N.Y. Workers' Compensation Law § 50-c: Self-insured bonds

§ 50-c. Self-insured bonds. 1. The chair, with the commissioner of

taxation and finance, is authorized to enter into a financing agreement

with the dormitory authority, to be known as the "self-insured bond

financing agreement". Such agreement shall set forth the process for

calculating the annual debt service of bonds issued by the dormitory

authority and any other associated costs in connection with the

self-insurer offset fund, as set forth in section sixteen hundred

eighty-q of the public authorities law. For purposes of this section,

"associated costs" may include a coverage factor, reserve fund

requirements, all costs of any nature incurred by the dormitory

authority in connection with the self-insured bond financing agreement

or pursuant thereto, the costs of any independent audits undertaken

under this section, and any other costs for the implementation of this

subdivision and the issuance of bonds by the dormitory authority,

including interest rate exchange payments, rebate payments, liquidity

fees, credit provider fees, fiduciary fees, remarketing, dealer, auction

agent and related fees and other similar bond-related expenses, unless

otherwise funded. By September first of each year, the dormitory

authority shall provide to the chair the calculation of the amount

expected to be paid by the dormitory authority in debt service and

associated costs for purposes of calculating the assessments for the

debt service portion of the assessment provided for under this chapter.

All monies received on account of such assessments shall be applied in

accordance with this chapter and with the self-insured bond financing

agreement until the financial obligations of the dormitory authority in

respect to its contract with its bondholders are met and all associated

costs payable to or by the dormitory authority have been paid,

notwithstanding any other provision of law respecting secured

transactions. This provision may be included by the dormitory authority

in any contract of the dormitory authority with its bondholders. The

self-insured bond financing agreement may restrict disbursements,

investments, or rebates, and may prescribe a system of accounts

applicable to the self-insurer offset fund as consistent with the

provisions of this chapter governing such fund, including custody of

funds and accounts with a trustee that may be prescribed by the

dormitory authority as part of its contract with the bondholders. For

purposes of this subdivision, the term "bonds" shall include notes

issued in anticipation of the issuance of bonds, or notes issued

pursuant to a commercial paper program.

2. The chair is hereby authorized to receive and credit to the

self-insurer offset fund any sum or sums that may at any time be

contributed to the state by the United States of America under any act

of Congress, or otherwise, to which the state may be or become entitled

by reason of any payments made out of such fund.

3. Notwithstanding any other law to the contrary, the chair shall be

the custodian of the self-insurer offset fund and, unless otherwise

provided for in the self-insured bond financing agreement, the

commissioner of taxation and finance shall invest any surplus or reserve

moneys thereof in securities which constitute legal investments for

savings banks under the laws of this state and in interest bearing

certificates of deposit of a bank or trust company located and

authorized to do business in this state or of a national bank located in

this state secured by a pledge of direct obligations of the United

States or of the state of New York in an amount equal to the amount of

such certificates of deposit, and may sell any of the securities or

certificates of deposit in which such fund is invested if necessary for

the proper administration or in the best interest of such fund.

Disbursements from such fund as provided by this subdivision shall be

made by the commissioner of taxation and finance unless the self-insured

bond financing agreement provides for some other means of authorizing

such disbursements that is no less protective of the fund. The

commissioner of taxation and finance as soon as practicable after

January first of each year, shall furnish to the chair a statement of

the fund, setting forth the balance of moneys in the said fund as of the

beginning of the calendar year, the income of the fund, the summary of

payments out of the fund on account of reimbursements and other charges

ordered to be paid by the board, and all other charges against the fund

and setting forth the balance of the fund remaining to its credit on the

prior December thirty-first of each year. Such statement shall be open

to public inspection in the office of the secretary of the board. The

chair shall include in the reports to the governor, the speaker of the

assembly and the temporary president of the senate as required by

section nine of part G of chapter fifty-seven of the laws of two

thousand eleven, a summary of the status of the bonding program

authorized by this section. The commissioner of taxation and finance may

establish within the self-insurer offset fund such accounts and

sub-accounts as he or she deems useful for the operation of the fund, or

as necessary to segregate moneys within the fund, subject to the

provisions of the self-insured bond financing agreement and of this

chapter.