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issued by the city of New York after June thirtieth, nineteen hundred seventy-eight and prior to July first, nineteen hundred (ninety-two] ninety-three and contain covenants referring to the existence of the New York state financial control board for the city of New York or any other covenants relating to matters other than the prompt payment of principal and interest on the obligations when due and the refunding bond omits or modifies any such covenant.

§ 4. Subdivision 8, of, paragraph d of section 107.00 of the local finance law, as amended by chapter 270 of the laws of 1991, is amended to read as follows:

8. Notwithstanding any other provision of law, the financing by the city of New York prior to July first, nineteen 'hundred [ninety-two) ninety-three of any, object or purpose which has a period of probable usefulness determined by law by the issuance of any bonds or notes, including (i) the issuance of bonds or notes to obtain reimbursement for funds heretofore advanced for the object or purpose for which the bonds or notes are being issued, (ii) the issuance of bonds or notes to redeem notes previously issued for the object or purpose for which the bonds or notes are being issued or (iii) the issuance of bonds to refund bonds previously issued for the object or purpose for which bonds are being issued.

§ 5. Subdivision 1 of section 10-a of section 2 of chapter 868 of the laws of 1975, constituting the New York state financial

emergency act for the city of New York, as amended by chapter 270 of the laws of 1991, is amended to read as follows:

1. In the event that after the date on which the provisions of this act become operative, any notes or bonds are issued by the city prior to July 1, [1992] 1993, or any bonds are issued by a state financing agency, the state of New York hereby authorizes the city and authorizes and requires such state financing agency to include a pledge and agreement of the state of New York in any agreement made by the city or such state financing agency with holders or guarantors of such notes or bonds that the state will not take any action which will (a) substantially impair the authority of the board during a control period, as defined in subdivision twelve of section two of this act as in effect on the date such notes or bonds are issued (i) to approve, disapprove, or modify any financial plan or financial plan modification, including the

projections (or any item thereof) contained therein, subject to the standards set forth in paragraphs a, c, d, e and f of subdivision

of section eight of this act as in effect on the date such notes or bonds are issued and paragraph b of such subdivision as in effect from time to time, (ii) to disapprove a contract of the city or a covered organization if the performance of such contract would be inconsistent with

the financial plan or to approve or disapprove proposed short-term or long-term borrowing of the city or covered organization or any agreement other arrangement referred to in subdivision four of section seven of the act, or (iii) to establish and adopt procedures with respect to the deposit in and disbursement from the board fund of city revenues; (b) substantially impair the authority of the board to review financial plans, financial plan modifications, contracts of the city or the covered organizations and proposed short-term or

long-term borrowings of the city and the covered organizations; (c) substantially impair the independent maintenance of a separate fund for the payment of debt service on bonds and notes of the city; (d) alter the composition of the board so that the majority of the voting members of the board are not officials of the state of New York elected in a state-wide election or appointees of the governor; (e) terminate the existence of the board prior to the time to be determined in accordance with section thirteen of this act as in effect on the date such notes or bonds are issued; (f) substantially modify the requirement that the city's financial statements be audited by a nationally recognized independent certified public accounting firm or consortium of firms and that a report on such audit be furnished to the board; or (g) alter the definition of period set forth in subdivision twelve of section two, as in effect on the date such notes or bonds are issued, or substantially alter the authority of the board, as set forth in' said subdivision to reimpose or terminate a control period; provided, however, that the foregoing pledge and agreement shall be of no further'force and effect if at any time (i) there is on deposit in a separate trust account with a bank, trust company

other fiduciary sufficient moneys or direct obligations of the United States or obligations guaranteed by the United States, the prin: cipal of and/or interest on which will provide moneys to pay punctually

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when due at maturity or prior to maturity by redemption, in accordance with their terms, all principal of and interest on all outstanding notes and bonds of the city or such state financing agency containing this pledge and agreement and irrevocable instructions from the city or such state financing agency to such bank, trust company or other fiduciary for such payment of such principal and interest with such moneys shall have been given, or (ii) such notes and bonds, together with interest thereon, have been paid in full, at maturity or have otherwise been refunded, redeemed, defeased, or discharged; and provided further that the

foregoing pledge and agreement shall be of full force and effect upon its inclusion in any agreement made by the city or state financing agency with holders or guarantors of such notes or bonds.

Upon payment for such obligations issued pursuant to this act by the original and all subsequent holders inclusion of the foregoing covenant shali be deemed conclusive evidence of valuable consideration received by the state and city for such covenant and of reliance upon such pledge and agreement by any such holder. The state hereby grants any such benefited holder the right to sue the state in a court of competent jurisdiction and enforce this covenant and agreement and waives all rights of defense based on sovereign immunity in such an action or suit.

§ 6. Severability clause. If any clause, sentence, paragraph, subdivision, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, paragraph, subdivision, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the intent of the legislature that this act would have been enacted even if such invalid provisions had not been included herein.

§ 7. This act shall take effect immediately.

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AN ACT to amend the public authorities law, in relation to loans made by

the job development authority in economically distressed areas and to
companies in need of special assistance
Became a law August 7, 1992, with the approval of the Governor.

Passed by a majority vote, three-fifths being present.
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:

Section 1. Subdivision 3 of section 1801 of the public authorities law,

as amended by chapter 805 of the laws of 1984, is amended to read as follows:

3. "Banking organization" when used in this title shall mean (a) any organization defined by subdivision eleven of section two of the banking

(b) any agency or branch of a foreign banking corporation licensed by the banking department under article five of the banking law, (c) any national bank, federal savings and loan association and federal credit union, [and] (d) any authorized insurer defined by paragraph ten of subsection (a) of section one hundred seven of the insurance law and (e) any public or private pension or investment fund required to file report with any state or federal regulatory or supervisory body.

§ 2. Subdivision 13-d of section 1804 of the public authorities law, as amended by chapter 118 of the laws of 1990, is amended to read follows:

13-d. To require that any new employment opportunities created in connection with industrial or commercial projects financed through loans or loan guarantees from the authority shall be listed with the New York state department of labor job service division and with the administrațive entity of the service delivery area created pursuant to the federal job training partnership act (P. L. 97-300) in which the project is EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

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located and shall first consider for such employment opportunities persons eligible to participate in federal job training partnership act programs who shall be referred to such firms by such administrative entities or by the job service division of the department of labor; provided,

however, that nothing contained herein shall be construed to require project occupants or business entities defined in section eighteen hundred twenty-seven of this title, to violate any existing collective bargaining agreement with respect to the hiring of new employees. Such listing shall be in a manner and form prescribed by the authority in consultation with the commissioner of labor and the commissioner of economic development.

§ 3. Subdivision 2 of section 1803 of the public authorities law, as amended by chapter 348 of the laws of

is amended to read as follows:

2. To improve employment opportunities in any area of the state by assisting in financing of:

(a) the cost of projects for the construction, acquisition, rehabilitation or improvement of any new, existing or former (i) industrial or manufacturing plant, (ii) building used for research and development, or (iii) other eligible business facility within the state, including the acquisition of real property therefor, by means of loans to non-profit local development corporations not to exceed forty percent of the cost of such project, the repayment of which shall be secured by a mortgage which shall not be a junior encumbrance thereon by more than fifty percent of such cost, and by means of the guarantees of the loans made by banking organizations which guaranty, shall not exceed eighty percent of the cost of the project, provided, however, that such loans may be in excess of forty percent but shall not exceed sixty percent of the cost of such project for loans in economically distressed areas and to companies in need of special assistance pursuant to the provisions of subdivision seven of section eighteen hundred twenty-three of this chapter.

(b) the purchase of machinery and equipment for use within the state, by means of loans to non-profit local development corporations not to exceed forty percent of the cost of such purchase which shall be secured by a security interest in such project, and by means of the guarantee of loans made by banking organizations which guaranty shall not exceed eighty [per cent] percent of the cost of the project, provided, however, that such loans may be in excess of forty percent but shall not exceed sixty percent of the cost of such project for loans in economically distressed areas and to companies in need of special assistance pursuant to the provisions of subdivision seven of section eighteen hundred twenty. three of this chapter,

$ 4. Subdivision 1 of section 1812 of the public authorities law, as amended by chapter 482 of the laws of 1985, is amended to read as follows:

1. The authority shall have the power and is hereby authorized to issue at one time or in series from time to time [(a)] special purpose bonds in an aggregate principal amount which shall not at any one time exceed (șix] seven hundred fifty million dollars, excluding special pur; pose bonds issued to refund outstanding special purpose bonds, and [(b)] special purpose notes in anticipation of the issuance such special purpose bonds.

§ 5. Section 1823 of the public authorities law is amended by adding a new subdivision 7 to read as follows:

7. Loans in economically distressed areas and to companies in need of special assistance. (a) Loans by the authority pursuant to paragraphs (a) and (b) of subdivision two of section eighteen hundred three of this Chapter may exceed forty percent but shall not exceed sixty percent of the cost of the project for: (i) projects which

will be located in economic development zones designated pursuant to article eighteen-b of the general municipal law in

that meet, in accordance with the most recent census data available, the following criteria: (A) the

area must have a poverty rate of at least twenty percent for the year to which the data relate; and (B) the

must have an unemployment rate of at least one hundred twenty-five percent of the statewide unemployment rate for the year to which the data relate;

(ii) projects involving companies in need of special assistance as determined by the findings of the members of the authority that such companies are unable to obtain a sufficient amount of financing at

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prevailing market rates of interest for businesses of similar size the same industry in New York state.

(b) In determining eligibility for loans involving companies in need of special assistance pursuant to subparagraph (ii) of paragraph (a) of this subdivision, the members of the authority shall consider:

(1), the applicant's potential for creating jobs in New York state;

(ii) the benefits derived from the project in the community in which the project is or will be located;

(iii) the interaction of a project with economic development programs administered by the department of economic development, the New York state urban development corporation and the New York state science and technology foundation;

(iv) the meaningful participation of minority and women-owned business enterprises and minority group members and women in a project;

(v) the degree to which the project will support apprenticeship training;

(vi) compliance with the provisions of section eighteen hundred twenty-six of this chapter with regard to the project occupant; and

(vii) in consultation with the department of economic development, the eligibility of the applicant for assistance under the industrial effectiveness program pursuant to article seven of the economic development

(C) In addition to the rules and regulations promulgated with regard to' loans made by the authority under other provisions of this title, the members of the authority, shall also promulgate rules and regulations pertaining to the loans made under şubparagraphs (i) and (ii) of paragraph (a) of this subdivision by December first, nineteen hundred ninety-two.

(d) on an annual basis, the authority shall compile and publish: (i) in consultation with the department of economic development, listing of economically distressed areas as defined in subparagraph (i) of paragraph (a) of this subdivision.

(ii) the criteria for determining the eligibility of a project that is in need of special assistance under subparagraph (ii) of paragraph (a) of this subdivision.

(e) All otherwise applicable requirements and restrictions of this title shall apply to projects that are described in paragraph (a) of this subdivision, provided, however, that in the case of projects which involve the relocation of economic activity from another municipality within New York state, the authority shall also find that the project occupant has made reasonable efforts to carry out the project within the municipality from which the project occupant intends to move an industrial, or manufacturing plant, or research and development facility, or other eligible business facility.

§ 6. Paragraph (a) of subdivision 1 of section 1814 of the public authorities law, as added by chapter 631 of the laws of 1978, is amended to read as follows:

(a) that the amount of such loan shall not exceed forty, percent of the cost of such machinery and equipment, except as

provided

in paragraph (b) of

subdivision two of section eighteen hundred three and paragraph (a) of subdivision seven of section eighteen hundred twenty-three of this chapter;

§ 7. Subdivision a of section 1822 of the public authorities law, as amended by chapter 348 of the laws of 1980, is amended to read follows:

a. No mortgage loan shall be made by the authority under the provişions of subtitle II with respect to a project unless: (1) the local development

corporation has obtained firm commitments satisfactory to the authority from responsible financial sources, which may but need not include a federal agency or the project occupant, for the total project cost exclusive of any loan requested from the authority, (2) the local development corporation has obtained a firm commitment satisfactory to the authority from the project occupant or from

business enterprise described in section eighteen hundred twenty-seven to lease or use the project after construction, acquisition, rehabilitation or improvement is completed, (3) the authority approves the terms of such lease or use and is satisfied that the project occupant

business enterprise described in section eighteen hundred twenty-seven may reasonably be expected to comply with the terms thereof, (4) the principal amount of EXPLANATION—Matter in italics is new; matter in brackets [ ] is old law

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such loan is forty, percent or less of the project cost, except as set forth in paragraphs (a) and (b) of subdivision two of section eighteen hundred three and paragraph (a) of subdivision seven of section eighteen hundred twenty-three of this chapter, (5) such loan is secured by a mortgage the project, and (6) such mortgage is not a junior encumbrance on the project by more than fifty percent of the project cost.

The public authorities law is amended by adding a new section 1829-a to read as follows: $ 1829-a. Submission of certain program information.

Annual program report. The authority shall report on an annual basis beginning December thirty-first, nineteen hundred ninety-three, and on each December thirty-first thereafter, to the governor, the speaker of the assen; bly and the temporary president of the senate on each of the financial assistance programs, and for each program, each category, of assistance administered by the authority, identifying each proposal for assistance through such program for which the authority has received a

formal application or otherwise has begun to undertake an analysis.

(a) For those requests which are currently being evaluated but which have not yet been approved such description shall include, but not be limited to,

the name and location of the applicant, the amount of assistance requested, the date of receipt of such request, and the status of such request.

(b) In providing such report, where necessary to promote the development of proposed projects, the authority may delete "references to the specific names of the participants, instead making references to them in some other form so as to make it possible to identify the progress of specific proposals.

(C), Șuch report shall provide a breakdown, for each of the regions established pursuant to section two hundred thirty of the economic development

of proposals for assistance through each program. In addition, such report shall summarize, by program, the data reported pursuant to this paragraph.

(d) For those requests which have been evaluated and for which no further action has been recommended, the corporation shall present summary data indicating why no further action was taken.

(e) Such report shall include a description of the efforts and activities of the authority to meet the financing needs of economically distressed areas as described in paragraph (a) of subdivision seven of section eighteen hundred twenty-three of this chapter, and a description of the authority's efforts and activities with regard to companies in need of special assistance as described in such paragraph (a).

2. Evaluations. (a) In addition to any other requirements imposed by, this chapter or otherwise regarding evaluations of programs administered by the authority, each evaluation shall include an analysis of the job creation effect of such program, the number of small businesses that received

assistance, the number of minority and women-owned firms that received assistance, the number of projects undertaken in economically distressed areas as described in paragraph (a) of subdivision seven of section eighteen hundred twenty-three of this chapter, the number of projects involving companies in need of special assistance as described in such paragraph (a) and, if applicable, the repayment experience of borrowers of funds from the authority:

(b) The authority shall submit to the governor, the speaker of the as; sembly, and the temporary president of the senate an evaluation of such programs prepared by an entity independent of the authority. Such evaluations shall be submitted by September first, nineteen hundred ninetyfour and by September first every four years thereafter.

§ 9. Subdivision 2 of section 1836-e of the public authorities law, as added by chapter 788 of the laws of 1983, is amended to read as follows:

2. No such loan may, exceed forty percent of the cost of the project and the repayment of such loan shall be secured by a mortgage thereon which shall not be a junior encumbrance thereon by more than fifty percent of such cost, and by means of the guarantees of the loans made by banking organizations which guaranty shall not exceed eighty percent of the cost of the project, except as provided in paragraphs (a) and (b) of subdivision two of section eighteen hundred three and paragraph (a) of subdivision seven of section eighteen hundred twenty-three of this chapter.

§ 10. Title 8 of article 8 of the public authorities law is amended by adding a new subtitle 7 to read as follows:

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