§ 2 — Definitions

New York § 2

• Jurisdiction: New York
• Law FEA: NYS Financial Emergency Act for the city of NY 868/75

Text

* § 2. Definitions. As used in this act, the following words and terms\nshall have the following meanings unless the context shall indicate\nanother or different meaning or intent.\n 1. "Comptroller" means the comptroller of the state of New York.\n 2. "City" means the city of New York.\n 3. "Mayor" means the mayor of the city of New York.\n 4. "City comptroller" means the comptroller of the city.\n 5. "Covered organization" means any governmental agency, public\nauthority or public benefit corporation which receives or may receive\nmonies directly, indirectly or contingently, (other than monies received\nfor the sale of goods or the rendering of services or the loan of monies\nto the city) from the city, and in any event includes, without\nlimitation, the board of education of the city of New York, the board of\nhigher education of the city of New York, the New York city transitional\nfinance authority, the health and hospitals corporation, the New York\ncity transit authority, the New York city housing authority, the New\nYork city housing development corporation, city university construction\nfund, Battery park city authority, New York city convention and\nexhibition center corporation, Manhattan and Bronx surface transit\noperating authority, Staten Island rapid transit operating authority,\nthe New York city sports authority and the Brooklyn sports center\nauthority but shall not include (i) any governmental agency, public\nauthority or public benefit corporation specifically exempted from the\nprovisions of this act by order of the board upon application of such\nagency, authority, or corporation to the board or at the board's own\nmotion upon a finding by the board that such exemption does not\nmaterially affect the ability of the city to adopt and maintain a budget\npursuant to the provisions of this act and provided that at the time of\nsuch exemption there shall have been and during the period of such\nexemption there shall be an annual audit by a nationally recognized\nindependent certified public accounting firm or consortium of firms, one\nof which shall be a nationally recognized firm, of the covered\norganization's financial statements performed in accordance with\ngenerally accepted auditing standards and report by such auditor thereon\nwhich includes an opinion that the financial statements so audited have\nbeen prepared in accordance with generally accepted accounting\nprinciples (subject to the provisions of subdivision two-a of section\neight of this act) and such other information as such auditors deem\nappropriate, (ii) any state public authority as defined in section two\nhundred one of the civil service law, unless specifically named above,\nor (iii) any governmental agency, authority, commission or\ninstrumentality created by compact or agreement between the state of New\nYork and another state or states; provided, however, that the board may\nterminate any exemption granted by order of the board pursuant to this\nsubdivision upon a determination that the circumstances upon which such\nexemption was granted are no longer applicable.\n 6. "Board" means the governmental agency created by section five of\nthis act.\n 7. "Deputy comptroller" means the deputy comptroller for the city of\nNew York created by section forty-one-a of the executive law.\n 8. "Municipal assistance corporation for the city of New York" means\nthe corporate governmental agency created by section three thousand\nthirty-three of the public authorities law.\n 9. "Short-term obligations" means tax anticipation notes, bond\nanticipation notes, revenue anticipation notes, budget notes and urban\nrenewal notes of the city.\n 10. "Revenues" mean all taxes, federal and state aid, rents, fees,\ncharges, payments, all proceeds from borrowings and other income and\nreceipts paid or payable to or for the account of the city or any of the\ncovered organizations.\n 11. "Financial plan" means the financial plan of the city and the\ncovered organizations to be developed pursuant to section eight of this\nact, as from time to time modified.\n 12. "Control period" means the period of time from the effective date\nof this act until the date when (a) there shall no longer be effective\nor outstanding any guarantee by the United States of America as to\npayment of principal of or interest on any note or bond issued by the\ncity or a state financing agency, (b) the board shall determine, based\non annual audit reports furnished in accordance with section seven-a,\nthat for each of the three immediately preceding fiscal years, the city\nhas adopted and adhered to budgets covering all expenditures other than\ncapital items, the results of which did not show a deficit when reported\nin accordance with generally accepted accounting principles subject to\nthe provisions of subdivision two-a of section eight of this act and (c)\nthe comptroller of the state and the comptroller of the city jointly\nshall certify that securities sold by or for the benefit of the city\nduring the fiscal year immediately preceding such date and the then\ncurrent fiscal year in the general public market satisfied the capital\nand seasonal financing requirements of the city during such period and\nthat there is a substantial likelihood that such securities can be sold\nin the general public market from such date through the end of the next\nsucceeding fiscal year in amounts which will satisfy substantially all\nof the capital and seasonal financing requirements of the city during\nsuch period in accordance with the financial plan then in effect,\nprovided that for these purposes sales to any fund whose governing body\nincludes any designated representative of the state or city or to any\nfinancial institution which participates in a private placement for the\npurchase of securities for the benefit of the city during its nineteen\nhundred seventy-nine fiscal year shall not be deemed sales in the\ngeneral public market, unless in the case of sales to such a financial\ninstitution such comptrollers jointly certify at the time of each such\nsale that a sale could have been made in such amount and on reasonably\ncomparable terms in the general public market. After termination of the\ncontrol period in accordance with the foregoing provisions and until\nthere shall no longer be outstanding any notes or bonds issued by the\ncity or a state financing agency which are entitled to the benefits of\nthe pledge and agreement authorized by section ten-a hereof, the board\nshall reimpose a control period upon a determination at any time that\nany of the following events has occurred or that there is a substantial\nlikelihood and imminence of such occurrence: (i) the city shall have\nfailed to pay the principal of or interest on any of its bonds or notes\nwhen due or payable (other than notes held by the municipal assistance\ncorporation for the city of New York to the extent that such corporation\nhas evidenced its intention not to present such notes for payment during\nthe fiscal year in which the determination is made provided that such\nnotes were held by such corporation on June thirtieth, nineteen hundred\nseventy-eight or were issued in exchange for or in refunding or renewal\nof notes held by such corporation on such date), (ii) the city shall\nhave incurred a deficit of more than one hundred million dollars during\nits fiscal year in the results of operations covered by a budget\ncovering all expenditures other than capital items as reported in\naccordance with generally accepted accounting principles, subject to the\nprovisions of subdivision two-a of section eight of this act, (iii) the\ncity shall have issued notes in violation of section nine-b of this act\nas amended from time to time, (iv) the city shall have otherwise\nviolated any provision of this act and such violation substantially\nimpairs the ability of the city to pay principal of or interest on its\nbonds or notes when due and payable or its ability to adopt or adhere to\na budget covering all expenditures other than capital items balanced in\naccordance with this act or (v) the comptrollers' joint certification at\nany time, at the request of the board or on the comptrollers' joint\ninitiative, which joint certification shall be made from time to time as\npromptly as circumstances warrant and reported to the board, that on the\nbasis of facts existing at such time they could not make the joint\ncertification described by clause (c) of the preceding sentence. The\nboard shall terminate any such reimposed control period when it\ndetermines that none of the conditions which would permit the board to\nreimpose a control period exist. After termination of a control period\nthe board shall annually consider items (i) through (v) above and\ndetermine whether, in its judgment, any of the events described in such\nitems have occurred and the board shall publish each such determination.\nEach such joint certification made by the comptrollers hereunder shall\nbe based on their separate written determinations which shall take into\naccount a report and opinion of a nationally recognized independent\nexpert in the marketing of municipal securities selected by the board as\nwell as any other information which may be available to each comptroller\nand each such separate written determination by the comptrollers shall\nhave annexed thereto the report and opinion of such expert and any other\ninformation taken into account and shall be made public when delivered\nto the board. Notwithstanding any part of the foregoing to the contrary,\nin no event shall any control period continue beyond the earlier of (a)\nJuly first, two thousand eight or (b) the date (i) when all bonds and\nnotes containing the pledge and agreement authorized by section ten-a of\nthis act are refunded, redeemed, discharged or otherwise defeased or\n(ii) when there shall no longer be outstanding any guarantee by the\nUnited States of America or any agency or instrumentality thereof as to\npayment of principal of or interest on any note or bond issued by the\ncity or a state financing agency, whichever of (i) or (ii) shall occur\nlater.\n 13. "Debt service repayment account" means the special account\nestablished pursuant to subdivision four of section nine of this act.\n 14. "Fund" means the general debt service fund established pursuant to\nsection nine-a of this act.\n 15. "Board fund" means the board fund established pursuant to section\nnine of this act.\n 16. "TAN debt service account" means the tax anticipation note debt\nservice account established within the fund pursuant to section nine-a\nof this act.\n 17. "RAN debt service account" means the revenue anticipation note\ndebt service account established within the fund pursuant to section\nnine-a of this act.\n 18. "Available funds" means at any date of computation the monies held\nby the city or a covered organization which (i) are not required (a) to\nbe applied to the fund, the TAN debt service account, the RAN debt\nservice account or otherwise to meet the debt service requirements of\nthe city and the covered organizations on their bonds and notes (other\nthan bonds and notes of covered organizations payable from revenues not\nincluded in the fund) as they become due, or (b) to pay other\nliabilities of the city and the covered organizations having statutory\nor contractual priority over remaining liabilities of the city and the\ncovered organizations, and (ii) therefore, may be applied to the payment\nof other obligations on an allocated basis as specified by the city for\nexpenditures in accordance with a financial plan.\n 19. "Available tax levy" with respect to an issue of tax anticipation\nnotes means at any date of computation the total amount of city real\nestate taxes or assessments projected, consistent with the financial\nplan then in effect, to be received in cash on or before the fifth day\npreceding the maturity date of such tax anticipation note issue, less\namounts required during the period between the date of computation and\nthe fifth day preceding such maturity date to be paid into the general\ndebt service fund or otherwise required to pay interest payable on other\noutstanding city bonds and notes, principal (including payments into\nsinking funds) coming due on outstanding city bonds and principal to be\npaid from sources other than the proceeds of bonds or renewal notes on\nother outstanding city notes (exclusive of revenue anticipation notes or\nrenewals thereof issued less than two years prior to the date of\ncomputation) but not including payments from sinking funds required by\nthe terms of certain city bonds. For the purposes of this subdivision\nsuch amounts required shall not include principal of or interest on any\nnotes of the city held by the municipal assistance corporation for the\ncity of New York to the extent that such corporation has evidenced its\nintention not to present such notes for payment of principal or interest\nduring the fiscal year in which the computation is made provided that\nsuch notes were held by such corporation on June thirtieth, nineteen\nhundred seventy-eight or were issued in exchange for or in refunding or\nrenewal of notes held by such corporation on such date.\n 20. "State financing agency" means the municipal assistance\ncorporation for the city of New York or its successor.\n * Terminates July 1, 2035 or ... see § 13\n