About Us

The Erie Tobacco Asset Securitization Corporation (ETASC) is a special purpose local development corporation organized pursuant to Section 1411 of the Not-For-Profit Corporation Law of the State of New York and Erie County Local Law 3 of 2000 (“Local Law 3”).

ETASC was incorporated on August 17, 2000, for the purpose of issuing tobacco settlement asset-backed bonds in order to provide funds to purchase from the County of Erie some or all of the County's right, title, and interest under the Master Settlement Agreement (MSA) entered into on November 23, 1998, among the attorneys general of 46 states (including New York), the District of Columbia, the Commonwealth of Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, the Territory of the Northern Marianas and the four largest United States tobacco product manufacturers:  Philip Morris Incorporated, R.J. Reynolds Tobacco Company, Brown and Williamson Tobacco Company, and Lorillard Tobacco Company (collectively, the “Original Participating Manufacturers: or “OPMs”) in settlement of certain smoking-related litigation and a Consent Decree and Final Judgment entered in New York State Supreme Court, including the County’s right to receive certain initial and annual payments to be made by the OPMs under the MSA.  The payments to be received by the County from the OPMs are collectively defined as the “Tobacco Assets.”

The County has utilized and to the extent available will utilize the proceeds of the sale of its interest under the MSA for various County purposes consistent with Local Law 3.

ETASC sold bonds in 2000, 2005 and 2006, (collectively the “Bonds”), by pledging its payments from the OPMs pursuant to the MSA through 2060 to make principal and interest payments on the bonds.

ETASC was formed and its activities are strictly limited to:

  1. Acquiring some or all of the Tobacco Assets from the County
  2. Issuing bonds, the net proceeds of which are paid to the County for ETASC’s purchase of some or all of its Tobacco Assets
  3. Collecting receipts from the OPMs under the MSA and servicing its debt in connection with the issuance of its tobacco settlement asset-backed bonds
  4. Remaining in existence for the terms of its bonds and, if required by its outstanding bonds, providing annual reports to its bondholders