§ 50-c. Self-insured bonds. 1. The chair, with the commissioner of taxation and finance, is authorized to enter into a financing agreement with the dormitory authority, to be known as the "self-insured bond financing agreement". Such agreement shall set forth the process for calculating the annual debt service of bonds issued by the dormitory authority and any other associated costs in connection with the self-insurer offset fund, as set forth in section sixteen hundred eighty-q of the public authorities law. For purposes of this section, "associated costs" may include a coverage factor, reserve fund requirements, all costs of any nature incurred by the dormitory authority in connection with the self-insured bond financing agreement or pursuant thereto, the costs of any independent audits undertaken under this section, and any other costs for the implementation of this subdivision and the issuance of bonds by the dormitory authority, including interest rate exchange payments, rebate payments, liquidity fees, credit provider fees, fiduciary fees, remarketing, dealer, auction agent and related fees and other similar bond-related expenses, unless otherwise funded. By September first of each year, the dormitory authority shall provide to the chair the calculation of the amount expected to be paid by the dormitory authority in debt service and associated costs for purposes of calculating the assessments for the debt service portion of the assessment provided for under this chapter. All monies received on account of such assessments shall be applied in accordance with this chapter and with the self-insured bond financing agreement until the financial obligations of the dormitory authority in respect to its contract with its bondholders are met and all associated costs payable to or by the dormitory authority have been paid, notwithstanding any other provision of law respecting secured transactions. This provision may be included by the dormitory authority in any contract of the dormitory authority with its bondholders. The self-insured bond financing agreement may restrict disbursements, investments, or rebates, and may prescribe a system of accounts applicable to the self-insurer offset fund as consistent with the provisions of this chapter governing such fund, including custody of funds and accounts with a trustee that may be prescribed by the dormitory authority as part of its contract with the bondholders. For purposes of this subdivision, the term "bonds" shall include notes issued in anticipation of the issuance of bonds, or notes issued pursuant to a commercial paper program.

2. The chair is hereby authorized to receive and credit to the self-insurer offset fund any sum or sums that may at any time be contributed to the state by the United States of America under any act of Congress, or otherwise, to which the state may be or become entitled by reason of any payments made out of such fund.

3. Notwithstanding any other law to the contrary, the chair shall be the custodian of the self-insurer offset fund and, unless otherwise provided for in the self-insured bond financing agreement, the commissioner of taxation and finance shall invest any surplus or reserve moneys thereof in securities which constitute legal investments for savings banks under the laws of this state and in interest bearing certificates of deposit of a bank or trust company located and authorized to do business in this state or of a national bank located in this state secured by a pledge of direct obligations of the United States or of the state of New York in an amount equal to the amount of such certificates of deposit, and may sell any of the securities or certificates of deposit in which such fund is invested if necessary for the proper administration or in the best interest of such fund. Disbursements from such fund as provided by this subdivision shall be made by the commissioner of taxation and finance unless the self-insured bond financing agreement provides for some other means of authorizing such disbursements that is no less protective of the fund. The commissioner of taxation and finance as soon as practicable after January first of each year, shall furnish to the chair a statement of the fund, setting forth the balance of moneys in the said fund as of the beginning of the calendar year, the income of the fund, the summary of payments out of the fund on account of reimbursements and other charges ordered to be paid by the board, and all other charges against the fund and setting forth the balance of the fund remaining to its credit on the prior December thirty-first of each year. Such statement shall be open to public inspection in the office of the secretary of the board. The chair shall include in the reports to the governor, the speaker of the assembly and the temporary president of the senate as required by section nine of part G of chapter fifty-seven of the laws of two thousand eleven, a summary of the status of the bonding program authorized by this section. The commissioner of taxation and finance may establish within the self-insurer offset fund such accounts and sub-accounts as he or she deems useful for the operation of the fund, or as necessary to segregate moneys within the fund, subject to the provisions of the self-insured bond financing agreement and of this chapter.