N.Y. Public Authorities Law § 1828-a: Federal trust fund administration

§ 1828-a. Federal trust fund administration. 1. (a) Where the

authority, in its capacity as a trustee or administrator of the Altech

trust fund established pursuant to a grant agreement with the federal

economic development agency, has, on or before March thirty-first,

nineteen hundred ninety-five, entered into an agreement or agreements

with any local development corporation, banking organization or public

benefit corporation, or combination thereof, which obligates the

authority to make payments from such trust fund for the purpose of

paying or guaranteeing, in whole or in part, the cost of financing the

construction of any facility the object of which is to promote economic

development within the counties of Albany and Chautauqua, the authority,

for the purpose of refinancing its payment obligations under such

agreement or agreements, shall:

(i) pursuant to a memorandum of understanding executed with the

subject county, purchase, lease or otherwise acquire such facility,

including the site thereof, and sell, convey, lease, mortgage, pledge or

otherwise dispose of such facility, together with the site thereof, upon

such terms and conditions as the authority deems advisable, and in

connection therewith, may borrow money from any banking organization and

issue its notes or other obligations in evidence thereof and may pledge

to the repayments of such obligations any funds of the authority legally

available for such purposes;

(ii) pursuant to a repayment agreement executed with the federal

economic development agency, replace Altech trust fund monies expended

on activities deemed to be ineligible by the United States department of

commerce; and

(iii) enter into any and all agreements as the authority shall deem

necessary, convenient or desirable to carry out the powers conferred by

subparagraph (a) of this subdivision.

(b) (i) Prior to the execution of a repayment agreement by the

authority pursuant to paragraph (a) of this subdivision, the authority

shall submit a plan to the federal economic development agency and to

the director of the budget, and the chairs of the senate finance

committee and the assembly ways and means committee, which provides for:

(A) the replacement by the authority of cash or other assets of the

trust fund for the purposes of promoting economic development within the

counties of Albany and Chautauqua;

(B) the development of a new revolving loan fund plan to provide for

the investment of the trust fund for the promotion of economic

development within such counties; and

(C) a schedule and strategy for the implementation of any federal

administrative requirements governing the administration of the fund by

the authority.

(ii) a report submitted to the director of the budget, the chairs of

the senate finance committee and the assembly ways and means committee

detailing the disposition by the authority of a facility or the

repayment of any funds and any amendments to the plan pursuant to

paragraph (a) of this subdivision.

(c) Subject to the terms of any special purpose bondholders and

noteholders, the special purpose funds described in clauses (b) through

(g) of subdivision one of section eighteen hundred fifteen of this

title, to the extent that they are not required pursuant to subdivision

two of such section, may also be used to pay or discharge any other

obligation of the authority imposed thereon by the provisions of this

section or by the provision of any contract executed in accordance with

this section.

2. The authority shall annually submit to the director of the budget,

and the chairs of the senate finance committee and the assembly ways and

means committee for approval a resolution setting forth its

responsibilities as a fiduciary agent and trustee of any fund the

authority administers on behalf of the federal government and describing

the terms and conditions of any financial assistance to be provided from

such fund.