N.Y. Local Finance Law § 40.10: Deficiency note resolution; form and contents; authorization thereof

§ 40.10 Deficiency note resolution; form and contents; authorization

thereof. a. The issuance of deficiency notes or renewals thereof shall

be authorized by a "deficiency note resolution". Each such resolution

shall be properly dated and shall bear a title which will indicate that

it relates to a deficiency note.

b. Any municipality, school district or district corporation may adopt

one or more deficiency note resolutions authorizing the issuance of

deficiency notes for the specific object or purpose of covering a

deficiency in any fund or funds arising from revenues being less than

the amount estimated in the budget for the current fiscal year of the

municipality, school district or district corporation.

c. A deficiency note resolution shall contain, in substance, at least

the following provisions:

1. a statement of the specific object or purpose for which the

deficiency notes to be authorized by such resolution are to be issued;

2. a statement of the amount of deficiency notes to be issued, the

amount and the cause of the deficiency in revenues, and that no other

source of financing is available;

3. a statement of the period of maturity of such notes; and

4. if such notes are to be issued in renewal of other notes, a

statement that the date of maturity of such notes shall not extend

beyond the applicable period provided in section 29.20 of this article

for the maturity of such notes.

d. Every deficiency note resolution shall be adopted by at least a

majority vote of the voting strength of the finance board. A two-thirds

vote of the voting strength of the finance board shall be required to

adopt a deficiency note resolution authorizing the issuance of renewal

notes or authorizing the issuance of deficiency notes in a year next

succeeding a year in which deficiency notes were issued.