N.Y. PBA Law § 1867-A

§ 1867-a. Federal insurance or guaranty; taxable bond option. (a) The\nauthority is authorized to obtain from any department or agency of the\nUnited States of America or non-governmental insurer any insurance or\nguaranty, to the extent now or hereafter available, as to, or of, or for\nthe payment or repayment of interest or principal, or both, or any part\nthereof, on any bonds or notes issued by the authority, or on any\nmunicipal obligations of governmental units or cooperatives purchased or\nheld by the authority; and to enter into any agreement or contract with\nrespect to any such insurance or guaranty, except to the extent that the\nsame would in any way impair or interfere with the ability of the\nauthority to perform and fulfill the terms of any agreement made with\nthe holders of the bonds or notes of the authority.\n (b) The authority may covenant and consent that the interest on\ncertain of its bonds shall be includible, under the Internal Revenue\nCode of 1954 or any subsequent corresponding internal revenue law of the\nUnited States, in the gross income of the holders of the bonds to the\nsame extent and in the same manner that the interest on bills, bonds,\nnotes or other obligations of the United States is includible in the\ngross income of the holders thereof under said Internal Revenue Code or\nany such subsequent law.\n