N.Y. General Municipal Law § 42: Definitions

§ 42. Definitions. For the purposes of this article, the following

terms shall have the following meanings:

1. "Cooperative investment agreement" shall mean the temporary

investment of moneys by more than one municipal corporation pursuant

to a municipal cooperation agreement entered into in accordance with

the provisions of article five-G of this chapter and this article. Such

term, however, shall not include investments made pursuant to a

municipal cooperation agreement that: (a) has as its primary purpose

the performance of a function, power or duty, or the provision of a

joint service, other than the investment of funds, provided that the

only moneys invested pursuant to such an agreement are those reasonably

necessary to perform such other function, power or duty or provide

such other joint service; or (b) identifies the specific investments

to be made thereunder and provides for the termination of the agreement

upon the sale, redemption or maturity of such investments.

2. "Irrevocable letter of credit" shall mean an irrevocable letter of

credit issued in favor of every participant in the agreement by a bank

whose commercial paper and other unsecured short-term debt obligations

(or, in the case of a bank which is the principal subsidiary of a

holding company, whose holding company's commercial paper and other

unsecured short-term debt obligations) are rated in one of the three

highest rating categories (based on the credit of such bank or holding

company) by at least one nationally recognized statistical rating

organization or by a bank that is in compliance with applicable federal

minimum risk-based capital requirements.

3. "Market value" shall mean market prices obtained from a nationally

recognized security pricing service or from a minimum of three primary

reporting dealers in government securities as determined by the federal

reserve bank.

4. "Municipal corporation" shall have the same meaning as in section

one hundred nineteen-n of this chapter.

5. "Participant" shall mean each municipal corporation that enters

into a cooperative investment agreement in accordance with the

provisions of this article.