§ 8 — Establishment and application of supervisory board fund for the city of Troy

New York § 8

• Jurisdiction: New York
• Law TRY: City of Troy Issuance of Serial Bonds

Text

§ 8. Establishment and application of supervisory board fund for the\ncity of Troy. (a) There is hereby established a fund designated the\nsupervisory board fund for the city of Troy. Commencing on the effective\ndate of the initial financial plan approved by the supervisory board and\nfor the duration of the emergency period, all revenues received or to be\nreceived by the city of Troy or any covered organization shall, unless\nexempted by order of the supervisory board be revenues of the\nsupervisory board fund and shall be for the account of the city of Troy\nand the appropriate covered organizations, but disbursement from the\nsupervisory board fund shall be made by the supervisory board in\naccordance with the approved financial plan, except to the extent\nexpressly prohibited by federal law or where such revenues are pledged\nto the payment of any outstanding bonds, notes or other obligations of\ncovered organizations. Notwithstanding the foregoing, the supervisory\nboard shall authorize the city of Troy to make all disbursements of city\nof Troy revenues from the supervisory board fund, which disbursements\nshall be made in accordance with the approved financial plan; provided,\nthat the supervisory board may withdraw such authorization if it\ndetermines that (i) any disbursements made or to be made by the city of\nTroy have not been or are likely not to be in compliance with the\napproved financial plan, (ii) the city of Troy has violated any other\nprovisions of this act, or (iii) the city of Troy has violated an\nagreement with any holder or guarantor of bonds or notes issued by the\ncity of Troy or a state financing agency. Commencing on the effective\ndate of the initial financial plan approved by the supervisory board,\nand for the duration of any emergency period, all funds and accounts\nestablished or thereafter established by the city of Troy of the covered\norganizations shall, unless exempted by order of the supervisory board,\nthereafter be funds and accounts of the supervisory board fund except to\nthe extend expressly prohibited by federal law or to the extent\nprohibited by covenants or agreements relating to any outstanding bonds,\nnotes or other obligations of covered organizations. All such accounts\nof the supervisory board shall have such captions and entries as the\nsupervisory board shall determine to be necessary to credit the\nforegoing revenues and receipts to the supervisory board fund. The\nmoneys of the supervisory board fund shall not be deemed to be money of\nthe state or money under its control.\n (b) The deposit of revenues into the supervisory board fund and the\ninvestment or deposit of moneys therein shall be made in accordance with\nand pursuant to procedures established by the supervisory board.\n (c) In order to assure compliance with the financial plan, the\nsupervisory board shall from time to time adopt procedures controlling\nthe disbursement of moneys from the supervisory board fund.\n (d) If at any time the supervisory board determines that the amount\nthen held in the supervisory board fund or the amount estimated by the\nsupervisory board to be held in the supervisory board fund is or will be\ninsufficient to meet the expenditures in the amounts and at the times\nrequired by the financial plan, the supervisory board shall require\ndisbursements from the supervisory board fund to be made in the\nfollowing order or priority unless otherwise required by law of the\nUnited States of America: (i) to the payment of debt service\nrequirements on all bonds and notes of the city of Troy and the covered\norganizations whose money are included in the supervisory board fund,\n(ii) to the payment of other liabilities having statutory or contractual\npriority over remaining liabilities of the city of Troy and the covered\norganizations whose moneys are included in the supervisory board fund,\nand (iii) to the payment of other obligations on an allocated basis as\nspecified by the city of Troy for expenditures in accordance with the\nfinancial plan provided that, in the event that the city of Troy fails\nto so specify, the supervisory board may withhold payment of any of such\nother obligations or may direct their payment pro rata.\n (e) Notwithstanding anything to the contrary in subdivision (a) of\nthis section, so long as any bonds or notes issued pursuant to this act\nare outstanding, all revenues pledged as additional security for any\nbonds or notes in accordance with subdivision (a) of section nine of\nthis act shall be revenues of the supervisory board fund and shall be\nfor the account of the city of Troy, but disbursement shall be made by\nthe supervisory board to the municipal assistance corporation for the\ncity of Troy or to such other person in accordance with the terms and\nconditions of any pledge of such revenues to the payment of principal of\nand interest on any bonds or notes as permitted by subdivision (a) of\nsection nine of this act.\n (f) The supervisory board shall cause to be performed such pre-audit\nand post-audit reviews of the supervisory board fund and disbursements\ntherefrom as it may determine.\n