US Laws, Codes, Statutes & Cases

 
    § 266. Short term debt. a. Subject to the provisions of subdivisions b
  through j of this section, the city may issue temporary debt obligations
  in  anticipation  of  taxes and revenues as authorized by state law. The
  city shall issue no short-term obligations which shall  be  inconsistent
  with  the  limitations  set  forth  in  subdivisions b through j of this
  section. The limitations on short-term borrowing imposed upon  the  city
  by  this  section  shall be in addition to the limitations on short-term
  borrowing imposed on the city under the state  local  finance  law.  The
  powers,  duties,  and  obligations  set  forth  in this section shall be
  subject to the powers, duties, and obligations placed upon any state  or
  local officer or agency, including but not limited to the New York state
  financial  control board, by or pursuant to the New York State Financial
  Emergency Act for the City of  New  York,  while  such  act  remains  in
  effect.
    b.  Revenue  or  tax  anticipation  notes  shall  be  issued against a
  specific tax or revenues receivable  which  are  clearly  identified  by
  source and fiscal year.
    c.  If  the  amount  of  taxes  or  revenues  receivable against which
  anticipation notes have been issued becomes equal to the amount of  such
  notes  outstanding,  the  city  shall deposit all further funds obtained
  from such sources into a segregated bank account which may be used  only
  to redeem such debt upon maturity.
    d.  The  city  shall  not  issue  anticipation  notes against taxes or
  revenues which have been receivable for more than two years.
    e.  No  tax  anticipation  notes  shall  be  issued  by  the  city  in
  anticipation  of  the  collection  of  taxes or assessments levied for a
  fiscal year which would cause the principal amount of such issue of  tax
  anticipation  notes  to  exceed an amount equal to ninety percent of the
  available tax levy with respect to such  issue.  For  purposes  of  this
  subdivision,  "available  tax  levy"  with  respect  to  an issue of tax
  anticipation notes means at any date of computation the total amount  of
  city  real  estate  taxes  or assessments projected, consistent with the
  financial plan then in effect, to be received in cash on or  before  the
  fifth  day  preceding  the  maturity  date of such tax anticipation note
  issue, less amounts required during  the  period  between  the  date  of
  computation  and  the  fifth day preceding such maturity date to be paid
  into a general debt service fund or otherwise required to  pay  interest
  payable  on other outstanding city bonds and notes, principal (including
  payments into sinking funds) coming due on outstanding  city  bonds  and
  principal  to  be  paid from sources other than the proceeds of bonds or
  renewal notes on other outstanding  city  notes  (exclusive  of  revenue
  anticipation  notes or renewals thereof issued less than two years prior
  to the date of computation) but  not  including  payments  from  sinking
  funds required by the terms of certain city bonds.
    f.  Tax anticipation notes and renewals thereof shall mature not later
  than the last day of the fiscal year in which they were issued.
    g. (1) No revenue anticipation note shall be issued  by  the  city  in
  anticipation  of  the  collection or receipt of revenue in a fiscal year
  which would cause the principal amount  of  revenue  anticipation  notes
  outstanding  to exceed ninety percent of the available revenues for such
  fiscal year. For purposes  of  this  subdivision,  "available  revenues"
  shall be the revenues other than real estate taxes and assessments which
  have  been  estimated in the financial plan prepared pursuant to section
  two hundred fifty eight to be realized in cash during  such  year,  less
  revenues  previously  collected,  other  than revenues on deposit in any
  special fund or account established pursuant to law for the  payment  of
  interest and/or principal of revenue anticipation notes.

    (2)  Each  issue of revenue anticipation notes shall be issued only in
  anticipation of the receipt of a specific type or types of  revenue  and
  the amount of revenue, the source of revenue and the anticipated date of
  payment  shall  be stated in the proceedings authorizing the issuance of
  such notes.
    (3)  Revenue  anticipation  notes shall mature not later than the last
  day of the fiscal year in which they were issued, and may not be renewed
  or extended to a date more than ten days after the anticipated  date  of
  receipt  of  such  revenue.  No such renewal note shall mature after the
  last day of such fiscal year unless the mayor  shall  certify  that  the
  revenue  against  which  such  renewal  note is issued has been properly
  accrued and estimated in the financial plan set  forth  in  section  two
  hundred  fifty-eight  in  effect on the date of issuance of such renewal
  note; provided that in no event shall  any  such  renewal  notes  mature
  later than one year subsequent to the last day of the fiscal year during
  which such revenue anticipation notes were originally issued.
    h.  (1)  No  bond anticipation note shall be issued by the city in any
  fiscal year which would cause the principal amount of bond  anticipation
  notes  outstanding, together with interest due or to become due thereon,
  to exceed fifty percent of the principal amount of bonds issued  by  the
  city  in  the twelve months immediately preceding the month in which the
  note is to be issued.
    (2) The proceeds of each bond issued shall be (i) held  in  trust  for
  the  payment,  at maturity, of the principal of and interest on any bond
  anticipation notes of the city issued in anticipation of such bonds  and
  outstanding  at  the  time of the issuance of such bonds, (ii) paid into
  the general fund of the city in repayment of any advance made from  such
  fund  pursuant  to  section  165.10  of the state local finance law, and
  (iii) any balance shall be expended for the object or purpose for  which
  such bonds were issued.
    (3)  Bond  anticipation  notes  shall mature not later than six months
  after their date of issuance and may be renewed  for  a  period  not  to
  exceed six months.
    i.  Budget  notes  issued pursuant to section 29.00 of the state local
  finance law  may  only  be  issued  to  fund  projected  expense  budget
  deficits.  No  budget  notes or renewals thereof shall mature later than
  sixty days prior to the last day of the fiscal year next succeeding  the
  fiscal year during which such budget notes were originally issued.
    j. All references to the state local finance law in this section shall
  be deemed to refer to the provisions of the New York state local finance
  law  as  such  provisions  may  be  amended  over  time or any successor
  provisions thereto.