N.Y. State Finance Law § 66-a: Restriction on issuance of certificates of participation

§ 66-a. Restriction on issuance of certificates of participation. 1.

No person, partnership, corporation or other legal entity nor any state

officer, employee, agency, department, the city university of New York,

the legislature or the judiciary shall issue certificates of

participation or similar instruments representing the right to receive a

proportionate share in lease, installment or other periodic payments to

be made by any state department, agency or the city university of New

York except in accordance with the provisions of this article and with

the express written approval of the state comptroller. The provisions of

this section are hereby made a part of every purchase contract entered

into by such a state entity providing for periodic payments by any state

department, agency or the city university of New York. Every such

contract shall contain a clause expressly reciting the provisions of

this subdivision, provided, however, that the absence of such clause in

such a contract shall not obviate the duty of all parties thereto to

comply with the provisions of this subdivision. Neither this provision,

nor any other provision of this article shall be construed to prevent

such state entities from entering into installment purchase or lease

purchase agreements funded without the use of certificates of

participation or similar instruments.

2. For the purposes of this article, "state departments and agencies"

shall not include the legislature or the judiciary, and the provisions

of this article, unless otherwise specified, shall not apply to

installment purchase or lease purchase contracts entered into by the

legislature or the judiciary financed by the issuance of certificates of

participation or similar instruments representing the right to receive a

proportionate share in lease, installment or other periodic payments to

be made by the legislature or judiciary.

3. No state officer, employee, department, agency or the city

university of New York shall enter into any agreement in connection with

the issuance of certificates of participation which requires any payment

by the state to the trustee, on behalf of holders of such certificates,

during the month of April of any year.