NY Loc Fin L § 15.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 1-A - Indebtedness Relative to Municipal Cooperative Activities 15.00 - Indebtedness Relative to Municipal Cooperative Activities.

§  15.00 Indebtedness relative to municipal cooperative activities. a. Legislative intent. The provisions of title one-A of article two of this chapter are intended to effectuate the provisions of  sections  one  and two-a  of  article  eight of the constitution, as in force and effect on January first, nineteen  hundred  sixty,  in  relation  to  indebtedness contracted,  either  jointly  or  severally,  for  (a)  a  joint service described in section one of such article eight and (b)  a  joint  water, sewage or drainage project described in paragraphs B, D and F of section two-a of such article eight.   b. Definitions. As used in this title:   1. The term "municipal corporation" means a county outside the city of New York, a city, a town, a village, or a school district.   2.  The  term  "municipality"  means  a county outside the city of New York, a city, a town or a village.   3. The term "district," unless a specific type of district is referred to, means a county or town improvement district for which the county  or town  or  towns  in which such district is located is or are required to pledge its or their faith and credit for the payment of the principal of and interest on all indebtedness to be contracted for  the  purposes  of such district.   4.  The  term  "joint  service"  means  a municipal facility, service, activity or undertaking described in section one of article eight of the constitution,  but  shall  not  include  any  object  or   purpose   the indebtedness  for which would be subject to the limitations of paragraph a of section 150.00 of this chapter.   5. The term "joint water, sewage or drainage project"  means  a  joint project  to provide for a common supply of water, the common conveyance, treatment and disposal  of  sewage  or  a  common  drainage  system,  as described  in paragraphs B, D and F of section two-a of article eight of the constitution.   6. The term "joint indebtedness" means indebtedness contracted for  or in  relation  to  a  joint  service or a joint water, sewage or drainage project and for which the  joint  faith  and  credit  of  the  municipal corporations or municipalities would be pledged for the payment thereof. Such  term  also  shall  include  (a)  indebtedness  on  account  of the acquisition of real property the  title  to  which  has  vested  in  the municipal  corporations  or  municipalities,  or the title to which they have agreed to accept pursuant to a contract  therefor,  and  for  which payment  has  not been made, (b) indebtedness arising from contracts and (c) involuntary indebtedness incurred in relation to a joint service  or a  joint  water,  sewage or drainage project and for which the municipal corporations or municipalities  are  jointly  liable,  where,  from  the context  of  this  title,  it is evident that indebtedness on account of real  property  liabilities,  contract   liabilities   and   involuntary indebtedness are intended to be included within the meaning of the term.   7.  The  term "several indebtedness" means indebtedness contracted for or in relation to a joint service or a joint water, sewage  or  drainage project  and  for  which  the  faith  and  credit  of a single municipal corporation or municipality would be pledged for  the  payment  thereof. Such  term  also  shall  include  (a)  indebtedness  on  account  of the acquisition of real  property  the  title  to  which  has  vested  in  a municipal corporation or municipality, or in the participating municipal corporations  or  municipalities,  or the title to which it has, or they have, agreed to accept pursuant to a contract therefor,  and  for  which payment  has  not been made, (b) indebtedness arising from contracts and (c) involuntary indebtedness incurred in relation to a joint service  or a  joint  water,  sewage  or  drainage project and for which a municipal corporation or a municipality is not jointly  liable,  where,  from  the  context  of  this  title,  it is evident that indebtedness on account of real  property  liabilities,  contract   liabilities   and   involuntary indebtedness are intended to be included within the meaning of the term.   c.  Power to contract indebtedness; joint services and joint projects. 1.  Municipal corporations. Two or  more  municipal  corporations  which have  agreed to provide a joint service, either directly or on behalf of a district, pursuant to article five-G of the general municipal law,  or pursuant  to  any  other  law  enacted  by the legislature, may contract either joint indebtedness or several indebtedness to  provide  for  such joint  service.  Such  indebtedness  shall  not  be contracted, however, unless there is an applicable period of probable  usefulness  prescribed in  paragraph a of section 11.00 of this chapter under which each of the participating municipal corporations, acting separately, either directly or on behalf of a district, could have issued  obligations  pursuant  to this chapter.   2.  Municipalities.  Two or more municipalities which, either directly or on behalf of a district, have agreed to provide a joint water, sewage or drainage project pursuant to any law enacted by the  legislature  may contract  either  joint  indebtedness or several indebtedness to provide for such joint project.  Such  indebtedness  shall  not  be  contracted, however,  unless  there  is  an applicable period of probable usefulness prescribed in paragraph a of section 11.00 of this chapter  under  which each  of  the  participating  municipalities,  acting separately, either directly or on behalf of  a  district,  could  have  issued  obligations pursuant to this chapter.   3. General provisions. (a) The financing of a joint service or a joint water, sewer or drainage project may include but shall not be limited to (1)  the acquisition of land and permanent and temporary rights in land, (2) the original furnishings, equipment, machinery or  apparatus  for  a physical  public  betterment or improvement or required for the purposes for which the public betterment or improvement is to be  used,  and  the replacement  of such furnishings, equipment, machinery or apparatus, (3) the   acquisition,   construction,   reconstruction,    conversion    or alterations,  of,  or  additions  to,  buildings, (4) the acquisition of motor vehicles, machinery or  apparatus  to  be  used  in  the  work  of constructing,   reconstructing,  converting,  altering,  or  adding  to, repairing or maintaining a physical public betterment  or  removing  the snow  and  ice  therefrom, (5) appraisals of real property by experts to assist in the assessment  thereof  for  taxation,  (6)  the  payment  of judgments,  claims,  awards  or  sums  described  in  and subject to the limitations of subdivision thirty-three of paragraph a of section  11.00 and  required  to  be paid because of such joint service or joint water, sewage or drainage project, (7) the temporary financing in  anticipation of  the collection of taxes, assessments, rents, rates or charges or the receipt of money as provided in subdivision thirty-six of paragraph a of section 11.00, (8) the financing of the  protection  of  tax  liens  and foreclosure  costs  described  in  and  subject  to  the  limitations of subdivision thirty-seven of paragraph a of section  11.00  and  (9)  the temporary  financing  of  miscellaneous  expenditures by the issuance of budget notes as provided in subdivision forty of paragraph a of  section 11.00.  (b)  A  municipal  corporation  shall  not contract indebtedness for a joint service, and a municipality shall not contract indebtedness for  a joint  water, sewage or drainage project, to a greater extent than it is authorized by law to spend money for any such  service  or  project  and provided  also  that  this  section  shall  not relieve any such unit of government of any duty imposed by law to include in its annual budget or  tax levy or otherwise to pay from current  funds  all  or  part  of  any expenditure that it may make for any such service or project.  (c)   Where  the  agreement  between  the  municipal  corporations  or municipalities in relation to any joint  service  or  any  joint  water, sewage  or drainage project does not provide that the indebtedness which is to be  contracted  is  to  be  joint  indebtedness,  the  amounts  of indebtedness  which are to be contracted severally by the parties to the agreement shall be in the proportions specified in the agreement.  Where the agreement does not provide how the indebtedness shall be contracted, and  the  parties  cannot  otherwise  agree,  the  indebtedness shall be contracted as joint indebtedness.  (d) Any involuntary indebtedness which is incurred because of a  joint service  or  joint  water,  sewage  or  drainage  project  shall,  until satisfied, be deemed the  joint  indebtedness  of  the  parties  to  the agreement.  The  payment  of  any  such  indebtedness,  however,  may be financed by the issuance of obligations severally by  such  parties  for specific proportions of the amount thereof according to the terms of the agreement.  Where  the  agreement  does not provide how such involuntary indebtedness shall be financed, and the parties cannot otherwise  agree, the  obligations  issued  to  finance the payment thereof shall be joint indebtedness.  (e) Where joint indebtedness is contracted pursuant to the  provisions of   this   section   the   participating   municipal   corporations  or municipalities, by joint action of their finance boards or  their  chief fiscal  officers,  as the case may be, may issue obligations pursuant to the provisions of this chapter in the same manner as  a  single  county, city,  town, village or school district and shall pledge the joint faith and credit of the issuers for the payment of all such indebtedness.  (f) Notwithstanding any other provision of this title, or of any other provision of law, in relation to (1) the allocation and apportionment of joint indebtedness for the purpose of determining  the  debt-contracting power of a municipal corporation or municipality or (2) the exclusion of any such joint indebtedness in determining the debt-contracting power of a   municipal   corporation   or  municipality,  the  liability  of  the participating municipal corporations or municipalities for  the  payment of  the  principal  of an interest on such joint indebtedness shall be a joint  liability  of  the  participating   municipal   corporations   or municipalities.  (g)  Where  there  has  been  a  pledge of the faith and credit of any municipal corporation or municipality pursuant to section 100.00 of this chapter for the payment of any several indebtedness,  or  of  any  joint indebtedness, in relation to a joint service or a joint water, sewage or drainage project, provisions shall be made annually by appropriation for the  payment of the interest thereon and of the amounts required for the redemption thereof in compliance with the provisions of section  two  of article  eight  of  the  constitution.  If  at  any  time the respective appropriating  authorities  of  any  such   municipal   corporation   or municipality  shall  fail  to make such appropriations, a sufficient sum shall be set apart from the first revenues thereafter received and shall be applied to such purposes.  The  chief  fiscal  officer  of  any  such participating  municipal  corporation or municipality may be required to set apart and apply such revenues as aforesaid at the suit of any holder of obligations issued for any such indebtedness. All laws requiring  the withholding  of  state aid in the event of the default in the payment of the principal of and interest on indebtedness shall be applicable in the event of a default in the payment of the principal of  and  interest  on any such several indebtedness or joint indebtedness.  (h)  The  powers which may be exercised by a finance board in relation to such joint indebtedness or several indebtedness  shall  include,  but shall not be limited to, the following:   1.  Determining  the  period  of probable usefulness for any object or purpose or class thereof.   2. Determining the subdivision of paragraph a of section 11.00 of this chapter which applies to any object or purpose or class thereof.   3. Authorizing the issuance of bonds and the issuance and  renewal  of bond  anticipation notes, capital notes, tax anticipation notes, revenue anticipation notes and budget notes subject to the  provisions  of  this section  and  sections  21.00, 23.00, 24.00, 25.00, 28.00, 29.00, 30.00, 31.00, 32.00, 33.00, 33.10, 34.00, 35.00, 36.00,  37.00,  38.10,  39.00, 40.00 and 41.10 of this chapter.   4.  Prescribing the terms, form and contents of obligations, the place of payment thereof, and providing for the sale, execution, issuance  and delivery  and  cancellation  thereof  subject  to the provisions of this section and sections 50.00, 51.00, 52.00, 53.00,  54.00,  55.00,  55.10, 56.00,  57.00, 58.00, 59.00, 60.00, 61.00, 62.00, 62.10, 63.00 and 63.10 of this chapter, except as otherwise provided  in  subparagraph  (u)  of this subdivision.   5.  Entering into contracts with a bank or trust company for the place of payment of obligations and for the purpose of having a bank or  trust company  act  as  paying  agent  or as registration agent subject to the provisions of this section and sections 54.00 and 70.00 of this chapter.   6. Adopting the procedure specified in sections  80.00  and  81.00  of this  chapter  which  would be requisite to making sections 82.00, 83.00 and 84.00 of this chapter applicable.   7. Repealing or revoking resolutions or certificates  authorizing  the issuance  of obligations, subject, however, to the provisions of section 41.00 of this chapter.   8. Refunding of capital notes pursuant to the  provisions  of  section 91.00  of  this  chapter,  except  that the provisions of paragraph b of section 107.00 of this chapter shall  not  be  applicable  in  any  such refunding of joint indebtedness or several indebtedness.   9.  Reissuing  obligations  in  place  of  lost,  destroyed, partially destroyed or defaced obligations pursuant  to  section  104.00  of  this chapter.   10.  Depositing  and  investing the proceeds of obligations subject to the provisions of section 165.00 of this chapter.   11. Authorizing the temporary use of funds pursuant to section  165.10 of this chapter.  (i)  The finance boards of the participating municipal corporations or municipalities shall provide that the place of payment of bonds or notes constituting joint indebtedness shall be in the office of an appropriate officer  of  one  of  the  participating   municipal   corporations   or municipalities if a contract is not made with a bank or trust company as the place of payment as provided in section 54.00 of this chapter.  (j)  The finance boards of the participating municipal corporations or municipalities shall designate an appropriate  officer  of  one  of  the participating  municipal  corporations or municipalities as registration agent in relation to any bonds or notes constituting joint  indebtedness if a contract is not entered into with a bank or trust company to act as registration  agent  as  provided  in section 70.00 of this chapter. The officer so designated shall perform all of the duties and  keep  all  of the  records in relation to such joint indebtedness required by sections 70.00, 71.00, 72.00, 73.00, 74.00, 75.00  and  paragraph  d  of  section 164.00 of this chapter.  (k)  The  finance board of the participating municipal corporations or municipalities shall designate an appropriate  officer  of  one  of  the participating  municipal  corporations  or  municipalities  to  keep the record of any bonds or notes constituting joint indebtedness as required by section 163.00 of this chapter.  (l) Notwithstanding any other provisions of this section, if any power of  a  finance  board  of  any  participating  municipal  corporation or municipality may be delegated to its chief  fiscal  officer  or  to  any other  official  or  body  under any section of this chapter, such chief fiscal officer or other official or body  may  exercise  the  powers  so delegated  in  relation  to  matters  to  which  this  title  and  other provisions of this chapter apply.  (m) Notwithstanding any other provisions of this  section,  where  any power may be delegated to the chief fiscal officers of the participating municipal  corporations  or municipalities pursuant to this section, the finance  boards  of  the   participating   municipal   corporations   or municipalities  may  agree  that  any such power may be delegated to and exercised by one of such chief fiscal officers.  (n) Where any action is taken in relation to  joint  indebtedness  for which  the  joint  faith  and  credit  of  the  participating  municipal corporations or municipalities would  be  pledged,  or  in  relation  to obligations  issued pursuant to this chapter, the finance boards of each of the  participating  municipal  corporations  or  municipalities  must separately  authorize  such  action  to  be  taken,  except as otherwise provided in subparagraphs (l) and (m) of this subdivision. Such separate authorization by each  such  finance  board  shall  be  subject  to  the provisions  of  this chapter, and of local laws enacted pursuant to this chapter, which would be applicable in  the  event  that  the  object  or purpose  in  relation  to  which action is being taken was the object or purpose solely of the county, city, town,  village  or  school  district which the finance board represents.  (o) Where the fiscal years of the participating municipal corporations or municipalities are not the same and where joint indebtedness is to be or  has  been  contracted by the issuance or renewal of tax anticipation notes, revenue anticipation notes, capital notes and budget notes or any action is required to be  taken  in,  or  limitation  is  applicable  in connection   with,   a   "fiscal  year,"  the  finance  boards  of  such participants may determine that the  "fiscal  year"  for  such  purposes shall be the same as the fiscal year of one of the participants.  (p)  Notwithstanding  the provisions of section 31.00 of this chapter, any school district which is a participating  municipal  corporation  in relation  to a joint service may, in connection with such joint service, adopt  one  or  more  bond  resolutions  or  capital  note   resolutions authorizing   the   issuance  of  bonds  or  capital  notes  as  several indebtedness, or may participate in the adoption of any such  resolution authorizing   the   issuance   of   bonds  or  capital  notes  as  joint indebtedness, for a class of objects or purposes for  which  objects  or purposes serial bonds may be issued, subject, however, to the applicable provisions of section 37.00 of this chapter.  (q)  A  bond  resolution,  a  capital note resolution or a budget note resolution adopted in compliance with the provisions of  sections  32.00 and  40.00  of this chapter for a joint service or a joint water, sewage or drainage project shall state the total  amount  of  the  indebtedness which  is  to  be contracted severally by the issuance of bonds, capital notes  or  budget  notes  by  each  of   the   participating   municipal corporations  or  municipalities  for  the  object  or  purpose or class thereof set forth in the resolution, or, if joint indebtedness is to  be contracted,  any such resolution shall set forth the total amount of the  joint indebtedness which is to be contracted and the amounts which it is estimated will be allocated and apportioned to each of the participating municipal corporations or municipalities for the purpose of ascertaining their debt-contracting powers.  (r)  Notices  to be published in relation to a mandatory or permissive referendum pursuant to sections 33.10, 35.00, 36.00 and  37.00  of  this chapter,  and  notices  required  to be published in connection with the voting of a special tax or a tax to be collected in  installments  as  a condition  precedent  to  the  adoption of a bond resolution for a joint service or joint water, sewage or  drainage  project,  shall  state  the total  amount of the indebtedness which is to be contracted severally by the issuance of bonds and capital notes by  each  of  the  participating municipal  corporations  or  municipalities for the object or purpose or class thereof for which it is proposed that bonds or capital notes  will be  issued,  or,  if  joint  indebtedness  is to be contracted, any such notice shall set forth the total amount of the joint indebtedness  which is  to  be  contracted  and  the  amounts  which it is estimated will be allocated  and  apportioned  to  each  of  the  participating  municipal corporations  or  municipalities  for  the purpose of ascertaining their debt-contracting powers.  (s) The notice required to  be  published  in  an  official  newspaper pursuant   to   section   81.00  of  this  chapter  shall,  where  joint indebtedness is to be incurred, be published in the  official  newspaper or  newspapers  of  each  of the participating municipal corporations or municipalities or if there be no such newspaper or newspapers,  then  in one  or  more  newspapers  having  general circulation in such municipal corporations or municipalities as the finance  boards  shall  designate, except  that where any newspaper is the official newspaper of all of the participating municipal corporations or municipalities or  is  the  only newspaper designated by the finance boards as a newspaper having general circulation  in  all  of  the  participating  municipal  corporations or municipalities only one notice need be published in any such newspaper.  (t) If bonds which would constitute several indebtedness are  sold  at private  sale pursuant to the provisions of paragraph b of section 63.00 of this chapter, the amount of such  bonds  shall  be  included  in  any computation  of  the  total amount of bonds which may be sold at private sale in any fiscal year of the issuer.  (u) Bonds which would constitute joint indebtedness  may  be  sold  at private sale pursuant to and, except as hereinafter provided, subject to the  provisions  of  paragraph  b  of section 63.00 of this chapter. The total amount of such bonds which may be so sold at private sale  in  any calendar  year  shall  not exceed one million dollars. The limitation of paragraph b of section 63.00 in relation to the total  amount  of  bonds which may be sold at private sale in any fiscal year of the issuer shall not  be  applicable  to  bonds  sold  pursuant to this subparagraph. The amount of any bonds sold pursuant to  this  subparagraph  shall  not  be included  in  computing the total amount of bonds not constituting joint indebtedness which could be sold at private sale in any fiscal  year  of the issuer pursuant to paragraph b of section 63.00.  (v) The provisions of paragraph b of section 107.00 of this chapter in relation  to  down  payment  shall  not  apply  in relation to any joint service or joint water, sewage  or  drainage  project  which  is  to  be financed in whole or in part by the issuance of obligations constituting joint   indebtedness   or  several  indebtedness  of  the  participating municipal corporations or municipalities.  (w) The limitations on the amount of budget notes which may be  issued in any fiscal year and which are set forth in subdivisions two and three of  paragraph  a  of section 29.00 of this chapter and in paragraph i of  such section shall not be applicable to  budget  notes  issued  for  the purposes permitted by such subdivisions two and three of paragraph a and such  paragraph i of section 29.00 and in relation to a joint service or a  joint water, sewage or drainage project. Such budget notes issued for such purposes shall not affect  the  power  of  a  county,  city,  town, village  or  school  district  to  issue budget notes for other purposes under such provisions of section 29.00 of this chapter.  (x) The provisions of sections 160.00, 160.10, 161.00, 162.00, 165.00, 166.00, 167.00, 170.00 and 180.00 of this chapter relating to action  by the  finance  board,  delegation  of powers and duties, negotiability of obligations, tax exemption, use of proceeds, inclusive of premiums, from the sale of obligations, legal actions  and  appeals,  powers  to  adopt local  laws and liberal construction, and all other pertinent provisions of this chapter essential to effectuate the objects and purposes of this title, shall be applicable in relation to the indebtedness and financing of a joint service or a joint water, sewage or drainage project,  except as otherwise expressly provided in this title.