NY Pub Auth L § 1680-L (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 4 - Dormitory Authority 1680-L - The Special Disability Fund Financing.

§  1680-l.  The  special disability fund 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  subparagraph five of paragraph (h) of subdivision eight of section fifteen  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 agreement" means any agreement authorized  pursuant  to subdivision  four of this section between the chair and the commissioner of taxation and finance, and the authority.  (k)  "Financing  costs"  means  all  costs  of  issuance,  capitalized interest,  capitalized operating expenses of the authority and, pursuant to the financing agreement, the initial capitalized  operating  expenses of  the  waiver  agreement  management office and debt service reserves, 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.  (l) "Investment securities" means:  (i)  general  obligations  of,  or obligations  guaranteed by, any state of the United States of America or political subdivision thereof, or the District of Columbia or any agency or instrumentality of any of them, receiving one of  the  three  highest long-term unsecured debt rating categories available for such securities of  at  least  one  independent  rating  agency, or (ii) certificates of deposit,  savings  accounts,  time  deposits  or  other  obligations  or accounts  of  banks  or  trust  companies  in the state, secured, if the authority shall so require, in such  manner  as  the  authority  may  so determine,  or  (iii) obligations in which the comptroller is authorized to invest pursuant to either section ninety-eight or  ninety-eight-a  of the  state  finance  law,  or (iv) investments which the commissioner of taxation and finance is permitted to make with surplus or reserve moneys of the special disability fund under subparagraph seven of paragraph (h) of subdivision eight of section fifteen  of  the  workers'  compensation law.  (m)  "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.  (n)  "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 financing agreement.  (o) "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.  (p)  "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.  (q)  "Pledged  assessments  revenues",  "pledged revenues" or "pledged assessments" means  receipts  of  special  disability  fund  assessments imposed  pursuant  to  subparagraph four of paragraph (h) of subdivision eight of section fifteen 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.  (r) "State" means the state of New York.  (s) "Special disability fund financing agreement" means  an  agreement authorized and created pursuant to subparagraph five of paragraph (h) of subdivision  eight  of section fifteen of the workers' compensation law, as same by its terms and bond proceedings, may be amended.  (t) "Waiver agreement" means waiver agreements entered  into  pursuant to section thirty-two of the workers' compensation law.  (u)  "Waiver  agreement  management  office"  shall  mean  the  office described in  paragraph  (e)  of  section  thirty-two  of  the  workers' compensation law.   2.   The  authority  is  hereby  authorized  to  finance  the  special disability fund established by paragraph (h)  of  subdivision  eight  of section  fifteen  of the workers' compensation law and to enter into one or more special disability fund financing agreements described  in  such subdivision.  All  of  the provisions of the authority relating to bonds and notes 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 and shall  not  include  liabilities,  assets   or   revenues   other   than liabilities,  assets  or revenues derived from the authority solely from the special disability fund.   3. It is found and declared that the special disability fund no longer serves the purposes for which it was  created,  adds  to  the  time  and expense  of  proceedings  before  the workers' compensation board and to employers' costs for workers' compensation insurance; that the  creation and  operation  of  a waiver agreement management office of the workers' compensation board, to manage, maintain and negotiate waiver  agreements on  behalf  of  the  special  disability  fund  can  reduce  the special disability  fund's  unfunded  liability;  that  the  reduction  of  such liability  and  the closing of the fund to new claims will over the long  term  reduce  assessments  paid  to  the  fund  by  insurance  carriers, self-insurers  and the state insurance fund, as well as the employers to whom these costs are passed on; that in the absence of this section  the annual cost of such assessments is expected to rise; that the settlement of   claims  and  other  actions  undertaken  by  the  waiver  agreement management office will  lower  the  administrative  costs  of  insurance carriers,  self-insurers  and  the  state  insurance  fund; that revenue obligations issued by the authority and secured by a special  assessment annually  levied,  imposed and collected on and from insurance carriers, self-insurers and the state insurance fund for the governmental  purpose of  funding  waiver agreements amortized over a substantial period would allow the state to settle and otherwise manage claims  as  a  means  for reducing  the fund's 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 while compensating injured workers and honoring the obligations  of  the special  disability fund; that all costs of the authority in relation to this section shall be paid from assessments set forth in  paragraph  (h) of  subdivision  eight  of  section fifteen of 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 of 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  special  disability  fund  advisory committee  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 assessment 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  financing agreement and this section. The 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) funding of waiver agreements, (ii) payment  of  financing  costs,  (iii) funding  anticipated  liabilities  of  the special disability fund, (iv) funding contract awards pursuant to subparagraph two of paragraph (h) of section thirty-two of the workers' compensation law and (v)  such  other purposes  as  are set forth in the financing agreement. 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 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 an aggregate principal amount not to exceed an amount to be determined by the superintendent of  financial services  as  necessary  to  address  all  or  a portion of the incurred unfunded liabilities of the special disability  fund,  but  in  no  case exceeding  twenty-five  percent of the unfunded liability of the special disability fund as of a date no later  than  July  first,  two  thousand seven,  as  certified  to  the authority by a qualified third party. The bonds shall be issued for the following corporate purposes: (A)  funding  of  waiver  agreements,  (B)  payment  of  financing  costs, (C) funding anticipated liabilities of the  special  disability  fund,  (D)  funding contract  awards pursuant to paragraph two of subdivision (h) of section thirty-two  of the workers' compensation law and (E) such other purposes as are set forth in the financing agreement. The foregoing limitation on outstanding aggregate principal shall not apply to prevent the  issuance of bonds to refund bonds.  (ii) Each issuance of bonds shall be authorized by a resolution of the authority,  provided,  however, that any such resolution authorizing the issuance of bonds 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  special disability  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 funds of the authority 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 special disability fund advisory committee 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 in  such  manner,  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 upon approval of  the  authority and  without  any other approvals, filings, proceedings or the happening of  any  other  conditions or things other than the approvals, findings, proceedings, conditions, and things that are specified and  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, the income of the authority, or the financing agreement. Such  trust  indenture  or resolution   may   contain   provisions:  (i)  respecting  the  custody, safeguarding  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 special disability fund advisory committee (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  special  disability  fund advisory  committee,  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  (i)  agreement  which secures bonds of the authority or (ii) 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 dates.   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 special disability fund  and  as  set  forth  in  the  special  disability  fund 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  special  disability fund 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 and other revenues, receipts, funds or moneys pledged for the payment of debt service requirements in each year in which bonds are outstanding, and (iii) further, that  the  state  (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 special disability fund financing agreement  and  the  bond  proceedings authorizing the issuance of bonds with respect to application of pledged assessments or other revenues, receipts, funds or moneys pledged for the payment  of  debt  service  requirements,  (B) will not issue any bonds, notes or other evidences of indebtedness, other than the  bonds,  having any  rights arising out of paragraph (h) of subdivision eight of section fifteen of the workers' compensation law or this section or  secured  by any  pledge  of or other lien or charge on the pledged revenues or other receipts, funds or moneys  pledged  for  the  payment  of  debt  service requirements,  (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  special  disability fund  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 and other revenues or receipts 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,  provided, however, (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  subclause  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.   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 special disability fund, without limitation.  (b)  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,  from time to time, 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.  (c) 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.