§ 2926. Interest rate exchange or similar agreements for court\nfacilities and combined occupancy structures and health facilities. 1.\nIn connection with the issuance of bonds, notes, or other obligations,\nor in connection with such bonds, notes, or other obligations already\noutstanding, for court facilities and combined occupancy structures\npursuant to section sixteen hundred eighty-b of this chapter, and health\nfacilities pursuant to paragraph (b) of subdivision one of section eight\nof section one of chapter three hundred ninety-two of the laws of\nnineteen hundred seventy-three, the dormitory authority shall have the\npower to:\n (a) enter into interest rate exchange or similar agreements with any\nperson under such terms and conditions as the dormitory authority may\ndetermine, including provisions as to default or early termination and\nindemnification by the dormitory authority or any other party thereto\nfor loss of benefits as a result thereof; and\n (b) procure insurance, letters of credit or other credit enhancement\nwith respect to agreements described in paragraph (a) of this\nsubdivision; and\n (c) provide security for the payment or performance of its obligations\nwith respect to agreements described in paragraph (a) of this\nsubdivision from such sources and with the same effect as authorized by\napplicable law with respect to security for its bonds, notes or other\nobligations; and\n (d) modify, amend, replace, or enter into new agreements, for the\npurpose of reducing or eliminating a situation of risk or exposure under\nan existing agreement, including, but not limited to a counterparty\ndowngrade, default, or other potential economic loss.\n 2. Any interest rate exchange or similar agreement entered into\npursuant to subdivision one of this section shall be subject to the\nfollowing limitations:\n (a) any such agreement shall be in the form of a written contract with\na counterparty to provide for an exchange of payments based upon\ninterest rates, and shall be for exchanges in currency of the United\nStates of America only; and\n (b) the counterparty thereto shall have credit ratings from at least\ntwo nationally recognized statistical rating agencies that are within\nthe three highest investment grade categories, or the payment\nobligations of the counterparty shall be unconditionally guaranteed by\nan entity with such credit ratings; and\n (c) the written contract shall require that, should the rating of the\ncounterparty, if its payment obligations are not unconditionally\nguaranteed by another entity, or should the rating of the entity\nunconditionally guaranteeing the payment obligations of the\ncounterparty, if so secured, fall below the rating required by paragraph\n(b) of this subdivision, that the obligations of such counterparty shall\nbe fully and continuously collateralized by direct obligations of, or\nobligations the principal and interest on which are guaranteed by, the\nUnited States of America, with a net market value of at least one\nhundred two percent of the net market value of the contract to the\ndormitory authority, and such collateral shall be deposited with the\ndormitory authority or an agent thereof; and\n (d) the total notional amount of such interest rate exchange or\nsimilar agreements entered into by the dormitory authority shall not\nexceed an amount equal to twenty per centum of the total amount of\nbonds, notes or other obligations outstanding or to be issued on behalf\nof a participating municipality pursuant to section sixteen hundred\neighty-b of this chapter; provided, however, that such total notional\namount shall not include the notional amount of interest rate exchange\nor similar agreements entered into for the purpose of reducing or\neliminating a situation of risk or exposure under an existing agreement,\nincluding, but not limited to a counterparty downgrade, default, or\nother potential economic loss; and\n (e) the total notional amount of such
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