NY Pub Health L § 1163 (2021)
2021 New York Laws PBH - Public Health Article 11 - Public Water Supplies; Sewerage and Sewage Control Title 4 - Drinking Water Revolving Fund 1163 - Financing Agreements.

§ 1163. Financing agreements. The corporation and any recipient having the  power  to  contract  with  respect  to the financing of an eligible project may enter into a loan or other financing agreement providing for the construction and financing of  eligible  projects.  The  corporation shall  prepare  each financing agreement, which shall include but is not limited to the following provisions:   1. A description of the eligible project;   2. An estimate of the eligible project cost;   3. A right of the corporation to approve any  contracts  for  services and  construction  funded  pursuant  to  a  financing  agreement, and to inspect and review the construction of eligible projects;   4. Notwithstanding the provisions of any other law,  general,  special or  local, inconsistent with this section, a right of the corporation to invest proceeds of the corporation's bonds or notes, including  proceeds of  bonds  or notes of the recipient, as provided in subdivision four of section twelve hundred eighty-four of the public authorities law and  as provided  in  subdivision six of section twelve hundred eighty-five-m of the public authorities law.   Such right shall include the right to invest such monies together with any other monies held by the corporation pursuant to the  provisions  of section twelve hundred eighty-five-m of the public authorities law;   5.  Remedies  in the event of a recipient's failure to comply with the terms of a financing agreement;   6. An agreement by the corporation to:  (a) lend to the recipient for the construction of an eligible  project a  specified  amount  from  the  proceeds  of the corporation's bonds or notes, not to exceed the estimated reasonable cost  of  construction  of the  eligible project established in the financing agreement, subject to the ability of the corporation to provide such financing, including  any other  approvals  required  by  state  or  federal  law  and  such other conditions as the corporation shall determine necessary or desirable;  (b) use reasonable efforts to issue its bonds or notes  in  an  amount sufficient  to  finance  the  estimated  reasonable cost of the eligible project, including but not limited to costs of issuance, credit  support fees,  if  any,  trustees'  fees, interest during construction, and such reserve funds, if any, as may be  necessary  to  secure  such  bonds  or notes;  (c)  for  any  financial  assistance  made  from  the  proceeds of the corporation's bonds or notes, establish an allocation and provide to the recipient an interest rate subsidy allocation for the  eligible  project in  accordance  with this title and section twelve hundred eighty-five-m of the public authorities law;  (d) in the alternative, provide financial assistance to the  recipient for  the  construction of an eligible project in a specified amount from any moneys in or available for deposit in the fund, not  to  exceed  the estimated  reasonable  cost  of  construction  of  the  eligible project established in the loan or other financing agreement, as  determined  by the corporation;  (e)  administer  the  investment of funds held in accordance with such agreement, including funds of the recipient;   7. An agreement by the recipient to:  (a) proceed expeditiously with and complete the  eligible  project  in accordance with plans approved;  (b)  commence  operation  of the eligible project on completion of the project, and not abandon, discontinue operation of,  sell,  transfer  or otherwise  dispose  of  the  eligible project as long as a loan or other financial  assistance  to  the  recipient  for  such   project   remains outstanding,  without  approval  of the commissioner; provided, however,  that the commissioner shall not  approve  disposition  of  the  eligible project  without the concurrent approval of the corporation. None of the foregoing shall limit  the  commissioner's  authority  to  terminate  or impose  conditions upon the operation of an eligible project pursuant to the provisions of this chapter and any implementing regulations thereto;  (c) operate and maintain  the  eligible  project  in  accordance  with applicable requirements of federal and state law;  (d)  establish  and  maintain  project accounts in accordance with the financing agreement and generally accepted accounting standards;  (e) establish a dedicated source  of  revenue  (which  may  include  a general obligation of the recipient) providing for:  (i)  operation  and  maintenance  costs  of  the  eligible project and equipment renewal and replacement; and  (ii) loan repayment regardless of whether the eligible project  is  in operation;  (f)  notwithstanding the provisions of any other law, general, special or local, inconsistent with this section, delegate  to  the  corporation the  authority  to  invest  proceeds  of  bonds  or  notes issued by the corporation or the recipient on behalf of the recipient; and  (g) permit any reviews or audits and provide assistance determined  to be reasonable and necessary by the department or the corporation;   8.  Such  other  agreements or covenants as may be deemed necessary or desirable in connection with the issuance  by  the  corporation  of  its bonds or notes.