§ 25.00 Revenue anticipation notes. a. As used in this section:

1. The term "taxes" shall mean taxes other than real estate taxes.

2. The terms "rents," "rates" or "charges" shall mean sewer or water
rents, rates or charges.

3. The term "moneys" shall mean moneys to be received from the state,
the United States government or from the county as a portion of the
distribution of the county sales and compensating use tax, and for
special act public school districts enumerated in chapter five hundred
sixty-six of the laws of nineteen hundred sixty-seven, as amended, shall
also mean tuition payments to be received from public school districts
and social services districts.

4. The term "other income" shall mean income derived from electric
light and power plants or distribution systems, or other utility plants
or distribution systems, or any other type of income producing
facilities or operations owned and operated by a municipality or a
district corporation.

5. The term "revenue" includes taxes, rents, rates, charges, moneys
and other income.

b. (1) Revenue anticipation notes may be issued by any municipality,
school district or district corporation in anticipation of: the
collection or receipt of revenue, provided that each such note shall be
issued only against a specific type of revenue, or for the purpose of
renewing a previously issued revenue anticipation note.

(2) Notwithstanding the provisions of paragraph one of this
subdivision, revenue anticipation notes may be issued by the city of New
York for revenues receivable from state and federal governments on an
overall basis, rather than by specific sources of revenue.

c. 1. Revenue anticipation notes may be issued during any fiscal year
in which such taxes, rents, rates or charges or other income in
anticipation of which such notes are issued become due and payable or
such moneys become due; however, such notes may be issued by a school
district in anticipation of moneys to be received in a fiscal year
during the two weeks prior to the commencement of such fiscal year.

2. In addition to the powers granted by subparagraph one of this
paragraph c or by any other provision of this section, the city of New
York may issue revenue anticipation notes in anticipation of a specific
type of revenue, as defined in this sub-paragraph two, which is to be
received or collected by such city in the fiscal year of such city
commencing after the fiscal year during which such notes are issued, in
an amount not exceeding the portion of such specific type of revenue
estimated by the mayor of such city to be attributable to or based upon
transactions or activities occurring during the months of April, May and
June of the fiscal year during which such notes are issued, less the
amount of such portion of such specific type of revenue so estimated by
the mayor, which has actually been received or collected at the time of
the issuance of such notes and the amount of any outstanding revenue
anticipation notes issued against such portion of such specific type of
revenue so estimated by the mayor. The proceeds of notes issued pursuant
to this sub-paragraph two may be applied to any purposes or expenditures
of the fiscal year of such city during which such notes are issued,
including payment into the general fund of such city for use during such
fiscal year, or for the redemption of notes in renewal of which such
notes were issued. The provisions of paragraph d of this section shall
not apply to revenue anticipation notes issued pursuant to this
subparagraph two. As used in this subparagraph two, the term "revenue"
shall mean any taxes, rents, rates, charges, moneys or other income as
defined in paragraph a of this section, imposed, charged or received by
such city pursuant to any state or local law heretofore or hereafter
enacted and attributable to or based upon transactions or activities
occurring in the months of April, May and June of a fiscal year during
which revenue anticipation notes are issued by such city pursuant to
this subparagraph two and which is to be received or collected by such
city in the fiscal year commencing after such April, May and June, and
shall include, but not be limited to: (a) taxes imposed under titles G,
M, N, V of chapter forty-six of the administrative code of the city of
New York with respect to which returns are required to be filed in
accordance with the provisions of subdivision (e) of section twelve
hundred fifty-one of the tax law; (b) taxes imposed under titles P and Q
of chapter forty-six of such code with respect to which returns are
required to be filed on or before the twenty-fifth day of July, nineteen
hundred sixty-five for the calendar month of June, nineteen hundred
sixty-five; (c) taxes imposed by such city pursuant to chapter two
hundred fifty-seven of the laws of nineteen hundred sixty-three as
heretofore or hereafter amended or supplemented; (d) taxes imposed by
such city by local laws adopted or amended after April eleventh,
nineteen hundred sixty-five, pursuant to article twenty-nine of the tax
law as heretofore or hereafter amended or supplemented; (e) taxes
payable into the general fund of the city of New York pursuant to
section two hundred sixty-one of the tax law as heretofore or hereafter
amended or supplemented; (f) charges for the supply of water by such
city in accordance with meter rates and minimum charges for such supply
of water measured by meter, payable as prescribed by section 415
(1)-17.0 of the administrative code of the city of New York as
heretofore or hereafter amended or supplemented; (g) the amounts payable
to such city pursuant to subdivision two of section one hundred twelve-a
of the highway law as heretofore or hereafter amended or supplemented;
(h) the amounts payable into the general fund of such city pursuant to
section eighty-nine of the state finance law as heretofore or hereafter
amended or supplemented; and (i) taxes imposed by such city pursuant to
chapter two hundred thirty-five of the laws of nineteen hundred
fifty-two as heretofore or hereafter amended.

d. The total amount of revenue anticipation notes which a
municipality, school district or district corporation may issue in
anticipation of the collection or receipt of a specific type of revenue
shall be determined in the following manner:

1. In a municipality, school district or district corporation in which
an annual budget is prepared and adopted for a fiscal year prior to the
commencement thereof, such amount shall be

(a) The amount of such specific type of revenue as estimated in the
annual budget of such municipality, school district or district
corporation for such fiscal year, or the amount of such specific type of
revenue recognized for the fiscal year preceding that for which such
budget is to be or has been adopted, whichever amount is the smaller,
less

(b) The amount of such specific type of revenue so estimated in such
budget which has actually been received or collected at the time of the
issuance of such notes, and the amount of any outstanding revenue
anticipation notes issued against such specific type of revenue for the
fiscal year for which such notes are to be issued. For such a
municipality, school district or district corporation, the term
"estimated amount" as used in paragraph g of this section shall mean the
smaller amount determined in item (a) of this subdivision prior to the
deductions required by this item.

The provisions of this subdivision shall not be applicable (1) where a
specific type of revenue has not been estimated in such budget and in
that case such amount shall be the amount of such revenue as is
estimated by the chief fiscal officer to be recognized for the fiscal
year for which such budget has been adopted, or (2) where a specific
type of revenue has not been recognized for the entire fiscal year
preceding that for which such budget has been adopted and in that case
such amount shall be the amount, if any, of the specific type of revenue
as estimated in the annual budget, less, in either case, the amount of
such specific type of revenue which has actually been received or
collected at the time of the issuance of such notes, and the amount of
any outstanding revenue anticipation notes issued against such specific
type of revenue for the fiscal year for which such notes are to be
issued.

2. In a municipality, school district or district corporation in which
an annual budget is not prepared or in which an annual budget is
prepared for a fiscal year but is adopted subsequent to the commencement
thereof, such amount shall be

(a) The amount of such specific type of revenue recognized for the
fiscal year next preceding the fiscal year for which such notes are to
be issued, or the amount of such specific type of revenue recognized for
the second fiscal year preceding the fiscal year for which such notes
are to be issued, whichever amount is the smaller, less

(b) The amount of such specific type of revenue for the fiscal year
for which such notes are to be issued, which has actually been received
or collected at the time of the issuance of such notes, and the amount
of any outstanding revenue anticipation notes issued against such
specific type of revenue for the fiscal year for which such notes are to
be issued. For such a municipality, school district or district
corporation, the term "estimated amount" as used in paragraph g of this
section shall mean the smaller amount determined in item (a) of this
subdivision prior to the deductions required by this item.

The provisions of this subdivision shall not be applicable where a
specific type of revenue has not been recognized for the entire fiscal
year next preceding the fiscal year for which such budget is to be or
has been adopted and in that case such amount shall be the amount of
such revenue as is estimated in such budget or, if there is no such
estimate, then the amount of such revenue as is estimated by the chief
fiscal officer to be recognized for the fiscal year for which such
budget is to be adopted, less the amount of such specific type of
revenue for the fiscal year for which such budget is to be or has been
adopted which has actually been collected or received at the time of the
issuance of such notes, and the amount of any outstanding revenue
anticipation notes issued against such specific type of revenue.

* 3. Notwithstanding the provisions of subdivisions one and two of
this paragraph, if the restrictions imposed therein upon the amount for
which revenue anticipation notes may be issued against any specific type
of revenue in any fiscal year shall cause undue hardship upon any
municipality, school district or district corporation, any such
municipality, school district or district corporation may apply to the
state comptroller for authority to issue such notes in an amount not in
excess of the amount of such specific type of revenue as estimated in
the annual budget of, or contemplated to be collected or received by,
any municipality, school district or district corporation for or during
the fiscal year in which such taxes, rents, rates, charges or other
income shall become due and payable or such moneys become due. Such
application shall be in writing and shall be signed and verified by the
chief fiscal officer of the municipality, school district or district
corporation. The state comptroller shall prescribe the procedure in any
such proceeding and the information to be furnished to him necessary to
make such determination. The state comptroller shall have power in any
such proceeding to determine if such restrictions have caused, or will
cause, an undue hardship upon any such municipality, school district or
district corporation, and, if he so determines, then he shall have power
to authorize any such municipality, school district or district
corporation to issue such notes in an amount not in excess of the
limitation hereinabove expressed in this subdivision, and such
determination and authorization by the state comptroller shall be
conclusive as to the amount of such notes which may be issued against
any such specific type of revenue.

* NB There are 2 subdivision 3's of paragraph d

* 3. Notwithstanding any other provisions of this paragraph d in the
city of New York such amount shall be

(a) The amount of such specific type of revenue consisting of revenue
other than moneys, as is estimated in the annual budget of such city to
be collected or received in the fiscal year for which such budget has
been adopted, and the amount of such specific type of revenue consisting
of moneys as is estimated in the annual budget of such city to be due in
the fiscal year for which such budget has been adopted, less

(b) The amount of such specific type of revenue so estimated in such
budget which has actually been received or collected at the time of the
issuance of such notes, and the amount of any outstanding revenue
anticipation notes issued against such specific type of revenue for the
fiscal year in which such taxes, rents, rates, charges or other income
become due and payable or in which such moneys become due. For the city
of New York, the term "estimated amount" as used in paragraph g of this
section shall mean the amount determined in item (a) of this
subparagraph three prior to the deduction required by item (b) of this
subparagraph three.

The provisions of this subparagraph three shall not be applicable
where a specific type of revenue has not been estimated in such budget
and in that case such amount shall be the amount of such specific type
of revenue consisting of revenue other than moneys, as is estimated by
the mayor to be collected or received in the fiscal year for which such
budget has been adopted, and the amount of such specific type of revenue
consisting of moneys as is estimated by the mayor to be due in the
fiscal year for which such budget has been adopted, less the amount of
such specific type of revenue which has actually been received or
collected at the time of the issuance of such notes, and the amount of
any outstanding revenue anticipation notes issued against such specific
types of revenue for the fiscal year in which such taxes, rents, rates,
charges or other income become due and payable or in which such moneys
become due.

* NB There are 2 subdivision 3's of paragraph d

4. Whenever this paragraph requires a determination or estimate of the
amount of a specific type of revenue recognized or to be recognized for
a fiscal year, such determination or estimate shall be made in
conformance with the basis of accounting used by the municipality,
school district or district corporation to prepare the most recent
annual financial report filed pursuant to section thirty of the general
municipal law.

d-2. The provisions of paragraph d of this section shall not be
applicable to revenue anticipation notes issued in anticipation of the
receipt of moneys from the federal government pursuant to title one of
the housing act of nineteen hundred forty-nine, as amended.

e. The proceeds of revenue anticipation notes shall be used only for
the purpose of (1) meeting expenditures payable from the type of revenue
in anticipation of which such notes were issued, or (2) for the
redemption of notes in renewal of which such notes were issued.

f. Revenue anticipation notes shall mature within one year and may be
renewed from time to time, but each renewal shall be for a period not
exceeding one year and in no event shall such notes, or the renewals
thereof, extend beyond the close of the second fiscal year succeeding
the fiscal year in which such notes were issued. Such notes shall not be
renewed in an amount in excess of the difference between the amount of
the uncollected or unreceived revenue in anticipation of which they were
issued and the amount of any other outstanding revenue anticipation
notes issued in anticipation of the collection or receipt of such
revenue.

g. Whenever the amount of revenue anticipation notes issued for a
fiscal year against a specific type of revenue shall equal the estimated
amount of such specific type of revenue in anticipation of the
collection or receipt of which such notes shall have been issued, less
the amount of such revenue actually received or collected, all of such
revenue, as thereafter received or collected, shall be set aside in a
special bank account to be used only for the payment of such revenue
anticipation notes as they become due. Any municipality, school district
or district corporation may make budgetary appropriations for the
redemption of revenue anticipation notes whether or not required or
otherwise authorized by law to do so. In the event such an appropriation
is made, such municipality, school district or district corporation
shall not be required to pay into the special account the proceeds of
the specific type of revenue against which such notes were issued but
such proceeds may be used in the manner provided by law or if there is
no provision of law pertaining to the use of such proceeds, such
proceeds shall be treated as surplus moneys for the fiscal year in which
they are collected.

h. Notwithstanding the provisions of paragraph b of this section any
municipality, school district or district corporation may issue a single
revenue anticipation note in anticipation of the collection or receipt
of any number of, or all, specific types of revenue, providing that the
amount of indebtedness to be contracted against each specific type of
revenue shall be stated in the resolution or certificate authorizing the
issuance of such note, and such amount shall not exceed the respective
amounts of indebtedness which could be contracted against each specific
type of revenue under any other paragraph of this section. The proceeds
of any such single revenue anticipation note shall be severable
according to the specific types of revenue against which indebtedness
has been therein contracted and shall be treated in the same manner as
the proceeds of separate revenue anticipation notes, each of which was
issued against a specific type of revenue, would have been applied. Any
municipality, school district or district corporation which issues any
such single revenue anticipation note shall comply with the provisions
of paragraph g of this section, except that for the purposes of such
paragraph (1) any such single revenue anticipation note shall be treated
as a group of separate revenue anticipation notes, each issued against a
specific type of revenue, and (2) the amount issued against each
specific type of revenue shall be the amount stated in the resolution or
certificate authorizing the issuance of any such single revenue
anticipation note. The municipality, school district or district
corporation shall keep proper records which will show at all times the
unpaid balances due on any such single revenue anticipation note
according to the types of revenue against which such note was issued.

i. (a) A board of cooperative educational services may issue revenue
anticipation notes, as authorized by paragraph g of subdivision four of
section nineteen hundred fifty of the education law, in anticipation of
money to be received from the state, the United States government, and
from its component school districts for services or for administrative
and clerical expenses.

(b) For the purposes of this subdivision i, and for the purposes of
sections 30.00 and 39.00 and titles four, five, six and twelve of this
chapter, the board of cooperative educational services shall be the
finance board, its president shall be its chief fiscal officer, and its
fiscal year shall be the fiscal year of its component school districts;
provided, further, that the provision of section 162.00 of this chapter
shall be applicable to revenue anticipation notes issued under this
subdivision.

j. 1. The provisions of this paragraph shall apply only to revenue
anticipation notes, including renewals thereof, issued by the city of
Buffalo during its fiscal years ending June thirtieth, in each of the
years nineteen hundred eighty-four, nineteen hundred eighty-five,
nineteen hundred eighty-six, nineteen hundred eighty-seven, and nineteen
hundred eighty-eight, in anticipation of the receipt of state aid and
local assistance, and only to such issues of revenue anticipation notes
as to which the certificate described in subdivision three of this
paragraph is filed.

2. Each issue of revenue anticipation notes shall be issued only in
anticipation of the receipt of a specific type or types of state aid and
local assistance, provided that the amount of indebtedness to be
contracted for each such specific type of state aid and local assistance
shall be stated in the proceedings authorizing the issuance of such
notes. Except as provided in subdivision eight of this paragraph,
revenue anticipation notes shall be payable only at the office of a bank
or trust company designated as the paying agent thereof in accordance
with this chapter. Revenue anticipation notes, including renewals
thereof, shall mature not later than the last day of the fiscal year of
such city in which such notes were originally issued. The proceedings
authorizing revenue anticipation notes may include provisions, which
shall constitute a covenant by such city with the purchasers and holders
and owners from time to time of such notes, limiting the power of the
city to authorize and issue additional notes during the then current
fiscal year of such city in anticipation of the same specific type or
types of state aid and local assistance as the notes authorized by such
proceedings.

3. Prior to the delivery of each issue of revenue anticipation notes,
the chief fiscal officer of such city shall file with the state
comptroller 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, (ix) a description of
the type or types of state aid and local assistance in anticipation of
which such revenue anticipation notes are being issued and, if more than
one type of state aid and local assistance is involved, the amount of
indebtedness being contracted against each specific type of state aid
and local assistance, and (x) a schedule setting forth the total amount
of each such type or types of state aid or local assistance anticipated
to be received, and the expected date or dates of anticipated receipt of
such state aid or local assistance.

Such certificate shall be accompanied by a statement executed by the
chief fiscal officer of such city certifying that, with respect to any
specific type or types of state aid or local assistance referred to
therein which is not required by law to be paid by the state on a fixed
date or dates, the city of Buffalo will effectuate procedures by which
any claim or request on which such payment is conditioned will be timely
submitted so that payment can be made by the state in accordance with
the schedule contained in such certificate as item (x). Such statement
shall also contain a certification that the amounts and times of
payments of state aid and local assistance 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.

4. All revenue anticipation notes, in addition to a pledge of the
faith and credit of such city for the payment thereof, shall contain a
recital to the effect that they are entitled to the benefits of the
provisions of this paragraph.

5. 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 of
the city with the state comptroller pursuant to subdivision three of
this paragraph, the state comptroller shall pay to such paying agent
from moneys as provided in subdivision six of this paragraph 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 state 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 such city 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 such city 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 such
city shall have any right to or claim against any moneys of the state
appropriated by the state and 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;
provided, however, that nothing contained in this paragraph shall be
construed to limit, impair, impede or otherwise adversely affect in any
manner the rights or remedies of the purchasers and holders and owners
of any bonds or notes of the state or any agency, instrumentality,
public benefit corporation or political subdivision thereof, including
the city of Buffalo, under which such purchasers and holders and owners
have any right of payment of such bonds or notes by recourse to state
aid or local assistance moneys held by the state and with respect to
which the state has covenanted with such purchasers and holders and
owners that it will not repeal, revoke or rescind any provision of law
or amend or modify the same so as to limit, impair or impede any such
rights or remedies. 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.

6. Commencing on the day when the state comptroller determines that
the principal and interest due or to come due on the outstanding revenue
anticipation notes issued for a fiscal year against a specific type or
types of state aid or local assistance pursuant to this paragraph shall
equal ninety percent of the amount of such specific type of state aid or
local assistance as set forth on the schedule included in the
certificate filed with him pursuant to subdivision three of this
paragraph remaining to be paid to such city on or prior to any principal
and/or interest payment date, the state comptroller shall deduct and
withhold from the amount appropriated for each such specific type of
state aid and local assistance otherwise payable to such city 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 state comptroller to the account established for such
specific state aid or local assistance in the state aid and local
assistance revenue withholding fund established pursuant to section
ninety-two-l of the state finance law, at such time as any payment of
each such specific type of state aid or local assistance is scheduled,
by law or otherwise, to be made to such city. In each case, the payments
required to be made by the state comptroller pursuant to subdivision
five of this paragraph shall be made from amounts on deposit in the
accounts established for each such specific type of state aid and local
assistance in the state aid and local assistance revenue withholding
fund. Whenever any issue of revenue anticipation notes has been issued
in anticipation of more than one specific type of state aid and local
assistance as authorized by subdivision two of this paragraph, each such
payment shall be made from each separate account according to the
principal amount of indebtedness contracted against each specific type
of state aid and local assistance.

7. The state of New York hereby covenants with the holders from time
to time of revenue anticipation notes issued by such city that it will
not repeal, rescind or revoke the provisions of this paragraph or the
provisions of section ninety-two-l of the state finance law or amend or
modify the same as to limit, impair or impede the rights and remedies
granted hereby to such holders, provided, however, that nothing in this
paragraph contained shall be deemed or construed as giving or pledging
the credit of the state or as requiring the state to continue the
payment of any specific type or types of state aid or local assistance
to such city or as limiting or prohibiting the state from repealing or
amending any law heretofore or hereafter enacted relating to state aid
and local assistance to such city, the manner and time of payment or
apportionment thereof, or the amount thereof, nor shall such revenue
anticipation notes be a debt of the state and the state shall not be
liable thereon.

8. Notwithstanding any other provision of this paragraph, at the
expiration of one hundred eighty days after the maturity date of any
issue of revenue anticipation notes issued hereunder, 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 such
city and thereafter the holders of such notes shall look only to such
city for such payment.

9. All other provisions of this chapter not inconsistent with the
provisions of this paragraph shall continue to apply to the
authorization and issuance of revenue anticipation notes by such city.

k. 1. A special act public school district may issue revenue
anticipation notes or obtain letters of credit in anticipation of moneys
to be received from the state, the United States government and from
public school districts or social services districts which place
students in the special act public school district.

2. For the purposes of this paragraph, and for the purposes of
sections 30.00 and 39.00 and titles four, five, six and twelve of this
article, the board of education shall be the finance board and its
president shall be its chief fiscal officer; provided, further, that
section 162.00 of this article shall be applicable to revenue
anticipation notes issued under this paragraph.