[HISTORY: Adopted by the County Legislature of the County of Ulster by L.L. No. 4-2000. Amendments noted where applicable.]
The County Legislature hereby finds that:
The County of Ulster is entitled to receive payments under the Master Settlement Agreement (hereinafter the "MSA") and the Consent Decree and Final Judgment of the Supreme Court of the State of New York, County of New York, dated December 23, 1998 (hereinafter, as the same may be amended or modified, the "Decree"), in the class action titled "State of New York et al v. Philip Morris Incorporated et al (Index No. 400361/97)"; and
In order to secure to present generations a portion of the benefits intended to be conferred by the MSA and the Decree it is necessary or desirable for the County to sell all or a portion of its rights, title and interest in, to and under the Decree and in and to the moneys payable to the County under the MSA and the Decree (all such rights, title and interest hereinafter collectively referred to as the "tobacco settlement revenues") to a local development corporation to be created by the County pursuant to the Not-For-Profit Corporation Law of the State of New York.
The County is hereby authorized to sell to said local development corporation, and to take any and all action necessary or desirable to effect one or more sales to said local development corporation of, the County's rights, title and interest in and to all or a portion of the tobacco settlement revenues and to take any and all actions necessary or desirable to enable the County to benefit from the consideration to be received from any such sale. The Chairperson of the County Legislature or his designee(s) may approve the terms and conditions of any such transaction and the form and substance of any agreement of sale or other document necessary or desirable to effect any such transaction, including the power to execute and deliver any such agreement or other document as may be approved by the person executing the same and to take any and all other actions necessary or desirable to enter into, facilitate or consummate such transaction, including agreeing to pay certain fees and expenses which will be payable regardless of whether or not such transaction is consummated. The County shall use the initial proceeds to be received from said corporation from such sale to finance certain capital projects identified in the County's capital program and to finance the defeasance of County obligations. It is the intent of this chapter that a sale by the County of tobacco settlement revenues to said local development corporation is, and it is hereby deemed to be, a true sale and not a borrowing.
The Chairperson of the County Legislature or his designee(s) is hereby authorized to take all actions necessary to create a corporation pursuant to the New York Not-For-Profit Corporation Law § 1411 (hereinafter the "Corporation"). The Corporation shall be granted all powers as may be deemed necessary by the Chairperson of the County Legislature or his designee(s), which powers shall include, but not be limited to, the power to purchase from the County its right, title and interest in and to all or a portion of the tobacco settlement revenues, to issue bonds, notes and other evidence of indebtedness and other securities and to incur other obligations, to create and transfer assets of the Corporation to a trust or other entity, and to take all other actions as may be necessary in connection therewith.
It is the specific intention of the County Legislature that the purpose and scope of the Corporation be limited to the transaction contemplated by this chapter, including the purchase of tobacco settlement revenues from the County, the financing of such purchase and related transactions.
The County is hereby authorized to covenant and agree with the Corporation in a transaction contemplated by this chapter for the benefit of the corporation and the holders from time to time of any bonds, notes or other obligations or other securities (hereinafter collectively the "securities") issued by the Corporation that the County will not limit or alter the rights of the Corporation to fulfill the terms of its agreements with the holders of the securities or in any way impair the rights and remedies of such holders or the security for the securities until the securities, together with the interest due thereon or payable in respect thereof and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully met and discharged. The Chairperson of the County Legislature or his designee(s) is granted the power to make such a covenant to and agreement with the Corporation and to take any and all actions necessary or desirable to cause such covenant and agreement to be made or enforced. The Corporation is hereby authorized to assign to or for the benefit of the holders of its securities any covenant or agreement made by the County pursuant to this section.