§ 3058. Conditions on extension of benefits to the city. The\ncorporation shall, at the time of any exchange of the corporation's\nbonds and notes for obligations of the city pursuant to subdivision two\nof section three thousand fifty-five of this title or any payment of\nfunds of the corporation to the city or of any purchase from the city of\nits obligations pursuant to section three thousand fifty-seven of this\ntitle, require the city to agree to observe and perform the conditions\nset forth below in this section, with such limitations as to the\nimplementation of such conditions as the corporation may, subject to any\ncontract with bondholders or noteholders, then approve; provided,\nhowever, that no such specific limitations shall be so substantial as to\neffectively constitute a
Free access — add to your briefcase to read the full text and ask questions with AI
§ 3058. Conditions on extension of benefits to the city. The\ncorporation shall, at the time of any exchange of the corporation's\nbonds and notes for obligations of the city pursuant to subdivision two\nof section three thousand fifty-five of this title or any payment of\nfunds of the corporation to the city or of any purchase from the city of\nits obligations pursuant to section three thousand fifty-seven of this\ntitle, require the city to agree to observe and perform the conditions\nset forth below in this section, with such limitations as to the\nimplementation of such conditions as the corporation may, subject to any\ncontract with bondholders or noteholders, then approve; provided,\nhowever, that no such specific limitations shall be so substantial as to\neffectively constitute a waiver of any such conditions. Any such\nconditions may thereafter, in the discretion of the corporation, subject\nto any contract with bondholders or noteholders, be further limited.\nSuch conditions shall cease to apply when all notes and bonds have been\nrepaid or when the corporation has accumulated in its bond reserve funds\nor otherwise an amount equal to the principal of all outstanding notes\nand bonds and interest accrued thereon. The city shall have the right at\nany time to pay the corporation an amount which, when added to the bond\nreserve funds, shall equal the principal of all outstanding notes and\nbonds and interest accrued thereon and redemption premium if any. If the\ncity makes such payment at a time when the corporation has outstanding\nnotes or bonds that are not then callable, the city shall agree to pay\nthe corporation on demand an amount equal to the amount, if any, by\nwhich the amount of interest on such notes or bonds shall exceed the\ncorporation's income from the investment of its funds. Subject to the\nforegoing, the conditions that the corporation shall require the city to\nobserve and perform shall be as follows:\n 1. The city shall deliver a certificate, executed by the chief\nexecutive officer in form prescribed by the corporation, (a)\nrepresenting that the city is in compliance with the conditions\ndescribed below in this section as the corporation may specify, (b)\nundertaking to comply with any of such specified conditions as the\ncorporation may then require, and (c) stating that all local legislative\nand executive action then required to permit such compliance by the city\nhas been taken. The corporation may require the delivery with such\ncertificate of an opinion of the city's corporation counsel that all\nsuch legislative and executive action has been taken.\n 2. For the fiscal year ending December thirty-first, nineteen hundred\nninety-six, and for each fiscal year thereafter, the city's budgets\nshall be prepared in accordance with the provisions of chapter seven\nhundred twenty-one of the laws of nineteen hundred ninety-four, as\namended from time to time.\n 3. Each fiscal year the city shall take such action as may be\nnecessary to enable an independent certified public accounting firm\nselected and retained by the city at its cost to perform an annual audit\nand to furnish to the corporation an annual report upon the financial\nstatements of the city. Each such report shall be prepared in accordance\nwith the generally accepted accounting principles. The city shall make\navailable for inspection and copying all books, records, work papers and\nother data and material as required by the independent certified public\naccounting firm conducting such audit and the city shall make its\nofficers and employees available to and shall cooperate with such\nauditors so as to permit such annual audit to be completed and the\nreport issued to the city and to the corporation within one hundred\ntwenty days after the close of the fiscal year. Such report shall be\nmade available to the public promptly thereafter.\n 4. Beginning with the fiscal year ending December thirty-first,\nnineteen hundred ninety-six and for each fiscal year thereafter, the\ncity shall deliver its proposed budgets to the corporation. Delivery to\nthe corporation shall be made concurrently with the initial submission\nof the proposed budgets to the city council, but in any event not later\nthan fifty days prior to the beginning of such fiscal year or such other\ndate as the corporation may approve upon the request of the city. The\nproposed budgets submitted to the corporation shall be prepared in\naccordance with the accounting methods referred to in subdivision three\nof this section. Such budgets shall be identical to the proposed budgets\nsubmitted to the city council. The proposed budgets delivered to the\ncorporation shall be accompanied by (i) a statement setting forth in\ndetail the assumptions of income and expense used in preparation, and\n(ii) a certificate of the chief executive officer stating that such\nassumptions are reasonable and that operation within the budgets is\nfeasible. Subject to and in accordance with the provisions of chapter\nseven hundred twenty-one of the laws of nineteen hundred ninety-four, as\nthe same may be amended from time to time, the city shall in every\nfiscal year adopt and maintain budgets in which the total of all revenue\nitems equals or exceeds the total of all expenditure items.\n 5. If after the adoption of the budgets for any fiscal year, any\nincrease therein, or an increase in total expenditures shall be\nproposed, the chief executive officer shall cause such proposal to be\nsubmitted to the corporation concurrently with its submission to the\ncity council, together with a statement of the source of current\nrevenues or other identifiable and currently available funds required\nfor the payment of such additional amounts.\n 6. Commencing at such time as the corporation may specify, but not\nlater than February first, nineteen hundred ninety-six, the city budget\ndirector shall deliver to the corporation, not less than thirty days\nbefore each fiscal quarter (except, within thirty days after the\ncommencement of the first fiscal quarter), an expenditure plan to\nimplement the city budgets for such fiscal quarter and within amounts\nbased on current income or other identifiable and currently available\nfunds. The city budget director shall deliver to the corporation within\nthirty days after the end of each such fiscal quarter covered by an\nexpenditure plan, an operations report reflecting results of city\noperations for such fiscal quarter and whether the city has operated\nwithin the related expenditure plan. Each expenditure plan and\noperations report shall be in such form as the corporation may specify\nand shall be certified by the city budget director and shall detail and\nreport upon action taken by the city to maintain balanced budgets.\n 7. The city shall comply in all material respects with the expenditure\nlimitations in its budgets as adopted or modified in accordance with\nsubdivisions four and five of this section, and with chapter seven\nhundred twenty-one of the laws of nineteen hundred ninety-four, as the\nsame may from time to time be amended.\n