July (pdf) - New York Power Authority

The Authority may issue additional Obligations pursuant to the
General Resolution, payable and secured on a parity with the 2011
Bonds, for any purpose of the Authority authorized by the Act, as
amended from time to time, or by other then-applicable State
statutory provisions. The principal amount of the Obligations
which may be delivered under the General Resolution is not
limited, and there is no debt service coverage or historical or
projected earnings test that must be satisfied as a precondition to
any such delivery.
The Authority may also incur additional Parity Debt payable and
secured on a parity with Obligations, including the 2011 Bonds.
Parity Debt currently includes the ART Notes, any notes issued
under a revolving credit agreement providing liquidity support for
the ART Notes, and the scheduled payments to be made by the
Authority under several interest-rate swap agreements (see
‘‘PART 1—SECURITY FOR THE 2011 BONDS—Additional
Debt Issuance’’). Parity Debt may also be incurred in connection
with, among other things, Credit Facilities, Qualified Swaps and
certain take-or-pay fuel or power contracts. See ‘‘PART 2—
APPENDIX 1—SUMMARY OF CERTAIN PROVISIONS
OF THE GENERAL RESOLUTION—Credit Facilities;
Qualified Swaps and Other Similar Arrangements; Parity Debt.’’
The Authority may issue Subordinated Indebtedness or incur
Subordinated Contract Obligations payable from the Trust Estate
subject and subordinate to the payments to be made with respect
to the Obligations, including the 2011 Bonds, and any Parity Debt,
and secured by a lien on and pledge of the Trust Estate junior and
inferior to the lien on and pledge of the Trust Estate created for
the payment of the Obligations, including the 2011 Bonds, and any
Parity Debt.
As of June 30, 2011, the Authority had outstanding $612,904,000 of
Subordinated Indebtedness.
The Authority may issue bonds, notes, or other obligations or
evidences of indebtedness, other than Obligations, for any project
authorized by the Act or by other then applicable State statutory
provisions. The Authority also may finance any such project from
other available funds (any project so financed is referred to herein
as a “Separately Financed Project”), if such bonds, notes, or other
obligations or evidences of indebtedness, if any, and the
Authority’s share of any operating expenses related to such
Separately Financed Project, are payable solely from the revenues
or other income derived from the ownership or operation of such
Separately Financed Project or from other available funds of the
Authority released from the lien on the Trust Estate in accordance
with the General Resolution. There are currently no Separately
Financed Projects.
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