An Act to authorize the Secretary of the Treasury to provide seasonal financing for the city of New York.
PL 94-143 (H.R.10481), enacted 12/09/1975

PUBLIC LAW 94-143—DEC. 9, 1975 
89 STAT. 797 
Public Law 94-143 
94th Congress 
An Act 
To authorize the Secretary of the Treasury to provide seasonal financing for 
the city of New York. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress asserribled^ 
SHORT TITLE 
Dec. 9, 1975 
[H.R. 10481] 
New York City 
Seasonal 
Financing Act of 
1975. 
SECTION 1. This Act may be cited as the ''New York City Seasonal 
31 USC 1501 
Financing Act of 1975". 
note. 
FINDINGS AND DECLARATIONS 
SEC. 2. The Congress makes the following findings and declarations: 
(1) It is necessary for the city of New York to obtain seasonal 
financing 
from time to time because the city's revenues and expendi-
tures, even when in balance on an annual basis, are not received and 
disbursed at equivalent rates throughout the year. 
(2) At the present time the city is or may be unable to obtain such 
seasonal financing from its customary sources. 
(3) It is necessary to assure such seasonal financing, in order that 
the city of New York may maintain essential governmental services. 
DEFINITIONS 
SEC. 3. As used in this Act: 
(a) "City" and "State" mean the city and State of New York, 
respectively. 
(b) "Financing agent" means any agency duly authorized by State 
law to act on behalf or in the interest of the city with respect to the 
city's financial aifairs. 
(c) "Secretary" means the Secretary of the Treasury. 
LOANS 
SEC. 4. (a) Upon written request of the city or a financing agent, the 
Secretary may make loans to the city or such financing agent subject 
to the provisions of this Act, but in the case of any loan to a 
financing 
agent, the city and such agent shall be jointly and severally liable 
thereon. 
(b) Each such loan shall mature not later than the last day of the 
city's fiscal year in which it was made, and shall bear interest at an 
annual rate 1 per centum per annum greater than the current average 
market yield on outstanding marketable obligations of the United 
States with remaining periods to maturity comparable to the maturi-
ties of such loan, as determined by the Secretary at the time of the loan. 
SECURITY FOR LOANS 
SEC. 5. In connection with any loan under this Act, the Secretary 
may require the city and any financing agent and, where he deems 
necessary, the State, to provide such security as he deems appropriate. 
31 use 1501. 
31 USC 1502. 
31 USC 1503. 
31 USC 1504. 
89 STAT. 798 
PUBLIC LAW 94-143—DEC. 9, 1975 
'Person.' 
The Secretary may take such steps as he deems necessary to realize 
upon any collateral in which the United States has a security interest 
pursuant to this section to enforce any claim the United States may 
have against the city or any financing agent pursuant to this Act. Not-
withstanding any other provision of law, Acts making appropriations 
may provide for the withholding of any payments from the United 
States to the city, either directly or through the State, which may be 
or may become due pursuant to any law and offset the amount of such 
withheld payments against any claim the Secretary may have against 
the city or any financing agent pursuant to this Act. With respect to 
debts incurred pursuant to this Act, for the purposes of section 3466 
of the Revised Statutes (31 U.S.C. 191) the term "person" includes the 
city or any financing agent. 
LIMITATIONS AND CRITERIA 
31 use 1505. 
SEC. 6. (a) A loan may be made under this Act only if the Secretary 
determines that there is a reasonable prospect of repayment of the 
loan in accordance with its terms and conditions. In making the loan, 
the Secretary may require such terms and conditions as he may deem 
appropriate to insure repayment. The Secretary is authorized to agree 
to any modification, amendment, or waiver of any such term or con-
dition as he deems desirable to protect the interests of the United 
States. 
(b) At no time shall the amount of loans outstanding under this 
Act exceed in the aggregate $2,300,000,000. 
(c) No loan shall be provided under this Act unless (1) the city 
and all financing agents shall have repaid according to their terms 
all prior loans under this Act which have matured, and (2) the city 
and all financing agents shall be in compliance with the terms of 
any such outstanding loans. 
REMEDIES 
31 use 1506. 
^EC. 7. The remedies of the Secretary prescribed in this Act shall 
be cumulative and not in limitation of or substitution for any other 
remedies available to the Secretary or the United States. 
New York City 
Seasonal 
Financing Fund. 
Establishment. 
31 u s e 1507. 
Appropriation 
authorization. 
FUNDING 
SEC. 8. (a) There is hereby established in the Treasury a New York 
City Seasonal Financing Fund to be administered by the Secretary. 
The fund shall be used for the purpose of making loans pursuant to 
this Act. There is authorized to be appropriated to such fund the sum 
of $2,300,000,000. All funds received by the Secretary in the payment 
of principal of any loan made under this Act shall be paid into the 
fund. All income from loans and investments made from the fund shall 
be covered into the Treasury as miscellaneous receipts. Moneys in the 
fund not needed for current operations may be invested in direct 
obligations of, or obligations that are fully guaranteed as to principal 
and interest by, the United States or any agency thereof. After all 
loans made pursuant to this Act have been repaid, the balance of the 
fund shall be returned to the general fund of the Treasury, 
(b) The Secretary is authorized to sell, assign, or otherwise trans-
fer from the fund any note or other evidence of any loan made pur-
suant to this Act to the Federal Financing Bank and, in addition to 
its other powers, such Bank is authorized to purchase, receive, or 
otherwise acquire the same. 
PUBLIC LAW 94-143—DEC. 9, 1975 
89 STAT. 799 
(c) There are authorized to be appropriated such sums as may be 
necessary to pay the expenses of administration of this Act. 
Appropriation 
authorization. 
INSPECTION" 
OF 
DOCUMENTS 
SEC. 9. At any time a request for a loan is pending or a loan is out-
standing under this Act, the Secretary is authorized to inspect and 
copy all accounts, books, records, memorandums, correspondence, and 
other documents of the city or any financing agent relating to its finan-
cial affairs. 
AUDITS 
SEC. 10. (a) No loan may be made under this Act for the benefit 
of any State or city unless the General Accounting Office is authorized 
to make such audits as may be deemed appropriate by either the Sec-
retary or the General Accounting Office of all accounts, books, records, 
and transactions of the State, the political subdivision, if any, 
involved, and any agency or instrumentality of such State or political 
subdivision. The General Accounting Office shall report the results 
of any such audit to the Secretary and to the Congress. 
TERMINATION 
SEC. 11. The authority of the Secretary to make any loan under this 
Act terminates on June 30, 1978. Such termination does not affect the 
carrying out of any transaction entered into pursuant to this Act prior 
to that date, or the taking of any action necessary to preserve or pro-
tect the interests of the United States arising out of any loan under 
this Act. 
31 u s e 1508. 
31 u s e 1509. 
Report to 
Secretary of the 
Treasury and 
Congress. 
31 u s e 1510. 
Approved December 9, 1975. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-632 Pt. 1 (Comm. on Banking, eurrency and Housing), Pt. 2 
(Coram, on Ways and Means). 
SENATE REPORT No. 94-443 accompanying S. 2615 (Comm. on Banking, Housing 
and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 121 (1975): 
Dec. 2, considered and passed House. 
Dec. 3-5, considered and passed Senate.