Nassau County Interim Finance Authority
The Nassau County Interim Finance Authority (NIFA) is a corporate governmental agency and instrumentality of the State of New York constituting a public
benefit corporation created by the Nassau County Interim Finance Authority Act, Chapter 84 of the Laws of 2000, as supplemented by Chapter 179 of the
Laws of 2000 and as amended from time to time (the "Act").
NIFA (the "Authority") is empowered to issue its bonds and notes for various County purposes, including the restructuring of a portion of the County's
outstanding debt. In addition, the Authority has certain powers under the Act to monitor and oversee the County's finances, including Covered Organization,
and upon the declaration of a "control period," additional oversight authority.
In the absence of a control period, the Authority is empowered, among other things, to review financial plans submitted to it; to make recommendation or,
if necessary, adverse findings thereon; to monitor compliance; to make transitional State aid available as it determines; to comment on proposed borrowings
by the County and Covered Organizations; and to impose a control period upon making one of the statutory findings.
A control period will occur upon the Authority's determination that any of the following events has occurred or that there is a substantial likelihood and
imminence of its occurrence; (1) the County shall have failed to pay the principal of or interest on any of its bonds or notes when due or payable; (2) the
County shall have incurred a major operating funds deficit of 1% of more in the aggregate in the results of operations during its fiscal year assuming all
revenues and expenditures are reported in accordance with generally accepted accounting principles; (3) the County shall have otherwise violated any provision
of the Act and such violation substantially impairs the marketability of the County's bonds or notes; (4) the County Treasurer's certification at any time,
at the request of the Authority or on the County Treasurer's initiative, that on the basis of facts existing at such time, the County Treasurer cannot make
the certification that securities sold by or for the benefit of the County in the general public market during the fiscal year immediately preceding such
date and the then current fiscal year are satisfying the financing requirements of the County during such period and that there is a substantial likelihood
of a similar result from such date through the end of the next succeeding fiscal year; or (5) if, in regard to the County's financial plan covering the County
and the Covered Organizations, the County fails to make the required modifications after reductions in revenue estimates, or to provide a modified plan in
detail and within such time period required by the Authority.
During a control period the Authority shall withhold transitional State aid and is empowered, among other things, to approve or disapprove proposed contracts
and borrowings by the County and Covered Organizations; approve, disapprove or modify the County's financial plan; issue binding orders to the appropriate
local officials; impose a wage freeze; and terminate the control period upon finding that no condition exists which would permit imposition of a control period.