§ 9-B — Limitations on short-term borrowing

New York § 9-B

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

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* § 9-b. Limitations on short-term borrowing. 1. The limitations on\nshort-term borrowing imposed upon the city by this section shall be in\naddition to the limitations on short-term borrowing imposed on the city\nunder the local finance law. In the event any provisions of the local\nfinance law shall be inconsistent with the provisions of this section,\nthe provisions of this section shall prevail. For the purposes of this\nsection the terms "bond anticipation notes", "tax anticipation notes",\n"revenue anticipation notes" and "budget notes" shall not mean one or\nmore of or any of the respective notes held by the municipal assistance\ncorporation for the city of New York on June thirtieth, nineteen hundred\nseventy-eight or any note of the city held by such corporation issued in\nexchange for or in refunding or renewal of any such note.\n 2. a. No tax anticipation notes shall be issued by the city in\nanticipation of the collection of taxes or assessments levied for a\nfiscal year which would cause the principal amount of such issue of tax\nanticipation notes to exceed an amount equal to ninety per cent of the\navailable tax levy with respect to such issue.\n b. Tax anticipation notes and renewals thereof shall mature not later\nthan the last day of the fiscal year in which they were issued.\n 3. a. No revenue anticipation note shall be issued by the city in\nanticipation of the collection or receipt of revenue in a fiscal year\nwhich would cause the principal amount of revenue anticipation notes\noutstanding to exceed ninety per cent of the available revenues for such\nfiscal year. For purposes of this subdivision, available revenues shall\nbe the revenues other than real estate taxes and assessments which have\nbeen estimated in the financial plan to be realized in cash during such\nyear, less revenues previously collected, other than revenues on deposit\nin the RAN debt service account or any special fund established pursuant\nto law for the payment of interest and/or principal of revenue\nanticipation notes.\n b. Each issue of revenue anticipation notes shall be issued only in\nanticipation of the receipt of a specific type or types of revenue and\nthe amount of revenue, the source of revenue and the anticipated date of\npayment shall be stated in the proceedings authorizing the issuance of\nsuch notes.\n c. Revenue anticipation notes shall mature not later than the last day\nof the fiscal year in which they were issued, and may not be renewed or\nextended to a date more than ten days after the anticipated date of\nreceipt of such revenue. No such renewal note shall mature after the\nlast day of such fiscal year unless the board shall certify that the\nrevenue against which such renewal note is issued has been properly\naccrued and estimated in the financial plan in effect on the date of\nissuance of such renewal note; provided that in no event shall any such\nrenewal notes mature later than one year subsequent to the last day of\nthe fiscal year during which such revenue anticipation notes were\noriginally issued.\n 4. a. No bond anticipation note shall be issued by the city in any\nfiscal year which would cause the principal amount of bond anticipation\nnotes outstanding, together with interest due or to become due thereon,\nto exceed fifty per cent of the principal amount of bonds issued by the\ncity in the twelve months immediately preceding the month in which the\nnote is to be issued.\n b. The proceeds of each bond issue shall be (i) held in trust for the\npayment, at maturity, of the principal of and interest on any bond\nanticipation notes of the city issued in anticipation of such bonds and\noutstanding at the time of the issuance of such bonds, (ii) paid into\nthe general fund of the city in repayment of any advance made from such\nfund pursuant to section 165.10 of the local finance law, and (iii) any\nbalance shall be expended for the object or purpose for which such bonds\nwere issued.\n c. Bond anticipation notes shall mature not later than one year after\ntheir date of issuance and may be renewed for a period not to exceed two\nyears, or such longer period as may be permitted for bond anticipation\nnotes of the state, from the date of original issue.\n 5. Budget notes issued pursuant to section 29.00 of the local finance\nlaw may only be issued to fund projected expense budget deficits. No\nbudget notes or renewals thereof, shall mature later than sixty days\nprior to the last day of the fiscal year next succeeding the fiscal year\nduring which such budget notes were originally issued.\n 6. The city shall issue no obligations which shall be inconsistent\nwith the financial plan or with the limitations set forth in\nsubdivisions one through five of this section.\n * Terminates July 1, 2035 or ... see § 13\n