N.Y. Public Authorities Law § 1270-d: Consolidated financings

§ 1270-d. Consolidated financings. 1. Notwithstanding any inconsistent

provisions of this or any other law, general, special or local, the

authority may issue its notes, bonds and other obligations to finance

transportation facilities, including transit projects and Triborough

bridge and tunnel authority projects, utilizing a consolidated pledge of

all or any portion of the revenues and other monies and assets of the

authority and its subsidiaries, New York city transit authority and its

subsidiaries, and Triborough bridge and tunnel authority, together with

those other sources of payment described in this section. In connection

therewith, at its discretion, the authority, subject to the rights of

the holders of notes, bonds or other obligations of the authority, New

York city transit authority or Triborough bridge and tunnel authority,

may (a) agree with the New York city transit authority or Triborough

bridge and tunnel authority that any such entity will deposit all or any

portion of the revenues, other monies and assets received by it or its

subsidiaries into one or more funds or accounts, and (b) deposit or

cause to be deposited into one or more funds and accounts (i) all or any

portion of the revenues, other monies and assets received by the

authority and its subsidiaries, (ii) all or any portion of the annual

operating surplus of Triborough bridge and tunnel authority as certified

pursuant to paragraph (b) of subdivision two of section twelve hundred

nineteen-a of this article, (iii) all or any portion of the amounts from

the operating and capital costs account of the metropolitan

transportation authority dedicated tax fund required to be distributed

to New York city transit authority and the commuter railroad

subsidiaries of the authority under the provisions of section twelve

hundred seventy-c of this title, (iv) all or any portion of the

available monies in the transit account of the metropolitan

transportation authority special assistance fund established under the

provisions of section twelve hundred seventy-a of this title available

for payment of operating and capital costs of New York city transit

authority and its subsidiaries and Staten Island rapid transit operating

authority as provided in subdivision two of section twelve hundred

seventy-a of this title, (v) all or any portion of the available monies

in the commuter railroad account of the metropolitan transportation

authority special assistance fund established under the provisions of

section twelve hundred seventy-a of this title available for payment of

operating and capital costs of Long Island Rail Road company and

Metro-North commuter railroad company as provided in subdivision three

of section twelve hundred seventy-a of this title, (vi) all or any

portion of the available monies in the corporate transportation account

of the metropolitan transportation authority special assistance fund

established under the provisions of section twelve hundred seventy-a of

this title available for use by the authority for payment of operating

costs of, and capital costs, including debt service and reserve

requirements, if any, of or for the authority, the New York city transit

authority and their subsidiaries as provided in paragraph (a) of

subdivision four of section twelve hundred seventy-a of this title, and

(vii) any other monies of the authority, its subsidiaries, the New York

city transit authority and its subsidiaries, and the Triborough bridge

and tunnel authority from any source whatsoever.

2. Amounts so deposited in such funds or accounts may be (a) pledged

by the authority to secure, and be applied to, the payment of its bonds,

notes or other obligations issued to finance transportation facilities

undertaken for the authority and its subsidiaries, transportation

facilities, including transit projects, undertaken for New York city

transit authority and its subsidiaries, and Triborough bridge and tunnel

authority projects undertaken for Triborough bridge and tunnel

authority, and (b) used for payment of operating costs, and capital

costs, including debt service, reserve requirements, if any, the payment

of amounts required under bond, note or other financing facilities or

agreements, and the payment of all costs related to such obligations, of

or for the authority and its subsidiaries, and the New York city transit

authority and its subsidiaries as the authority in its full discretion

shall determine. To the extent moneys so deposited have been pledged by

the authority to secure and pay its bonds, notes or other obligations as

herein provided, such moneys shall first be applied to satisfy the

requirements of any debt service or reserve requirements of the

resolution or resolutions or other contractual arrangements authorizing

such bonds, notes or other obligations. After satisfaction of such

requirements of any such resolution, resolutions, or other contractual

arrangements or if the authority has not so pledged such moneys, such

moneys so deposited, subject to the provisions of any other resolutions

or contractual arrangements of the authority and the New York city

transit authority and applicable provisions of law, may be transferred

to or for the benefit of the authority and its subsidiaries and New York

city transit authority and its subsidiaries. Revenues and other monies

of the authority and its subsidiaries and New York city transit

authority and its subsidiaries, respectively, which are deposited in the

funds or accounts authorized by this section, as reduced by any

application of such revenues or monies to the payment of debt service,

reserve requirements, if any, and other costs attributable to the

funding of the capital costs of such entity, shall be allocated,

credited and distributed to such source entity. Any other revenues or

monies which are deposited in the funds or accounts authorized by this

section which are required by law to be allocated or paid to the

authority or its subsidiaries or New York city transit authority or its

subsidiaries, shall be allocated or paid to the entity to which it is

required to be allocated or paid by law after reduction by an amount

equal to the portion thereof applied to the payment of debt service,

reserve requirements, if any, and other costs attributable to the

funding of the capital costs of such entity. In determining the amount

of debt service, reserve requirements, if any, and other costs

attributable to the authority and its subsidiaries and the New York city

transit authority and its subsidiaries, the authority shall make such

calculation based upon the percentage of the proceeds of the bonds,

notes and other obligations expended for the capital costs attributable

to each such entity. The authority may utilize any interim allocation of

such distributions, provided that within ninety days after the end of

each calendar year, the authority shall certify to the director of the

budget, the chairperson of the senate finance committee and the

chairperson of the assembly ways and means committee, that the aggregate

amount of monies transferred to each of the authority and its

subsidiaries, and New York city transit authority and its subsidiaries

in respect of such calendar year, taking into account any interagency

repayments or reimbursements anticipated to be made in the next

succeeding calendar year, is not less than the amounts required to be

paid or transferred to such entities.

3. For the purpose of appropriately aligning and allocating the

ultimate responsibility for debt service among and between the authority

and its subsidiaries, New York city transit authority and its

subsidiaries, or Triborough bridge and tunnel authority (each, an

"affiliated group"), and except as otherwise authorized or required by

law, in connection with the application of revenues, subsidies or other

monies or securities of an affiliated group to pay the debt service

attributable to bonds, notes or other obligations which provide funding

of the capital costs of another affiliated group or to refund or redeem

bonds, notes or other obligations the proceeds of which were used to

fund the capital costs of another affiliated group, the affiliated group

for whose benefit debt service is paid or obligations refunded or

redeemed, shall repay, through payments, adjustments or other form of

reconciliation, such amounts to the affiliated group that made such

payments not later than the end of the next succeeding fiscal year,

provided, however, that in connection with any refunding or redemption

of bonds, notes or other obligations, such repayment, adjustments or

other form of reconciliation shall be completed within the period of the

applicable capital program plan.