N.Y. Public Authorities Law § 3657: Resources of the authority

§ 3657. Resources of the authority. 1. Subject to the provisions of

this title, the directors of the authority shall receive, accept,

invest, administer, expend and disburse for its corporate purposes all

money of the authority from whatever sources derived including (a) tax

revenues; (b) the proceeds of bonds; and (c) any other payments, gifts

or appropriations to the authority from any other source.

2. Subject to the provisions of any contract with bondholders, (a) the

money of the authority shall be paid to the authority and shall not be

commingled with any other money, and (b) all money received by the

authority which, together with other money of the authority available

for the expenses of the authority, the payment of debt service and

payments to reserve funds, exceeds the amount required for such

purposes, as determined by the authority, shall, subject to the

provisions of subdivision six of this section and to the terms of any

agreement between the authority and the county, be transferred to the

county as frequently as practicable.

3. The money in any of the authority's accounts shall be paid out on

checks signed by the treasurer of the authority, or by other lawful and

appropriate means such as wire or electronic transfer, on requisitions

of the chairperson of the authority or of such other officer as the

directors shall authorize to make such requisition, or pursuant to a

bond resolution or trust indenture.

4. All deposits of authority money shall be secured by obligations of

the United States or of the state or of the county at a market value at

least equal at all times to the amount of the deposit, and all banks and

trust companies are authorized to give such security for such deposits.

The authority shall have the power, notwithstanding the provisions of

this section, to contract with the holders of any of its bonds as to the

custody, collection, securing, investment and payment of any money of

the authority or any money held in trust or otherwise for the payment of

bonds or in any way to secure bonds, and to carry out any such contract

notwithstanding that such contract may be inconsistent with the other

provisions of this title. Money held in trust or otherwise for the

payment of bonds or in any way to secure bonds and deposits of such

money may be secured in the same manner as money of the authority, and

all banks and trust companies are authorized to give such security for

such deposits.

5. Tax revenues received by the authority pursuant to section twelve

hundred sixty-one of the tax law, together with any other revenues

received by the authority, shall be applied in the following order of

priority: first pursuant to the authority's contracts with bondholders,

then to pay the authority's operating expenses not otherwise provided

for, and then, subject to the authority's agreements with the county, to

transfer the balance of such tax revenues not required to meet

contractual or other obligations of the authority to the county as

frequently as practicable.

6. (a) This subdivision shall apply only to revenue anticipation

notes, including renewals thereof, issued by the county during its

fiscal year ending December thirty-first, two thousand, in anticipation

of the receipt of county tax revenues, and only to such issues of

revenue anticipation notes as to which the certificate described in

paragraph (b) of this subdivision is filed.

(b) Notwithstanding the provisions of subdivision five of this section

with respect to the transfer of the balance of tax revenues to the

county, prior to the delivery of each such issue of revenue anticipation

notes, the chief fiscal officer of the county shall file with the

authority a request that the authority establish a county of Nassau

revenue anticipation note withholding fund which shall constitute a

special bank account for purposes of paragraph g of section 25.00 of the

local finance law. Such request by such chief fiscal officer shall be

accompanied by a certificate setting forth with respect to such issue

(i) the principal amount, (ii) the date of issue, (iii) the maturity

date, (iv) the interest rate or rates, (v) if interest shall be payable

otherwise than at maturity, the date or dates for the payment thereof,

(vi) the name and address of the paying agent, (vii) the name and

address of each purchaser, or, if a purchaser shall be a syndicate or

similar account, the name and address of each managing underwriter of

such syndicate or similar account, (viii) the amount payable on each

principal payment date and interest payment date, and (ix) a schedule

setting forth the total amount of county tax revenues anticipated to be

received, and the expected date or dates of anticipated receipt of such

county tax revenues. Such certificate shall be accompanied by a

statement executed by the chief fiscal officer certifying that the

amounts and times of payments of county tax revenues contained in such

schedule have been estimated by the use of reasonable and appropriate

data and methods of estimation, all in accordance with applicable law.

(c) All such revenue anticipation notes, in addition to a pledge of

the faith and credit of the county for the payment thereof, shall

contain a recital to the effect that they are entitled to the benefits

of the provisions of this subdivision.

(d) Commencing on the date not less than five days prior to and on

each day thereafter up to and including any principal and/or interest

payment date referred to in the certificate filed by the chief fiscal

officer with the authority pursuant to paragraph (b) of this

subdivision, the authority shall pay to such paying agent from county

tax revenues transferred and credited by the authority to the county of

Nassau revenue anticipation note withholding fund as provided in

paragraph (e) of this subdivision the amount required to pay in full the

principal and/or interest due on such payment date as set forth in such

certificate. Moneys so paid shall pass immediately from the authority

and vest in such paying agent in trust for the benefit of the holders of

the revenue anticipation notes to which such certificate relates. No

other person having any claim of any kind in tort, contract or otherwise

against the county shall have any right to or claim against the moneys

held by such paying agent, and such moneys shall not be subject to any

order, judgment, lien, execution, attachment, setoff or counterclaim by

any such other person. Such moneys shall be held by such paying agent in

a separate trust account and shall be applied only to the payment of the

principal and/or interest due on such revenue anticipation notes,

provided, however, that the contract by and between the county and such

paying agent may provide for (i) the investment by such paying agent of

such moneys in direct obligations of, or in obligations guaranteed by,

the United States of America, provided such obligations shall be payable

or redeemable at the option of the holder within such time as the

proceeds shall be needed to pay such principal and/or interest due on

such revenue anticipation notes, and (ii) the use by such paying agent

of such moneys for the purchase of direct obligations of, or obligations

guaranteed by, the United States of America under one or more repurchase

agreements with any bank or trust company having its principal office in

the state of New York, provided that any such repurchase agreement shall

provide for the repurchase of such obligations within such time as such

moneys are needed to pay the principal and/or interest due on such

revenue anticipation notes at a repurchase price at least sufficient to

make the amount so invested available for the payment of principal

and/or interest due on such revenue anticipation notes, and provided,

further, that, at the time of such purchase, the market value of such

obligations shall be at least equal to one hundred two per centum of the

amount so invested. No person having any claim of any kind in tort,

contract or otherwise against the county shall have any right to or

claim against any moneys in anticipation of which such notes have been

issued, other than a claim for payment by the holders of such notes, and

such moneys shall not be subject to any order, judgment, lien,

execution, attachment, setoff or counterclaim by any such person.

Notwithstanding any provision of law to the contrary, no instrument

relating to any transaction authorized or contemplated by this paragraph

need be filed under the provisions of the uniform commercial code.

(e) Commencing on the day when the authority determines that the

principal and interest due or to come due on such outstanding revenue

anticipation notes issued against such county tax revenues in accordance

with the provisions of this subdivision shall equal the amount of such

county tax revenues as set forth on the schedule included in the

certificate filed with the authority pursuant to paragraph (b) of this

subdivision remaining to be paid to the county on or prior to any

principal and/or interest payment date, the authority shall deduct and

withhold from the amount of such county tax revenues otherwise payable

to the county an amount sufficient to pay, when due, the principal of

and interest on all such revenue anticipation notes issued and then

outstanding in anticipation thereof. Amounts so deducted and withheld

shall be transferred and credited by the authority to the account

established for such county tax revenues in the county of Nassau revenue

anticipation note withholding fund established by the authority in

accordance with the chief fiscal officer's request pursuant to paragraph

(b) of this subdivision. The payments required to be made by the

authority pursuant to paragraph (d) of this subdivision shall be made

from amounts on deposit in the accounts established for such county tax

revenues in the county of Nassau revenue anticipation note withholding

fund.

(f) Notwithstanding any other provision of this subdivision, at the

expiration of one hundred eighty days after the maturity date of any

issue of revenue anticipation notes issued in accordance with the

provisions of this subdivision, the amounts held by the paying agent

thereof for the payment of the principal of and interest on the notes of

such issue which have not been presented for payment shall be paid over

and remitted by such paying agent to the county and thereafter the

holders of such notes shall look only to the county for such payment.

(g) All other provisions of the local finance law not inconsistent

with the provisions of this subdivision shall continue to apply to the

authorization and issuance of revenue anticipation notes by the county.