1. The Laws of New York
  2. Unconsolidated Laws
  3. NYS Financial Emergency Act for the city of NY 868/75


Section 2 Definitions

NYS Financial Emergency Act for the city of NY 868/75 (FEA)

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, 2008 or ... see § 13