N.Y. State Finance Law § 92-e: Municipal assistance state aid fund

§ 92-e. Municipal assistance state aid fund. 1. There is hereby

established in the custody of the comptroller a special fund to be known

as the municipal assistance state aid fund. Within such fund, there is

hereby established a special account for each municipal assistance

corporation created under article ten of the public authorities law.

2. Such fund shall consist of per capita aid apportioned thereto

pursuant to section fifty-four of this chapter and, for all cities

except the city of New York, all other amounts from the general fund

local assistance account payable to a city in aid of which a municipal

assistance corporation has been created.

3. Such amounts, including per capita aid apportioned to a city in aid

of which a municipal assistance corporation has been created, shall be

deposited by the comptroller to the credit of the special account

established for the municipal assistance corporation which has been

created in aid of such city in order to enable such corporation to

fulfill the terms of any agreements made with the holders of its notes

and bonds and to carry out its corporate purposes, including the

maintenance of the capital reserve fund securing such bonds and notes,

and, subject to the provisions of section fifty-four of this chapter,

and subdivisions five and five-a of this section, the balance, if any,

shall be paid to the chief fiscal officer of the city in aid of which

such corporation has been created as hereinafter provided.

4. Revenues in any special account in the municipal assistance state

aid fund shall be kept separate and shall not be commingled with any

other moneys in the custody of the comptroller. All deposits of such

revenues shall, if required by the comptroller, be secured by

obligations of the United States or of the state having a market value

equal at all times to the amount of such deposits and all banks and

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

such revenues in such fund may, in the discretion of the comptroller, be

invested in obligations of the United States or of the state or in

obligations the principal of and interest on which are guaranteed by the

United States or by the state.

5. Upon receipt by the comptroller of a certificate or certificates

from the chairman of a municipal assistance corporation that such

corporation requires a payment or payments in order to comply with any

agreement with the holders of its notes and bonds and to carry out its

corporate purposes, including the maintenance of the capital reserve

fund securing such bonds, from the appropriate special account

established for such corporation, each of which certificates shall

specify the required payment or payments and the date when the payment

or payments is required, the comptroller shall pay from such special

account on or before the specified date or within thirty days after

receipt of such certificate or certificates, whichever is later, to such

corporation, as the chairman thereof may direct in any such certificate,

the amount or amounts so certified. The comptroller shall from time to

time, but in no event later than the fifteenth day of October, January

and April and the last day of June of each fiscal year, pay over and

distribute to the chief fiscal officer of the city in aid of which such

municipal assistance corporation has been created to be paid into the

treasury of such city to the credit of the general fund all revenues in

the special account established for such corporation in the municipal

assistance state aid fund, if any, in excess of (i) the aggregate amount

which the chairman of such corporation has certified to the comptroller

and which has been previously paid to such corporation as herein above

authorized, and (ii) amounts to be refunded to the general fund of the

state of New York pursuant to subdivision five-a of this section. In no

event shall the comptroller pay over and distribute any revenues to any

person other than the municipal assistance corporation unless and until

the aggregate of all payments certified to the comptroller as required

by such corporation as of such date in order to comply with its

agreements with the holders of its notes and bonds and to carry out its

corporate purposes, including the maintenance of the capital reserve

fund securing such bonds, which remain unpaid to such corporation shall

have been paid in full to such corporation; provided, however, that no

person, including such corporation or the holders of its notes or bonds

shall have any lien on such revenues and such agreement shall be

executory only to the extent of such revenues available to the state in

such special account.

5-a. (a) In no event shall the comptroller pay over any revenues to

the city in aid of which such municipal assistance corporation has been

created as specified in subdivision five of this section unless and

until the director of the budget certifies the amount or amounts to be

refunded to the general fund of the state of New York pursuant to

section fifty-four of this chapter. Such amount shall be deducted from

the first amounts available for payment to such city after certification

by the chairman of, and payment to, if required, the municipal

assistance corporation as specified in subdivision five of this section

and refunded to the general fund of the state. The remainder shall be

paid to the chief fiscal officer of the city in aid of which such

municipal assistance corporation has been created.

(b) Notwithstanding anything in this section to the contrary, amounts

in the special account established within the municipal assistance state

aid fund for the municipal assistance corporation for the city of Troy,

which amounts have been deposited into such special account pursuant to

section twenty of a chapter of the laws of nineteen hundred ninety-six

entitled "AN ACT to amend chapter 721 of the laws of 1994 authorizing

the city of Troy to issue serial bonds for the purpose of liquidating

cumulative and projected deficits in the city's general fund,

establishing a supervisory board, and establishing a debt service fund,

in relation to granting a lien to the county of Rensselaer relating to

certain taxes collected on behalf of such county by the city of Troy"

which chapter added this paragraph (b), shall be paid by the comptroller

in accordance with this paragraph. No portion of such amounts shall be

paid by the comptroller to meet the requirements of such corporation for

the payment of debt service as certified to the comptroller and the

governor pursuant to section three thousand fifty-six of the public

authorities law unless at the time of such payment no other moneys are

available for payment to such corporation for said purpose from such

special account or from the special account established for such

corporation within the municipal assistance tax fund in accordance with

subdivision one of section ninety-two-d of this article. Any portion of

such amount not required by such corporation for the payment of its debt

service during the state fiscal year for which such amount has been

appropriated shall be refunded to the general fund of the state of New

York prior to the end of such fiscal year.

6. All payments of moneys from the municipal assistance state aid fund

shall be made on the audit and warrant of the state comptroller.