July (pdf) - New York Power Authority

APPENDIX 1
SUMMARY OF CERTAIN PROVISIONS OF THE GENERAL RESOLUTION
The following is a summary of certain provisions of the General Resolution. The following summary
is not to be considered a full statement of the terms of the General Resolution and, accordingly, is
qualified by reference thereto and is subject to the full text thereof. Capitalized terms not otherwise
previously defined in this Official Statement or defined below have the meaning set forth in the General
Resolution.
Definitions
The following are definitions in summary form of certain terms contained in the General Resolution
and used hereinafter:
Authorized Investments means and includes any of the following securities, if and to the extent the
same are at the time legal for investment of the Authority’s funds pursuant to any law, to the extent
permitted under any applicable regulation, guideline and policy of the Authority as each is in effect from
time to time: (i) any security which is (a) a direct obligation of, or is unconditionally guaranteed by, the
United States of America or the State for the payment of which the full faith and credit of the
United States of America or the State is pledged or (b) an obligation of an agency or instrumentality of
the United States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America; (ii) any obligation of any state or political subdivision of a
state or of any agency or instrumentality of any state or political subdivision (‘‘Municipal Bond’’) which
Municipal Bond is fully secured as to principal and interest by an irrevocable pledge of moneys or direct
and general obligations of, or obligations guaranteed by, the United States of America, which moneys or
obligations are segregated in trust and pledged for the benefit of the holder of the Municipal Bond, and
which Municipal Bond is rated in the highest Rating Category by at least two Rating Agencies and
provided, however, that such Municipal Bond is accompanied by (1) a Counsel’s Opinion to the effect that
such Municipal Bond is not subject to redemption prior to the date the proceeds of such Municipal Bond
will be required for the purposes of the investment being made therein and (2) a report of a nationally
recognized independent certified accountant verifying that the moneys and obligations so segregated are
sufficient to pay the principal of, premium, if any, and interest on the Municipal Bond; (iii) bonds,
debentures, notes or other obligations issued or guaranteed by any of the following: Federal National
Mortgage Association (including Participation Certificates), Government National Mortgage Association,
Federal Financing Bank, Federal Home Loan Mortgage Corporation and Federal Home Loan Banks, the
Federal Housing Administration, the Federal Farm Credit Banks Funding Corporation, Federal Farm
Credit Banks, Federal Intermediate Credit Banks, Federal Banks for Cooperatives, Federal Land Banks,
or any other agency controlled by or supervised by and acting as an instrumentality of the United States
government; (iv) obligations of any state of the United States of America or any political subdivision
thereof or any agency, instrumentality or local government unit of any such state or political subdivision
which shall be rated at the time of the investment in any of the three highest long-term Rating Categories
or the highest short-term Rating Category by a Rating Agency; (v) certificates or other instruments that
evidence ownership of the right to payments of principal of or interest on Municipal Bonds provided that
such obligations shall be held in trust by a Bank meeting the requirements for a successor Trustee
pursuant to the General Resolution, and provided further that the payments of all principal of and interest
on such certificates or such obligations shall be fully insured or unconditionally guaranteed by, or
otherwise unconditionally payable pursuant to a credit support arrangement provided by, one or more
financial institutions or insurance companies or associations which at the date of investment shall have an
outstanding, unsecured, uninsured and unguaranteed debt issue rated in the highest Rating Category by
a Rating Agency or, in the case of an insurer providing municipal bond insurance policies insuring the
payment, when due, of the principal of and interest on Municipal Bonds, such insurance policy shall result
in such Municipal Bonds being rated in the highest Rating Category by a Rating Agency; (vi) certificates that
evidence ownership of the right to payments of principal of or interest on obligations described in clause
(i) or (ii) above, provided that such obligations shall be held in trust by a Bank meeting the requirements
for a successor Trustee pursuant to the General Resolution; (vii) certificates of deposit,
App. 1-1