2023 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, 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.