2023 New York Laws › WKC - Workers' Compensation › Article 4 - Security for Compensation › 50-C - Self-Insured Bonds.

§  50-c.  Self-insured  bonds.  1. The chair, with the commissioner of
  taxation and finance, is authorized to enter into a financing  agreement
  with  the  dormitory  authority,  to  be known as the "self-insured bond
  financing agreement". Such agreement shall set  forth  the  process  for
  calculating  the  annual  debt  service of bonds issued by the dormitory
  authority  and  any  other  associated  costs  in  connection  with  the
  self-insurer  offset  fund,  as  set  forth  in  section sixteen hundred
  eighty-q of the public authorities law. For purposes  of  this  section,
  "associated   costs"   may  include  a  coverage  factor,  reserve  fund
  requirements,  all  costs  of  any  nature  incurred  by  the  dormitory
  authority  in  connection with the self-insured bond financing agreement
  or pursuant thereto, the costs  of  any  independent  audits  undertaken
  under  this  section, and any other costs for the implementation of this
  subdivision and the  issuance  of  bonds  by  the  dormitory  authority,
  including  interest  rate  exchange payments, rebate payments, liquidity
  fees, credit provider fees, fiduciary fees, remarketing, dealer, auction
  agent and related fees and other similar bond-related  expenses,  unless
  otherwise  funded.  By  September  first  of  each  year,  the dormitory
  authority shall provide to the  chair  the  calculation  of  the  amount
  expected  to  be  paid  by  the  dormitory authority in debt service and
  associated costs for purposes of calculating  the  assessments  for  the
  debt  service portion of the assessment provided for under this chapter.
  All monies received on account of such assessments shall be  applied  in
  accordance  with  this  chapter and with the self-insured bond financing
  agreement until the financial obligations of the dormitory authority  in
  respect  to its contract with its bondholders are met and all associated
  costs  payable  to  or  by  the  dormitory  authority  have  been  paid,
  notwithstanding   any   other   provision   of  law  respecting  secured
  transactions. This provision may be included by the dormitory  authority
  in  any  contract  of  the dormitory authority with its bondholders. The
  self-insured  bond  financing  agreement  may  restrict   disbursements,
  investments,  or  rebates,  and  may  prescribe  a  system  of  accounts
  applicable to the  self-insurer  offset  fund  as  consistent  with  the
  provisions  of  this  chapter  governing such fund, including custody of
  funds and accounts  with  a  trustee  that  may  be  prescribed  by  the
  dormitory  authority  as  part of its contract with the bondholders. For
  purposes of this subdivision,  the  term  "bonds"  shall  include  notes
  issued  in  anticipation  of  the  issuance  of  bonds,  or notes issued
  pursuant to a commercial paper program.
2. The chair is  hereby  authorized  to  receive  and  credit  to  the
  self-insurer  offset  fund  any  sum  or  sums  that  may at any time be
  contributed to the state by the United States of America under  any  act
  of  Congress, or otherwise, to which the state may be or become entitled
  by reason of any payments made out of such fund.
3. Notwithstanding any other law to the contrary, the chair  shall  be
  the  custodian  of  the  self-insurer  offset fund and, unless otherwise
  provided  for  in  the  self-insured  bond  financing   agreement,   the
  commissioner of taxation and finance shall invest any surplus or reserve
  moneys  thereof  in  securities  which  constitute legal investments for
  savings banks under the laws of  this  state  and  in  interest  bearing
  certificates  of  deposit  of  a  bank  or  trust  company  located  and
  authorized to do business in this state or of a national bank located in
  this state secured by a pledge  of  direct  obligations  of  the  United
  States  or  of the state of New York in an amount equal to the amount of
  such certificates of deposit, and may sell  any  of  the  securities  or
  certificates  of deposit in which such fund is invested if necessary for
  the proper  administration  or  in  the  best  interest  of  such  fund.
  Disbursements  from  such  fund as provided by this subdivision shall be

  made by the commissioner of taxation and finance unless the self-insured
  bond financing agreement provides for some other  means  of  authorizing
  such  disbursements  that  is  no  less  protective  of  the  fund.  The
  commissioner  of  taxation  and  finance  as  soon  as practicable after
  January first of each year, shall furnish to the chair  a  statement  of
  the fund, setting forth the balance of moneys in the said fund as of the
  beginning  of  the calendar year, the income of the fund, the summary of
  payments out of the fund on account of reimbursements and other  charges
  ordered  to be paid by the board, and all other charges against the fund
  and setting forth the balance of the fund remaining to its credit on the
  prior December thirty-first of each year. Such statement shall  be  open
  to  public  inspection  in the office of the secretary of the board. The
  chair shall include in the reports to the governor, the speaker  of  the
  assembly  and  the  temporary  president  of  the  senate as required by
  section nine of part G  of  chapter  fifty-seven  of  the  laws  of  two
  thousand  eleven,  a  summary  of  the  status  of  the  bonding program
  authorized by this section. The commissioner of taxation and finance may
  establish  within  the  self-insurer  offset  fund  such  accounts   and
  sub-accounts as he or she deems useful for the operation of the fund, or
  as  necessary  to  segregate  moneys  within  the  fund,  subject to the
  provisions of the self-insured bond  financing  agreement  and  of  this
  chapter.