2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 2 - Local Obligations: Types Thereof › 25.00 - Revenue Anticipation Notes.

§ 25.00 Revenue anticipation notes. a. As used in this section:
1. The term "taxes" shall mean taxes other than real estate taxes.
2.  The  terms "rents," "rates" or "charges" shall mean sewer or water
rents, rates or charges.
3. The term "moneys" shall mean moneys to be received from the  state,
the  United  States  government  or  from the county as a portion of the
distribution of the county sales  and  compensating  use  tax,  and  for
special  act  public school districts enumerated in chapter five hundred
sixty-six of the laws of nineteen hundred sixty-seven, as amended, shall
also mean tuition payments to be received from public  school  districts
and social services districts.
4.  The  term  "other  income" shall mean income derived from electric
light and power plants or distribution systems, or other utility  plants
or   distribution  systems,  or  any  other  type  of  income  producing
facilities or operations owned and  operated  by  a  municipality  or  a
district corporation.
5.  The  term  "revenue" includes taxes, rents, rates, charges, moneys
and other income.
b. (1) Revenue anticipation notes may be issued by  any  municipality,
school   district  or  district  corporation  in  anticipation  of:  the
collection or receipt of revenue, provided that each such note shall  be
issued  only  against  a specific type of revenue, or for the purpose of
renewing a previously issued revenue anticipation note.
(2)  Notwithstanding  the  provisions  of  paragraph   one   of   this
subdivision, revenue anticipation notes may be issued by the city of New
York  for  revenues  receivable from state and federal governments on an
overall basis, rather than by specific sources of revenue.
c. 1. Revenue anticipation notes may be issued during any fiscal  year
in  which  such  taxes,  rents,  rates  or  charges  or  other income in
anticipation of which such notes are issued become due  and  payable  or
such  moneys  become  due; however, such notes may be issued by a school
district in anticipation of moneys to  be  received  in  a  fiscal  year
during the two weeks prior to the commencement of such fiscal year.
2.  In  addition  to  the  powers  granted by subparagraph one of this
paragraph c or by any other provision of this section, the city  of  New
York  may issue revenue anticipation notes in anticipation of a specific
type of revenue, as defined in this sub-paragraph two, which  is  to  be
received  or  collected  by  such  city  in the fiscal year of such city
commencing after the fiscal year during which such notes are issued,  in
an  amount  not  exceeding  the portion of such specific type of revenue
estimated by the mayor of such city to be attributable to or based  upon
transactions or activities occurring during the months of April, May and
June  of  the  fiscal  year during which such notes are issued, less the
amount of such portion of such specific type of revenue so estimated  by
the  mayor, which has actually been received or collected at the time of
the issuance of such notes and the amount  of  any  outstanding  revenue
anticipation  notes issued against such portion of such specific type of
revenue so estimated by the mayor. The proceeds of notes issued pursuant
to this sub-paragraph two may be applied to any purposes or expenditures
of the fiscal year of such city during  which  such  notes  are  issued,
including payment into the general fund of such city for use during such
fiscal  year,  or  for  the redemption of notes in renewal of which such
notes were issued. The provisions of paragraph d of this  section  shall
not  apply  to  revenue  anticipation  notes  issued  pursuant  to  this
subparagraph two. As used in this subparagraph two, the  term  "revenue"
shall  mean  any taxes, rents, rates, charges, moneys or other income as
defined in paragraph a of this section, imposed, charged or received  by
such  city  pursuant  to  any state or local law heretofore or hereafter

enacted and attributable to or based  upon  transactions  or  activities
occurring  in  the months of April, May and June of a fiscal year during
which revenue anticipation notes are issued by  such  city  pursuant  to
this  subparagraph  two and which is to be received or collected by such
city in the fiscal year commencing after such April, May and  June,  and
shall  include, but not be limited to: (a) taxes imposed under titles G,
M, N, V of chapter forty-six of the administrative code of the  city  of
New  York  with  respect  to  which  returns are required to be filed in
accordance with the provisions of  subdivision  (e)  of  section  twelve
hundred fifty-one of the tax law; (b) taxes imposed under titles P and Q
of  chapter  forty-six  of  such  code with respect to which returns are
required to be filed on or before the twenty-fifth day of July, nineteen
hundred sixty-five for the calendar  month  of  June,  nineteen  hundred
sixty-five;  (c)  taxes  imposed  by  such  city pursuant to chapter two
hundred fifty-seven of the  laws  of  nineteen  hundred  sixty-three  as
heretofore  or  hereafter  amended or supplemented; (d) taxes imposed by
such city by  local  laws  adopted  or  amended  after  April  eleventh,
nineteen  hundred sixty-five, pursuant to article twenty-nine of the tax
law as heretofore  or  hereafter  amended  or  supplemented;  (e)  taxes
payable  into  the  general  fund  of  the  city of New York pursuant to
section two hundred sixty-one of the tax law as heretofore or  hereafter
amended  or  supplemented;  (f)  charges for the supply of water by such
city in accordance with meter rates and minimum charges for such  supply
of  water  measured  by  meter,  payable  as  prescribed  by section 415
(1)-17.0 of  the  administrative  code  of  the  city  of  New  York  as
heretofore or hereafter amended or supplemented; (g) the amounts payable
to such city pursuant to subdivision two of section one hundred twelve-a
of  the  highway law as heretofore or hereafter amended or supplemented;
(h) the amounts payable into the general fund of such city  pursuant  to
section  eighty-nine of the state finance law as heretofore or hereafter
amended or supplemented; and (i) taxes imposed by such city pursuant  to
chapter  two  hundred  thirty-five  of  the  laws  of  nineteen  hundred
fifty-two as heretofore or hereafter amended.
d.  The  total  amount  of  revenue   anticipation   notes   which   a
municipality,  school  district  or  district  corporation  may issue in
anticipation of the collection or receipt of a specific type of  revenue
shall be determined in the following manner:
1. In a municipality, school district or district corporation in which
an  annual budget is prepared and adopted for a fiscal year prior to the
commencement thereof, such amount shall be
(a) The amount of such specific type of revenue as  estimated  in  the
annual   budget  of  such  municipality,  school  district  or  district
corporation for such fiscal year, or the amount of such specific type of
revenue recognized for the fiscal year preceding  that  for  which  such
budget  is  to  be or has been adopted, whichever amount is the smaller,
less
(b) The amount of such specific type of revenue so estimated  in  such
budget  which has actually been received or collected at the time of the
issuance of such notes,  and  the  amount  of  any  outstanding  revenue
anticipation  notes issued against such specific type of revenue for the
fiscal year  for  which  such  notes  are  to  be  issued.  For  such  a
municipality,   school   district  or  district  corporation,  the  term
"estimated amount" as used in paragraph g of this section shall mean the
smaller amount determined in item (a) of this subdivision prior  to  the
deductions required by this item.
The provisions of this subdivision shall not be applicable (1) where a
specific  type  of  revenue has not been estimated in such budget and in
that case such amount  shall  be  the  amount  of  such  revenue  as  is

estimated  by  the  chief fiscal officer to be recognized for the fiscal
year for which such budget has been adopted, or  (2)  where  a  specific
type  of  revenue  has  not  been  recognized for the entire fiscal year
preceding  that  for which such budget has been adopted and in that case
such amount shall be the amount, if any, of the specific type of revenue
as estimated in the annual budget, less, in either case, the  amount  of
such  specific  type  of  revenue  which  has  actually been received or
collected at the time of the issuance of such notes, and the  amount  of
any  outstanding revenue anticipation notes issued against such specific
type of revenue for the fiscal year for  which  such  notes  are  to  be
issued.
2. In a municipality, school district or district corporation in which
an  annual  budget  is  not  prepared  or  in  which an annual budget is
prepared for a fiscal year but is adopted subsequent to the commencement
thereof, such amount shall be
(a) The amount of such specific type of  revenue  recognized  for  the
fiscal  year  next preceding the fiscal year for which such notes are to
be issued, or the amount of such specific type of revenue recognized for
the second fiscal year preceding the fiscal year for  which  such  notes
are to be issued, whichever amount is the smaller, less
(b)  The  amount  of such specific type of revenue for the fiscal year
for which such notes are to be issued, which has actually been  received
or  collected  at the time of the issuance of such notes, and the amount
of any  outstanding  revenue  anticipation  notes  issued  against  such
specific type of revenue for the fiscal year for which such notes are to
be  issued.  For  such  a  municipality,  school  district  or  district
corporation, the term "estimated amount" as used in paragraph g of  this
section  shall  mean  the  smaller amount determined in item (a) of this
subdivision prior to the deductions required by this item.
The provisions of this subdivision shall not  be  applicable  where  a
specific  type  of revenue has not been recognized for the entire fiscal
year next preceding the fiscal year for which such budget is  to  be  or
has  been  adopted  and  in that case such amount shall be the amount of
such revenue as is estimated in such budget or,  if  there  is  no  such
estimate,  then  the amount of such revenue as is estimated by the chief
fiscal officer to be recognized for  the  fiscal  year  for  which  such
budget  is  to  be  adopted,  less  the  amount of such specific type of
revenue for the fiscal year for which such budget is to be or  has  been
adopted which has actually been collected or received at the time of the
issuance  of  such  notes,  and  the  amount  of any outstanding revenue
anticipation notes issued against such specific type of revenue.
* 3. Notwithstanding the provisions of subdivisions  one  and  two  of
this  paragraph, if the restrictions imposed therein upon the amount for
which revenue anticipation notes may be issued against any specific type
of revenue in any fiscal  year  shall  cause  undue  hardship  upon  any
municipality,   school   district  or  district  corporation,  any  such
municipality, school district or district corporation may apply  to  the
state  comptroller for authority to issue such notes in an amount not in
excess of the amount of such specific type of revenue  as  estimated  in
the  annual  budget  of, or contemplated to be collected or received by,
any municipality, school district or district corporation for or  during
the  fiscal  year  in  which  such taxes, rents, rates, charges or other
income shall become due and payable or  such  moneys  become  due.  Such
application  shall be in writing and shall be signed and verified by the
chief fiscal officer of the municipality, school  district  or  district
corporation.  The state comptroller shall prescribe the procedure in any
such proceeding and the information to be furnished to him necessary  to
make  such  determination. The state comptroller shall have power in any

such proceeding to determine if such restrictions have caused,  or  will
cause,  an undue hardship upon any such municipality, school district or
district corporation, and, if he so determines, then he shall have power
to   authorize  any  such  municipality,  school  district  or  district
corporation to issue such notes in  an  amount  not  in  excess  of  the
limitation   hereinabove   expressed   in  this  subdivision,  and  such
determination and  authorization  by  the  state  comptroller  shall  be
conclusive  as  to  the amount of such notes which may be issued against
any such specific type of revenue.
* NB There are 2 subdivision 3's of paragraph d
* 3. Notwithstanding any other provisions of this paragraph d  in  the
city of New York such amount shall be
(a)  The amount of such specific type of revenue consisting of revenue
other than moneys, as is estimated in the annual budget of such city  to
be  collected  or  received in the fiscal year for which such budget has
been adopted, and the amount of such specific type of revenue consisting
of moneys as is estimated in the annual budget of such city to be due in
the fiscal year for which such budget has been adopted, less
(b) The amount of such specific type of revenue so estimated  in  such
budget  which has actually been received or collected at the time of the
issuance of such notes,  and  the  amount  of  any  outstanding  revenue
anticipation  notes issued against such specific type of revenue for the
fiscal year in which such taxes, rents, rates, charges or  other  income
become  due and payable or in which such moneys become due. For the city
of New York, the term "estimated amount" as used in paragraph g of  this
section   shall   mean  the  amount  determined  in  item  (a)  of  this
subparagraph three prior to the deduction required by item (b)  of  this
subparagraph three.
The  provisions  of  this  subparagraph  three shall not be applicable
where a specific type of revenue has not been estimated in  such  budget
and  in  that case such amount shall be the amount of such specific type
of revenue consisting of revenue other than moneys, as is  estimated  by
the  mayor to be collected or received in the fiscal year for which such
budget has been adopted, and the amount of such specific type of revenue
consisting of moneys as is estimated by the  mayor  to  be  due  in  the
fiscal  year  for which such budget has been adopted, less the amount of
such specific type of  revenue  which  has  actually  been  received  or
collected  at  the time of the issuance of such notes, and the amount of
any outstanding revenue anticipation notes issued against such  specific
types  of revenue for the fiscal year in which such taxes, rents, rates,
charges or other income become due and payable or in which  such  moneys
become due.
* NB There are 2 subdivision 3's of paragraph d
4. Whenever this paragraph requires a determination or estimate of the
amount  of a specific type of revenue recognized or to be recognized for
a  fiscal  year,  such  determination  or  estimate  shall  be  made  in
conformance  with  the  basis  of  accounting  used by the municipality,
school district or district  corporation  to  prepare  the  most  recent
annual  financial report filed pursuant to section thirty of the general
municipal law.
d-2. The provisions of paragraph  d  of  this  section  shall  not  be
applicable  to  revenue anticipation notes issued in anticipation of the
receipt of moneys from the federal government pursuant to title  one  of
the housing act of nineteen hundred forty-nine, as amended.
e.  The  proceeds of revenue anticipation notes shall be used only for
the purpose of (1) meeting expenditures payable from the type of revenue
in anticipation of  which  such  notes  were  issued,  or  (2)  for  the
redemption of notes in renewal of which such notes were issued.
f.  Revenue anticipation notes shall mature within one year and may be
renewed from time to time, but each renewal shall be for  a  period  not
exceeding  one  year  and  in no event shall such notes, or the renewals
thereof, extend beyond the close of the second  fiscal  year  succeeding
the fiscal year in which such notes were issued. Such notes shall not be
renewed  in  an amount in excess of the difference between the amount of
the uncollected or unreceived revenue in anticipation of which they were
issued and the amount of  any  other  outstanding  revenue  anticipation
notes  issued  in  anticipation  of  the  collection  or receipt of such
revenue.
g. Whenever the amount of revenue  anticipation  notes  issued  for  a
fiscal year against a specific type of revenue shall equal the estimated
amount  of  such  specific  type  of  revenue  in  anticipation  of  the
collection or receipt of which such notes shall have been  issued,  less
the  amount  of such revenue actually received or collected, all of such
revenue, as thereafter received or collected, shall be set  aside  in  a
special  bank  account  to  be used only for the payment of such revenue
anticipation notes as they become due. Any municipality, school district
or district  corporation  may  make  budgetary  appropriations  for  the
redemption  of  revenue  anticipation  notes  whether or not required or
otherwise authorized by law to do so. In the event such an appropriation
is made, such municipality,  school  district  or  district  corporation
shall  not  be  required to pay into the special account the proceeds of
the specific type of revenue against which such notes  were  issued  but
such  proceeds  may be used in the manner provided by law or if there is
no provision of law  pertaining  to  the  use  of  such  proceeds,  such
proceeds shall be treated as surplus moneys for the fiscal year in which
they are collected.
h.  Notwithstanding  the provisions of paragraph b of this section any
municipality, school district or district corporation may issue a single
revenue anticipation note in anticipation of the collection  or  receipt
of  any number of, or all, specific types of revenue, providing that the
amount of indebtedness to be contracted against each  specific  type  of
revenue shall be stated in the resolution or certificate authorizing the
issuance  of  such note, and such amount shall not exceed the respective
amounts of indebtedness which could be contracted against each  specific
type  of revenue under any other paragraph of this section. The proceeds
of  any  such  single  revenue  anticipation  note  shall  be  severable
according  to  the  specific types of revenue against which indebtedness
has been therein contracted and shall be treated in the same  manner  as
the  proceeds  of separate revenue anticipation notes, each of which was
issued against a specific type of revenue, would have been applied.  Any
municipality,  school  district or district corporation which issues any
such single revenue anticipation note shall comply with  the  provisions
of  paragraph  g  of  this section, except that for the purposes of such
paragraph (1) any such single revenue anticipation note shall be treated
as a group of separate revenue anticipation notes, each issued against a
specific type of  revenue,  and  (2)  the  amount  issued  against  each
specific type of revenue shall be the amount stated in the resolution or
certificate   authorizing  the  issuance  of  any  such  single  revenue
anticipation  note.  The  municipality,  school  district  or   district
corporation  shall  keep proper records which will show at all times the
unpaid balances  due  on  any  such  single  revenue  anticipation  note
according to the types of revenue against which such note was issued.
i.  (a)  A board of cooperative educational services may issue revenue
anticipation notes, as authorized by paragraph g of subdivision four  of
section  nineteen hundred fifty of the education law, in anticipation of
money to be received from the state, the United States  government,  and

from  its  component school districts for services or for administrative
and clerical expenses.
(b)  For  the  purposes of this subdivision i, and for the purposes of
sections 30.00 and 39.00 and titles four, five, six and twelve  of  this
chapter,  the  board  of  cooperative  educational services shall be the
finance board, its president shall be its chief fiscal officer, and  its
fiscal  year shall be the fiscal year of its component school districts;
provided, further, that the provision of section 162.00 of this  chapter
shall  be  applicable  to  revenue  anticipation notes issued under this
subdivision.
j. 1. The provisions of this paragraph shall  apply  only  to  revenue
anticipation  notes,  including  renewals thereof, issued by the city of
Buffalo during its fiscal years ending June thirtieth, in  each  of  the
years   nineteen  hundred  eighty-four,  nineteen  hundred  eighty-five,
nineteen hundred eighty-six, nineteen hundred eighty-seven, and nineteen
hundred eighty-eight, in anticipation of the receipt of  state  aid  and
local  assistance, and only to such issues of revenue anticipation notes
as to which the certificate  described  in  subdivision  three  of  this
paragraph is filed.
2.  Each  issue  of revenue anticipation notes shall be issued only in
anticipation of the receipt of a specific type or types of state aid and
local assistance,  provided  that  the  amount  of  indebtedness  to  be
contracted for each such specific type of state aid and local assistance
shall  be  stated  in  the  proceedings authorizing the issuance of such
notes. Except as  provided  in  subdivision  eight  of  this  paragraph,
revenue anticipation notes shall be payable only at the office of a bank
or  trust  company  designated as the paying agent thereof in accordance
with  this  chapter.  Revenue  anticipation  notes,  including  renewals
thereof,  shall mature not later than the last day of the fiscal year of
such city in which such notes were originally  issued.  The  proceedings
authorizing  revenue  anticipation  notes  may include provisions, which
shall constitute a covenant by such city with the purchasers and holders
and owners from time to time of such notes, limiting the  power  of  the
city  to  authorize  and  issue additional notes during the then current
fiscal year of such city in anticipation of the same  specific  type  or
types  of state aid and local assistance as the notes authorized by such
proceedings.
3. Prior to the delivery of each issue of revenue anticipation  notes,
the  chief  fiscal  officer  of  such  city  shall  file  with the state
comptroller 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, (ix) a description  of
the  type  or types of state aid and local assistance in anticipation of
which such revenue anticipation notes are being issued and, if more than
one type of state aid and local assistance is involved,  the  amount  of
indebtedness  being  contracted  against each specific type of state aid
and local assistance, and (x) a schedule setting forth the total  amount
of  each such type or types of state aid or local assistance anticipated
to be received, and the expected date or dates of anticipated receipt of
such state aid or local assistance.
Such certificate shall be accompanied by a statement executed  by  the
chief  fiscal  officer of such city certifying that, with respect to any

specific type or types of state aid  or  local  assistance  referred  to
therein  which is not required by law to be paid by the state on a fixed
date or dates, the city of Buffalo will effectuate procedures  by  which
any claim or request on which such payment is conditioned will be timely
submitted  so  that  payment can be made by the state in accordance with
the schedule contained in such certificate as item (x).  Such  statement
shall  also  contain  a  certification  that  the  amounts  and times of
payments of state aid and local assistance 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.
4. All revenue anticipation notes, in addition  to  a  pledge  of  the
faith  and  credit of such city for the payment thereof, shall contain a
recital to the effect that they are entitled  to  the  benefits  of  the
provisions of this paragraph.
5. 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 of
the  city  with  the  state comptroller pursuant to subdivision three of
this paragraph, the state comptroller shall pay  to  such  paying  agent
from  moneys as provided in subdivision six of this paragraph 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  state 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 such city 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  such  city  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 such
city shall have any right to or claim against any moneys  of  the  state
appropriated  by  the state and 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;
provided,  however,  that  nothing  contained in this paragraph shall be
construed to limit, impair, impede or otherwise adversely affect in  any

manner  the  rights or remedies of the purchasers and holders and owners
of any bonds or notes of  the  state  or  any  agency,  instrumentality,
public  benefit  corporation or political subdivision thereof, including
the  city of Buffalo, under which such purchasers and holders and owners
have any right of payment of such bonds or notes by  recourse  to  state
aid  or  local  assistance  moneys held by the state and with respect to
which the state has covenanted with  such  purchasers  and  holders  and
owners  that  it will not repeal, revoke or rescind any provision of law
or amend or modify the same so as to limit, impair or  impede  any  such
rights  or  remedies.  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.
6.  Commencing  on  the day when the state comptroller determines that
the principal and interest due or to come due on the outstanding revenue
anticipation notes issued for a fiscal year against a specific  type  or
types  of state aid or local assistance pursuant to this paragraph shall
equal ninety percent of the amount of such specific type of state aid or
local  assistance  as  set  forth  on  the  schedule  included  in   the
certificate  filed  with  him  pursuant  to  subdivision  three  of this
paragraph remaining to be paid to such city on or prior to any principal
and/or interest payment date, the state  comptroller  shall  deduct  and
withhold  from  the  amount  appropriated for each such specific type of
state aid and local assistance otherwise payable to such city 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 state comptroller to the account  established  for  such
specific  state  aid  or  local  assistance  in  the state aid and local
assistance revenue withholding  fund  established  pursuant  to  section
ninety-two-l  of  the  state finance law, at such time as any payment of
each such specific type of state aid or local assistance  is  scheduled,
by law or otherwise, to be made to such city. In each case, the payments
required  to  be  made  by the state comptroller pursuant to subdivision
five of this paragraph shall be made from  amounts  on  deposit  in  the
accounts  established for each such specific type of state aid and local
assistance in the state aid and  local  assistance  revenue  withholding
fund.  Whenever  any issue of revenue anticipation notes has been issued
in anticipation of more than one specific type of state  aid  and  local
assistance as authorized by subdivision two of this paragraph, each such
payment  shall  be  made  from  each  separate  account according to the
principal amount of indebtedness contracted against each  specific  type
of state aid and local assistance.
7.  The  state of New York hereby covenants with the holders from time
to time of revenue anticipation notes issued by such city that  it  will
not  repeal,  rescind  or revoke the provisions of this paragraph or the
provisions of section ninety-two-l of the state finance law or amend  or
modify  the  same  as to limit, impair or impede the rights and remedies
granted hereby to such holders, provided, however, that nothing in  this
paragraph  contained  shall be deemed or construed as giving or pledging
the credit of the state or  as  requiring  the  state  to  continue  the
payment  of  any specific type or types of state aid or local assistance
to such city or as limiting or prohibiting the state from  repealing  or
amending  any  law heretofore or hereafter enacted relating to state aid
and local assistance to such city, the manner and  time  of  payment  or
apportionment  thereof,  or  the  amount thereof, nor shall such revenue
anticipation notes be a debt of the state and the  state  shall  not  be
liable thereon.
8.  Notwithstanding  any  other  provision  of  this paragraph, at the
expiration of one hundred eighty days after the  maturity  date  of  any
issue  of  revenue anticipation notes issued hereunder, 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  such
city  and  thereafter  the holders of such notes shall look only to such
city for such payment.
9. All other provisions of this  chapter  not  inconsistent  with  the
provisions   of   this   paragraph   shall  continue  to  apply  to  the
authorization and issuance of revenue anticipation notes by such city.
k.  1.  A  special  act  public  school  district  may  issue  revenue
anticipation notes or obtain letters of credit in anticipation of moneys
to  be  received  from  the state, the United States government and from
public  school  districts  or  social  services  districts  which  place
students in the special act public school district.
2.  For  the  purposes  of  this  paragraph,  and  for the purposes of
sections 30.00 and 39.00 and titles four, five, six and twelve  of  this
article,  the  board  of  education  shall  be the finance board and its
president shall be its chief fiscal  officer;  provided,  further,  that
section   162.00   of  this  article  shall  be  applicable  to  revenue
anticipation notes issued under this paragraph.