§ 40.10 — Deficiency note resolution; form and contents; authorization thereof

New York § 40.10

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 3: Local Obligations: Authorization Thereof
• Art. 2: Local Indebtedness

Text

§ 40.10 Deficiency note resolution; form and contents; authorization\nthereof. a. The issuance of deficiency notes or renewals thereof shall\nbe authorized by a "deficiency note resolution". Each such resolution\nshall be properly dated and shall bear a title which will indicate that\nit relates to a deficiency note.\n b. Any municipality, school district or district corporation may adopt\none or more deficiency note resolutions authorizing the issuance of\ndeficiency notes for the specific object or purpose of covering a\ndeficiency in any fund or funds arising from revenues being less than\nthe amount estimated in the budget for the current fiscal year of the\nmunicipality, school district or district corporation.\n c. A deficiency note resolution shall contain, in substance, at least\nthe following provisions:\n 1. a statement of the specific object or purpose for which the\ndeficiency notes to be authorized by such resolution are to be issued;\n 2. a statement of the amount of deficiency notes to be issued, the\namount and the cause of the deficiency in revenues, and that no other\nsource of financing is available;\n 3. a statement of the period of maturity of such notes; and\n 4. if such notes are to be issued in renewal of other notes, a\nstatement that the date of maturity of such notes shall not extend\nbeyond the applicable period provided in section 29.20 of this article\nfor the maturity of such notes.\n d. Every deficiency note resolution shall be adopted by at least a\nmajority vote of the voting strength of the finance board. A two-thirds\nvote of the voting strength of the finance board shall be required to\nadopt a deficiency note resolution authorizing the issuance of renewal\nnotes or authorizing the issuance of deficiency notes in a year next\nsucceeding a year in which deficiency notes were issued.\n