N.Y. City of Troy Issuance of Serial Bonds § 8: Establishment and application of supervisory board fund for the city of Troy

§ 8. Establishment and application of supervisory board fund for the

city of Troy. (a) There is hereby established a fund designated the

supervisory board fund for the city of Troy. Commencing on the effective

date of the initial financial plan approved by the supervisory board and

for the duration of the emergency period, all revenues received or to be

received by the city of Troy or any covered organization shall, unless

exempted by order of the supervisory board be revenues of the

supervisory board fund and shall be for the account of the city of Troy

and the appropriate covered organizations, but disbursement from the

supervisory board fund shall be made by the supervisory board in

accordance with the approved financial plan, except to the extent

expressly prohibited by federal law or where such revenues are pledged

to the payment of any outstanding bonds, notes or other obligations of

covered organizations. Notwithstanding the foregoing, the supervisory

board shall authorize the city of Troy to make all disbursements of city

of Troy revenues from the supervisory board fund, which disbursements

shall be made in accordance with the approved financial plan; provided,

that the supervisory board may withdraw such authorization if it

determines that (i) any disbursements made or to be made by the city of

Troy have not been or are likely not to be in compliance with the

approved financial plan, (ii) the city of Troy has violated any other

provisions of this act, or (iii) the city of Troy has violated an

agreement with any holder or guarantor of bonds or notes issued by the

city of Troy or a state financing agency. Commencing on the effective

date of the initial financial plan approved by the supervisory board,

and for the duration of any emergency period, all funds and accounts

established or thereafter established by the city of Troy of the covered

organizations shall, unless exempted by order of the supervisory board,

thereafter be funds and accounts of the supervisory board fund except to

the extend expressly prohibited by federal law or to the extent

prohibited by covenants or agreements relating to any outstanding bonds,

notes or other obligations of covered organizations. All such accounts

of the supervisory board shall have such captions and entries as the

supervisory board shall determine to be necessary to credit the

foregoing revenues and receipts to the supervisory board fund. The

moneys of the supervisory board fund shall not be deemed to be money of

the state or money under its control.

(b) The deposit of revenues into the supervisory board fund and the

investment or deposit of moneys therein shall be made in accordance with

and pursuant to procedures established by the supervisory board.

(c) In order to assure compliance with the financial plan, the

supervisory board shall from time to time adopt procedures controlling

the disbursement of moneys from the supervisory board fund.

(d) If at any time the supervisory board determines that the amount

then held in the supervisory board fund or the amount estimated by the

supervisory board to be held in the supervisory board fund is or will be

insufficient to meet the expenditures in the amounts and at the times

required by the financial plan, the supervisory board shall require

disbursements from the supervisory board fund to be made in the

following order or priority unless otherwise required by law of the

United States of America: (i) to the payment of debt service

requirements on all bonds and notes of the city of Troy and the covered

organizations whose money are included in the supervisory board fund,

(ii) to the payment of other liabilities having statutory or contractual

priority over remaining liabilities of the city of Troy and the covered

organizations whose moneys are included in the supervisory board fund,

and (iii) to the payment of other obligations on an allocated basis as

specified by the city of Troy for expenditures in accordance with the

financial plan provided that, in the event that the city of Troy fails

to so specify, the supervisory board may withhold payment of any of such

other obligations or may direct their payment pro rata.

(e) Notwithstanding anything to the contrary in subdivision (a) of

this section, so long as any bonds or notes issued pursuant to this act

are outstanding, all revenues pledged as additional security for any

bonds or notes in accordance with subdivision (a) of section nine of

this act shall be revenues of the supervisory board fund and shall be

for the account of the city of Troy, but disbursement shall be made by

the supervisory board to the municipal assistance corporation for the

city of Troy or to such other person in accordance with the terms and

conditions of any pledge of such revenues to the payment of principal of

and interest on any bonds or notes as permitted by subdivision (a) of

section nine of this act.

(f) The supervisory board shall cause to be performed such pre-audit

and post-audit reviews of the supervisory board fund and disbursements

therefrom as it may determine.