July (pdf) - New York Power Authority

Registration of the 2011 Bonds........
Tax Considerations...........................
The 2011 Bonds will be issuable as fully registered bonds in
the name of Cede & Co., as nominee of The Depository Trust
Company (‘‘DTC’’). No person acquiring an interest in the 2011
Bonds (a ‘‘Beneficial Owner’’) will be entitled to receive a 2011
Bond in certificated form (a ‘‘Definitive Obligation’’), except
under the limited circumstances described in this Official Statement
under ‘‘PART 1—APPENDIX B—BOOK-ENTRY-ONLY
SYSTEM PROCEDURES.’’ Unless and until Definitive
Obligations are issued, all references to actions by Owners will
refer to actions taken by DTC, upon instructions from DTC
Participants, and all references herein to distributions, notices,
reports and statements to Owners shall refer to distributions,
notices, reports and statements, respectively, to DTC or Cede &
Co., as the registered owner of the 2011 Bonds, or to DTC
Participants for distribution to Beneficial Owners in accordance
with DTC procedures.
In the opinion of Bond Counsel to the Authority, under existing
statutes and court decisions and assuming continuing compliance
with certain tax covenants described herein, (i) interest on the 2011
A Bonds is excluded from gross income for Federal income tax
purposes pursuant to Section 103 of the Internal Revenue Code
of 1986, as amended (the ‘‘Code’’), and (ii) interest on the 2011
A Bonds will not be treated as a preference item in calculating
the alternative minimum tax imposed on individuals and
corporations under the Code; such interest, however, is included in
the adjusted current earnings of certain corporations for purposes
of calculating the alternative minimum tax imposed on such
corporations. See ‘‘PART 1—TAX MATTERS.’’
Interest on the Series 2011 B Bonds is wholly includable in the
gross income of the owners thereof for Federal income tax
purposes. See “PART 1―TAX MATTERS.”
In addition, in the opinion of Bond Counsel under existing
statutes, interest on the 2011 Bonds is exempt from personal
income taxes imposed by the State of New York or any political
subdivision thereof (including The City of New York), and the
2011 Bonds are exempt from all taxation directly imposed
thereon by or under the authority of the State, except estate or
gift taxes and taxes on transfers. See ‘‘PART 1—TAX
MATTERS.’’
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