N.Y. State Finance Law § 66-h: Restriction on sale in the event of nonappropriation

§ 66-h. Restriction on sale in the event of nonappropriation. 1. Any

agreement for the issuance of certificates of participation to fund

installment purchases or lease purchases by the state may provide that

the certificates are secured by the underlying property and that, in the

event that the legislature fails to appropriate funds sufficient for the

underlying installment payments, the financed property may be sold on

behalf of the holders of the certificates, provided that any excess

proceeds from such a sale, after deduction for and payment of fees,

expenses and any taxes levied on the sale, and distribution to the

holders of the certificates in the amount of the face value of the

certificates plus accrued interest, or in the case of a certificate

issued with an original issue discount, its accreted value, shall be

paid to the state.

2. Any security interest in personal property made or created by any

such agreement shall be valid, binding and perfected from the time when

such security interest attaches, without any physical delivery of the

collateral or further act. The lien of any such security interest shall

be valid, binding and perfected as against all parties having claims of

any kind in tort, contract or otherwise against the state irrespective

of whether or not such parties have notice hereof. No instrument by

which such security interest is created nor any financing statement or

other document need be recorded or filed. This section shall apply

notwithstanding the provisions of the uniform commercial code and the

vehicle and traffic law.