Current through Register Vol. 46, No. 39, September 25, 2024
WHEREAS, New York State and its public benefit corporations
and public authorities frequently issue bonds for public purposes; and
WHEREAS, such issuances usually involve large-denomination
bonds which are beyond the investment capacity of most individual investors;
and
WHEREAS, New York State would like to continue to issue
such bonds to finance needed improvements within the State, including
improvements to stimulate reinvestment in urban areas; and
WHEREAS, making these bonds available to small investors
would allow State residents to invest in the improvement of their neighborhoods
and communities, including projects which would stimulate the economy and
create jobs; and
WHEREAS, such bonds would be particularly useful to parents
seeking to save money for the college education of their children, and to
individuals planning for retirement; and
WHEREAS, low-denomination, tax exempt bonds, particularly
zero coupon or capital appreciation bonds, provide an attractive investment
option for individual long-term savings plans; and
WHEREAS, the marketing and distribution of such bonds
should be coordinated by a committee of representatives of State issuers to
ensure that, consistent with market conditions, such bonds are available and
that the general public is aware of their possible role in assisting the
revitalization of urban areas, in financing the costs of higher education, or
for other purposes;
NOW, THEREFORE, I, Mario M. Cuomo, Governor of the State of
New York, by virtue of the authority vested in me by the Constitution and Laws
of the State of New York, do hereby order as follows:
I. New York Savings Bond Program Committee
A. There is hereby created a Committee to be
known as the New York Savings Bond Program Committee (the
"Committee").
II.
Membership
A. The members of such Committee
shall consist of the Executive Director of the Dormitory Authority, the
Executive Director of the Housing Finance Agency and Medical Care Facilities
Finance Agency, the Executive Director of the Metropolitan Transportation
Authority, the Director of the Budget, the Director of Economic Development and
the President of the Higher Education Services Corporation. The Executive
Director of the Dormitory Authority shall serve as chairperson of the
Committee. Any member of the Committee may designate in writing a person to
represent such member at meetings of the Committee from which such member is
absent.
III. Powers and
Duties of the Committee
A. The Committee
shall be responsible for coordinating a New York Savings Bond Program (the
"Program"), which shall include the marketing and distribution of
low-denomination tax exempt savings bonds. The Committee shall adopt guidelines
with respect to the operation of the Program, the designation of public
authorities or public benefit corporations which may be eligible issuers of
savings bonds under the Program, the designation by the Committee and such
issuers of bonds to be issued under the Program, the method of funding the
costs incurred in carrying out the Program, and such other matters as the
Committee shall deem appropriate.
B. The Committee may delegate to any agency,
authority or public benefit corporation, whose chief executive or chief
operating officer is a member of the Committee, the responsibility to
disseminate information and provide advertising for the Program. In addition,
any such agency, authority or public benefit corporation may be authorized by
the Committee to contract for the services of financial or legal advisors or
for other services to assist the Committee in coordinating the marketing and
distribution of and the dissemination of information concerning savings bonds
to be issued under the Program.
C.
In coordinating the marketing of savings bonds issued under the Program, the
Committee may emphasize the use of such bonds to finance needed improvements
within the State, especially to stimulate reinvestment in urban areas, to
benefit investors seeking to finance the costs of higher education, or for any
other purposes. To further this effort, the Committee shall provide information
concerning these savings bonds to the financial services community, educational
institutions and the general public. The Committee shall not publish or
distribute any information purporting to describe the details or terms of, or
the security for, a particular issue of savings bonds under the Program unless
the publication or distribution of such information is approved by the issuer
thereof.
IV. Tax Exempt
Savings Bonds
A. Bonds designated by the
Committee and the issuer thereof as savings bonds issued under the Program:
(i) shall be sold at a fixed rate of
interest;
(ii) may be insured by a
policy of municipal bond insurance;
(iii) may be sold by the purchaser prior to
maturity;
(iv) shall not, except
pursuant to any mandatory redemption or call provisions contained in the
resolution authorizing such bonds and except as otherwise authorized by law, be
callable prior to maturity at a price less than their stated value at maturity;
(v) shall be capital appreciation
bonds, zero coupon bonds or such other type of bond as will encourage the
purchaser to hold such bond until maturity; and
(vi) shall be issued in low denominations, in
accordance with the guidelines adopted by the Committee. The issuer may
designate a portion of a larger series of bonds as Program savings
bonds.
B. Bonds issued
under the Program shall be those bonds which comply with the provisions of
subdivision IV(A) hereof and which are issued by the State or any public
benefit corporation or public authority organized under the laws of the State
of New York which the Committee designates and which bonds are so designated by
the issuing authority.
C. Each year
the Committee shall prepare and submit to the Governor a report setting forth
the amount of bonds sold under the Program during the calendar year by each
public authority or agency designated pursuant to subdivision III(A) hereof and
such other information as the Committee deems relevant to an evaluation of the
Program.
V. Effective
Date
A. This Executive Order shall take
effect immediately.
Signed: Mario M. CuomoDated: November 4, 1992
[FN*] [Revoked by Executive Order No. 9 (David A.
Paterson), infra.]
[Revoked by Executive Order No. 2 (Andrew M. Cuomo),
infra.]