§ 15.00 — Indebtedness relative to municipal cooperative activities

New York § 15.00

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 1-A: Indebtedness Relative to Municipal Cooperative Activities
• Art. 2: Local Indebtedness

Text

§ 15.00 Indebtedness relative to municipal cooperative activities. a.\nLegislative intent. The provisions of title one-A of article two of this\nchapter are intended to effectuate the provisions of sections one and\ntwo-a of article eight of the constitution, as in force and effect on\nJanuary first, nineteen hundred sixty, in relation to indebtedness\ncontracted, either jointly or severally, for (a) a joint service\ndescribed in section one of such article eight and (b) a joint water,\nsewage or drainage project described in paragraphs B, D and F of section\ntwo-a of such article eight.\n b. Definitions. As used in this title:\n 1. The term "municipal corporation" means a county outside the city of\nNew York, a city, a town, a village, or a school district.\n 2. The term "municipality" means a county outside the city of New\nYork, a city, a town or a village.\n 3. The term "district," unless a specific type of district is referred\nto, means a county or town improvement district for which the county or\ntown or towns in which such district is located is or are required to\npledge its or their faith and credit for the payment of the principal of\nand interest on all indebtedness to be contracted for the purposes of\nsuch district.\n 4. The term "joint service" means a municipal facility, service,\nactivity or undertaking described in section one of article eight of the\nconstitution, but shall not include any object or purpose the\nindebtedness for which would be subject to the limitations of paragraph\na of section 150.00 of this chapter.\n 5. The term "joint water, sewage or drainage project" means a joint\nproject to provide for a common supply of water, the common conveyance,\ntreatment and disposal of sewage or a common drainage system, as\ndescribed in paragraphs B, D and F of section two-a of article eight of\nthe constitution.\n 6. The term "joint indebtedness" means indebtedness contracted for or\nin relation to a joint service or a joint water, sewage or drainage\nproject and for which the joint faith and credit of the municipal\ncorporations or municipalities would be pledged for the payment thereof.\nSuch term also shall include (a) indebtedness on account of the\nacquisition of real property the title to which has vested in the\nmunicipal corporations or municipalities, or the title to which they\nhave agreed to accept pursuant to a contract therefor, and for which\npayment has not been made, (b) indebtedness arising from contracts and\n(c) involuntary indebtedness incurred in relation to a joint service or\na joint water, sewage or drainage project and for which the municipal\ncorporations or municipalities are jointly liable, where, from the\ncontext of this title, it is evident that indebtedness on account of\nreal property liabilities, contract liabilities and involuntary\nindebtedness are intended to be included within the meaning of the term.\n 7. The term "several indebtedness" means indebtedness contracted for\nor in relation to a joint service or a joint water, sewage or drainage\nproject and for which the faith and credit of a single municipal\ncorporation or municipality would be pledged for the payment thereof.\nSuch term also shall include (a) indebtedness on account of the\nacquisition of real property the title to which has vested in a\nmunicipal corporation or municipality, or in the participating municipal\ncorporations or municipalities, or the title to which it has, or they\nhave, agreed to accept pursuant to a contract therefor, and for which\npayment has not been made, (b) indebtedness arising from contracts and\n(c) involuntary indebtedness incurred in relation to a joint service or\na joint water, sewage or drainage project and for which a municipal\ncorporation or a municipality is not jointly liable, where, from the\ncontext of this title, it is evident that indebtedness on account of\nreal property liabilities, contract liabilities and involuntary\nindebtedness are intended to be included within the meaning of the term.\n c. Power to contract indebtedness; joint services and joint projects.\n1. Municipal corporations. Two or more municipal corporations which\nhave agreed to provide a joint service, either directly or on behalf of\na district, pursuant to article five-G of the general municipal law, or\npursuant to any other law enacted by the legislature, may contract\neither joint indebtedness or several indebtedness to provide for such\njoint service. Such indebtedness shall not be contracted, however,\nunless there is an applicable period of probable usefulness prescribed\nin paragraph a of section 11.00 of this chapter under which each of the\nparticipating municipal corporations, acting separately, either directly\nor on behalf of a district, could have issued obligations pursuant to\nthis chapter.\n 2. Municipalities. Two or more municipalities which, either directly\nor on behalf of a district, have agreed to provide a joint water, sewage\nor drainage project pursuant to any law enacted by the legislature may\ncontract either joint indebtedness or several indebtedness to provide\nfor such joint project. Such indebtedness shall not be contracted,\nhowever, unless there is an applicable period of probable usefulness\nprescribed in paragraph a of section 11.00 of this chapter under which\neach of the participating municipalities, acting separately, either\ndirectly or on behalf of a district, could have issued obligations\npursuant to this chapter.\n 3. General provisions. (a) The financing of a joint service or a joint\nwater, sewer or drainage project may include but shall not be limited to\n(1) the acquisition of land and permanent and temporary rights in land,\n(2) the original furnishings, equipment, machinery or apparatus for a\nphysical public betterment or improvement or required for the purposes\nfor which the public betterment or improvement is to be used, and the\nreplacement of such furnishings, equipment, machinery or apparatus, (3)\nthe acquisition, construction, reconstruction, conversion or\nalterations, of, or additions to, buildings, (4) the acquisition of\nmotor vehicles, machinery or apparatus to be used in the work of\nconstructing, reconstructing, converting, altering, or adding to,\nrepairing or maintaining a physical public betterment or removing the\nsnow and ice therefrom, (5) appraisals of real property by experts to\nassist in the assessment thereof for taxation, (6) the payment of\njudgments, claims, awards or sums described in and subject to the\nlimitations of subdivision thirty-three of paragraph a of section 11.00\nand required to be paid because of such joint service or joint water,\nsewage or drainage project, (7) the temporary financing in anticipation\nof the collection of taxes, assessments, rents, rates or charges or the\nreceipt of money as provided in subdivision thirty-six of paragraph a of\nsection 11.00, (8) the financing of the protection of tax liens and\nforeclosure costs described in and subject to the limitations of\nsubdivision thirty-seven of paragraph a of section 11.00 and (9) the\ntemporary financing of miscellaneous expenditures by the issuance of\nbudget notes as provided in subdivision forty of paragraph a of section\n11.00.\n (b) A municipal corporation shall not contract indebtedness for a\njoint service, and a municipality shall not contract indebtedness for a\njoint water, sewage or drainage project, to a greater extent than it is\nauthorized by law to spend money for any such service or project and\nprovided also that this section shall not relieve any such unit of\ngovernment of any duty imposed by law to include in its annual budget or\ntax levy or otherwise to pay from current funds all or part of any\nexpenditure that it may make for any such service or project.\n (c) Where the agreement between the municipal corporations or\nmunicipalities in relation to any joint service or any joint water,\nsewage or drainage project does not provide that the indebtedness which\nis to be contracted is to be joint indebtedness, the amounts of\nindebtedness which are to be contracted severally by the parties to the\nagreement shall be in the proportions specified in the agreement. Where\nthe agreement does not provide how the indebtedness shall be contracted,\nand the parties cannot otherwise agree, the indebtedness shall be\ncontracted as joint indebtedness.\n (d) Any involuntary indebtedness which is incurred because of a joint\nservice or joint water, sewage or drainage project shall, until\nsatisfied, be deemed the joint indebtedness of the parties to the\nagreement. The payment of any such indebtedness, however, may be\nfinanced by the issuance of obligations severally by such parties for\nspecific proportions of the amount thereof according to the terms of the\nagreement. Where the agreement does not provide how such involuntary\nindebtedness shall be financed, and the parties cannot otherwise agree,\nthe obligations issued to finance the payment thereof shall be joint\nindebtedness.\n (e) Where joint indebtedness is contracted pursuant to the provisions\nof this section the participating municipal corporations or\nmunicipalities, by joint action of their finance boards or their chief\nfiscal officers, as the case may be, may issue obligations pursuant to\nthe provisions of this chapter in the same manner as a single county,\ncity, town, village or school district and shall pledge the joint faith\nand credit of the issuers for the payment of all such indebtedness.\n (f) Notwithstanding any other provision of this title, or of any other\nprovision of law, in relation to (1) the allocation and apportionment of\njoint indebtedness for the purpose of determining the debt-contracting\npower of a municipal corporation or municipality or (2) the exclusion of\nany such joint indebtedness in determining the debt-contracting power of\na municipal corporation or municipality, the liability of the\nparticipating municipal corporations or municipalities for the payment\nof the principal of an interest on such joint indebtedness shall be a\njoint liability of the participating municipal corporations or\nmunicipalities.\n (g) Where there has been a pledge of the faith and credit of any\nmunicipal corporation or municipality pursuant to section 100.00 of this\nchapter for the payment of any several indebtedness, or of any joint\nindebtedness, in relation to a joint service or a joint water, sewage or\ndrainage project, provisions shall be made annually by appropriation for\nthe payment of the interest thereon and of the amounts required for the\nredemption thereof in compliance with the provisions of section two of\narticle eight of the constitution. If at any time the respective\nappropriating authorities of any such municipal corporation or\nmunicipality shall fail to make such appropriations, a sufficient sum\nshall be set apart from the first revenues thereafter received and shall\nbe applied to such purposes. The chief fiscal officer of any such\nparticipating municipal corporation or municipality may be required to\nset apart and apply such revenues as aforesaid at the suit of any holder\nof obligations issued for any such indebtedness. All laws requiring the\nwithholding of state aid in the event of the default in the payment of\nthe principal of and interest on indebtedness shall be applicable in the\nevent of a default in the payment of the principal of and interest on\nany such several indebtedness or joint indebtedness.\n (h) The powers which may be exercised by a finance board in relation\nto such joint indebtedness or several indebtedness shall include, but\nshall not be limited to, the following:\n 1. Determining the period of probable usefulness for any object or\npurpose or class thereof.\n 2. Determining the subdivision of paragraph a of section 11.00 of this\nchapter which applies to any object or purpose or class thereof.\n 3. Authorizing the issuance of bonds and the issuance and renewal of\nbond anticipation notes, capital notes, tax anticipation notes, revenue\nanticipation notes and budget notes subject to the provisions of this\nsection and sections 21.00, 23.00, 24.00, 25.00, 28.00, 29.00, 30.00,\n31.00, 32.00, 33.00, 33.10, 34.00, 35.00, 36.00, 37.00, 38.10, 39.00,\n40.00 and 41.10 of this chapter.\n 4. Prescribing the terms, form and contents of obligations, the place\nof payment thereof, and providing for the sale, execution, issuance and\ndelivery and cancellation thereof subject to the provisions of this\nsection and sections 50.00, 51.00, 52.00, 53.00, 54.00, 55.00, 55.10,\n56.00, 57.00, 58.00, 59.00, 60.00, 61.00, 62.00, 62.10, 63.00 and 63.10\nof this chapter, except as otherwise provided in subparagraph (u) of\nthis subdivision.\n 5. Entering into contracts with a bank or trust company for the place\nof payment of obligations and for the purpose of having a bank or trust\ncompany act as paying agent or as registration agent subject to the\nprovisions of this section and sections 54.00 and 70.00 of this chapter.\n 6. Adopting the procedure specified in sections 80.00 and 81.00 of\nthis chapter which would be requisite to making sections 82.00, 83.00\nand 84.00 of this chapter applicable.\n 7. Repealing or revoking resolutions or certificates authorizing the\nissuance of obligations, subject, however, to the provisions of section\n41.00 of this chapter.\n 8. Refunding of capital notes pursuant to the provisions of section\n91.00 of this chapter, except that the provisions of paragraph b of\nsection 107.00 of this chapter shall not be applicable in any such\nrefunding of joint indebtedness or several indebtedness.\n 9. Reissuing obligations in place of lost, destroyed, partially\ndestroyed or defaced obligations pursuant to section 104.00 of this\nchapter.\n 10. Depositing and investing the proceeds of obligations subject to\nthe provisions of section 165.00 of this chapter.\n 11. Authorizing the temporary use of funds pursuant to section 165.10\nof this chapter.\n (i) The finance boards of the participating municipal corporations or\nmunicipalities shall provide that the place of payment of bonds or notes\nconstituting joint indebtedness shall be in the office of an appropriate\nofficer of one of the participating municipal corporations or\nmunicipalities if a contract is not made with a bank or trust company as\nthe place of payment as provided in section 54.00 of this chapter.\n (j) The finance boards of the participating municipal corporations or\nmunicipalities shall designate an appropriate officer of one of the\nparticipating municipal corporations or municipalities as registration\nagent in relation to any bonds or notes constituting joint indebtedness\nif a contract is not entered into with a bank or trust company to act as\nregistration agent as provided in section 70.00 of this chapter. The\nofficer so designated shall perform all of the duties and keep all of\nthe records in relation to such joint indebtedness required by sections\n70.00, 71.00, 72.00, 73.00, 74.00, 75.00 and paragraph d of section\n164.00 of this chapter.\n (k) The finance board of the participating municipal corporations or\nmunicipalities shall designate an appropriate officer of one of the\nparticipating municipal corporations or municipalities to keep the\nrecord of any bonds or notes constituting joint indebtedness as required\nby section 163.00 of this chapter.\n (l) Notwithstanding any other provisions of this section, if any power\nof a finance board of any participating municipal corporation or\nmunicipality may be delegated to its chief fiscal officer or to any\nother official or body under any section of this chapter, such chief\nfiscal officer or other official or body may exercise the powers so\ndelegated in relation to matters to which this title and other\nprovisions of this chapter apply.\n (m) Notwithstanding any other provisions of this section, where any\npower may be delegated to the chief fiscal officers of the participating\nmunicipal corporations or municipalities pursuant to this section, the\nfinance boards of the participating municipal corporations or\nmunicipalities may agree that any such power may be delegated to and\nexercised by one of such chief fiscal officers.\n (n) Where any action is taken in relation to joint indebtedness for\nwhich the joint faith and credit of the participating municipal\ncorporations or municipalities would be pledged, or in relation to\nobligations issued pursuant to this chapter, the finance boards of each\nof the participating municipal corporations or municipalities must\nseparately authorize such action to be taken, except as otherwise\nprovided in subparagraphs (l) and (m) of this subdivision. Such separate\nauthorization by each such finance board shall be subject to the\nprovisions of this chapter, and of local laws enacted pursuant to this\nchapter, which would be applicable in the event that the object or\npurpose in relation to which action is being taken was the object or\npurpose solely of the county, city, town, village or school district\nwhich the finance board represents.\n (o) Where the fiscal years of the participating municipal corporations\nor municipalities are not the same and where joint indebtedness is to be\nor has been contracted by the issuance or renewal of tax anticipation\nnotes, revenue anticipation notes, capital notes and budget notes or any\naction is required to be taken in, or limitation is applicable in\nconnection with, a "fiscal year," the finance boards of such\nparticipants may determine that the "fiscal year" for such purposes\nshall be the same as the fiscal year of one of the participants.\n (p) Notwithstanding the provisions of section 31.00 of this chapter,\nany school district which is a participating municipal corporation in\nrelation to a joint service may, in connection with such joint service,\nadopt one or more bond resolutions or capital note resolutions\nauthorizing the issuance of bonds or capital notes as several\nindebtedness, or may participate in the adoption of any such resolution\nauthorizing the issuance of bonds or capital notes as joint\nindebtedness, for a class of objects or purposes for which objects or\npurposes serial bonds may be issued, subject, however, to the applicable\nprovisions of section 37.00 of this chapter.\n (q) A bond resolution, a capital note resolution or a budget note\nresolution adopted in compliance with the provisions of sections 32.00\nand 40.00 of this chapter for a joint service or a joint water, sewage\nor drainage project shall state the total amount of the indebtedness\nwhich is to be contracted severally by the issuance of bonds, capital\nnotes or budget notes by each of the participating municipal\ncorporations or municipalities for the object or purpose or class\nthereof set forth in the resolution, or, if joint indebtedness is to be\ncontracted, any such resolution shall set forth the total amount of the\njoint indebtedness which is to be contracted and the amounts which it is\nestimated will be allocated and apportioned to each of the participating\nmunicipal corporations or municipalities for the purpose of ascertaining\ntheir debt-contracting powers.\n (r) Notices to be published in relation to a mandatory or permissive\nreferendum pursuant to sections 33.10, 35.00, 36.00 and 37.00 of this\nchapter, and notices required to be published in connection with the\nvoting of a special tax or a tax to be collected in installments as a\ncondition precedent to the adoption of a bond resolution for a joint\nservice or joint water, sewage or drainage project, shall state the\ntotal amount of the indebtedness which is to be contracted severally by\nthe issuance of bonds and capital notes by each of the participating\nmunicipal corporations or municipalities for the object or purpose or\nclass thereof for which it is proposed that bonds or capital notes will\nbe issued, or, if joint indebtedness is to be contracted, any such\nnotice shall set forth the total amount of the joint indebtedness which\nis to be contracted and the amounts which it is estimated will be\nallocated and apportioned to each of the participating municipal\ncorporations or municipalities for the purpose of ascertaining their\ndebt-contracting powers.\n (s) The notice required to be published in an official newspaper\npursuant to section 81.00 of this chapter shall, where joint\nindebtedness is to be incurred, be published in the official newspaper\nor newspapers of each of the participating municipal corporations or\nmunicipalities or if there be no such newspaper or newspapers, then in\none or more newspapers having general circulation in such municipal\ncorporations or municipalities as the finance boards shall designate,\nexcept that where any newspaper is the official newspaper of all of the\nparticipating municipal corporations or municipalities or is the only\nnewspaper designated by the finance boards as a newspaper having general\ncirculation in all of the participating municipal corporations or\nmunicipalities only one notice need be published in any such newspaper.\n (t) If bonds which would constitute several indebtedness are sold at\nprivate sale pursuant to the provisions of paragraph b of section 63.00\nof this chapter, the amount of such bonds shall be included in any\ncomputation of the total amount of bonds which may be sold at private\nsale in any fiscal year of the issuer.\n (u) Bonds which would constitute joint indebtedness may be sold at\nprivate sale pursuant to and, except as hereinafter provided, subject to\nthe provisions of paragraph b of section 63.00 of this chapter. The\ntotal amount of such bonds which may be so sold at private sale in any\ncalendar year shall not exceed one million dollars. The limitation of\nparagraph b of section 63.00 in relation to the total amount of bonds\nwhich may be sold at private sale in any fiscal year of the issuer shall\nnot be applicable to bonds sold pursuant to this subparagraph. The\namount of any bonds sold pursuant to this subparagraph shall not be\nincluded in computing the total amount of bonds not constituting joint\nindebtedness which could be sold at private sale in any fiscal year of\nthe issuer pursuant to paragraph b of section 63.00.\n (v) The provisions of paragraph b of section 107.00 of this chapter in\nrelation to down payment shall not apply in relation to any joint\nservice or joint water, sewage or drainage project which is to be\nfinanced in whole or in part by the issuance of obligations constituting\njoint indebtedness or several indebtedness of the participating\nmunicipal corporations or municipalities.\n (w) The limitations on the amount of budget notes which may be issued\nin any fiscal year and which are set forth in subdivisions two and three\nof paragraph a of section 29.00 of this chapter and in paragraph i of\nsuch section shall not be applicable to budget notes issued for the\npurposes permitted by such subdivisions two and three of paragraph a and\nsuch paragraph i of section 29.00 and in relation to a joint service or\na joint water, sewage or drainage project. Such budget notes issued for\nsuch purposes shall not affect the power of a county, city, town,\nvillage or school district to issue budget notes for other purposes\nunder such provisions of section 29.00 of this chapter.\n (x) The provisions of sections 160.00, 160.10, 161.00, 162.00, 165.00,\n166.00, 167.00, 170.00 and 180.00 of this chapter relating to action by\nthe finance board, delegation of powers and duties, negotiability of\nobligations, tax exemption, use of proceeds, inclusive of premiums, from\nthe sale of obligations, legal actions and appeals, powers to adopt\nlocal laws and liberal construction, and all other pertinent provisions\nof this chapter essential to effectuate the objects and purposes of this\ntitle, shall be applicable in relation to the indebtedness and financing\nof a joint service or a joint water, sewage or drainage project, except\nas otherwise expressly provided in this title.\n