New York Codes, Rules and Regulations › Title 11 - INSURANCE › Chapter VI - AUTHORIZED INVESTMENTS › Part 173 - Revenue Bonds › Section 173.1 - Revenue bonds

Current through Register Vol. 46, No. 28, July 10, 2024
The following language of section 1404(a)(1) of the New York
				  Insurance Law authorizing nonlife insurers to invest in:
"(1) Government obligations. Obligations
				which are not in default as to principal or interest which are valid and
				legally authorized, and which are issued, assumed, guaranteed, or insured by:
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(D) any agency
				or instrumentality of any governmental unit referred to in subparagraphs (B)
				["any state of the United States"] and (C) ["any territory or possession of the
				United States or any other governmental unit in the United States"] of this
				paragraph, provided that obligations to be eligible under this paragraph shall
				be by law (statutory or otherwise) payable, as to both principal and interest,
				from taxes levied or by law required to be levied or from adequate special
				revenues pledged or otherwise appropriated or by law required to be provided
				for the purpose of such payment, but in no event shall obligations be eligible
				for investment under this paragraph if payable solely out of special
				assessments on properties benefited by local improvements."
and the following language of section 1405(a)(1) authorizing
				  life insurers to invest in:
(1)
				"Government obligations. Obligations, no in default, issued, assumed,
				guaranteed or insured by (i) the United States of America or by any agency or
				instrumentality thereof, (ii) any state of the United States of America, (iii)
				the District of Columbia, (iv) any territory or possession of the United States
				of America or any other governmental unit in the United States, or (v) any
				agency or instrumentality of any governmental unit referred to in items (ii),
				(iii) and (iv) above, provided that, in the case of obligations issued,
				assumed, guaranteed or insured by any governmental unit referred to in item
				(iv) above or any agency or instrumentality referred to in item (v) above, such
				obligations are by law (statutory or otherwise) payable, as to both principal
				and interest, from taxes levied or by law required to be levied or from
				adequate special revenues pledged or otherwise appropriated or by law required
				to be provided for the purpose of such payments, but in no event shall
				obligations be eligible for investment under this paragraph if payable solely
				out of special assessments on properties benefited by local improvements."
are hereby interpreted as authorizing investment in bonds or
				  other evidences of indebtedness, not in default as to principal or interest,
				  which are valid and legally authorized obligations of one of the
				  above-described obligors, to provide funds for the construction of a public
				  facility provided:
(a) the
				construction of the public facility out of the revenues of which such bonds or
				other evidences of indebtedness are to be payable, as to both principal and
				interest, has been duly authorized by law;
(b) such law, or other applicable law,
				authorizes the issuance of bonds or other evidences of indebtedness, or other
				financing sufficient to construct completely such facility;
(c) the collection of adequate special
				revenues to pay such bonds or other evidences of indebtedness, as to both
				principal and interest, is authorized by such law or other applicable law, but
				in no event shall obligations be eligible for investment under this paragraph
				if payable solely out of special assessments on properties benefited by local
				improvements;
(d) the cost of
				construction of such facility and the special revenues to pay such bonds or
				other evidence of indebtedness, as to both principal and interest, have been
				estimated by qualified engineers or other experts;
(e) such revenues will be, in the judgment of
				the insurer, adequate for the payment of such bonds or other evidences of
				indebtedness.