NY Pub Auth L § 3657 (2021)
2021 New York Laws PBA - Public Authorities Article 10-D - Miscellaneous Authorities Title 1 - Nassau County Interim Finance Authority 3657 - Resources of the Authority.

§  3657.  Resources  of the authority. 1. Subject to the provisions of this title, the  directors  of  the  authority  shall  receive,  accept, invest,  administer,  expend and disburse for its corporate purposes all money of the authority from whatever sources derived including  (a)  tax revenues;  (b)  the proceeds of bonds; and (c) any other payments, gifts or appropriations to the authority from any other source.   2. Subject to the provisions of any contract with bondholders, (a) the money of the authority shall be paid to the authority and shall  not  be commingled  with  any  other  money,  and  (b) all money received by the authority which, together with other money of  the  authority  available for  the  expenses  of  the  authority,  the payment of debt service and payments  to  reserve  funds,  exceeds  the  amount  required  for  such purposes,  as  determined  by  the  authority,  shall,  subject  to  the provisions of subdivision six of this section and to the  terms  of  any agreement  between  the  authority and the county, be transferred to the county as frequently as practicable.   3. The money in any of the authority's accounts shall be paid  out  on checks  signed by the treasurer of the authority, or by other lawful and appropriate means such as wire or electronic transfer,  on  requisitions of  the  chairperson  of  the  authority or of such other officer as the directors shall authorize to make such requisition,  or  pursuant  to  a bond resolution or trust indenture.   4.  All deposits of authority money shall be secured by obligations of the United States or of the state or of the county at a market value  at least equal at all times to the amount of the deposit, and all banks and trust  companies are authorized to give such security for such deposits. The authority shall have the power, notwithstanding  the  provisions  of this section, to contract with the holders of any of its bonds as to the custody,  collection,  securing,  investment and payment of any money of the authority or any money held in trust or otherwise for the payment of bonds or in any way to secure bonds, and to carry out any such  contract notwithstanding  that  such  contract may be inconsistent with the other provisions of this title. Money held  in  trust  or  otherwise  for  the payment  of  bonds  or  in  any way to secure bonds and deposits of such money may be secured in the same manner as money of the  authority,  and all  banks  and trust companies are authorized to give such security for such deposits.   5. Tax revenues received by the authority pursuant to  section  twelve hundred  sixty-one  of  the  tax  law,  together with any other revenues received by the authority, shall be applied in the  following  order  of priority:  first pursuant to the authority's contracts with bondholders, then to pay the authority's operating expenses  not  otherwise  provided for, then to pay to the state pursuant to paragraph three of subdivision (c)  of  section  twelve  hundred  sixty-one  of  the tax law, and then, subject to the authority's agreements with the county, to  transfer  the balance  of  such tax revenues not required to meet contractual or other obligations of the authority to the county as frequently as practicable.   6. (a) This subdivision  shall  apply  only  to  revenue  anticipation notes,  including  renewals  thereof,  issued  by  the county during its fiscal year ending December thirty-first, two thousand, in  anticipation of  the  receipt  of  county  tax  revenues,  and only to such issues of revenue anticipation notes as to  which  the  certificate  described  in paragraph (b) of this subdivision is filed.  (b) Notwithstanding the provisions of subdivision five of this section with  respect  to  the  transfer  of  the balance of tax revenues to the county, prior to the delivery of each such issue of revenue anticipation notes, the chief fiscal officer  of  the  county  shall  file  with  the authority  a  request  that  the  authority establish a county of Nassau  revenue anticipation note withholding  fund  which  shall  constitute  a special bank account for purposes of paragraph g of section 25.00 of the local  finance  law.  Such request by such chief fiscal officer shall be accompanied  by  a  certificate setting forth with respect to such issue (i) the principal amount, (ii) the date of  issue,  (iii)  the  maturity date,  (iv) the interest rate or rates, (v) if interest shall be payable otherwise than at maturity, the date or dates for the  payment  thereof, (vi)  the  name  and  address  of  the  paying agent, (vii) the name and address of each purchaser, or, if a purchaser shall be  a  syndicate  or similar  account,  the  name and address of each managing underwriter of such syndicate or similar account, (viii) the  amount  payable  on  each principal  payment  date  and interest payment date, and (ix) a schedule setting forth the total amount of county tax revenues anticipated to  be received,  and the expected date or dates of anticipated receipt of such county  tax  revenues.  Such  certificate  shall  be  accompanied  by  a statement  executed  by  the  chief  fiscal  officer certifying that the amounts and times of payments of county tax revenues contained  in  such schedule  have  been  estimated by the use of reasonable and appropriate data and methods of estimation, all in accordance with applicable law.  (c) All such revenue anticipation notes, in addition to  a  pledge  of the  faith  and  credit  of  the  county  for the payment thereof, shall contain a recital to the effect that they are entitled to  the  benefits of the provisions of this subdivision.  (d)  Commencing  on  the  date not less than five days prior to and on each day thereafter up to and including any  principal  and/or  interest payment  date  referred  to in the certificate filed by the chief fiscal officer  with  the  authority  pursuant  to  paragraph   (b)   of   this subdivision,  the  authority  shall pay to such paying agent from county tax revenues transferred and credited by the authority to the county  of Nassau  revenue  anticipation  note  withholding  fund  as  provided  in paragraph (e) of this subdivision the amount required to pay in full the principal and/or interest due on such payment date as set forth in  such certificate.  Moneys  so  paid shall pass immediately from the authority and vest in such paying agent in trust for the benefit of the holders of the revenue anticipation notes to which  such  certificate  relates.  No other person having any claim of any kind in tort, contract or otherwise against  the  county shall have any right to or claim against the moneys held by such paying agent, and such moneys shall not be subject  to  any order,  judgment, lien, execution, attachment, setoff or counterclaim by any such other person. Such moneys shall be held by such paying agent in a separate trust account and shall be applied only to the payment of the principal and/or  interest  due  on  such  revenue  anticipation  notes, provided,  however, that the contract by and between the county and such paying agent may provide for (i) the investment by such paying agent  of such  moneys  in direct obligations of, or in obligations guaranteed by, the United States of America, provided such obligations shall be payable or redeemable at the option of  the  holder  within  such  time  as  the proceeds  shall  be  needed to pay such principal and/or interest due on such revenue anticipation notes, and (ii) the use by such  paying  agent of such moneys for the purchase of direct obligations of, or obligations guaranteed by, the United States of America under one or more repurchase agreements with any bank or trust company having its principal office in the state of New York, provided that any such repurchase agreement shall provide  for the repurchase of such obligations within such time as such moneys are needed to pay the  principal  and/or  interest  due  on  such revenue  anticipation notes at a repurchase price at least sufficient to make the amount so invested  available  for  the  payment  of  principal and/or  interest  due  on such revenue anticipation notes, and provided,  further, that, at the time of such purchase, the market  value  of  such obligations shall be at least equal to one hundred two per centum of the amount  so  invested.  No  person  having any claim of any kind in tort, contract  or  otherwise  against  the  county shall have any right to or claim against any moneys in anticipation of which such notes  have  been issued, other than a claim for payment by the holders of such notes, and such  moneys  shall  not  be  subject  to  any  order,  judgment,  lien, execution, attachment,  setoff  or  counterclaim  by  any  such  person. Notwithstanding  any  provision  of  law  to the contrary, no instrument relating to any transaction authorized or contemplated by this paragraph need be filed under the provisions of the uniform commercial code.  (e) Commencing on the day  when  the  authority  determines  that  the principal  and  interest  due or to come due on such outstanding revenue anticipation notes issued against such county tax revenues in accordance with the provisions of this subdivision shall equal the amount  of  such county  tax  revenues  as  set  forth  on  the  schedule included in the certificate filed with the authority pursuant to paragraph (b)  of  this subdivision  remaining  to  be  paid  to  the  county on or prior to any principal and/or interest payment date, the authority shall  deduct  and withhold  from  the amount of such county tax revenues otherwise payable to the county an amount sufficient to pay, when due,  the  principal  of and  interest  on  all  such  revenue anticipation notes issued and then outstanding in anticipation thereof. Amounts so  deducted  and  withheld shall  be  transferred  and  credited  by  the  authority to the account established for such county tax revenues in the county of Nassau revenue anticipation note withholding  fund  established  by  the  authority  in accordance with the chief fiscal officer's request pursuant to paragraph (b)  of  this  subdivision.  The  payments  required  to  be made by the authority pursuant to paragraph (d) of this subdivision  shall  be  made from  amounts on deposit in the accounts established for such county tax revenues in the county of Nassau revenue anticipation  note  withholding fund.  (f)  Notwithstanding  any  other provision of this subdivision, at the expiration of one hundred eighty days after the  maturity  date  of  any issue  of  revenue  anticipation  notes  issued  in  accordance with the provisions of this subdivision, the amounts held  by  the  paying  agent thereof for the payment of the principal of and interest on the notes of such  issue which have not been presented for payment shall be paid over and remitted by such paying agent  to  the  county  and  thereafter  the holders of such notes shall look only to the county for such payment.  (g)  All  other  provisions  of the local finance law not inconsistent with the provisions of this subdivision shall continue to apply  to  the authorization and issuance of revenue anticipation notes by the county.