2023 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;  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.