NY Loc Fin L § 165.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 12 - Miscellaneous Provisions 165.00 - Deposit and Use of Proceeds From Sale of Bonds, Bond Anticipation Notes, Capital Notes, Urban Renewal Notes or Budget Notes.

§  165.00  Deposit  and  use  of  proceeds  from  sale  of bonds, bond   anticipation notes, capital notes, urban renewal notes or budget  notes.   a.  The  proceeds,  inclusive  of premiums, from the sale of bonds, bond   anticipation notes, capital notes, urban renewal notes or  budget  notes   shall  be  deposited  and  secured  in  a  special account in the manner   provided by section ten of the  general  municipal  law,  shall  not  be   commingled  with  other  funds of the issuer, and shall be expended only   for the object or purpose for which such obligations were issued. In the   event that any portion of the proceeds, inclusive of premiums, from  the   sale  of  bonds,  bond  anticipation notes, capital notes, urban renewal   notes or budget notes is not expended for  the  object  or  purpose  for   which  such  obligations were issued, such portion shall be applied only   to the payment of the principal of and  interest  on  such  obligations,   respectively.   Notwithstanding   the   foregoing   provisions  of  this   paragraph, the finance board of any  municipality,  school  district  or   district  corporation  may adopt any or all of the following resolutions   to provide that:1. The proceeds, inclusive of premiums, of  capital  notes  issued  in   amounts  of  one  hundred thousand dollars or less, and of budget notes,   need not be deposited in a special account  but  may  be  deposited  and   commingled  with  other funds of the issuer in any account of the issuer   in a bank or trust company located and authorized to do business in this   state, but such power shall not be construed as authorizing the  use  of   such  proceeds  for  an  object or purpose other than that for which the   obligations were issued.2. The proceeds, inclusive of premiums, from the sale of  any  two  or   more  issues  of  bonds,  bond  anticipation notes, capital notes, urban   renewal notes or budget notes need not be deposited in separate  special   accounts  but may be deposited in a single special account of the issuer   in a bank or trust company located and authorized to do business in this   state, but shall not be commingled with other funds of the  issuer.  The   chief fiscal officer shall then maintain a separate accounting record of   each issue to insure that the proceeds shall be used only for the object   or purpose for which the obligation was issued.3.   Moneys   appropriated   for  a  purpose  for  which  bonds,  bond   anticipation notes, capital notes  or  urban  renewal  notes  have  been   authorized  may  be deposited in the same bank account with the proceeds   from the sale of such obligations. Such power shall not be construed  as   authorizing the use of the proceeds of such obligations for an object or   purpose  other  than that for which they were issued. Provided, however,   that any moneys remaining in such  bank  account  after  the  object  or   purpose  has been completed or abandoned shall be applied to the payment   of the principal  of  and  interest  on  such  obligations;  any  excess   remaining thereafter may be used for any lawful purpose.b.  Notwithstanding the provisions of paragraph a of this section, the   proceeds,  inclusive  of  premiums,  from  the  sale  of   bonds,   bond   anticipation  notes,  capital  notes  and  urban  renewal  notes  may be   invested in the  manner  provided  by  section  eleven  of  the  general   municipal law.Such investment shall be made by the finance board or the chief fiscal   officer,  if  the finance board shall delegate such duty to that person.   The separate identity of the proceeds  from  the  sale  of  bonds,  bond   anticipation  notes, capital notes, urban renewal notes and budget notes   shall be maintained at all times, whether such proceeds consist of  cash   or  investments or both. Any interest earned or capital gain realized on   any investment shall be applied to either the payment of  the  principal   of  and  interest  on the bonds, bond anticipation notes, capital notes,   urban renewal notes or budget notes, as the case may  be,  the  proceeds    from  the  sale  of which were used in making such investment or for any   other purpose or purposes for which such issue of bonds,  capital  notes   or  urban  renewal  notes  has  been  authorized.    Notwithstanding the   preceding  sentence, any interest earned or capital gain realized on any   investment shall, to the extent necessary to maintain the exemption from   federal income taxation of interest on the obligations the proceeds from   the sale of which were used in making such investment, be  paid  to  the   United  States  treasury department, or any agency of the United States.   Where the proceeds from the sale of bond anticipation  notes  have  been   invested  and  such  notes  have been retired from the proceeds from the   sale of the bonds  in  anticipation  of  which  they  were  issued,  any   interest  earned  or  capital  gain  realized on any investment shall be   applied only to the payment of the principal  of  and  interest  on  the   bonds.c. Notwithstanding the provision of paragraph a of this section or the   provision  of  subdivision three of section ninety-nine-o of the general   municipal law, the  proceeds  of  obligations  issued  for  the  partial   refinancing  of  mass commuting vehicles by the county of Suffolk may be   used to reimburse in whole or in part any accounts or funds  from  which   moneys  were  disbursed  to meet the cost of the original acquisition of   such mass commuting vehicles. As used in this paragraph "mass  commuting   vehicles"  means  any  bus, subway car, rail car, locomotive, or similar   equipment used or to be used to provide mass commuting services, whether   or not operated by a private operator under agreement with the county of   Suffolk.d. Notwithstanding the provisions of paragraph a of this  section,  if   obligations  issued by a school district or a city on behalf of a school   district have been refunded with bonds issued by the dormitory authority   of the state of New York pursuant to subdivision thirty-nine of  section   sixteen  hundred  eighty  of the public authorities law, that portion of   the proceeds that are  allocable  to  obligations  refunded  with  bonds   issued by the dormitory authority of the state of New York and that have   not been expended by the school for the object or purpose for which such   obligations  were  issued  shall  be  applied only to the payment of the   principal  of  and  interest  on  the  bonds  issued  by  the  dormitory   authority.