What's happening
This bill updates investment rules for New York’s water pollution and drinking water funds, allowing broader investment options and clarifying rating requirements.
Why it matters
Expands investment flexibility for water funds. , allowing the Environmental Facilities Corporation to invest in a broader set of financial instruments—including certain lower-rated municipal obligations—potentially increasing returns without compromising safety.
Clarifies credit rating requirements. for investments, specifying that most securities must be in the top two rating categories, but certain municipal bonds (as defined in a specific section of municipal law) can now be in the top three, possibly enabling access to a wider range of stable investments.
Updates oversight and collateral rules. for investment agreements, ensuring that underlying securities are properly secured, maintained at current market value, and subject to perfected security interests—providing safeguards for public funds.
Corrects technical language. by updating references (e.g., fixing the name of the Securities Investor Protection Corporation), aiming to eliminate ambiguity and align statutory language with industry standards.
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Who cares
Headline styles
Expand EFC Investment Options
Plain English, a few words. Used as the page title.
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History
- Referred to environmental conservation
- Referred to environmental conservation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8400
2017-2018 Regular Sessions
IN ASSEMBLY
June 13, 2017
Introduced by M. of A. OTIS -- read once and referred to the Committee on Environmental Conservation
AN ACT to amend the public authorities law, in relation to the special powers of the New York state environmental facilities corporation; and providing for the repeal of such provisions upon the expiration thereof
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 6 of section 1285-j of the public authorities law, as amended by chapter 307 of the laws of 2005, is amended to read as follows:
6. Moneys in the water pollution control revolving fund may be invested as provided in subdivision four of section twelve hundred eighty-four of this title and may be further invested (a) in investment agreements continuously secured by obligations with any insurance or reinsurance company or corporate affiliate thereof rated by a nationally recognized rating agency in one of its two highest categories, any bank, trust company or broker or dealer, as defined by the securities exchange act of 1934, which is a dealer in government bonds, which reports to, trades with and is recognized as a primary dealer by a federal reserve bank and is a member of the securities [investors] investor protection corporation, if, (i) such obligations securing such investment agreements are obligations as set forth in section ten of the general municipal law, (ii) such obligations are delivered to a trustee for the benefit of the corporation or, with respect to moneys pledged under an indenture of trust relating to bonds or notes of the corporation, to the trustee under such indenture, or are supported by a safe keeping receipt issued by a depository satisfactory to the corporation as applicable, provided that such investment agreements must provide that the value of the underlying obligations shall be maintained at a current market value, calculated no less frequently than monthly, of not less than the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13083-01-7
A. 8400 2
amount deposited thereunder, (iii) a prior perfected security interest in the obligations which are securing such agreement has been granted to the corporation, as applicable, and (iv) such obligations are free and clear of adverse third party claims[,]; or (b) in obligations as set forth in section ten of the general municipal law that are rated by a nationally recognized rating agency in one of its two highest rating categories or, for obligations set forth in subparagraph (iv) of paragraph f of subdivision one of such section, are rated by a nationally recognized rating agency in one of its three highest rating categories.
§ 2. Subdivision 6 of section 1285-m of the public authorities law, as amended by chapter 307 of the laws of 2005, is amended to read as follows:
6. Moneys in the drinking water revolving fund may be invested as provided in subdivision four of section twelve hundred eighty-four of this title and may be further invested:
(a) in investment agreements continuously secured by obligations with any insurance company or reinsurance company or corporate affiliate thereof rated by a nationally recognized rating agency in one of its two highest categories, any bank, trust company or broker or dealer, as defined by the securities exchange act of 1934, which is a dealer in government bonds, which reports to, trades with and is recognized as a primary dealer by a federal reserve bank and is a member of the securities [investors] investor protection corporation, if such investment agreement provides that:
(i) such obligations securing such investment agreements are obligations as set forth in section ten of the general municipal law;
(ii) such obligations are to be delivered to a trustee for the benefit of the corporation or, with respect to moneys pledged under an indenture of trust or trust agreement relating to bonds or notes of the corporation, to the trustee under such indenture or trust agreement, or are supported by a safe keeping receipt issued by a depository satisfactory to the corporation as applicable, provided that such investment agreements must provide that the value of the underlying obligations shall be maintained at a current market value, calculated no less frequently than monthly, of not less than the amount deposited thereunder;
(iii) a prior perfected security interest in the obligations which are securing such agreement has been granted to the corporation, such trustee or such depository as applicable; and
(iv) such obligations are free and clear of adverse third party claims; or
(b) in obligations as set forth in section ten of the general municipal law that are rated by a nationally recognized rating agency in one of its two highest rating categories, or for obligations set forth in subparagraph (iv) of paragraph f of subdivision one of such section, are rated by a nationally recognized rating agency in one of its three highest rating categories.
§ 3. This act shall take effect immediately; provided, however, that the amendments to subdivision 6 of section 1285-j and subdivision 6 of section 1285-m of the public authorities law made by sections one and two of this act shall not affect the expiration and reversion of such subdivisions and shall expire therewith.
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