N.Y. NYS Financial Emergency Act for the city of NY 868/75 § 2: Definitions

* § 2. Definitions. As used in this act, the following words and terms

shall have the following meanings unless the context shall indicate

another or different meaning or intent.

1. "Comptroller" means the comptroller of the state of New York.

2. "City" means the city of New York.

3. "Mayor" means the mayor of the city of New York.

4. "City comptroller" means the comptroller of the city.

5. "Covered organization" means any governmental agency, public

authority or public benefit corporation which receives or may receive

monies directly, indirectly or contingently, (other than monies received

for the sale of goods or the rendering of services or the loan of monies

to the city) from the city, and in any event includes, without

limitation, the board of education of the city of New York, the board of

higher education of the city of New York, the New York city transitional

finance authority, the health and hospitals corporation, the New York

city transit authority, the New York city housing authority, the New

York city housing development corporation, city university construction

fund, Battery park city authority, New York city convention and

exhibition center corporation, Manhattan and Bronx surface transit

operating authority, Staten Island rapid transit operating authority,

the New York city sports authority and the Brooklyn sports center

authority but shall not include (i) any governmental agency, public

authority or public benefit corporation specifically exempted from the

provisions of this act by order of the board upon application of such

agency, authority, or corporation to the board or at the board's own

motion upon a finding by the board that such exemption does not

materially affect the ability of the city to adopt and maintain a budget

pursuant to the provisions of this act and provided that at the time of

such exemption there shall have been and during the period of such

exemption there shall be an annual audit by a nationally recognized

independent certified public accounting firm or consortium of firms, one

of which shall be a nationally recognized firm, of the covered

organization's financial statements performed in accordance with

generally accepted auditing standards and report by such auditor thereon

which includes an opinion that the financial statements so audited have

been prepared in accordance with generally accepted accounting

principles (subject to the provisions of subdivision two-a of section

eight of this act) and such other information as such auditors deem

appropriate, (ii) any state public authority as defined in section two

hundred one of the civil service law, unless specifically named above,

or (iii) any governmental agency, authority, commission or

instrumentality created by compact or agreement between the state of New

York and another state or states; provided, however, that the board may

terminate any exemption granted by order of the board pursuant to this

subdivision upon a determination that the circumstances upon which such

exemption was granted are no longer applicable.

6. "Board" means the governmental agency created by section five of

this act.

7. "Deputy comptroller" means the deputy comptroller for the city of

New York created by section forty-one-a of the executive law.

8. "Municipal assistance corporation for the city of New York" means

the corporate governmental agency created by section three thousand

thirty-three of the public authorities law.

9. "Short-term obligations" means tax anticipation notes, bond

anticipation notes, revenue anticipation notes, budget notes and urban

renewal notes of the city.

10. "Revenues" mean all taxes, federal and state aid, rents, fees,

charges, payments, all proceeds from borrowings and other income and

receipts paid or payable to or for the account of the city or any of the

covered organizations.

11. "Financial plan" means the financial plan of the city and the

covered organizations to be developed pursuant to section eight of this

act, as from time to time modified.

12. "Control period" means the period of time from the effective date

of this act until the date when (a) there shall no longer be effective

or outstanding any guarantee by the United States of America as to

payment of principal of or interest on any note or bond issued by the

city or a state financing agency, (b) the board shall determine, based

on annual audit reports furnished in accordance with section seven-a,

that for each of the three immediately preceding fiscal years, the city

has adopted and adhered to budgets covering all expenditures other than

capital items, the results of which did not show a deficit when reported

in accordance with generally accepted accounting principles subject to

the provisions of subdivision two-a of section eight of this act and (c)

the comptroller of the state and the comptroller of the city jointly

shall certify that securities sold by or for the benefit of the city

during the fiscal year immediately preceding such date and the then

current fiscal year in the general public market satisfied the capital

and seasonal financing requirements of the city during such period and

that there is a substantial likelihood that such securities can be sold

in the general public market from such date through the end of the next

succeeding fiscal year in amounts which will satisfy substantially all

of the capital and seasonal financing requirements of the city during

such period in accordance with the financial plan then in effect,

provided that for these purposes sales to any fund whose governing body

includes any designated representative of the state or city or to any

financial institution which participates in a private placement for the

purchase of securities for the benefit of the city during its nineteen

hundred seventy-nine fiscal year shall not be deemed sales in the

general public market, unless in the case of sales to such a financial

institution such comptrollers jointly certify at the time of each such

sale that a sale could have been made in such amount and on reasonably

comparable terms in the general public market. After termination of the

control period in accordance with the foregoing provisions and until

there shall no longer be outstanding any notes or bonds issued by the

city or a state financing agency which are entitled to the benefits of

the pledge and agreement authorized by section ten-a hereof, the board

shall reimpose a control period upon a determination at any time that

any of the following events has occurred or that there is a substantial

likelihood and imminence of such occurrence: (i) the city shall have

failed to pay the principal of or interest on any of its bonds or notes

when due or payable (other than notes held by the municipal assistance

corporation for the city of New York to the extent that such corporation

has evidenced its intention not to present such notes for payment during

the fiscal year in which the determination is made provided that such

notes were held by such corporation on June thirtieth, nineteen hundred

seventy-eight or were issued in exchange for or in refunding or renewal

of notes held by such corporation on such date), (ii) the city shall

have incurred a deficit of more than one hundred million dollars during

its fiscal year in the results of operations covered by a budget

covering all expenditures other than capital items as reported in

accordance with generally accepted accounting principles, subject to the

provisions of subdivision two-a of section eight of this act, (iii) the

city shall have issued notes in violation of section nine-b of this act

as amended from time to time, (iv) the city shall have otherwise

violated any provision of this act and such violation substantially

impairs the ability of the city to pay principal of or interest on its

bonds or notes when due and payable or its ability to adopt or adhere to

a budget covering all expenditures other than capital items balanced in

accordance with this act or (v) the comptrollers' joint certification at

any time, at the request of the board or on the comptrollers' joint

initiative, which joint certification shall be made from time to time as

promptly as circumstances warrant and reported to the board, that on the

basis of facts existing at such time they could not make the joint

certification described by clause (c) of the preceding sentence. The

board shall terminate any such reimposed control period when it

determines that none of the conditions which would permit the board to

reimpose a control period exist. After termination of a control period

the board shall annually consider items (i) through (v) above and

determine whether, in its judgment, any of the events described in such

items have occurred and the board shall publish each such determination.

Each such joint certification made by the comptrollers hereunder shall

be based on their separate written determinations which shall take into

account a report and opinion of a nationally recognized independent

expert in the marketing of municipal securities selected by the board as

well as any other information which may be available to each comptroller

and each such separate written determination by the comptrollers shall

have annexed thereto the report and opinion of such expert and any other

information taken into account and shall be made public when delivered

to the board. Notwithstanding any part of the foregoing to the contrary,

in no event shall any control period continue beyond the earlier of (a)

July first, two thousand eight or (b) the date (i) when all bonds and

notes containing the pledge and agreement authorized by section ten-a of

this act are refunded, redeemed, discharged or otherwise defeased or

(ii) when there shall no longer be outstanding any guarantee by the

United States of America or any agency or instrumentality thereof as to

payment of principal of or interest on any note or bond issued by the

city or a state financing agency, whichever of (i) or (ii) shall occur

later.

13. "Debt service repayment account" means the special account

established pursuant to subdivision four of section nine of this act.

14. "Fund" means the general debt service fund established pursuant to

section nine-a of this act.

15. "Board fund" means the board fund established pursuant to section

nine of this act.

16. "TAN debt service account" means the tax anticipation note debt

service account established within the fund pursuant to section nine-a

of this act.

17. "RAN debt service account" means the revenue anticipation note

debt service account established within the fund pursuant to section

nine-a of this act.

18. "Available funds" means at any date of computation the monies held

by the city or a covered organization which (i) are not required (a) to

be applied to the fund, the TAN debt service account, the RAN debt

service account or otherwise to meet the debt service requirements of

the city and the covered organizations on their bonds and notes (other

than bonds and notes of covered organizations payable from revenues not

included in the fund) as they become due, or (b) to pay other

liabilities of the city and the covered organizations having statutory

or contractual priority over remaining liabilities of the city and the

covered organizations, and (ii) therefore, may be applied to the payment

of other obligations on an allocated basis as specified by the city for

expenditures in accordance with a financial plan.

19. "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 the 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. For the purposes of this subdivision

such amounts required shall not include principal of or interest on any

notes of the city held by the municipal assistance corporation for the

city of New York to the extent that such corporation has evidenced its

intention not to present such notes for payment of principal or interest

during the fiscal year in which the computation is made provided that

such notes were held by such corporation on June thirtieth, nineteen

hundred seventy-eight or were issued in exchange for or in refunding or

renewal of notes held by such corporation on such date.

20. "State financing agency" means the municipal assistance

corporation for the city of New York or its successor.

* Terminates July 1, 2035 or ... see § 13