NEW YORK STATE FINANCIAL EMERGENCY ACT FOR THE CITY OF NEW YORK * Section 1. Short title.
2. Definitions.
2-a. Legislative declaration of financial emergency.
3. General rights and prohibitions.
4. Power of city or covered organization to determine the
expenditure of available funds.
5. New York state financial control board; created.
6. Administration of the board.
7. Functions of the board.
7-a. Reports of the city.
8. Development of the financial plan.
9. Establishment and application of the board fund.
9-a. Establishment and application of a general debt service
fund.
9-b. Limitations on short-term borrowing.
10. Wage freeze.
10-a. Covenants, authorizations to agree and remedies.
11. Prohibitions; penalties.
12. Indemnification.
13. Termination.
14. Separability.
15. Court preference.
* Terminates July 1, 2008 or ... see § 13
* Section 1. Short title. This act shall be known and may
be cited as the "New York State Financial Emergency Act for The
City of New York".
* Terminates July 1, 2008 or ... see § 13
* § 2. Definitions. 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
* § 2-a. Legislative declaration of financial emergency. The
legislature hereby finds and declares that a state of financial
emergency continues to exist within the city. The legislature
further finds and declares that the maintenance by the city of a
balanced budget in accordance with generally accepted accounting
principles and the city's borrowing practices are and will
continue to be a matter of overriding state concern, and that it
is also appropriate and desirable for the legislature to
exercise its duty under section twelve of article eight of the
state constitution to restrict the powers of the city to prevent
abuses in taxation and assessments and in contracting of
indebtedness by the city.
* Terminates July 1, 2008 or ... see § 13
* § 3. General rights and prohibitions. 1. Neither the city
nor any covered organization shall borrow or expend any monies,
or in any way, directly or indirectly, expressly or implicitly,
engage its credit during any control period except in compliance
with the provisions of this act.
2. Nothing contained in this act shall limit the right of the
city or any covered organization to comply with the provisions
of any existing contract with or for the benefit of the holders
of any bonds or notes of the city or such covered organization
or any public authority or public benefit corporation.
3. Nothing contained in this act shall be construed to impair
the right of employees to organize or to bargain collectively.
* Terminates July 1, 2008 or ... see § 13
* § 4. Power of city or covered organization to determine the
expenditure of available funds. Nothing contained in this act
shall be construed to limit the power of the city or a covered
organization to determine, from time to time, within available
funds for the city or for such covered organization, the
purposes for which expenditures are to be made by the city or
such covered organization and the amounts of such expenditures,
consistent with the aggregate expenditures then permitted under
the financial plan for the city or such covered organization.
* Terminates July 1, 2008 or ... see § 13
* § 5. New York state financial control board; created. There
is hereby created the New York state financial control board.
The board shall be a governmental agency and instrumentality of
the state and it shall have such powers and functions as are set
forth in this act.
* Terminates July 1, 2008 or ... see § 13
* § 6. Administration of the board. 1. The membership of the
board shall be the governor, the state comptroller (pursuant to
his authority to supervise the accounts of any political
subdivision of the state), the mayor, the city comptroller and
three members appointed by the governor with the advice and
consent of the senate. At least two of the appointed members
shall be residents of the city or have their principal place of
business in the city. Such appointed members shall serve at the
pleasure of the governor. The governor shall be the chairman of
the board and the governor or his representative shall preside
over all meetings of the board. The board shall act by majority
vote of the entire board. The board shall maintain a record of
its proceedings in such form as it may determine, but such
record shall indicate attendance and all votes cast by each
member. Every member of the board, who is otherwise an elected
official of the state or city, shall be entitled to designate a
representative to attend, in his place, meetings of the board
and to vote or otherwise act in his behalf. Written notice of
such designation shall be furnished to the board by the
designating member prior to any meeting attended by his
representative. Any such representative shall serve at the
pleasure of the designating member. No such representative shall
be authorized to delegate any of his duties or functions to any
other person. The lieutenant governor, temporary president of
the senate, the minority leader of the senate, speaker and
minority leader of the assembly, the president of the council of
the city of New York, the city board of estimate acting by
majority vote, and the vice-chairman and the minority leader of
the council of the city of New York, shall each be entitled to
appoint a representative to the board. Each such representative
shall be entitled to receive notice of and to attend all
meetings of the board but shall not be entitled to vote. No
representative shall be an employee or officer of the federal,
state or city governments. Each representative shall serve at
the pleasure of the appointing official or body, shall be
eligible for reappointment, and shall hold office until his
successor has been appointed.
2. Notwithstanding any inconsistent provisions of law,
general, special or local, no officer or employee of the state,
or political subdivision of the state, any governmental entity
operating any public school or college or other public agency or
instrumentality or unit of government which exercises
governmental powers under the laws of the state, shall forfeit
his office or employment by reason of his acceptance or
appointment as a member, representative, officer, employee or
agent of the board nor shall service as such member,
representative, officer, employee or agent of the board be
deemed incompatible or in conflict with such office or
employment.
3. The members of the board appointed by the governor and all
representatives designated by members of the board shall serve
without salary or per diem allowance but shall be entitled to
reimbursement for actual and necessary expenses incurred in the
performance of official duties under this act, provided however
that such members and representatives are not, at the time such
expenses are incurred, public employees otherwise entitled to
such reimbursement.
4. The governor and the mayor, jointly, shall appoint an
executive director of the board who shall serve at the pleasure
of the board and may be removed by the board. The board may
delegate to the executive director or to one or more of its
other officers, employees or agents, such powers and duties as
the board may deem proper, except any duties inconsistent with
the duties and functions prescribed by any other office or
position any such person may hold.
* Terminates July 1, 2008 or ... see § 13
* § 7. Functions of the board. 1. In carrying out the purposes
of this act, the board shall perform the following functions:
a. In accordance with the provisions of section eight of this
act, the board shall (i) consult with the city and the covered
organizations in the preparation of the financial plan, and
certify to the city the revenue estimates approved therein, (ii)
prescribe the form of the financial plan and the supporting
information required in connection therewith, and (iii) exercise
the rights of approval, disapproval and modification with
respect to the financial plan, including but not limited to the
revenue estimates contained therein.
b. The board, to the extent it deems it necessary or
appropriate in order to accomplish the purposes of this act,
shall establish and adopt procedures with respect to the (i)
proper maintenance of the board fund, (ii) the deposit and
investment of revenues in such fund and (iii) disbursement of
monies from such fund.
c. The board shall, from time to time and to the extent it
deems necessary or appropriate in order to accomplish the
purposes of this act, (i) review the operations, management,
efficiency and productivity of such city operations and of such
covered organizations or portions thereof as the board may
determine, and make reports thereon; (ii) audit compliance with
the financial plan in such areas as the board may determine;
(iii) recommend to the city and the covered organizations such
measures relating to their operations, management, efficiency
and productivity as it deems appropriate to reduce costs and
improve services so as to advance the purposes of this act; and
(iv) obtain information of the financial condition and needs of
the city and the covered organizations. Nothing herein shall
diminish the powers of the comptroller otherwise provided by law
and the board may request the assistance of the comptroller in
performing the above functions.
d. The board (i) shall receive from the city and review the
reports to be prepared by or on behalf of the city pursuant to
section seven-a; (ii) shall receive from the city and the
covered organizations and from the deputy comptroller, and shall
review such financial statements and projections, budgetary data
and information, and management reports and materials as the
board deems necessary or desirable to accomplish the purposes of
this act; and (iii) shall inspect, copy and audit such books and
records of the city and the covered organizations as the board
deems necessary or desirable to accomplish the purposes of this
act.
e. All contracts entered into by the city or any covered
organization must be consistent with the provisions of this act
and must comply with the requirements of the financial plan as
approved by the board. With respect to all contracts or other
obligations to be entered into by the city or any covered
organization after October fifteenth, nineteen hundred
seventy-five, requiring the payment of funds or the incurring of
costs by the city or any covered organization:
(i) Within twenty days from the effective date of this act the
mayor shall present to the board proposed regulations respecting
the categories and types of contracts and other obligations
required to be reviewed by the board pursuant to this
subdivision e. Within thirty days from the effective date of
this act, the board shall approve or modify and approve such
proposed regulations or promulgate its own in the event that
such proposed regulations are not submitted to it within the
twenty days as provided for herein. Such regulations may
thereafter be modified by the board from time to time on not
less than thirty days notice to the mayor and the mayor may from
time to time propose modifications to the board. Unless
expressly disapproved or modified by the board within thirty
days from the date of submission by the mayor, any such proposed
regulations or modifications shall be deemed approved by the
board;
(ii) Prior to entering into any contract or other obligations
subject to review of the board under its regulations, the city
or any covered organization shall submit a copy of such contract
or other obligation to the board accompanied by an analysis of
the projected costs of such contract or other obligation and a
certification that performance thereof will be in accordance
with the financial plan, all in such form and with such
additional information as the board may prescribe. The board
shall promptly review the terms of such contract or other
obligation and the supporting information in order to determine
compliance with the financial plan;
(iii) During a control period the board shall, by order,
disapprove any contract or other obligation reviewed by it only
upon a determination that, in its judgment, the performance of
such contract or other obligation would be inconsistent with the
financial plan and the city or covered organization shall not
enter into such contract or other obligation;
(iv) During a control period if the board approves the terms
of a reviewed contract or other obligation, the city or covered
organization may enter into such contract or other obligation
upon the terms submitted to the board. Failure of the board to
notify the city or covered organization within thirty days (or
such additional time not exceeding thirty days as the board
shall have notified the city or covered organization, that it
requires to complete its review and analysis) after submission
to it of a contract or other obligation that such contract or
other obligation has been disapproved shall be deemed to
constitute board approval thereof.
f. Upon submission thereof by the city, the board shall review
the terms of each proposed long-term and short-term borrowing by
the city and any covered organization to be affected during a
control period but after October fifteenth, nineteen hundred
seventy-five, and no such borrowing shall be made unless
approved by the board. Each such proposed borrowing by a covered
organization shall be submitted to the city by the covered
organization before it may be considered by the board. Not more
than thirty days after any such submission by a covered
organization the city shall transmit any such proposed terms of
borrowing to the board together with the certification of the
city as to whether such proposed terms of borrowing are in
accordance with the financial plan and are consistent with the
objectives and purposes of this act. Any such submission to the
city shall be accompanied by a certification of the covered
organization that the terms thereof are in accordance with the
financial plan and are consistent with the objectives or
purposes of this act. The transmittal by the city to the board
shall include a recommendation by the city for the approval or
disapproval of such proposed terms of borrowing pursuant to the
terms of this paragraph. In the event the city does not make
such transmittal within such thirty day period, such covered
organization may submit such proposed borrowing directly to the
board. The board shall disapprove any borrowing if it determines
that such borrowing is inconsistent with the financial plan or
the objectives or purposes of this act. The board shall consult
and coordinate with the municipal assistance corporation for the
city of New York with respect to borrowings of the city and any
covered organization and shall receive reports from the muncipal
assistance corporation for the city of New York on its review of
borrowings by the city. No covered organizations shall be
prohibited from issuing bonds or notes to pay outstanding bonds
or notes.
g. The board and the comptroller shall receive quarterly
reports from the city comptroller setting forth the debt service
requirements on all bonds and notes of the city and the covered
organizations for the following quarter, which reports shall be
in such form and contain such information as the board shall
determine. Such reports shall be issued no later than sixty days
prior to the start of the quarter to which they pertain and
shall be updated immediately upon each issuance of bonds or
notes after the date of such report to reflect any change in
debt service requirements as a result of such issuance. The
board also shall receive from the city monthly and quarterly
financial reports, which reports shall be in such form and
contain such information as the board shall determine and shall
be made available by the city to the public. In order to avoid
duplicative reports and reporting requirements, to the extent
that the city is required to submit monthly or quarterly
financial reports to the department of the treasury pursuant to
any agreement or arrangement made in connection with federal
guarantees of notes or bonds issued by the city or a state
financing agency, copies of such reports shall be submitted to
the board in satisfaction of the monthly and quarterly reporting
requirements set forth above, together with such additional
information as the board may require. Each monthly and quarterly
report herein required to be submitted to the board must
indicate any variance between actual and budgeted revenues,
expenses or cash for the period covered by such report.
h. The board shall issue, to the appropriate officials of the
city and the covered organizations, such orders as it deems
necessary to accomplish the purposes of this act, including but
not limited to timely and satisfactory implementation of an
approved financial plan. Any order so issued shall be binding
upon the official to whom it was issued and failure to comply
with such order shall subject the official to the penalties
described in section eleven of this act.
i. The board shall coordinate with the municipal assistance
corporation for the city of New York and the deputy comptroller
with respect to the performance of its review and monitoring of
the revenues and expenditures of the city and the covered
organizations.
2. In the event of any default by the city on its outstanding
bonds or notes, and so long as such default has not been cured,
the board may, any provisions of this act notwithstanding, take
any action that it is authorized to take pursuant to title six-A
of article two of the local finance law, and may direct the city
to take any action that the city is authorized to take under
such law.
* 3. (a) Notwithstanding any provision of the New York City
Collective Bargaining Law, codified as chapter fifty-four of the
New York city administrative code, or any general or special law
to the contrary, any report or recommendation of an impasse
panel constituted pursuant to such chapter which provides for an
increase in wages or fringe benefits of any employee of the city
or covered organization, in addition to considering any standard
or factor required to be considered by applicable law, including
the standards enumerated in section 1173-7.0(c)(3)(b) of such
chapter, shall also take into consideration and accord
substantial weight to the financial ability of the city and or
covered organization to pay the cost of such increase in wages
or fringe benefits.
(b) The board of collective bargaining constituted pursuant to
such chapter, when reviewing such report or recommendation
before proceeding to other issues, shall make a threshold
determination as to whether such report or recommendation for an
increase in wages or fringe benefits is within the city's and or
covered organization's financial ability to pay. If the
threshold determination is in the negative, the matter shall be
remitted to the impasse panel for further consideration. If the
threshold determination is in the affirmative, the further
review of the report or recommendation with respect to other
issues, if any, shall proceed as provided by law. Unless the
parties stipulate otherwise, the threshold determination shall
be made within thirty days after submission of the report or
recommendation to the board of collective bargaining.
(c) Any determination pursuant to article eight of the labor
law or any agreement or stipulation entered into in lieu thereof
which provides for an increase in wages or fringe benefits of
any employee of the city or covered organization shall, in
addition to considering any standard or factor required to be
considered by applicable law, also take into consideration and
accord substantial weight to the financial ability of the city
and or covered organization to pay the cost of such increase.
(d) Any report or recommendation of a fact finding or similar
type panel or any interest arbitration award which provides for
an increase in wages or fringe benefits of any employee of the
city or covered organization not subject to the provisions of
the New York City Collective Bargaining Law, codified as chapter
fifty-four of the New York city administrative code, shall, in
addition to considering any standard or factor required to be
considered by applicable law, also take into consideration and
accord substantial weight to the financial ability of the city
and or covered organization to pay the cost of such increase.
(e) Any party to a proceeding before the board of collective
bargaining as described in paragraph (b) or other body as
described in paragraphs (c) or (d) hereof may commence a special
proceeding in the appellate division, first department, supreme
court, state of New York, to review the threshold determination
as to the city and or covered organization's financial ability
to pay. Such proceeding shall be commenced not later than thirty
days after the final determination has been made by the board of
collective bargaining in the case of paragraph (b) or other body
in the case of paragraphs (c) or (d). Such proceeding shall have
preference over all other causes in such appellate division,
other than causes relating to the election law.
(f) The court shall make a de novo review of the record solely
for the purpose of determining whether an award of an increase
in wages or fringe benefits was within the city's and or covered
organization's financial ability to pay. The court's findings as
to such issue shall be based upon a preponderance of all the
evidence set forth in the record. Unless the parties stipulate
otherwise, arguments or submission shall be had within fifteen
days after commencement of the special proceeding and the court
shall render its decision within fifteen days thereafter. All
questions, other than the question relating to the threshold
determination, shall be reviewed by the appellate division in
the same proceeding in the manner provided by articles
seventy-five or seventy-eight of the civil practice law and
rules as may be appropriate, notwithstanding that the issue
would otherwise have been cognizable in the first instance
before a special or trial term of the supreme court. If an
appeal shall otherwise lie from such determination of the
appellate division to the court of appeals, notice of such
appeal shall be filed within thirty days after the entry of the
final order or judgment of the appellate division if such appeal
is of right or within ten days after entry of an order granting
leave to appeal and such appeal shall have preference over all
other appeals other than appeals relating to the election law.
(g) At any stage of any proceeding under paragraphs (a), (b),
(c), (d) and (e) hereof or any appeal from an order or judgment
therefrom, the board may intervene as a party on the issue of
the financial ability of the city and or covered organization to
pay the cost of an increase in wages or fringe benefits.
(h) For the purposes of this subdivision, financial ability to
pay shall mean the financial ability of the city and or covered
organization to pay the cost of any increase in wages or fringe
benefits without requiring an increase in the level of city
taxes existing at the time of the commencement of a proceeding
under paragraph (a), (c) or (d) hereof.
(i) The provisions of this subdivision shall terminate on June
thirtieth, nineteen hundred eighty-six.
* NB Expires June 30, 1986
4. During a control period, except upon approval by the board
in accordance with the provisions of paragraph e or f of
subdivision one of this section, as the board shall determine,
neither the city nor a covered organization shall enter any
agreement or other arrangement, whether or not it creates a debt
of the city or a covered organization, pursuant to which the
revenues or credit of the city may be directly or indirectly
pledged, encumbered, committed or promised, contingently or
otherwise, for the payment of obligations of a public benefit
corporation. Nothing in this subdivision shall limit the right
of the city to comply with the provisions of any existing
agreement or other arrangement in respect of the obligations of
a public benefit corporation.
5. The board may employ such consultants as it may deem
necessary to assist it in performing its functions required
under this act.
6. The board shall have the authority to make and execute
agreements and all other instruments which the board deems
necessary for the exercise of its powers and functions
including, in connection with any agreement by the federal
government or any agency or instrumentality thereof to guarantee
the payment of the principal of or interest on bonds or notes
issued by the city or by a state financing agency, to enter into
one or more agreements containing terms and conditions required
by the secretary of the treasury pursuant to the New York City
Loan Guarantee Act of l978, Public Law 95-339 with the federal
government or any agency or instrumentality thereof with respect
to such guarantee or any matters related thereto and to comply
with such terms and conditions.
7. The board may appoint qualified individuals to participate
as members of such audit, productivity or similar committees or
councils as the city may from time to time establish in
consultation with the board. Such individuals, however, shall
not be deemed to be officers, employees or agents of the board.
The board shall review and report on, not less than annually,
the development and implementation of methods for enhancing the
productivity of the city's labor force proposed by any such
committee or council.
* Terminates July 1, 2008 or ... see § 13
* § 7-a. Reports of the city. 1. The city shall take such
action as may be necessary to enable a nationally recognized
independent certified public accounting firm or consortium of
firms, one of which at least is a nationally recognized
independent certified public accounting firm, to perform an
annual audit in accordance with generally accepted auditing
standards and to furnish to the board the report on such audit
prepared by such firm or consortium of firms, which report shall
include an opinion as to whether the city's financial statements
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 shall state whether the
audit of such financial statements was made in accordance with
generally accepted auditing standards and accordingly included
such tests of the accounting records and such other auditing
procedures as were considered necessary under the circumstances.
Such report shall note the nature and extent of variations, if
any, from generally accepted accounting principles reflected in
the city's financial statements. The city shall make available
for inspection and copying all books, records, work papers and
other data and material as required by such auditors, and the
city shall make its officers and employees available to, and
shall cooperate with such auditors so as to permit such annual
audit to be completed and the report issued to the city and to
the board within four months after the close of the city's
fiscal year.
2. Not later than January fifteenth, nineteen hundred
eighty-one, the city shall issue a report to the board on its
program designed to enable the city (i) during its fiscal years
ending June thirtieth, nineteen hundred eighty-three and June
thirtieth, nineteen hundred eighty-four, to minimize its
dependence upon the state financing agency to the extent that it
shall be prudent to satisfy the city's financing needs by the
sale of obligations of the city or its agencies in the public
markets, and (ii) thereafter to satisfy its financing needs
entirely by the sale of such obligations. The report shall
describe such actions that the city proposes to take, in
addition to those actions required by law, to implement the
program and shall contain such further information as the board
may reasonably specify. After the issuance of such initial
report, the city shall report to the board at least
semi-annually through June thirtieth, nineteen hundred
eighty-two and thereafter at least quarterly on the actions it
has taken to implement the program and on the results thereof.
The city may revise the program from time to time but shall
promptly describe any revisions and the reasons therefor to the
board. The city may comply with the requirements of this
subdivision by submitting the necessary information as
supplementary material to a financial plan or financial plan
modification in accordance with the standards and procedures of
section eight of this act. The provisions of this subdivision
shall terminate on June thirtieth, nineteen hundred eighty-five.
* Terminates July 1, 2008 or ... see § 13
* § 8. Development of the financial plan. 1. Pursuant to the
procedures contained in subdivision three of this section, each
year the city shall develop, and may from time to time modify,
with the approval of the board during a control period, a four
year financial plan covering the city and the covered
organizations.
Each such financial plan and financial plan modification shall
comply with the requirements of subdivision four of this section
and shall, except as otherwise provided pursuant to subdivision
two-a of this section, conform to the following standards:
a. For its fiscal years ending June thirtieth, nineteen
hundred seventy-nine through June thirtieth, nineteen hundred
eighty-one, the city's budget covering all expenditures other
than capital items shall be prepared and balanced so that the
results thereof would not show a deficit when reported in
accordance with the accounting principles set forth in the state
comptroller's uniform system of accounts for municipalities, as
the same may be modified by the comptroller, in consultation
with the city comptroller, for application to the city; subject
to the provision of subdivision four of section three thousand
thirty-eight of the public authorities law with respect to
contributions by the city or other public employer to any
retirement system or pension fund and subject to the provision
of paragraph (c) of subdivision five of section three thousand
thirty-eight of the public authorities law with respect to
expense items included in the capital budget of the city. For
the fiscal year ending June thirtieth, nineteen hundred
eighty-two, and for each fiscal year thereafter, the city's
budget covering all expenditures other than capital items shall
be prepared and balanced so that the results thereof would not
show a deficit when reported in accordance with generally
accepted accounting principles and would permit comparison of
the budget with the report of actual financial results prepared
in accordance with generally accepted accounting principles.
With respect to financial plans that include the fiscal years
ending June thirtieth, nineteen hundred seventy-nine through
June thirtieth, nineteen hundred eighty-one, the city's budget
covering all expenditures other than capital items shall be
prepared in accordance with generally accepted accounting
principles and there shall be substantial progress in each such
fiscal year towards achieving a city budget covering all
expenditures other than capital items the results of which would
not show a deficit when reported in accordance with generally
accepted accounting principles. The city shall eliminate expense
items from its capital budget not later than the commencement of
the fiscal year ending June thirtieth, nineteen hundred
eighty-two. For the fiscal year ending June thirtieth, nineteen
hundred eighty-nine, and for each fiscal year thereafter, the
budgets covering all expenditures other than capital items of
each of the covered organizations shall be prepared and balanced
so that the results thereof would not show a deficit when
reported in accordance with generally accepted accounting
principles; and for each fiscal year prior thereto, there shall
be substantial progress towards such goal. Notwithstanding the
foregoing and the provisions of any general or special state law
or local law to the contrary, including but not limited to the
New York city charter: (i) all costs that would be capital
costs in accordance with generally accepted accounting
principles, but for the application of governmental accounting
standards board statement number forty-nine, shall be deemed to
be capital costs for purposes of this act and any other
provision of state or local law, including but not limited to
the New York city charter, relevant to the treatment of such
costs; and (ii) the determination as to the existence of a
deficit pursuant to this act and any other provision of state or
local law, including but not limited to the New York city
charter, shall be made without regard to changes in restricted
fund balances, as defined by the governmental accounting
standards board, where restrictions in relation to such fund
balances are imposed by state or federal law or regulation, or
otherwise by private or governmental parties other than the city
of New York, and without regard to funds held in the health
stabilization fund, the school crossing guards health insurance
fund and the management benefits fund established by the city of
New York.
b. The limitations on its outstanding short-term obligations
required by subdivision nine of section three thousand
thirty-eight of the public authorities law and by section nine-b
of this act shall be observed at all times, as each is amended
from time to time.
c. Provision shall be made for the payment in full of the debt
service on all bonds and notes of the city and the covered
organizations (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), for the adequate funding
of programs of the city and the covered organizations which are
mandated by state or federal law and for which obligations are
going to be incurred during the fiscal year and for payment of a
guarantee fee or any other amounts required by the United States
of America or any agency or instrumentality thereof in
connection with the guarantee of the payment of the principal of
or interest on bonds or notes issued by the city.
d. All projections of revenues and expenditures contained in a
financial plan shall be based on reasonable and appropriate
assumptions and methods of estimation. All cash flow projections
shall be based upon reasonable and appropriate assumptions as to
sources and uses of cash (including but not limited to the
timing thereof), and shall provide for operations of the city
and covered organizations to be conducted within the cash
resources so projected.
e. The city shall provide a general reserve for each fiscal
year to cover potential reductions in its projected revenues or
increases in its projected expenditures during each such fiscal
year. The amount provided for such general reserve shall be
estimated by the city in accordance with paragraph d of this
subdivision, but in no event shall it be less than one hundred
million dollars at the beginning of any fiscal year.
f. For financial plans beginning with the fiscal year ending
June thirtieth, nineteen hundred eighty-three or any succeeding
fiscal year, the first fiscal year included in any financial
plan shall make provision for the repayment of any deficit
incurred by the city during the preceding fiscal year.
2. In developing the financial plan the city shall seek to
achieve a stabilized work force for the city and, to the extent
a reduction in the work force is required, primary recourse
shall be had to the attrition process to accomplish such
reduction.
2-a. The city and the board shall confer concerning the
projected effect on the budgets of the city and the covered
organizations of any change in generally accepted accounting
principles, or change in the application of generally accepted
accounting principles to the city and the covered organizations,
made after the effective date of this act. If the board
determines that immediate compliance with such change will have
a material effect on such budgets over a time period
insufficient to accommodate the effect without a substantial
adverse impact on the delivery of essential services, the board
may authorize and approve a method of phasing the requirements
of such change into such budgets over such reasonably
expeditious time period as the board deems appropriate.
3. The financial plan shall be developed and, during a control
period, shall be approved, and may from time to time be
modified, in accordance with the following procedures:
a. The city shall, by June first, nineteen hundred
seventy-eight, prepare and submit a financial plan to the board
covering the four year period which begins with the fiscal year
ending June thirtieth, nineteen hundred seventy-nine.
Thereafter, at least fifty days prior to the beginning of each
fiscal year or on such other date as the board may approve upon
the request of the city, the city shall prepare and submit a
financial plan to the board covering the four year period
beginning with such fiscal year. On such dates the mayor shall
also submit to the board the city's executive expense, revenue
and capital budgets for the ensuing fiscal year and a
certificate of the mayor stating that such budgets are
consistent with the financial plan submitted therewith, that
projections contained in the budgets and financial plan are
based upon reasonable and appropriate assumptions and methods of
estimation, and that operation within the budgets is feasible.
b. (i) During a control period the board shall promptly review
each financial plan and financial plan modification submitted by
the city. Not more than forty-five days after submission of a
financial plan or more than thirty days after submission of a
financial plan modification the board shall determine whether
the financial plan or financial plan modification is complete
and complies with the standards set forth in subdivision one of
this section and shall approve or disapprove the financial plan
or financial plan modification in accordance with the provisions
of this section. If the board determines that the financial plan
or financial plan modification is complete and complies with the
standards set forth in subdivision one of this section, the
board shall approve the financial plan or financial plan
modification. Upon making such determination the board shall
make a certification to the city setting forth revenue estimates
approved by the board in accordance with such determination.
(ii) At all times other than during a control period the board
shall promptly review each financial plan and financial plan
modification submitted by the city. If the board determines
after such review that the financial plan or financial plan
modification submitted by the city is not in accordance with the
standards set forth in subdivision one of this section, the
board shall promptly so notify the city and may take such other
action under this act as it deems appropriate.
c. The board shall disapprove a financial plan or financial
plan modification if during a control period it determines that
the financial plan or financial plan modification is incomplete
or fails to comply with the provisions of subdivision one of
this section. In disapproving a financial plan or a financial
plan modification the board may order that one or more of the
following actions be taken:
(i) expenditures or reserves to assure availability of amounts
required for debt service requirements on all bonds and notes of
the city and the covered organizations or expenditures required
for adequate funding of programs of the city and the covered
organizations mandated by state or federal law and for which
obligations are going to be incurred during the fiscal year, be
increased to the levels required to provide for their payment in
full;
(ii) the revenue projections (or any item thereof) during any
period be adjusted to comply with the standards set forth in
subdivision one of this section; and
(iii) the aggregate expenditures projected for any period be
reduced to conform to revenue estimates certified by the board
in order to comply with the standards set forth in subdivision
one of this section.
d. During a control period in the event that the city shall,
for any reason, fail to submit a financial plan prior to the
beginning of a fiscal year, as required by paragraph a of this
subdivision, or in the event that the board has not, for any
reason permitted under this act, approved a financial plan
submitted by the city prior to the beginning of a fiscal year,
the board shall formulate and adopt a financial plan to be
effective until the board approves a financial plan submitted by
the city. Any financial plan so formulated by the board shall
comply with the standards set forth in subdivision one of this
section. The budgets and operations of the city and the covered
organizations at all times shall be in conformance and
compliance with the financial plan then in effect.
e. After the initial adoption by the city, or the approval by
the board during a control period, of a financial plan,
projections of revenues and expenditures and other estimates
contained in the financial plan shall be reexamined by the board
at least quarterly in consultation with the city and the covered
organizations, and during a control period the city shall
prepare and submit to the board financial plan modifications at
such times, in such detail and within such time periods as the
board may require in order to modify the financial plan to
conform to the standards set forth in subdivision one of this
section. During a control period in the event the board
determines that (i) revenue estimates (or any item thereof) must
be adjusted to ensure compliance with the standards set forth in
subdivision one of this section, or (ii) that the city or a
covered organization is expending funds at a rate that would
cause expenditures to exceed the aggregate expenditure
limitation for the city or covered organization provided for in
the financial plan then in effect, prior to the expiration of
the fiscal year, the city shall submit a financial plan
modification to effect such adjustments in revenue estimates and
reductions in total expenditures as may be necessary to conform
to such standards or aggregate expenditure limitations. If
during a control period the city fails to submit such
modification after such determination as to adjustments in
revenue estimates or such determination as to rates of
expenditures, or to submit a financial plan modification in the
detail or within the time period specified by the board, or if
such modification is disapproved by the board as not conforming
to the standards set forth in subdivision one of this section,
the board may formulate and adopt such financial plan
modification as it deems appropriate to ensure that the
financial plan continues to meet such standards. Such
modification shall become effective on its adoption.
Notwithstanding the provisions of this section, in the event the
city shall determine that, due to unforeseen events during a
fiscal year, compliance with the standards set forth in
paragraph a of subdivision one of this section would result in a
material adverse impact upon the delivery of essential services,
the city shall notify the board of such determination, together
with such information, projections or analyses relating thereto
as the board may require, and shall submit a modification to the
financial plan reflecting such determination. During a control
period the board shall disapprove any such modification unless
it finds that (i) the city's determination is supported by
information, projections and analyses which the board deems
substantially accurate in all material respects and (ii) such
events, in its judgment, warrant such modification to the
financial plan to avoid such adverse impact on the delivery of
essential services.
f. The city may, from time to time, submit financial plan
modifications for review by the board. During a control period
the board shall approve such modifications unless it determines
that such modifications would constitute grounds for disapproval
of the financial plan pursuant to paragraph c of this
subdivision, or if applicable, pursuant to paragraph e of this
subdivision.
g. Anything contained in this act to the contrary
notwithstanding, during a control period the board may at any
time disapprove or after consultation with the city revise the
revenue estimates (or any item thereof) prepared by the city in
connection with the preparation of a financial plan or any
modification thereto and determined by the board not to be based
on assumptions and methods of estimation which are reasonable
and appropriate under the circumstances and in view of the
objectives and purposes of the act. The board may after
consultation with the city determine the estimated revenues of
the city and the covered organizations provided, however, that
any revenues estimated by the board shall be based on reasonable
and appropriate assumptions and methods of estimation.
4. Each financial plan shall be in such form and shall contain
such information for each year during which the financial plan
is in effect as the board may specify, and shall, in such detail
as the board may from time to time prescribe, include
projections of all revenues, expenditures and cash flows
(including but not limited to projected capital expenditures and
debt issuances) and a schedule of projected capital commitments
of the city and except in such instances as the board may deem
appropriate each of the covered organizations. In addition, each
financial plan and financial plan modification shall include a
statement of the significant assumptions and methods of
estimation used in arriving at the projections contained
therein, set forth in such form and in such detail as the board
may from time to time prescribe.
5. The city and the covered organizations shall promptly
furnish the board with any information which the board may
request to satisfy itself that (i) projected employment levels,
collective bargaining agreements and other action relating to
employee costs, capital construction and such other matters as
the board may specify, are consistent with the provisions made
for such costs in the financial plan, (ii) the city and the
covered organizations are taking whatever action is necessary
with respect to programs mandated by state and federal law to
ensure that expenditures for such programs are limited to and
covered by the expenditures stated in the financial plan, and
(iii) adequate reserves are provided to maintain programs
mandated by state and federal law and for which obligations are
going to be incurred in the fiscal year and other essential
programs in the event revenues have been overestimated or
expenditures underestimated for any period.
6. For each financial plan and financial plan modification to
be prepared and submitted by the city to the board pursuant to
the provisions of this section, the covered organizations shall
submit to the city such information with respect to their
projected expenditures, revenues, cash flows and a schedule of
projected capital commitments for each year covered by such
financial plan or modification as the city shall determine.
Notwithstanding any other provision of law limiting the
authority of the city with respect to any covered organization,
the city, in the preparation and submission of the financial
plan and modifications thereof, shall (except for debt service
or for other expenditures to the extent that such expenditures
are required by law) have the power to determine the aggregate
expenditures to be allocated to any covered organization in the
financial plan and any modifications thereto.
* Terminates July 1, 2008 or ... see § 13
* § 9. Establishment and application of the board fund. 1.
There is hereby established a fund designated the board fund.
Commencing on October twentieth, nineteen hundred seventy-five,
and for the duration of a control period, all revenues received
or to be received by the city or any covered organization shall,
unless exempted by order of the board, be revenues of the board
fund and shall be for the account of the city or the appropriate
covered organizations, except (i) to the extent expressly
prohibited by federal law, (ii) where revenues of the city are
deposited in the general debt service fund, the TAN debt service
account or the RAN debt service account, or (iii) where such
revenues are pledged to the payment of any outstanding bonds,
notes or other obligations of covered organizations or state
public authorities as defined in section two hundred one of the
civil service law. Disbursement from the board fund shall be
made by the board in accordance with the approved financial plan
except as provided in subdivision five of this section nine.
Commencing on October twentieth, nineteen hundred seventy-five,
and for the duration of a control period, all funds and accounts
established or thereafter established by the city or the covered
organizations shall, unless exempted by order of the board,
thereafter be funds and accounts of the board fund except to the
extent expressly prohibited by federal law or to the extent
pledged by covenants or agreements relating to any outstanding
bonds, notes or other obligations of covered organizations or
public authorities as defined in section two hundred one of the
civil service law; and no monies or funds held in the general
debt service fund, the TAN debt service account or the RAN debt
service account shall be part of the board fund. 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 board fund. The monies 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 board fund and the
investment or deposit of monies therein shall be made in
accordance with and pursuant to procedures established by the
board.
3. In order to assure compliance with the financial plan, the
board shall from time to time adopt procedures controlling the
disbursement of monies from the board fund. 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 (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.
4. Within the board fund there is hereby established a special
account designated the debt service repayment account. The board
shall from time to time direct, in accordance with procedures
adopted by the board, the deposit in the debt service repayment
account of such amounts as the board shall, in its discretion,
determine to be sufficient to meet the debt service requirements
of the covered organizations on their bonds and notes (other
than bonds and notes of covered organizations payable from
revenues not included in the board fund) as they become due.
Amounts in the debt service repayment account shall be used to
meet such debt service requirements of the covered
organizations.
5. If at any time the board determines that the amount then
held in the board fund or the amount estimated by the board to
be held in the board 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
board 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 board fund to the debt service
repayment account, the general debt service fund, the TAN debt
service account and the RAN debt service account, to maintain
therein the amount required, to meet debt service requirements
of the city and the covered organizations on their bonds and
notes as they may become due, (ii) the payment of other
liabilities having statutory or contractual priority over
remaining liabilities of the city and the covered organizations
whose monies are included in the board 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.
6. The board shall cause to be performed such pre-audit and
post-audit reviews of the board funds and disbursements
therefrom as it may determine.
* Terminates July 1, 2008 or ... see § 13
* § 9-a. Establishment and application of a general debt
service fund. 1. Commencing on the first day of the first full
fiscal quarter subsequent to the first sale of a federally
guaranteed city obligation, the city shall establish a general
debt service fund for the purpose of paying debt service due or
becoming due in the then current fiscal year and in subsequent
fiscal years. All monies in the fund shall be held by the
comptroller, who shall administer and maintain the fund in
accordance with the provisions of this section.
2. All payments of or on account of real estate taxes or
assessments, other than the proceeds of tax anticipation notes,
shall be immediately upon receipt deposited in such fund. The
comptroller shall retain, disburse and apply monies in the fund
during each month as follows:
a. During the first month of each fiscal quarter, there shall
be retained in the fund, subject to the provisions of
subdivision three of this section, all real estate tax payments
deposited in the fund until there shall have been retained from
monies so deposited during such month an amount equal to the
total monthly debt service, computed as of the date of any
disbursement of money from the fund, for the second and third
months of such fiscal quarter; provided that such amount shall
be reduced by any amount already on deposit in the fund which
may be used to pay the monthly debt service for such months.
For purposes of this section, fiscal quarter shall mean the
three-month period beginning July first, October first, January
first or April first, and monthly debt service shall mean, as of
any date of computation, the amount of monies equal to the
aggregate of (i) all interest payable during such month on bonds
and notes of the city, plus (ii) the amount of principal
(including payments into sinking funds) maturing or otherwise
coming due during such month on all bonds of the city (excluding
principal payments made from sinking funds required by the terms
of certain city bonds), plus (iii) the amount of principal to be
paid on notes of the city during such month from sources other
than the proceeds of bonds or renewal notes (exclusive of
revenue anticipation notes and tax anticipation notes or
renewals thereof issued less than two years prior to the date of
computation).
b. During the second and third months of each fiscal quarter,
there shall be retained in the fund, subject to the provisions
of subdivision three of this section, all real estate tax
payments deposited in the fund until there shall have been
retained from monies so deposited during such month an amount
equal to the total monthly debt service, computed as of the date
of any disbursement of monies from the fund, for the first month
of the next succeeding fiscal quarter; provided that such amount
shall be reduced by any amount already on deposit in the fund
which may be used to pay the monthly debt service for such
month.
c. During any month of a fiscal quarter, after the retentions
required by paragraphs a and b of this subdivision have been
made for such month, the comptroller shall deposit any remaining
balance of real estate taxes received during such month, first
into the TAN debt service account to the extent required under
subdivision six of this section, and second into the board fund
to be applied in accordance with procedures of the board.
d. The city may at any time pay into the fund any monies
required by law to be used to pay monthly debt service and any
other monies available for such purpose.
3. The board may approve, subject to agreements made with the
holders or guarantors of outstanding notes or bonds issued by or
for the benefit of the city after the effective date of this
act, criteria for calculating a proportion of real estate tax
receipts to be retained in the fund in order to provide for the
retention of amounts required by the provisions of subdivision
two of this section in lieu of the retention of all initial
receipts as required by such subdivision; provided, that if the
board at any time determines that retentions in the fund
pursuant to the provisions of such subdivision are or are likely
to be insufficient to provide for the payment of monthly debt
service when due, in order to ensure that the amounts on deposit
in the fund will be sufficient to pay monthly debt service when
due, the board shall require (i) that real estate tax receipts
be retained in the fund in greater amounts or at earlier dates
than the provisions of such subdivision require, or (ii) that
other revenues or cash resources of the city be paid into the
fund. The board shall consider the impact of earlier or larger
retention of real estate tax receipts on the city's seasonal
borrowing requirements when determining whether it shall require
such additional retention or that other revenues or cash
resources of the city be paid into the fund. Prior to the
issuance by the city of any bonds or notes, the board shall
review any criteria then in effect which determine the
proportion of real estate tax receipts to be retained in the
fund to determine whether the proposed debt service schedule for
such bonds or notes is consistent with the monies which will be
available therefor or whether such criteria should be revised.
The board shall from time to time take such action as it
determines is necessary, including disapproval of a proposed
issue pursuant to paragraph f of subdivision one of section
seven, so that the monies in the fund shall be adequate to meet
debt service requirements.
4. Commencing on the first day of the second month of the
first full fiscal quarter subsequent to the first sale of a
federally guaranteed city obligation, the payment of monthly
debt service shall be made, first, from amounts retained in the
fund. Amounts retained in the fund shall be used only to pay
debt service of the city.
5. Upon the issuance of any tax anticipation notes following
the effective date of this act, the comptroller shall establish
and, so long as any tax anticipation notes shall be outstanding,
shall maintain a tax anticipation note debt service account
within the fund for the purpose of paying the principal of tax
anticipation notes.
6. The city shall determine the date on which the principal
due or to become due on an outstanding issue of tax anticipation
notes shall equal ninety percent of the available tax levy with
respect to such issue, and upon reasonable notice thereof the
comptroller shall commence on such date to pay into the TAN debt
service account from collections of such taxes and assessments,
after retaining amounts required to be deposited in the fund,
amounts sufficient to pay when due, the principal of such issue
of tax anticipation notes. The payments of the principal of tax
anticipation notes shall be made, first, from amounts retained
in the TAN debt service account.
7. Upon the issuance of any revenue anticipation notes
following the effective date of this act, the comptroller shall
establish and, so long as any revenue anticipation notes shall
be outstanding, shall maintain a revenue anticipation note debt
service account within the fund for the purpose of paying the
principal of revenue anticipation notes. Each specific type of
revenue in anticipation of which such notes are issued and
available for such purpose shall be deposited in such account
immediately upon receipt by the city. Where such revenue
consists of state aid or other revenue to be paid to the city by
the comptroller, on the date such revenue is payable to the
city, the comptroller shall deposit such revenue directly into
such account in lieu of payment to the city. All revenues
deposited in the RAN debt service account shall be paid
immediately into the board fund except as otherwise provided in
subdivision eight of this section.
8. The city shall determine the date on which the principal
due or to become due on an outstanding issue of revenue
anticipation notes shall equal ninety percent of the total
amount of revenue against which such notes were issued remaining
to be paid to the city on or before the fifth day prior to the
maturity date of such notes and upon reasonable notice thereof
the comptroller shall commence on such date to retain in the RAN
debt service account from amounts deposited or to be deposited
therein of each specific type of revenue in anticipation of
which revenue such anticipation notes were issued, an amount
sufficient to pay, when due, the principal of such revenue
anticipation notes. Monies retained in such account shall vest
immediately in the comptroller in trust for the benefit of the
holders of the revenue anticipation notes in anticipation of
which such notes were issued. 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 monies 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 monies shall not be subject to
any order, judgment, lien, execution, attachment, setoff or
counter-claim 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 New York, 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 monies held
by the state or for the payment of which bonds or notes state
aid or local assistance monies are a designated source. The
payment of the principal of revenue anticipation notes shall be
made first from amounts retained in the RAN debt service
account.
9. Whenever the amount contained in the TAN debt service
account or the RAN debt service account exceeds the amount
required to be retained in such account such excess monies,
including earnings on investments of monies in the fund, shall
be withdrawn from such account and paid into the board fund.
10. Subject to agreements made with holders or guarantors of
outstanding notes or bonds issued by or for the benefit of the
city after the effective date of this act, the comptroller shall
invest the monies retained in the fund in accordance with law.
11. The limitations imposed upon the city by this section
shall be in addition to any limitations imposed upon the city
under the local finance law. In the event any provisions of the
local finance law shall be inconsistent with the provisions of
this section, the provisions of this section shall prevail. The
requirements of this section shall not apply to any note 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 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.
12. Notwithstanding any other provision of this section, the
city may, at any time, subject to approval by the comptroller,
designate a trust company or bank having its principal place of
business in the state of New York and having the powers of a
trust company in the state of New York to hold all or any part
of the monies in the fund and to administer and maintain the
monies so held in accordance with the applicable provisions of
this section and any agreements made pursuant thereto.
* Terminates July 1, 2008 or ... see § 13
* § 9-b. Limitations on short-term borrowing. 1. The
limitations on short-term borrowing imposed upon the city by
this section shall be in addition to the limitations on
short-term borrowing imposed on the city under the local finance
law. In the event any provisions of the local finance law shall
be inconsistent with the provisions of this section, the
provisions of this section shall prevail. For the purposes of
this section the terms "bond anticipation notes", "tax
anticipation notes", "revenue anticipation notes" and "budget
notes" shall not mean one or more of or any of the respective
notes held by the municipal assistance corporation for the city
of New York on June thirtieth, nineteen hundred seventy-eight or
any note of the city held by such corporation issued in exchange
for or in refunding or renewal of any such note.
2. a. No tax anticipation notes shall be issued by the city in
anticipation of the collection of taxes or assessments levied
for a fiscal year which would cause the principal amount of such
issue of tax anticipation notes to exceed an amount equal to
ninety per cent of the available tax levy with respect to such
issue.
b. Tax anticipation notes and renewals thereof shall mature
not later than the last day of the fiscal year in which they
were issued.
3. a. No revenue anticipation note shall be issued by the city
in anticipation of the collection or receipt of revenue in a
fiscal year which would cause the principal amount of revenue
anticipation notes outstanding to exceed ninety per cent of the
available revenues for such fiscal year. For purposes of this
subdivision, available revenues shall be the revenues other than
real estate taxes and assessments which have been estimated in
the financial plan to be realized in cash during such year, less
revenues previously collected, other than revenues on deposit in
the RAN debt service account or any special fund established
pursuant to law for the payment of interest and/or principal of
revenue anticipation notes.
b. Each issue of revenue anticipation notes shall be issued
only in anticipation of the receipt of a specific type or types
of revenue and the amount of revenue, the source of revenue and
the anticipated date of payment shall be stated in the
proceedings authorizing the issuance of such notes.
c. Revenue anticipation notes shall mature not later than the
last day of the fiscal year in which they were issued, and may
not be renewed or extended to a date more than ten days after
the anticipated date of receipt of such revenue. No such renewal
note shall mature after the last day of such fiscal year unless
the board shall certify that the revenue against which such
renewal note is issued has been properly accrued and estimated
in the financial plan in effect on the date of issuance of such
renewal note; provided that in no event shall any such renewal
notes mature later than one year subsequent to the last day of
the fiscal year during which such revenue anticipation notes
were originally issued.
4. a. No bond anticipation note shall be issued by the city in
any fiscal year which would cause the principal amount of bond
anticipation notes outstanding, together with interest due or to
become due thereon, to exceed fifty per cent of the principal
amount of bonds issued by the city in the twelve months
immediately preceding the month in which the note is to be
issued.
b. The proceeds of each bond issue shall be (i) held in trust
for the payment, at maturity, of the principal of and interest
on any bond anticipation notes of the city issued in
anticipation of such bonds and outstanding at the time of the
issuance of such bonds, (ii) paid into the general fund of the
city in repayment of any advance made from such fund pursuant to
section 165.10 of the local finance law, and (iii) any balance
shall be expended for the object or purpose for which such bonds
were issued.
c. Bond anticipation notes shall mature not later than one
year after their date of issuance and may be renewed for a
period not to exceed two years, or such longer period as may be
permitted for bond anticipation notes of the state, from the
date of original issue.
5. Budget notes issued pursuant to section 29.00 of the local
finance law may only be issued to fund projected expense budget
deficits. No budget notes or renewals thereof, shall mature
later than sixty days prior to the last day of the fiscal year
next succeeding the fiscal year during which such budget notes
were originally issued.
6. The city shall issue no obligations which shall be
inconsistent with the financial plan or with the limitations set
forth in subdivisions one through five of this section.
* Terminates July 1, 2008 or ... see § 13
* § 10. Wage freeze. 1. Increases in salary or wages of
employees of the city and employees of covered organizations
which have taken effect since June thirtieth, nineteen hundred
seventy-five or which will take effect after that date pursuant
to collective bargaining agreements or other analogous
contracts, now in existence or hereafter entered into, requiring
such salary increases as of July first, nineteen hundred
seventy-five or as of any date thereafter are hereby suspended.
All increased payments for holiday and vacation differentials,
shift differentials, salary adjustments according to plan and
step-ups or increments for employees of the city and employees
of covered organizations which have taken effect since June
thirtieth, nineteen hundred seventy-five or which will take
effect after that date pursuant to collective bargaining
agreements or other analogous contracts requiring such increased
payments as of July first, nineteen hundred seventy-five as of
any date thereafter are hereby, in the same manner, suspended.
For the purposes of computing the pension base of retirement
allowances, the suspended salary or wage increases and the
suspended other payments shall not be considered as part of
compensation or final compensation or of annual salary earned or
earnable. The suspensions provided herein shall be effective for
the first pay period ending on or subsequent to September first,
nineteen hundred seventy-five and shall continue until one year
thereafter and, to the extent of any determination of the board
that a continuation of such suspensions, to a date specified by
the board, is necessary in order to achieve the objectives of
the financial plan, such suspensions shall be continued to the
date specified by such board, which date shall in no event be
later than the end of the emergency period.
2. This section shall not be applicable to employees of the
city or employees of a covered organization covered by a
collective bargaining agreement or an employee of the city or a
covered organization not covered by a collective bargaining
agreement where the collective bargaining representative or such
unrepresented employee has agreed to a deferment of salary or
wage increase, by an instrument in writing which has been
certified by the mayor on or before September first, nineteen
hundred seventy-five, or certified by the board after September
first, nineteen hundred seventy-five as being an acceptable and
appropriate contribution toward alleviating the fiscal crisis of
the city. The board may, if it finds that the fiscal crisis has
been sufficiently alleviated or for any other appropriate
reason, direct that the suspensions of salary or wage increases
or suspensions of other increased payments shall, in whole or in
part, be terminated.
3. The provisions of this section shall terminate on July
first, nineteen hundred seventy-eight.
* Terminates July 1, 2008 or ... see § 13
* § 10-a. Covenants, authorizations to agree and remedies. 1.
In the event that after the date on which the provisions of this
act become operative, any notes or bonds are issued by the city
prior to July 1, 2020, or any bonds are issued by a state
financing agency, the state of New York hereby authorizes the
city and authorizes and requires such state financing agency to
include a pledge and agreement of the state of New York in any
agreement made by the city or such state financing agency with
holders or guarantors of such notes or bonds that the state will
not take any action which will (a) substantially impair the
authority of the board during a control period, as defined in
subdivision twelve of section two of this act as in effect on
the date such notes or bonds are issued (i) to approve,
disapprove, or modify any financial plan or financial plan
modification, including the revenue projections (or any item
thereof) contained therein, subject to the standards set forth
in paragraphs a, c, d, e and f of subdivision one of section
eight of this act as in effect on the date such notes or bonds
are issued and paragraph b of such subdivision as in effect from
time to time, (ii) to disapprove a contract of the city or a
covered organization if the performance of such contract would
be inconsistent with the financial plan or to approve or
disapprove proposed short-term or long-term borrowing of the
city or a covered organization or any agreement or other
arrangement referred to in subdivision four of section seven of
this act, or (iii) to establish and adopt procedures with
respect to the deposit in and disbursement from the board fund
of city revenues; (b) substantially impair the authority of the
board to review financial plans, financial plan modifications,
contracts of the city or the covered organizations and proposed
short-term or long-term borrowings of the city and the covered
organizations; (c) substantially impair the independent
maintenance of a separate fund for the payment of debt service
on bonds and notes of the city; (d) alter the composition of the
board so that the majority of the voting members of the board
are not officials of the state of New York elected in a
state-wide election or appointees of the governor; (e) terminate
the existence of the board prior to the time to be determined in
accordance with section thirteen of this act as in effect on the
date such notes or bonds are issued; (f) substantially modify
the requirement that the city's financial statements be audited
by a nationally recognized independent certified public
accounting firm or consortium of firms and that a report on such
audit be furnished to the board; or (g) alter the definition of
a control period set forth in subdivision twelve of section two
of this act, as in effect on the date such notes or bonds are
issued, or substantially alter the authority of the board, as
set forth in said subdivision to reimpose or terminate a control
period; provided, however, that the foregoing pledge and
agreement shall be of no further force and effect if at any time
(i) there is on deposit in a separate trust account with a bank,
trust company or other fiduciary sufficient moneys or direct
obligations of the United States or obligations guaranteed by
the United States, the principal of and/or interest on which
will provide moneys to pay punctually when due at maturity or
prior to maturity by redemption, in accordance with their terms,
all principal of and interest on all outstanding notes and bonds
of the city or such state financing agency containing this
pledge and agreement and irrevocable instructions from the city
or such state financing agency to such bank, trust company or
other fiduciary for such payment of such principal and interest
with such moneys shall have been given, or (ii) such notes and
bonds, together with interest thereon, have been paid in full at
maturity or have otherwise been refunded, redeemed, defeased, or
discharged; and provided further that the foregoing pledge and
agreement shall be of full force and effect upon its inclusion
in any agreement made by the city or state financing agency with
holders or guarantors of such notes or bonds.
Upon payment for such obligations issued pursuant to this act
by the original and all subsequent holders inclusion of the
foregoing covenant shall be deemed conclusive evidence of
valuable consideration received by the state and city for such
covenant and of reliance upon such pledge and agreement by any
such holder. The state hereby grants any such benefited holder
the right to sue the state in a court of competent jurisdiction
and enforce this covenant and agreement and waives all rights of
defense based on sovereign immunity in such an action or suit.
2. Every such bond or note which shall contain the pledge and
agreement referred to in subdivision one above shall be callable
for redemption commencing not later than the eleventh
anniversary of its date of issuance and shall contain on its
face a recital to such effect, together with the terms and
conditions under which such obligation may be redeemed.
3. The finance board of the city is hereby authorized to enter
into agreements and to make covenants with any purchaser, holder
or guarantor of obligations issued by the city or by a state
financing agency to protect and safeguard the security and
rights of a purchaser, holder or guarantor or to protect and
safeguard the source of payment of such obligations or as deemed
appropriate by the finance board which agreements or covenants
may contain provisions providing for (a) (i) the compliance by
the city with any of the provisions of this act or of the New
York City Loan Guaranty Act of nineteen hundred seventy-eight,
Public Law 95-339, or, (ii) in any agreements with the guarantor
of such obligations but only in such agreements unless otherwise
authorized by law, the compliance with any of the terms and
conditions required by the secretary of the treasury pursuant to
such act, (b) restrictions on the issuance by the city of its
obligations, limitations on the inclusion of expense items in
its capital budgets and financial records, reporting and
disclosure requirements in addition to any such restrictions,
limitations or requirements contained in this act, (c)
compliance by the city with its financial plan as modified from
time to time, (d) conditions that would give rise to an event of
default on such obligations, and (e) remedies available to a
purchaser, holder or guarantor of such obligations, other than
acceleration or the required elimination or reduction of
specific municipal expenditures, including the circumstances, if
any, under which a trustee or trustees or a fiscal agent may be
appointed or may act as a representative of holders of
obligations issued by the city in connection with an issue or
issues of obligations of the city and the rights, powers and
duties which may be vested in such trustee, trustees or fiscal
agent as such representative. The state of New York hereby
pledges and agrees that it will take no action that would impair
the power of the city to comply with or to perform any covenant
or agreement made pursuant to this subdivision, or any right or
remedy of a purchaser, holder or guarantor to enforce such
covenant or agreement; and the city or a state financing agency
is hereby authorized to include such pledge and agreement in any
agreement made pursuant to this subdivision. Nothing contained
in this subdivision shall preclude the state from authorizing
the city to exercise, or the city from exercising, any power
provided by law to seek application of laws then in effect under
the bankruptcy provisions of the United States constitution or
shall preclude the state from validly exercising its police
powers.
4. Notwithstanding any other provision of law, the trustees of
any retirement, pension or annuity fund or system of the state
of New York or of the city of New York are hereby authorized to
enter into commitments to purchase and to purchase notes, bonds
or other obligations of the city of New York or of a state
financing agency, the payment in whole or in part, of interest,
principal, or both, is guaranteed by the secretary of the
Treasury of the United States of America pursuant to the New
York City Loan Guarantee Act of 1978, Public Law 95-339, as
presently in effect or hereafter amended or to purchase other
bonds or notes of such city or of a state financing agency prior
to June thirtieth, nineteen hundred eighty-two, or in the case
of the trustees of any retirement, pension or annuity fund or
system of the city of New York, to enter into commitments to
purchase such other bonds or notes of such city or of a state
financing agency prior to June thirtieth, nineteen hundred
eighty-two. Such commitments to purchase shall be binding upon
and enforceable against successor trustees of such retirement,
pension or annuity funds or systems of the state of New York or
city of New York.
5. The secretary of the treasury shall have the right to
initiate a proceeding in the supreme court of the state of New
York in and for the county of New York or the court of claims of
the state of New York to obtain a court order or other relief in
connection with any agreements or other transactions entered
into by the secretary relative to his guarantee of the
principal, interest, or both of city indebtedness.
6. Notwithstanding any other provision of law to the contrary,
the governor shall have the authority in connection with any
agreement by the federal government or any agency or
instrumentality thereof to guarantee the payment of the
principal of or interest on bonds or notes issued by the city of
New York or by a state financing agency, to enter into one or
more agreements containing terms and conditions required by the
secretary of the treasury pursuant to the New York City Loan
Guarantee Act of 1978, Public Law 95-339, approved by the
comptroller and approved as to form by the attorney general,
with the federal government or any agency or instrumentality
thereof with respect to such guarantee or any matters related
thereto and to comply with such terms and conditions.
7. Nothing in this section contained shall preclude the state
from authorizing the board or the city to exercise, or the board
or city from exercising, any power provided by law to seek
application of laws then in effect under the bankruptcy
provisions of the United States constitution or to preclude the
state from a further exercise of its powers under article eight,
section twelve, of the state constitution.
* Terminates July 1, 2008 or § 13
* § 11. Prohibitions; penalties. 1. During a control period,
(i) no officer or employee of the city or of any of the covered
organizations shall make or authorize an obligation or other
liability in excess of the amount available therefor under the
financial plan as then in effect; (ii) no officer or employee of
the city or of any of the covered organizations shall involve
the city or any of the covered organizations in any contract or
other obligation or liability for the payment of money for any
purpose required to be approved by the board unless such
contract, obligation or liability has been so approved or deemed
to be approved as provided in paragraphs e and f of subdivision
one of section seven and unless such contract or obligation or
liability is in compliance with the financial plan as then in
effect.
2. No officer or employee of the city or any of the covered
organizations shall take any action in violation of any valid
order of the board or shall fail or refuse to take any action
required by any such order or shall prepare, present or certify
any information (including any projections or estimates) or
report for the board or any of its agents that is false or
misleading, or, upon learning that any such information is false
or misleading, shall fail promptly to advise the board or its
agents thereof.
3. In addition to any penalty or liability under other law,
any officer or employee of the city or any of the covered
organizations who shall knowingly and willfully violate
subdivision one or two of this section shall be subject to
appropriate administrative discipline, including, when
circumstances warrant, suspension from duty without pay or
removal from office by order of either the governor or the mayor
and shall, upon conviction, be guilty of a misdemeanor.
4. In the case of a violation of subdivision one or two of
this section by an officer or employee of the city or any of the
covered organizations, the mayor or the chief executive officer
of such covered organization shall immediately report to the
board all pertinent facts together with a statement of the
action taken thereon.
* Terminates July 1, 2008 or ... see § 13
* § 12. Indemnification. a. The state shall save harmless and
indemnify members, officers and employees of and representatives
to the board, all of whom shall be deemed officers and employees
of the state for purposes of section seventeen of the public
officers law, against any claim, demand, suit, or judgment
arising by reason of any act or omission to act by such member,
officer, employee or representative occurring in the discharge
of his duties and within the scope of his service on behalf of
such board including any claim, demand, suit or judgment based
on allegations that financial loss was sustained by any person
in connection with the acquisition, disposition or holding of
securities or other obligations. In the event of any such claim,
demand, suit or judgment, a member, officer or employee of or
representative to the board shall be saved harmless and
indemnified, notwithstanding the limitations of subdivision one
of section seventeen of the public officers law, unless such
individual is found by a final judicial determination not to
have acted, in good faith, for a purpose which he reasonably
believed to be in the best interest of the board or not to have
had reasonable cause to believe that his conduct was lawful.
b. In connection with any such claim, demand, suit, or
judgment, any member, officer or employee of or representative
to the board shall be entitled to representation by private
counsel of his choice in any civil judicial proceeding whenever
the attorney general determines based upon his investigation and
review of the facts and circumstances of the case that
representation by the attorney general would be inappropriate.
The attorney general shall notify the individiual in writing of
such determination that the individual is entitled to be
represented by private counsel. The attorney general may
require, as a condition to payment of the fees and expenses of
such representative, that appropriate groups of such individuals
be represented by the same counsel. If the individual or groups
of individuals is entitled to representation by private counsel
under the provisions of this section, the attorney general shall
so certify to the comptroller. Reasonable attorneys fees and
litigation expenses shall be paid by the state to such private
counsel from time to time during the pendency of the civil
action or proceeding, subject to certification that the
individual is entitled to representation under the terms and
conditions of this section by the chairman of the board, upon
the audit and warrant of the comptroller. The provisions of this
subdivision shall be in addition to and shall not supplant any
indemnification or other benefits heretofore or hereafter
conferred upon members, officers, or employees of and
representatives to the board by section seventeen of the public
officers law, by action of the board or otherwise. The
provisions of this subdivision shall inure only to members,
officers and employees of and representatives to the board,
shall not enlarge or diminish the rights of any other party, and
shall not impair, limit or modify the rights and obligations of
any insurer under any policy of insurance.
* Terminates July 1, 2008 or ... see § 13
§ 13. Termination. This act shall terminate on the later of
(a) July first, two thousand eight or (b) the date (i) when all
bonds and notes containing the pledge and agreement authorized
by subdivision one of 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.
* Terminates July 1, 2008 or ... see § 13
* § 14. Separability. If any clause, sentence, paragraph,
subdivision, or other part of this act shall for any reason be
adjudged by any court of competent jurisdiction to be
unconstitutional or otherwise invalid, such judgment shall not
affect, impair, or invalidate the remainder of this act, but
shall be confined in its operation to the clause, sentence,
paragraph, subdivision or part thereof directly involved in the
controversy in which such judgment shall have been rendered and
it shall be construed to have been the legislative intent to
pass this act without such unconstitutional, or invalid part
therein.
* Terminates July 1, 2008 or ... see § 13
* § 15. Court preference. If any section, part or provision of
this act shall be declared unconstitutional or invalid or
ineffective by any court of this state, any appeal of such
judgment or order shall have preference over all other causes in
any court of this state. Service upon the adverse party of a
notice of appeal shall stay the effect of the judgment or order
appealed from pending the hearing and determination of the
appeal.
* Terminates July 1, 2008 or ... see § 13
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