N.Y. Public Authorities Law § 1867-a: Federal insurance or guaranty; taxable bond option

§ 1867-a. Federal insurance or guaranty; taxable bond option. (a) The

authority is authorized to obtain from any department or agency of the

United States of America or non-governmental insurer any insurance or

guaranty, to the extent now or hereafter available, as to, or of, or for

the payment or repayment of interest or principal, or both, or any part

thereof, on any bonds or notes issued by the authority, or on any

municipal obligations of governmental units or cooperatives purchased or

held by the authority; and to enter into any agreement or contract with

respect to any such insurance or guaranty, except to the extent that the

same would in any way impair or interfere with the ability of the

authority to perform and fulfill the terms of any agreement made with

the holders of the bonds or notes of the authority.

(b) The authority may covenant and consent that the interest on

certain of its bonds shall be includible, under the Internal Revenue

Code of 1954 or any subsequent corresponding internal revenue law of the

United States, in the gross income of the holders of the bonds to the

same extent and in the same manner that the interest on bills, bonds,

notes or other obligations of the United States is includible in the

gross income of the holders thereof under said Internal Revenue Code or

any such subsequent law.