§ 10. Establishment and application of emergency financial control
board fund for the city of Yonkers. 1. There is hereby established a
fund designated the emergency financial control board fund for the city
of Yonkers. Commencing on the effective date of the initial financial
plan approved by the board and for the duration of the emergency period,
all revenues received or to be received by the city or any covered
organization shall, unless exempted by order of the board or to the
extent otherwise required by the special fiscal act, be revenues of the
fund and shall be for the account of the city and the appropriate
covered organizations, but disbursement from the fund shall be made by
the board in accordance with the approved financial plan, except to the
extent otherwise required by the special fiscal act, expressly
prohibited by federal law or where such revenues are pledged to the
payment of any outstanding bonds, notes or other obligations of covered
organizations. Notwithstanding the foregoing, the board shall authorize
the city to make all disbursements of city revenues from the board fund,
which disbursements shall be made in accordance with the approved
financial plan; provided, that the board may withdraw such authorization
if it determines that (a) any disbursements made or to be made by the
city have not been or are likely not to be in compliance with the
approved financial plan, (b) the city has violated any other provisions
of this act or the special fiscal act, or (c) the city has violated an
agreement with any holder or guarantor of bonds or notes issued by the
city or a state financing agency. Commencing on the effective date of
the initial financial plan approved by the board, and for the duration
of the emergency period, all funds and accounts established or
thereafter established by the city of the covered organizations shall,
unless exempted by order of the board, thereafter be funds and accounts
of the fund except to the extent otherwise required by the special
fiscal act, expressly prohibited by federal law or to the extent
prohibited by covenants or agreements relating to any outstanding bonds,
notes or other obligations of covered organizations. All such accounts
of the board shall have such captions and entries as the board shall
determine to be necessary to credit the foregoing revenues and receipts
to the fund. The moneys of the fund shall not be deemed to be money of
the state or money under its control.

2. The deposit of revenues into the fund and the investment or deposit
of moneys therein shall be made in accordance with and pursuant to
procedures established by the board and the special fiscal act.

3. In order to assure compliance with the financial plan, the board
shall from time to time adopt procedures controlling the disbursement of
moneys from the fund.

4. If at any time the board determines that the amount then held in
the fund or the amount estimated by the board to be held in the fund is
or will be insufficient to meet the expenditures in the amounts and at
the times required by the financial plan, the board shall require
disbursements from the fund to be made in the following order or
priority unless otherwise required by law of the United States of
America: (i) the payment of amounts from the fund to comply with the
provisions of the special fiscal act, (ii) the payment of other
liabilities having statutory or contractual priority over remaining
liabilities of the city and the covered organizations whose moneys are
included in the fund, and (iii) the payment of other obligations on an
allocated basis as specified by the city for expenditures in accordance
with the financial plan provided that, in the event that the city fails
to so specify, the board may withhold payment of any of such other
obligations or may direct their payment pro rata.

5. The board shall cause to be performed such pre-audit and post-audit
reviews of the fund and disbursements therefrom as it may determine.