July (pdf) - New York Power Authority

eimbursement are equal to the amortization requirements for such related Obligations, without acceleration,
or may constitute a Subordinated Contract Obligation, as determined by the Authority. In addition, the
Authority may enter into a Reimbursement Obligation with respect to a Credit Facility securing Parity
Debt, and any such Reimbursement Obligation may be a Parity Reimbursement Obligation (but only to the
extent principal amortization requirements with respect to such reimbursement are substantially equal to
the amortization requirements [including principal payments in connection with any optional or mandatory
tender for purchase] for such related Parity Debt, without acceleration) or may constitute a Subordinated
Contract Obligation, as determined by the Authority. Parity Reimbursement Obligations shall not include
any payments of any fees, expenses, indemnification, or other obligations to any such provider, or any
payments pursuant to term-loan or other principal amortization requirements in reimbursement of any
such advance that are more accelerated than the amortization requirements on such related Obligations or
Parity Debt, which payments shall be Subordinated Contract Obligations.
In connection with the issuance of any Obligations or at any time thereafter so long as Obligations remain
Outstanding, the Authority also may, to the extent from time to time permitted pursuant to law, enter into
Qualified Swaps. The Authority’s obligation to pay any amount under any Qualified Swap may be secured by
a pledge of, and a lien on, the Trust Estate on a parity with the lien created pursuant to the General Resolution
to secure the Obligations (a ‘‘Parity Swap Obligation’’), or may constitute a Subordinated Contract
Obligation, as determined by the Authority. Parity Swap Obligations shall not include any payments of
any termination or other fees, expenses, indemnification or other obligations to a counterparty to a
Qualified Swap, which payments shall be Subordinated Contract Obligations.
The Authority’s obligation to pay that portion of any rates, fees, charges or payments which the
Authority is contractually obligated to pay to another entity for fuel, energy or power, for the specific purpose
of meeting principal or interest or both on that entity’s obligations directly associated with such contract and
payable to such entity regardless of whether fuel or energy is delivered or made available for delivery, may be
secured by a pledge of, and lien on, the Trust Estate on a parity with the lien created by the General
Resolution to secure the Obligations (a ‘‘Parity Contract Obligation’’), or may constitute a Subordinated
Contract Obligation or an Operating Expense, as determined by the Authority.
(General Resolution, Sec. 310)
Pledge of Revenues and Funds
The Trust Estate is pledged for the payment of the principal and Redemption Price of, and interest
on, the Obligations and, on a parity basis, the Parity Debt, in accordance with their terms and the
provisions of the General Resolution.
(General Resolution, Sec. 501)
The General Resolution establishes the following funds:
(1) Operating Fund, to be held by the Authority, and
(2) Capital Fund, to be held by the Authority.
The Authority may establish one or more additional funds, accounts or subaccounts by delivering to the
Trustee a certificate of an Authorized Officer.
(General Resolution, Sec. 502)
App. 1-8