficient  revenues  to fulfill  the  terms  of  the proceedings authorizing the issuance of the bonds, including pledged revenue coverage requirements.  (b)  Notwithstanding  the  provisions  of  paragraph   (a)   of   this subdivision:  (i)  the  remedies  available to the authority and the bondholders for any breach of the pledges and agreements of the state set forth in  this subdivision shall be limited to injunctive relief;  (ii)  nothing  in  this  subdivision  shall prevent the authority from issuing evidences of indebtedness:  (A) which are secured by a pledge or lien which is, and shall  on  the face  thereof,  be  expressly  subordinate and junior in all respects to every lien and pledge created by or pursuant to said sections; or  (B) which are secured by a pledge  of  or  lien  on  moneys  or  funds derived  on or after the date every pledge or lien thereon created by or pursuant to said sections shall be discharged and satisfied; and  (iii) nothing in  this  subdivision  shall  preclude  the  state  from exercising  its  power,  through  a  change  in  law,  to limit, modify, rescind,  repeal  or  otherwise  alter  the  character  of  the  pledged assessments  or  revenues  or to substitute like or different sources of assessments, taxes, fees, charges or other receipts as pledged  revenues if  and  when adequate provision shall be made by law for the protection of the holders of outstanding bonds pursuant to  the  proceedings  under which the bonds are issued, including changing or altering the method of establishing the special assessments.  (c) The authority is authorized to include this covenant of the state, as a contract of the state, in any agreement with the owner of any bonds issued   pursuant  to  this  section  and  in  any  credit  facility  or reimbursement agreement with  respect  to  such  bonds.  Notwithstanding these  pledges  and agreements by the state, the attorney general may in his or her discretion enforce any and  all  provisions  related  to  the self-insured bond fund, without limitation.  (d)  Prior  to  the  date  which  is  one  year  and one day after the authority no longer has  any  bonds  issued  pursuant  to  this  section outstanding,  the  authority shall have no authority to file a voluntary petition under chapter nine of  the  federal  bankruptcy  code  or  such corresponding  chapter  or sections as may be in effect, and neither any public officer nor  any  organization,  entity  or  other  person  shall authorize  the  authority to be or become a debtor under chapter nine or any successor or corresponding chapter or sections during  such  period. The state hereby covenants with the owners of the bonds of the authority that  the  state  will  not limit or alter the denial of authority under this  subdivision  during  the  period  referred  to  in  the  preceding sentence.  The  authority  is authorized to include this covenant of the  state, as a contract of the state, in any agreement with  the  owner  of any bonds issued pursuant to this section.  (e)  To  the extent deemed appropriate by the authority any pledge and agreement of the state with respect to the bonds  as  provided  in  this section may be extended to, and included in, any ancillary bond facility as  a  pledge  and  agreement  of  the  state with the authority and the benefited party.   11. The bonds of the authority are hereby made securities in which all public officers and bodies of this  state  and  all  municipalities  and political  subdivisions,  all  insurance  companies and associations and other persons carrying on an insurance  business,  all  banks,  bankers, trust  companies,  savings  banks  and  savings  associations, including savings  and  loan  associations,  building   and   loan   associations, investment  companies  and other persons carrying on a banking business, all   administrators,   guardians,   executors,   trustees   and   other fiduciaries,  and  all  other  persons  whatsoever  who  are  now or may hereafter be authorized to invest in bonds or in  other  obligations  of the  state, may properly and legally invest funds, including capital, in their control or belonging to them.  The  bonds  are  also  hereby  made securities which may be deposited with and may be received by all public officers  and  bodies  of  the  state  and all municipalities, political subdivisions and public corporations  for  any  purpose  for  which  the deposit  of  bonds  or  other  obligations  of  the  state is now or may hereafter be authorized.   12. (a) An action against the authority for death, personal injury  or property  damage or founded on tort shall not be commenced more than one year and ninety days after  the  cause  of  action  thereof  shall  have accrued  nor unless a notice of claim shall have been served on a member of the authority or  officer  or  employee  thereof  designated  by  the authority  for  such  purpose,  within  the  time  limited  by,  and  in compliance with the requirements  of  section  fifty-e  of  the  general municipal law.  (b)  The  venue  of  every  action, suit or special proceeding brought against the authority or concerning the validity of this  section  shall be laid in the county of Albany.  (c) The bonds, and any obligation of the authority under any ancillary bond  facility,  may contain a recital that they are issued or executed, respectively,  pursuant  to  this  section,  which  recital   shall   be conclusive   evidence  of  the  validity  of  the  bonds  and  any  such obligation, respectively, and the regularity of the proceedings  of  the authority relating thereto.   13.  Any  action or proceeding to which the authority or the people of the state may be parties,  in  which  any  question  arises  as  to  the validity of this section, shall be preferred over all other civil causes of  action  or  cases, except election causes of action or cases, in all courts of the state and shall be heard and determined in  preference  to all  other  civil  business  pending  therein,  except  election causes, irrespective of position on the calendar. The same preference  shall  be granted  upon  application of the authority or its counsel in any action or proceeding questioning the validity of  this  section  in  which  the authority may be allowed to intervene.   14.  Notwithstanding  any  law  to  the  contrary,  no  funds  of  the self-insurer offset fund may be used for any purpose  other  than  those set   forth  in  this  section  and  section  fifty-a  of  the  workers' compensation law.   * NB There are 2 § 1680-q's