§ 2436 — State aid guarantee

§ 2436. State aid guarantee. 1. In the event that a municipality fails\nto make any payment of principal or interest on its municipal bonds, the\nchairman of the agency shall certify to the comptroller that the\nmunicipality has failed to meet its obligations. Such certificate shall\nbe in such form as the agency deems desirable, but shall include the\nexact amount of interest and principal required to satisfy the\nmunicipality's obligations to the agency.\n 2. The comptroller, upon receipt of such certificate from the agency,\nshall withhold from the municipality any state aid payable to such\nmunicipality to the extent necessary to meet the certified amount of\ninterest or principal and shall immediately pay over to the agency the\namount so withheld.\n 3. Pending payment to the agency from the comptroller of any such\nstate aid withheld from a municipality, the agency shall, if payments of\ninterest or principal are due on the agency's bonds, withdraw an amount\nsufficient to meet such amounts withheld from a municipality from the\ndebt service reserve fund securing such bonds. Any such amount withdrawn\nfrom such debt service reserve fund shall be paid into such debt service\nreserve fund upon receipt by the agency from the comptroller of any\nstate aid withheld. Any amount so paid to the agency from such state aid\nshall not obligate the state to make, nor entitle the municipality to\nreceive, any additional amounts of state aid.\n 4. In the event that a special program municipality shall fail to make\na payment in such amount (as calculated in accordance with the special\nprogram agreement to which such municipality shall be a party) and by\nsuch date as is provided to be made by such municipality in its special\nprogram agreement, the chairman of the agency shall so certify to the\ncomptroller. Such certificate shall be in such form as the agency deems\ndesirable, but shall specify the amount by which such payment shall have\nbeen deficient. The comptroller, upon receipt of such certificate from\nthe agency, shall withhold from such special program municipality any\nstate aid payable to such municipality to the extent of the amount so\nstated in such certificate as not having been made, and shall\nimmediately pay over to the agency the amount so withheld; provided,\nhowever, that in the case of a special program agreement entered into\nfor the purpose described in paragraph (b) or (c) or (d) or (e) of\nsubdivision one of section twenty-four hundred thirty-five-a of this\ntitle, the comptroller shall be authorized to withhold from the special\nprogram municipality such school aid as is payable to the city school\ndistrict of the special program municipality, to the extent of the\namount so stated in such certificate as not having been made, and shall\nimmediately pay over to the agency the amount so withheld. Any amount so\npaid to the agency from such state and/or school aid shall not obligate\nthe state to make, nor entitle the special program municipality to\nreceive, any additional amounts of state and/or school aid. Nothing\ncontained therein shall be deemed to prevent the state from modifying,\nreducing or eliminating any program or programs of state and/or school\naid; nor shall the state be obligated by the terms hereof to maintain\nstate and/or school aid at any particular level or amount.\n 5. In the event that a special school deficit program district shall\nfail to make a payment in such amount (as calculated in accordance with\nthe special school deficit program agreement to which such school\ndistrict shall be a party) and by such date as is provided to be made by\nsuch school district in its special school deficit program agreement,\nthe chairman of the agency shall so certify to the comptroller, with a\ncopy to the commissioner of education. Such certificate shall be in such\nform as the agency deems desirable, but shall specify the amount by\nwhich such payment shall have been deficient. The comptroller, upon\nreceipt of such certificate from the agency, shall withhold from such\nspecial school deficit program district any school aid payable to such\nspecial school deficit program district to the extent of the amount so\nstated in such certificate as not having been made, and shall\nimmediately pay over to the agency the amount so withheld. Any amount so\npaid to the agency from such school aid shall not obligate the state to\nmake, nor entitle the special school deficit program district to\nreceive, any additional amounts of school aid. Nothing contained therein\nshall be deemed to prevent the state from modifying, reducing or\neliminating any program or programs of school aid; nor shall the state\nbe obligated by the terms hereof to maintain school aid at any\nparticular level or amount.\n