2023 New York Laws › PBA - Public Authorities › Article 2 - Park, Parkway and Highway Authorities › Title 9 - New York State Thruway Authority › 385 - Additional Powers of the Authority to Issue Special Dedicated Highway and Bridge Trust Fund Bonds.

§  385.  Additional powers of the authority to issue special dedicated
highway and bridge trust fund bonds. 1.  (a)  The  authority  is  hereby
authorized,  as  an  additional  corporate purpose thereof: (i) to enter
into a dedicated highway and bridge trust fund cooperative agreement  or
agreements  with the commissioner of transportation for the financing by
the authority of disbursements made by the state or project sponsor  for
any  of  the activities authorized pursuant to the provisions of section
eighty-nine-b of the state finance law in any  case  where  the  expense
thereof is paid in whole or in part by the state or project sponsor; and
(ii) to issue use permits or leases to the department of transportation,
or  project  sponsor,  as  the case may be, for projects financed by the
authority of disbursements made by  the  state  or  project  sponsor  in
accordance  with  the provisions of a dedicated highway and bridge trust
fund cooperative agreement or agreements, provided  that  such  projects
are  maintained  and operated under the supervision of the department of
transportation without cost to the New York state thruway authority  for
the full term of such agreement or agreements, and provided further that
such  use  permit  or  lease shall be granted by the authority on a toll
free basis. Provided, however, that  at  any  time  after  April  first,
nineteen hundred ninety-five, no dedicated highway and bridge trust fund
cooperative  agreement  with the commissioner of transportation pursuant
to this section, nor any supplement thereto, need provide any conveyance
of an interest in the property to the New York state  thruway  authority
in  connection  with  any obligations incurred pursuant to this section;
and any such conveyance evidenced by  a  dedicated  highway  and  bridge
trust fund cooperative agreement before such date shall, consistent with
the  rights of holders of any such obligations incurred pursuant to this
section, revert to the people of the state of New  York  by  appropriate
instrument   or   instruments,   by  quitclaim  deed  or  otherwise,  in
confirmation of such reversion and any  related  use  permits  shall  be
voided.
(b)  The  authority  is  hereby  authorized,  as  additional corporate
purposes thereof solely upon the request of the director of the  budget:
(i)  to  issue special emergency highway and bridge trust fund bonds and
notes for a term not to exceed thirty years  and  to  incur  obligations
secured by the moneys appropriated from the dedicated highway and bridge
trust  fund  established  in  section eighty-nine-b of the state finance
law; (ii) to make available the proceeds in accordance with instructions
provided by the director of the budget from the  sale  of  such  special
emergency   highway   and  bridge  trust  fund  bonds,  notes  or  other
obligations, net of all costs to the authority in connection  therewith,
for  the  purposes  of  financing  all  or  a  portion  of  the costs of
activities for which moneys in the dedicated highway  and  bridge  trust
fund  established  in section eighty-nine-b of the state finance law are
authorized to be utilized or for the financing of disbursements made  by
the   state   for   the   activities   authorized  pursuant  to  section
eighty-nine-b of  the  state  finance  law;  and  (iii)  to  enter  into
agreements  with  the commissioner of transportation pursuant to section
ten-e of the highway law with respect to financing  for  any  activities
authorized  pursuant  to section eighty-nine-b of the state finance law,
or agreements  with  the  commissioner  of  transportation  pursuant  to
sections  ten-f  and  ten-g  of  the  highway  law  in  connection  with
activities on state highways pursuant to these  sections,  and  (iv)  to
enter  into  service  contracts, contracts, agreements, deeds and leases
with the director of the budget or the  commissioner  of  transportation
and  project  sponsors  and  others  to provide for the financing by the
authority of activities authorized pursuant to section eighty-nine-b  of
the  state  finance  law, and each of the director of the budget and the

commissioner of transportation  are  hereby  authorized  to  enter  into
service  contracts,  contracts,  agreements,  deeds  and leases with the
authority, project sponsors or others to provide for such financing. The
authority  shall  not issue any bonds or notes in an amount in excess of
twenty-one billion four hundred fifty-eight million three  hundred  nine
thousand  dollars  $21,458,309,000,  plus a principal amount of bonds or
notes: (A) to fund capital reserve funds;  (B)  to  provide  capitalized
interest; and, (C) to fund other costs of issuance. In computing for the
purposes  of  this  subdivision,  the  aggregate  amount of indebtedness
evidenced by bonds and notes of the authority issued  pursuant  to  this
section,  as  amended  by  a  chapter  of  the  laws of nineteen hundred
ninety-six, there shall be excluded the amount of bonds or notes  issued
that  would constitute interest under the United States Internal Revenue
Code of 1986, as amended, and  the  amount  of  indebtedness  issued  to
refund or otherwise repay bonds or notes.
(c)  Such obligations shall be issued or incurred with the approval of
the director of the budget and  shall  be  special  obligations  of  the
authority  secured  by and payable solely out of amounts appropriated by
the legislature as authorized pursuant to section eighty-nine-b  of  the
state finance law without recourse against any other assets, revenues or
funds  of  or other payments due to the authority. Upon payments of such
appropriated amounts from  the  fund  established  pursuant  to  section
eighty-nine-b  of the state finance law to the account of the authority,
such funds may be pledged by the authority to secure  its  bonds,  notes
and  other  obligations  authorized by paragraph (b) of this subdivision
and shall be held free and clear of any claim by any person arising  out
of or in connection with articles twelve-A, thirteen-A and twenty-one of
the  tax  law.  Without  limiting  the  generality  of the foregoing and
without limiting the rights and duties of the commissioner  of  taxation
and  finance  under  articles twelve-A, thirteen-A and twenty-one of the
tax law, no taxpayer, or any other person, including  the  state,  shall
have  any right or claim against the authority or any of its bondholders
to any moneys appropriated and transferred from  the  dedicated  highway
and  bridge trust fund established by section eighty-nine-b of the state
finance law for or in respect of a refund, rebate, credit, reimbursement
or other repayment of taxes paid under such articles of the tax law.
(d) The notes, bonds or other obligations of the authority  authorized
by this section shall not be a debt of the state and the state shall not
be liable thereon, nor shall they be payable out of any funds other than
those  of the authority pledged therefor; and such bonds and notes shall
contain on the face thereof a statement to such effect. In addition, any
agreements entered into by the department of transportation pursuant  to
sections  ten-e,  ten-f and ten-g of the highway law or any other entity
on behalf of the state to  effect  the  implementation  of  any  of  the
activities financed in whole or in part with proceeds of the obligations
of  the authority authorized in this section do not constitute or create
a debt of the state, nor a  contractual  obligation  in  excess  of  the
amounts  appropriated  therefor and the state has no continuing legal or
moral obligation to  appropriate  money  for  payments  due  under  such
contracts.
(e)  All  of the provisions of this title 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, provided, however, that
the authority shall be authorized to issue variable rate bonds or  notes
pursuant  to this section only until June thirtieth, two thousand, after
which date no bonds or notes issued by the authority  pursuant  to  this

section  may  have  interest rates which vary, provided further that the
expiration of such authority shall not affect any such  bonds  or  notes
issued prior to such date.
2.  Not less than one hundred twenty days before the beginning of each
state fiscal year, the chairman of the authority shall  certify  to  the
comptroller  and to the director of the budget a schedule of anticipated
cash requirements for  such  fiscal  year  pursuant  to  any  agreements
entered  into  by  the authority with the commissioner of transportation
pursuant to sections ten-e, ten-f and ten-g  of  the  highway  law.  The
amounts  so  certified  shall  constitute required dedicated highway and
bridge trust fund cooperative agreement payments due  pursuant  to  such
agreements under sections ten-e, ten-f and ten-g of the highway law. The
total  amount  so  certified  for such fiscal year shall be equal to the
total amount of the debt service due or expected to be due  during  such
fiscal  year  on  obligations  of  the  authority  incurred  pursuant to
subdivision one of this section,  including  payments  of  interest  and
principal (including sinking fund payments), together with:
(a)  the  amount, if any, due to any provider of any insurance policy,
letter of credit or other letter of enhancement or  a  related  facility
with  respect  to  such obligations, representing payments made by it as
provided in the applicable resolution or trust indenture as a result  of
any  previous  failure  of the state to make any payment provided for in
this section, including any related reasonable interest, fees or charges
so provided;
(b) the amount, if any, required to  restore  any  applicable  reserve
fund  to  the  applicable  reserve  fund  requirement  to the extent any
deficiency therein has resulted directly or indirectly from  failure  by
the state to make any payment provided for in this section;
(c) the amount, if any, required to be rebated to the United States to
provide for continued exclusion from federal income taxation of interest
on obligations of the authority; and
(d) the expenses of the establishment and continued operating expenses
of  the authority related to the financing of activities funded with the
proceeds of obligations authorized by subdivision one of  this  section,
including, but not limited to, trustees' fees, fees payable to providers
of  credit  facilities,  fees for issuing and paying agents, remarketing
agents and dealers,  legal  counsel,  financial  or  other  advisors  or
consultants,   independent   auditors,   rating  agencies,  transfer  or
information agents,  the  publication  of  advertisements  and  notices,
surety  arrangements,  and  printers'  fees  or  charges incurred by the
authority to comply with applicable federal and state securities and tax
laws; and any other costs of issuance in excess of the  amount  provided
therefor  from  the  proceeds  of  the  sale of such obligations, to the
extent that any of the foregoing amounts or expenses are not to be  paid
from other resources available to the authority for such purpose.
3. The chairman of the authority may revise such certification at such
times  as  shall  be determined by the chairman; provided, however, that
the chairman of the authority shall revise such certification not  later
than  thirty  days  after  the  issuance  of  any obligations authorized
pursuant to subdivision one of this section including  refunding  bonds,
and affecting the cash requirements of the authority with respect to the
obligations incurred pursuant to this section.
4.  Such certification shall provide for payments on such dates as the
authority and the director of the budget  deems  appropriate  to  ensure
that  sufficient  funds will be available from the sources identified in
this section to enable it to meet its current obligations  with  respect
to  those  obligations  incurred pursuant to this section as they become
due.
5. Upon receipt of such certification, or any  revision  thereof,  the
comptroller  shall  pay  such  dedicated  highway  and bridge trust fund
cooperative agreement payments to the authority in accordance with  such
certification,   from  the  dedicated  highway  and  bridge  trust  fund
established  by  section  eighty-nine-b  of  the state finance law. Such
payments shall  be  made  on  or  before  the  date  specified  in  each
certificate  or  within  thirty  days  after  such receipt, whichever is
later, provided that all such amounts shall have been first appropriated
by the state.
6. The agreement of the state  contained  in  this  section  shall  be
deemed  executory  only  to  the  extent of appropriations available for
payments under this section and no liability  on  account  of  any  such
payment  shall  be incurred by the state beyond such appropriations. The
state, acting through the director of the budget, and the authority  may
enter  into,  amend, modify, or rescind one or more agreements providing
for the specific manner, timing, and amount of payments to be made under
this section, but only in conformity with this section.
7. The authorization, sale and  issuance  of  bonds,  notes  or  other
obligations  pursuant  to  this section shall not be deemed an action as
such term is defined in article eight of the environmental  conservation
law  for  the purposes of such article. Such exemption shall be strictly
limited in its application to such financing activities of the authority
and does not exempt the department of transportation or any other entity
from compliance with such article.
8. The state of New York shall and hereby agrees to and does indemnify
and save harmless the New York state thruway authority from and  against
any  and  all  liability,  loss,  damage,  interest, judgments and liens
growing out of, and any and all costs and expenses (including,  but  not
limited  to,  counsel fees and disbursements) arising out of or incurred
in connection with any  and  all  claims,  demands,  suits,  actions  or
proceedings  which  may  be  made  or brought against the New York state
thruway authority arising out of  any  determinations  made  or  actions
taken or omitted to be taken or compliance with any obligations under or
pursuant to this section.
9.  Nothing  contained in this section shall be deemed to restrict the
right of the state to amend, repeal, modify or otherwise alter  statutes
imposing  or  relating to any taxes or fees, including the taxes imposed
pursuant to section two hundred  eighty-four,  articles  thirteen-A  and
twenty-one  of  the tax law and fees imposed by section four hundred one
of the vehicle and traffic law. The authority shall not  include  within
any  resolution,  contract or agreement with holders of the bonds, notes
and other obligations  issued  under  this  title  any  provision  which
provides  that  a default occurs as a result of the state exercising its
right to amend, repeal, modify or otherwise alter  any  such  taxes  and
fees.
10. Any resolution authorizing bonds, notes or other obligations shall
reserve  the  right  of  the state, upon amendment of the New York state
constitution allowing the issuance, or assumption, of  bonds,  notes  or
other  obligations  secured  by revenues, which may include the revenues
securing bonds, notes or other obligations  of  the  authority,  (i)  to
assume,  in  whole or in part, such bonds, notes or other obligations of
the authority, (ii) to extinguish the existing lien of such  resolution,
and  (iii)  to  substitute  security  for  the  bonds,  notes,  or other
obligations of the  authority,  in  each  case  only  so  long  as  such
assumption,  extinguishment  or  substitution is done in accordance with
such resolution.