§ 3657 — Resources of the authority

New York § 3657

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 1: Nassau County Interim Finance Authority
• Art. 10-D: Miscellaneous Authorities

Text

§ 3657. Resources of the authority. 1. Subject to the provisions of\nthis title, the directors of the authority shall receive, accept,\ninvest, administer, expend and disburse for its corporate purposes all\nmoney of the authority from whatever sources derived including (a) tax\nrevenues; (b) the proceeds of bonds; and (c) any other payments, gifts\nor appropriations to the authority from any other source.\n 2. Subject to the provisions of any contract with bondholders, (a) the\nmoney of the authority shall be paid to the authority and shall not be\ncommingled with any other money, and (b) all money received by the\nauthority which, together with other money of the authority available\nfor the expenses of the authority, the payment of debt service and\npayments to reserve funds, exceeds the amount required for such\npurposes, as determined by the authority, shall, subject to the\nprovisions of subdivision six of this section and to the terms of any\nagreement between the authority and the county, be transferred to the\ncounty as frequently as practicable.\n 3. The money in any of the authority's accounts shall be paid out on\nchecks signed by the treasurer of the authority, or by other lawful and\nappropriate means such as wire or electronic transfer, on requisitions\nof the chairperson of the authority or of such other officer as the\ndirectors shall authorize to make such requisition, or pursuant to a\nbond resolution or trust indenture.\n 4. All deposits of authority money shall be secured by obligations of\nthe United States or of the state or of the county at a market value at\nleast equal at all times to the amount of the deposit, and all banks and\ntrust companies are authorized to give such security for such deposits.\nThe authority shall have the power, notwithstanding the provisions of\nthis section, to contract with the holders of any of its bonds as to the\ncustody, collection, securing, investment and payment of any money of\nthe authority or any money held in trust or otherwise for the payment of\nbonds or in any way to secure bonds, and to carry out any such contract\nnotwithstanding that such contract may be inconsistent with the other\nprovisions of this title. Money held in trust or otherwise for the\npayment of bonds or in any way to secure bonds and deposits of such\nmoney may be secured in the same manner as money of the authority, and\nall banks and trust companies are authorized to give such security for\nsuch deposits.\n 5. Tax revenues received by the authority pursuant to section twelve\nhundred sixty-one of the tax law, together with any other revenues\nreceived by the authority, shall be applied in the following order of\npriority: first pursuant to the authority's contracts with bondholders,\nthen to pay the authority's operating expenses not otherwise provided\nfor, and then, subject to the authority's agreements with the county, to\ntransfer the balance of such tax revenues not required to meet\ncontractual or other obligations of the authority to the county as\nfrequently as practicable.\n 6. (a) This subdivision shall apply only to revenue anticipation\nnotes, including renewals thereof, issued by the county during its\nfiscal year ending December thirty-first, two thousand, in anticipation\nof the receipt of county tax revenues, and only to such issues of\nrevenue anticipation notes as to which the certificate described in\nparagraph (b) of this subdivision is filed.\n (b) Notwithstanding the provisions of subdivision five of this section\nwith respect to the transfer of the balance of tax revenues to the\ncounty, prior to the delivery of each such issue of revenue anticipation\nnotes, the chief fiscal officer of the county shall file with the\nauthority a request that the authority establish a county of Nassau\nrevenue anticipation note withholding fund which shall constitute a\nspecial bank account for purposes of paragraph g of section 25.00 of the\nlocal finance law. Such request by such chief fiscal officer shall be\naccompanied by a certificate setting forth with respect to such issue\n(i) the principal amount, (ii) the date of issue, (iii) the maturity\ndate, (iv) the interest rate or rates, (v) if interest shall be payable\notherwise than at maturity, the date or dates for the payment thereof,\n(vi) the name and address of the paying agent, (vii) the name and\naddress of each purchaser, or, if a purchaser shall be a syndicate or\nsimilar account, the name and address of each managing underwriter of\nsuch syndicate or similar account, (viii) the amount payable on each\nprincipal payment date and interest payment date, and (ix) a schedule\nsetting forth the total amount of county tax revenues anticipated to be\nreceived, and the expected date or dates of anticipated receipt of such\ncounty tax revenues. Such certificate shall be accompanied by a\nstatement executed by the chief fiscal officer certifying that the\namounts and times of payments of county tax revenues contained in such\nschedule have been estimated by the use of reasonable and appropriate\ndata and methods of estimation, all in accordance with applicable law.\n (c) All such revenue anticipation notes, in addition to a pledge of\nthe faith and credit of the county for the payment thereof, shall\ncontain a recital to the effect that they are entitled to the benefits\nof the provisions of this subdivision.\n (d) Commencing on the date not less than five days prior to and on\neach day thereafter up to and including any principal and/or interest\npayment date referred to in the certificate filed by the chief fiscal\nofficer with the authority pursuant to paragraph (b) of this\nsubdivision, the authority shall pay to such paying agent from county\ntax revenues transferred and credited by the authority to the county of\nNassau revenue anticipation note withholding fund as provided in\nparagraph (e) of this subdivision the amount required to pay in full the\nprincipal and/or interest due on such payment date as set forth in such\ncertificate. Moneys so paid shall pass immediately from the authority\nand vest in such paying agent in trust for the benefit of the holders of\nthe revenue anticipation notes to which such certificate relates. No\nother person having any claim of any kind in tort, contract or otherwise\nagainst the county shall have any right to or claim against the moneys\nheld by such paying agent, and such moneys shall not be subject to any\norder, judgment, lien, execution, attachment, setoff or counterclaim by\nany such other person. Such moneys shall be held by such paying agent in\na separate trust account and shall be applied only to the payment of the\nprincipal and/or interest due on such revenue anticipation notes,\nprovided, however, that the contract by and between the county and such\npaying agent may provide for (i) the investment by such paying agent of\nsuch moneys in direct obligations of, or in obligations guaranteed by,\nthe United States of America, provided such obligations shall be payable\nor redeemable at the option of the holder within such time as the\nproceeds shall be needed to pay such principal and/or interest due on\nsuch revenue anticipation notes, and (ii) the use by such paying agent\nof such moneys for the purchase of direct obligations of, or obligations\nguaranteed by, the United States of America under one or more repurchase\nagreements with any bank or trust company having its principal office in\nthe state of New York, provided that any such repurchase agreement shall\nprovide for the repurchase of such obligations within such time as such\nmoneys are needed to pay the principal and/or interest due on such\nrevenue anticipation notes at a repurchase price at least sufficient to\nmake the amount so invested available for the payment of principal\nand/or interest due on such revenue anticipation notes, and provided,\nfurther, that, at the time of such purchase, the market value of such\nobligations shall be at least equal to one hundred two per centum of the\namount so invested. No person having any claim of any kind in tort,\ncontract or otherwise against the county shall have any right to or\nclaim against any moneys in anticipation of which such notes have been\nissued, other than a claim for payment by the holders of such notes, and\nsuch moneys shall not be subject to any order, judgment, lien,\nexecution, attachment, setoff or counterclaim by any such person.\nNotwithstanding any provision of law to the contrary, no instrument\nrelating to any transaction authorized or contemplated by this paragraph\nneed be filed under the provisions of the uniform commercial code.\n (e) Commencing on the day when the authority determines that the\nprincipal and interest due or to come due on such outstanding revenue\nanticipation notes issued against such county tax revenues in accordance\nwith the provisions of this subdivision shall equal the amount of such\ncounty tax revenues as set forth on the schedule included in the\ncertificate filed with the authority pursuant to paragraph (b) of this\nsubdivision remaining to be paid to the county on or prior to any\nprincipal and/or interest payment date, the authority shall deduct and\nwithhold from the amount of such county tax revenues otherwise payable\nto the county an amount sufficient to pay, when due, the principal of\nand interest on all such revenue anticipation notes issued and then\noutstanding in anticipation thereof. Amounts so deducted and withheld\nshall be transferred and credited by the authority to the account\nestablished for such county tax revenues in the county of Nassau revenue\nanticipation note withholding fund established by the authority in\naccordance with the chief fiscal officer's request pursuant to paragraph\n(b) of this subdivision. The payments required to be made by the\nauthority pursuant to paragraph (d) of this subdivision shall be made\nfrom amounts on deposit in the accounts established for such county tax\nrevenues in the county of Nassau revenue anticipation note withholding\nfund.\n (f) Notwithstanding any other provision of this subdivision, at the\nexpiration of one hundred eighty days after the maturity date of any\nissue of revenue anticipation notes issued in accordance with the\nprovisions of this subdivision, the amounts held by the paying agent\nthereof for the payment of the principal of and interest on the notes of\nsuch issue which have not been presented for payment shall be paid over\nand remitted by such paying agent to the county and thereafter the\nholders of such notes shall look only to the county for such payment.\n (g) All other provisions of the local finance law not inconsistent\nwith the provisions of this subdivision shall continue to apply to the\nauthorization and issuance of revenue anticipation notes by the county.\n