NY Pub Auth L § 3965 (2021)
2021 New York Laws PBA - Public Authorities Article 10-D - Miscellaneous Authorities Title 3 - Erie County Fiscal Stability Authority 3965 - Resources of the Authority.

§  3965.  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 moneys of the authority  from  whatever  source  derived  including  (a) revenues and (b) proceeds of bonds, notes or other obligations.   2.  Subject  to  the provisions of any contract with holders of bonds, notes or other obligations, revenues of the authority shall be  paid  to the authority and shall not be commingled with any other money.   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, notes or other obligations 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, notes or other obligations or in any way to secure bonds, notes or other obligations, 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, notes or other obligations or in any way  to  secure  bonds, notes or other obligations, 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. Revenues of the authority shall be applied in the  following  order of  priority:  first  to  pay debt service or for set asides to pay debt service on the authority's bonds, notes, or  other  obligations  and  to replenish  any  reserve  funds  securing  such  bonds,  notes  or  other obligations of  the  authority  in  accordance  with  the  provision  of indenture  or  bond  resolution  of  the  authority;  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 for itself or on behalf of any covered organization  to  transfer  as  frequently  as  practicable  the balance   of   revenues  not  required  to  meet  contractual  or  other obligations of the authority to the county as  provided  in  subdivision seven of this section.   6.  (a)  Any such payment of state aid revenues to the authority shall not obligate the state to make available,  nor  entitle  the  county  to receive, any additional state aid.  (b)  Nothing  contained  in  this title shall be construed to create a debt of the state within the meaning of any constitutional or  statutory provisions.  Any  provision  with  respect  to  state  aid  or state aid revenues shall  be  deemed  executory  only  to  the  extent  of  moneys available,  and  no  liability shall be incurred by the state beyond the moneys  available  for  that  purpose,  and  any  such  payment  by  the comptroller  of state aid revenues is subject to annual appropriation of state aid by the state legislature.  (c) Nothing contained in this title shall be deemed  to  restrict  the right  of the state to amend, repeal, modify, or otherwise alter section  fifty-four of the state finance law or any provision relating  to  state aid   to   municipalities.   The  authority  shall  include  within  any resolution, contract, or agreement with holders of its bonds,  notes  or other  obligations  a provision which states that no default occurs as a result of the state's exercising its right to amend, repeal, modify,  or otherwise alter section fifty-four of the state finance law or any other provision relating to state aid to municipalities.   7.  On a monthly basis, the authority shall prepare and provide to the county a detailed accounting of all revenues received and  payments  and debt  service  set  asides  made,  as  attributable  to the county. Such accounting shall reflect: (a) the  amount  of  state  aid  revenues  and county  tax  revenues  received  during  such  month; (b) the respective portion of debt service paid or set  aside  during  such  month  by  the authority  for its bonds, notes or other obligations attributable to the county; (c) the respective portion of reserve fund replenishment made or set aside during such month by the  authority  in  connection  with  its bonds,  notes  or  other obligations attributable to the county; and (d) the respective portion of administrative expenses of the authority  paid or  set  aside  during  such  month by the authority attributable to the county. As soon as practicable after each monthly payment or set  aside, the  authority  shall  make respective payments of the remaining monthly balance or revenues to the county in accordance with such accounting. To the extent that  such  respective  monthly  payments  of  the  remaining balance  of  revenues  result  in  an overpayment or underpayment to the county, the authority shall in the immediately subsequent  month,  after making  debt  service  payments or debt service set asides, replenishing any  reserve  funds  and  paying  the  administrative  expenses  of  the authority  for such month, make an adjustment in favor of the county, as the case may be, before determining the remaining amount of the  balance of  revenues for such subsequent month and paying such remaining monthly balance of revenues to the county. Nothing in this title shall be deemed to restrict the authority of the state comptroller and the  commissioner of  taxation  and  finance  to  adjust for overpayments or underpayments pursuant to the tax law.   8. (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  five,   in anticipation  of  the  receipt  of  state aid revenues and/or 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. For purposes of this subdivision, "state aid" means state  social services  aid,  social  services  aid from the United States government, state aid for court security, state aid  for  education  of  handicapped children,  and  aid and incentives for municipalities, and shall be paid by the state comptroller to the authority.  (b) Notwithstanding the provisions of subdivision five of this section with respect to the transfer of the balance of revenues to  the  county, prior  to the delivery of each such issue of revenue anticipation notes, the comptroller of the county shall file with the  authority  a  request that  the authority establish a county of Erie 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 the comptroller 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 state aid revenues and  county  tax  revenues  anticipated to be received, and the expected date or dates of anticipated receipt of  such  state  aid  revenues  and county  tax  revenues.  Such  certificate  shall  be  accompanied  by  a statement executed by the comptroller certifying that  the  amounts  and times  of  payments  of  state  aid  revenues  and  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 comptroller with the authority pursuant to paragraph (b) of  this  subdivision,  the authority  shall  pay  to  such paying agent from state aid revenues and county tax revenues transferred and credited by  the  authority  to  the county of Erie 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 state aid revenues and/or county tax revenues in accordance with the provisions of this subdivision shall equal the amount of such state aid revenues and 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 state aid revenues and 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 state aid revenues and county tax revenues in the county of Erie revenue anticipation note withholding fund established by the authority in accordance with the comptroller'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 state aid revenues and county tax revenues  in  the  county  of  Erie  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.