New York Codes, Rules and Regulations › Title 2 - DEPARTMENT OF AUDIT AND CONTROL › Chapter II - Municipal Affairs › Subchapter A - Sales Of Bonds And Notes; Debt Statements › Part 38 - Sinking Funds For Bonds Of Municipalities And School Districts › Section 38.8 - Rights and remedies of the state comptroller

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The State Comptroller undertakes to
				  perform such duties and only such duties as are specifically set forth in
				  section
				  22.10  of the Local Finance Law, this Part
				  or any agreement with the issuer and no implied covenants or obligations shall
				  be read into such section
				  22.10, this Part or into
				  any agreement with the issuer.
(b)
				  The State Comptroller may conclusively rely, as to the truth of the statements
				  and the correctness of the opinions expressed therein, upon certificates or
				  opinions furnished to the State Comptroller and conforming to the requirements
				  of section
				  22.10  of the Local Finance Law, this Part
				  and any agreement with the issuer; but in the case of any such certificates or
				  opinions which are specifically required to be furnished to the State
				  Comptroller pursuant to section
				  22.10(c)  of the Local
				  Finance Law, the State Comptroller shall examine the contents of the same to
				  determine whether or not they conform to the requirements of section
				  22.10  of the Local Finance Law, this Part
				  and any agreement with the issuer.
(c) The State Comptroller shall not be liable
				  for any error of judgment made in good faith by him.
(d) The State Comptroller shall not be liable
				  with respect to any action taken or omitted to be taken by him in good faith in
				  accordance with the direction of the issuer.
(e) The State Comptroller may rely, and shall
				  be protected in acting or refraining from acting in reliance, upon any
				  resolution, certificate, statement, instrument, opinion, report, notice,
				  request, direction, consent, order, bond, debenture or other paper or document
				  believed by him to be genuine and to have been signed or presented by the
				  proper party or parties.
(f) Any
				  request or direction of the issuer shall be sufficiently evidenced by a
				  certificate signed by an authorized official of the issuer and any resolution
				  of the governing body of the issuer may be sufficiently evidenced by a copy of
				  such resolution certified by the appropriate official of the issuer.
(g) Whenever the State Comptroller shall deem
				  it desirable that a matter be proved or established prior to taking, suffering
				  or omitting any action, the State Comptroller (unless other evidence be
				  specifically prescribed) may, in the absence of bad faith on the Comptroller's
				  part, rely upon a certificate signed by an authorized official of the
				  issuer.
(h) The State Comptroller
				  may consult with counsel, including the Attorney General, and the written
				  advice of such counsel shall be full and complete authorization and protection
				  in respect of any action taken, suffered or omitted by him in good faith and in
				  reliance thereon.
(i) The State
				  Comptroller shall not be bound to make any investigation into the facts or
				  matters stated in any resolution, certificate, statement, instrument, opinion,
				  report, notice, request, direction, consent, order, bond or other paper or
				  document, but the State Comptroller, in his discretion, may make such further
				  inquiry or investigation into such facts or matters as the State Comptroller
				  may see fit, and, if the State Comptroller shall determine to make such further
				  inquiry or investigation, he shall be entitled to examine the books, records
				  and premises of the issuer personally or by agent or attorney. The issuer shall
				  cooperate in any such investigation, audit or inquiry and make available to the
				  State Comptroller such premises, books, records and any other documents as the
				  State Comptroller reasonably requests.
(j) The State Comptroller shall make no
				  representations as to the validity or sufficiency of the sinking fund
				  bonds.
(k) The State Comptroller
				  shall not be accountable for the use or application by the issuer of the
				  proceeds of the bonds or for compliance by the issuer with provisions relating
				  to the nonincludability of interest on the sinking fund bonds in the gross
				  income of owners of the bonds for purposes of Federal income taxation;
				  provided, however, that the State Comptroller shall be obligated to follow the
				  procedures set forth in section
				  38.16 
				  of this Part.
(l) The State
				  Comptroller shall not be obligated to obtain any particular rate of return on
				  investments (subject to section
				  38.16 
				  of this Part).
(m) The State
				  Comptroller shall not be liable for any monetary loss resulting from the
				  default or insolvency of any depository holding investments in a sinking fund,
				  so long as the depository is an institution described in section
				  22.10(d)(1)(a)  of the
				  Local Finance Law, or from any loss on an investment made in accordance with
				  section
				  22.10  of the Local Finance Law, this Part
				  and any agreement with the issuer.