2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 8 - Limitations on the Power to Contract Indebtedness › 107.00 - Down Payment.

§  107.00  Down  payment. a. As used in this section the term "current
funds" shall include:
1. Budgetary appropriations for  capital  improvements  or  equipment,
which appropriations have not lapsed.
2. The proceeds of capital notes issued for the payment of the cost of
capital improvements or equipment.
3.  Revenues  other  than real estate taxes or assessments, which have
been collected or received during a fiscal year in excess of  the  total
amount  of  such revenues as estimated for such fiscal year, and surplus
funds and unexpended balances, which are available to be applied  toward
the payment of the cost of capital improvements or equipment.
4.  Capital reserve funds established pursuant to section six-c of the
general municipal law.
5. The trade-in allowance received for any equipment traded in as part
of the cost of equipment being purchased.
Nothing herein contained shall be construed to permit the diversion of
the proceeds of budgetary  appropriations,  capital  notes,  or  capital
reserve   funds   to   a   purpose   other  than  that  for  which  such
appropriations, capital notes, or capital reserve  funds,  respectively,
were made, issued or established.
b. No municipality shall:
1.  Issue  bonds  or  bond  anticipation  notes for a specific capital
improvement  or  items  of  equipment  or   several   specific   capital
improvements or items of equipment or a combination thereof, or
2.  Make  expenditures  for  a  specific  capital improvement from the
proceeds of bonds or bond anticipation  notes  issued  for  a  class  or
classes  of  capital improvements or from a fund into which the proceeds
of bonds or bond anticipation notes are paid
unless it shall have first provided from current funds a  sum  of  money
sufficient to pay at least five per centum of the estimated cost of each
such  capital  improvement or such equipment. The term "estimated cost",
as used in this paragraph, shall not include (a) the portion of the cost
of any capital improvement which is to be paid by the United  States  or
the  state  of  New  York  or which is to be paid from funds, other than
loans, granted to such municipality therefor by the United States or the
state of New York, or (b)  the  portion  of  the  cost  of  any  capital
improvement  which  is  to  be  paid  by assessments upon benefited real
property in an area less than the area of the municipality.
c. 1. During the first fiscal year of a city commencing  on  or  after
July  first,  nineteen hundred forty-four, in which its debt-contracting
power has been exhausted by more than fifty per centum and in which  its
net  indebtedness  is  in  excess  of  one  hundred  twenty-five million
dollars, such minimum percentage  to  be  provided  by  such  city  from
current  funds,  as  prescribed in paragraph b of this section, shall be
increased by nine per centum. Thereafter, during each succeeding  fiscal
year  such minimum percentage to be provided from current funds shall be
increased by two per  centum  over  and  above  the  minimum  percentage
required  for the preceding fiscal year, notwithstanding any increase in
the amount of the debt-contracting power of any such  city  during  such
succeeding  fiscal  years. For the purposes of this subdivision the term
"current funds" shall include only budgetary appropriations for  capital
improvements  or  equipment which appropriations have not lapsed, or the
proceeds of capital notes issued for the payment of the cost of  capital
improvements or equipment.
2.  The  term "net indebtedness" used in this paragraph shall mean the
total net indebtedness as ascertained pursuant to section 138.00 of this
chapter. The percentage of debt-contracting  power  exhausted  shall  be

computed pursuant to the provisions of subdivision two of paragraph a of
section 140.00 of this chapter.
d. The provisions of this section shall not apply to:
1.  Bonds  to  be  issued to redeem bond anticipation notes previously
issued.
2. Judgments, other than for capital improvements.
3. The following capital improvements:
(a) The acquisition, construction, reconstruction or equipment  of  or
addition  to  a  water  supply  or  distribution  system, whether or not
including land.
(b) A capital  improvement  which  the  finance  board  by  resolution
estimates will be self-sustaining.
(c) The acquisition, construction or equipment of or addition to rapid
transit railroads, whether or not including land.
(d)  The  acquisition, construction, reconstruction or equipment of or
addition to electric light and power or gas plants or  systems,  whether
or not including land.
(e)  The  acquisition,  construction, reconstruction of or addition to
docks, piers or wharf property, whether or not including land.
(f) The acquisition, construction, reconstruction of or addition to  a
bridge  or a tunnel and the approaches thereto, whether or not including
land, the cost of which is estimated to exceed ten million dollars.
(g) A capital improvement, the cost of which is  estimated  to  exceed
twenty million dollars.
(h)  A  capital  improvement, the cost of which is estimated to exceed
one million dollars and part of which cost is to be paid by  assessments
upon  benefited  real  property  in  an  area  less than the area of the
municipality.
(i) A capital improvement, of which at least fifty per centum  of  the
cost  is  to  be  paid by assessments upon benefited real property in an
area less than the area of the municipality, whether or not the cost  of
such improvement is estimated to be in excess of one million dollars.
(j)  A  capital  improvement  or  the  acquisition  of equipment, when
necessitated by some destructive agency or to prevent the happening of a
calamity. The finance board, shall, by a four-fifths vote of its  voting
strength,  determine when such an emergency exists. The determination of
the finance board as to the existence of  such  an  emergency  shall  be
conclusive.
(k)  The  construction, reconstruction and equipment of city hospitals
and schools, whether or not including land, if the bonds authorized  for
any  such  object or purpose shall have a maximum maturity not to exceed
one-half of the maximum period  of  probable  usefulness  for  any  such
object  or  purpose  prescribed  in paragraph a of section 11.00 of this
chapter. Such maximum maturity shall be computed from the  date  of  the
bonds  or  the  date  of  the  first  bond  anticipation  note issued in
anticipation of such bonds, whichever date is the earlier, and shall not
exceed fifteen years in any event.
(l) The acquisition, construction, reconstruction, or equipment of  or
addition  to  facilities  for  the conveyance, treatment and disposal of
sewage, whether or not including land.
(m) The cost of the preparation, pursuant to section ninety-nine-d  of
the  general  municipal  law, of surveys, preliminary plans and detailed
plans, specifications and estimates necessary for planning for a capital
improvement which it is contemplated might be undertaken in the future.
4. The financing by any municipality of any object or purpose, if  the
bonds  authorized  for  any  such object or purpose shall have a maximum
maturity not to exceed  one-half  of  the  maximum  period  of  probable
usefulness. Such maximum maturity shall be computed from the date of the

bonds  or  the  date  of  the  first  bond  anticipation  note issued in
anticipation of such bonds, whichever date is the earlier, and shall not
exceed fifteen years in any event.
5.  The  financing  by any municipality of any object or purpose which
has a  period  of  probable  usefulness  of  five  years,  or  less,  as
prescribed in paragraph a of section 11.00 of this chapter.
6.  The  financing by any municipality of any urban renewal program or
part thereof having a period of probable usefulness determined  pursuant
to subdivision forty-one-a of section 11.00 of this chapter.
7.  The  financing  by any municipality of any object or purpose which
has a period of probable usefulness prescribed in subdivision  forty-one
or  subdivision  forty-one-b  of  paragraph  a  of section 11.00 of this
chapter.
8. Notwithstanding any other provision of law, the  financing  by  the
city  of  New  York prior to July first, two thousand twenty-four of any
object or purpose which has a period of probable  usefulness  determined
by law by the issuance of any bonds or notes, including (i) the issuance
of  bonds or notes to obtain reimbursement for funds heretofore advanced
for the object or purpose for which the bonds or notes are being issued,
(ii) the issuance of bonds or notes to redeem  notes  previously  issued
for  the object or purpose for which the bonds or notes are being issued
or (iii) the issuance of bonds to refund bonds previously issued for the
object or purpose for which bonds are being issued.
9. Notwithstanding any other provision of law, the  financing  by  any
municipality,  prior to July fifteenth, two thousand twenty-four, of any
object or purpose which has a period of probable  usefulness  determined
by  law,  by  the  issuance  of  any  bonds and notes, including (i) the
issuance of bonds or notes, to redeem notes previously  issued  for  the
object  or purpose for which the bonds or notes are being issued or (ii)
the issuance of bonds to refund bonds previously issued for  the  object
or purpose for which bonds are being issued.