N.Y. NYS Financial Emergency Act for the city of NY 868/75 § 9-b: Limitations on short-term borrowing

* § 9-b. Limitations on short-term borrowing. 1. The limitations on

short-term borrowing imposed upon the city by this section shall be in

addition to the limitations on short-term borrowing imposed on the city

under the local finance law. In the event any provisions of the local

finance law shall be inconsistent with the provisions of this section,

the provisions of this section shall prevail. For the purposes of this

section the terms "bond anticipation notes", "tax anticipation notes",

"revenue anticipation notes" and "budget notes" shall not mean one or

more of or any of the respective notes held by the municipal assistance

corporation for the city of New York on June thirtieth, nineteen hundred

seventy-eight or any note of the city held by such corporation issued in

exchange for or in refunding or renewal of any such note.

2. a. No tax anticipation notes shall be issued by the city in

anticipation of the collection of taxes or assessments levied for a

fiscal year which would cause the principal amount of such issue of tax

anticipation notes to exceed an amount equal to ninety per cent of the

available tax levy with respect to such issue.

b. Tax anticipation notes and renewals thereof shall mature not later

than the last day of the fiscal year in which they were issued.

3. a. No revenue anticipation note shall be issued by the city in

anticipation of the collection or receipt of revenue in a fiscal year

which would cause the principal amount of revenue anticipation notes

outstanding to exceed ninety per cent of the available revenues for such

fiscal year. For purposes of this subdivision, available revenues shall

be the revenues other than real estate taxes and assessments which have

been estimated in the financial plan to be realized in cash during such

year, less revenues previously collected, other than revenues on deposit

in the RAN debt service account or any special fund established pursuant

to law for the payment of interest and/or principal of revenue

anticipation notes.

b. Each issue of revenue anticipation notes shall be issued only in

anticipation of the receipt of a specific type or types of revenue and

the amount of revenue, the source of revenue and the anticipated date of

payment shall be stated in the proceedings authorizing the issuance of

such notes.

c. Revenue anticipation notes shall mature not later than the last day

of the fiscal year in which they were issued, and may not be renewed or

extended to a date more than ten days after the anticipated date of

receipt of such revenue. No such renewal note shall mature after the

last day of such fiscal year unless the board shall certify that the

revenue against which such renewal note is issued has been properly

accrued and estimated in the financial plan in effect on the date of

issuance of such renewal note; provided that in no event shall any such

renewal notes mature later than one year subsequent to the last day of

the fiscal year during which such revenue anticipation notes were

originally issued.

4. a. No bond anticipation note shall be issued by the city in any

fiscal year which would cause the principal amount of bond anticipation

notes outstanding, together with interest due or to become due thereon,

to exceed fifty per cent of the principal amount of bonds issued by the

city in the twelve months immediately preceding the month in which the

note is to be issued.

b. The proceeds of each bond issue shall be (i) held in trust for the

payment, at maturity, of the principal of and interest on any bond

anticipation notes of the city issued in anticipation of such bonds and

outstanding at the time of the issuance of such bonds, (ii) paid into

the general fund of the city in repayment of any advance made from such

fund pursuant to section 165.10 of the local finance law, and (iii) any

balance shall be expended for the object or purpose for which such bonds

were issued.

c. Bond anticipation notes shall mature not later than one year after

their date of issuance and may be renewed for a period not to exceed two

years, or such longer period as may be permitted for bond anticipation

notes of the state, from the date of original issue.

5. Budget notes issued pursuant to section 29.00 of the local finance

law may only be issued to fund projected expense budget deficits. No

budget notes or renewals thereof, shall mature later than sixty days

prior to the last day of the fiscal year next succeeding the fiscal year

during which such budget notes were originally issued.

6. The city shall issue no obligations which shall be inconsistent

with the financial plan or with the limitations set forth in

subdivisions one through five of this section.

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