N.Y. Local Finance Law § 70.00: Fiscal agent

§ 70.00 Fiscal agent. a. The term "fiscal agent" as used in this

title shall mean:

1. In counties, the chief fiscal officer thereof, unless the finance

board shall designate a different officer.

2. In cities, the chief fiscal officer thereof.

3. In towns and villages, the clerk thereof.

4. In school districts and district corporations, the clerk or

secretary or such other officer thereof as the finance board shall

designate, except that in a river improvement or drainage district

established by or under the supervision of the department of

conservation the state comptroller shall act as fiscal agent. However, a

finance board on behalf of any municipality, school district or district

corporation, or in the case of the city of New York the chief fiscal

officer thereof, may contract from time to time, with any bank or banks

or trust company or trust companies located and authorized to do

business in this state for the purpose of having such bank or trust

company act, in connection with all its obligations, or any specific

issue or issues of its obligations, or any specific type or types of its

obligations, as the fiscal agent for such municipality, school district

or district corporation, including the maintenance of an office for the

registration, conversion, reconversion and transfer of bonds and notes,

the preparation and substitution of new bonds and notes, and for the

payment of the principal thereof, redemption premium, if any, interest

thereon, and for related services, and for the payment by such

municipality, school district or district corporation of a reasonable

compensation to any such bank or trust company for the services to be

performed by it pursuant to such contract. Any such bank or trust

company shall be responsible to the municipality, school district or

district corporation for the faithful and safe conduct of the services

to be performed by it as such fiscal agent, or services related thereto;

for the fidelity and integrity of the officers and agents of such bank

or trust company performing the duties of a fiscal agent, or services

related thereto; and for all loss or damage which may result from any

failure of such officers or agents to discharge their duties and for any

improper or incorrect discharge of those duties; and shall save the

municipality, school district or district corporation free and harmless

from any and all loss or damage occasioned by or incurred in the

performance of such services. Such contracts may be terminated by the

finance board of the municipality, school district or district

corporation, or in the case of the city of New York the chief fiscal

officer thereof, at any time.

b. The fiscal agent, if not already under bond, shall execute a bond

in such form, in such sum and with such sureties as the finance board,

or in the case of the city of New York the chief fiscal officer thereof,

shall direct and approve, and such approval shall be indicated upon the

bond. Such bond shall then be filed in the office of the clerk of the

county in which the municipality, school district or district

corporation is located. If the municipality, school district or district

corporation is located in more than one county, a duplicate original of

such bond, approved by the finance board, or in the case of the city of

New York the chief fiscal officer thereof, shall be filed in the office

of the clerk of each county in which the municipality, school district

or district corporation is located, except that in a city containing

more than one county such bond shall be filed only in the office of the

city clerk. The expense of such bond shall be a charge upon the

municipality, school district or district corporation. The provisions of

this paragraph shall not apply to a bank or trust company which has been

designated as fiscal agent of a municipality, school district or

district corporation pursuant to the provisions of paragraph a of this

section, unless the finance board of such municipality, school district

or district corporation, or in the case of the city of New York the

chief fiscal officer thereof, shall by resolution determine that such

bank or trust company shall be required to furnish a bond for the

faithful performance of its duties as fiscal agent.

c. No municipality, school district or district corporation, or any

fiscal agent thereof, shall charge, impose, collect, or receive from the

holder of any obligation issued pursuant to this chapter, or issued

pursuant to laws in effect prior to the effective date of this chapter,

any fee or consideration for any services required to be performed by a

fiscal agent pursuant to the provisions of this chapter. However, the

holder of an obligation shall bear the expense of preparing new bonds or

coupons which he shall request to be issued pursuant to the provisions

of title five of this article, also the actual and necessary expenses

for the mailing, shipping or the insuring of obligations incurred in

connection with the rendition of services performed by a fiscal agent at

his request. At least annually every fiscal agent shall render to and

file with the finance board of the municipality, school district or

district corporation, or in the case of the city of New York the chief

fiscal officer thereof, for which he or it acts a statement of all

moneys received and disbursed by such agent for the expenses mentioned

in this paragraph. Notwithstanding the foregoing provisions of this

paragraph, if the finance board of a municipality, school district or

district corporation, or in the case of the city of New York the chief

fiscal officer thereof, shall determine that it would be to the

financial advantage of the municipality, school district or district

corporation not to impose and collect such mailing, shipping or

insurance charges, it may adopt a resolution directing its fiscal agent

not to impose and collect any or all of such charges.

d. Notwithstanding any other provisions of law, the comptroller of the

city of New York may prescribe rules and regulations for the

registration, conversion, reconversion and transfer of the bonds and

notes of the city of New York, including the preparation and

substitution of new bonds, for the payment of the principal thereof,

redemption premium, if any, and interest thereon, and for other

authorized services to be performed by such fiscal agent.

e. Any bank or trust company acting as the fiscal agent of a

municipality, school district or district corporation may bid for,

purchase, acquire, hold, sell or dispose of obligations of the

municipality, school district or district corporation for which it acts

as such agent, and may enter into other service contracts with the

municipality, school district or district corporation. No bank or trust

company acting as such fiscal agent shall print, engrave, or otherwise

prepare, new bonds or coupons required in connection with the conversion

and reconversion of bonds as provided in title five of this article, if

such bank or trust company acts as fiscal agent in such conversion or

reconversion.