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.]
N.Y. Comp. Codes R. & Regs. Tit. 9 § 4.159