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                         Mckinney's Consolidated Laws of New York Annotated Currentness 

                                            Public Authorities Law 

                                    Chapter 43-A. Of the Consolidated Laws 

                                    Article 10-D. Miscellaneous Authorities 

                               Title 1. Nassau County Interim Finance Authority 
 

 § 3650. Short title 

This title shall be known and may be cited as the "Nassau County Interim Finance Authority Act". 

 § 3651. Definitions 

For the purposes of this title, unless the context otherwise requires: 

1. "Authority" or "Nassau county interim finance authority" means the public benefit corporation created by this title. 

2. "Bonds" means bonds, notes and other evidences of indebtedness, issued or incurred by the authority. 

3. "Chief fiscal officer" means the chief fiscal officer of the county as defined in the county charter. 

4. "Comptroller" means the comptroller of the county. 

5. "Control period" means a period determined by the authority in accordance with section thirty-six hundred sixty-nine 
    of this title. 

6. "County" means the county of Nassau. 

7. "County charter" means the county government law of Nassau county, as amended. 

8. "County executive" means the county executive of the county. 

9. "County tax revenues" means (a) that portion of tax revenues that is deducted and withheld for transfer and credit by 
the authority to the county of Nassau revenue anticipation note withholding fund established by the authority and (b) 
the balance of tax revenues transferred by the authority to the county, pursuant to section thirty-six hundred fifty-seven 
of this title. 

10. "Covered organization" means the Nassau health care corporation, and any other governmental agency, public 
authority or public benefit corporation which receives or may receive moneys directly, indirectly or contingently from 
the county, but excluding the authority and (i) any governmental agency, public authority or public benefit corporation 
specifically exempted from the provisions of this title by order of the authority upon application of such agency, public 
authority, or corporation to the authority or at the authority's own motion upon a finding by the authority that such 
exemption does not materially affect the ability of the county to adopt and maintain a budget pursuant to the provisions 
of this title, 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 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 authority may terminate any exemption granted by 
order of the authority pursuant to this subdivision upon a determination that the circumstances upon which such 
exemption was granted are no longer applicable. 

11. "Director of the budget" means the director of the budget of the state. 

12. "Financeable costs" or "costs" means costs to finance (a) amounts necessary to accomplish a refunding, repayment 
or restructuring of a portion of the county's outstanding indebtedness or that of any covered organization, (b) cash flow 
needs of the county, (c) tax certiorari settlements and judgments of any kind to which the county is a party, (d) appropriated 
capital costs of the county, including the costs of any preliminary studies, surveys, maps, plans, estimates 
and hearings, (e) amounts necessary to finance any county deficit, to the extent authorized by state law, or (f) incidental 
costs, including, but not limited to, legal fees, printing or engraving, publication of notices, taking of title, 
apportionment of costs, and capitalized interest, insurance premiums, costs related to items authorized in subdivisions 
seven through ten of section thirty-six hundred fifty-four of this title or any underwriting or other costs incurred in 
connection with the financing thereof. 

13. "Financial plan" means the financial plan of the county and the covered organizations to be developed pursuant to 
section thirty-six hundred sixty-seven of this title, as from time to time amended. 

14. "Interim finance period" means the period of time from the effective date of this title until the date when (a) the 
authority shall determine, based on annual audit reports furnished in accordance with this title, that for each fiscal year, 
through and including fiscal year two thousand eight, that the county has adopted and adhered to budgets covering all 
expenditures the results of which did not show a major operating funds deficit when reported in accordance with 
generally accepted accounting principles, subject to the provisions of this title, and shall further determine that in the 
then current fiscal year there is a substantial likelihood that the results of the county's operations will not show a deficit 
in the major operating funds when so reported and (b) the chief fiscal officer shall certify that securities sold by or for 
the benefit of the county during the fiscal year immediately preceding such date and the then current fiscal year in the 
general public market satisfied the financing requirements of the county 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 county during such period in accordance with the financial plan then in effect. 

15. "Legislature" means the legislature of the county. 

16. "Major operating funds" means the general fund, the police district fund, the police headquarters fund, the county 
parks fund and the fire prevention fund of the county, together with any other funds of the county or a covered organization 
from time to time designated by the authority. 

17. "nCIFA assistance" means the amount of debt service savings in a given fiscal year generated from the proceeds 
of bonds made available to or for the benefit of the county or any covered organization as determined by the authority. 

18. "Presiding officer" means the presiding officer of the legislature, elected pursuant to the rules of the legislature. 

19. "Projected gap" means the excess, if any, of annual aggregate projected expenditures over annual aggregate pro-
jected revenues for the major operating funds in each year of a financial plan as determined by the county and certified 
by the authority. For purposes of determining the projected gap in each fiscal year, annual aggregate projected rev-
enues shall not include the amount of nCIFA assistance or transitional state aid expected to be available for such fiscal 
year. 

20. "Public corporation" means and includes the county, the state and every public corporation as defined in the 
general construction law. 

21. "Revenues" means the tax revenues and all aid, rents, fees, charges, payments and other income and receipts paid 
or payable to the authority or a trustee for the account of the authority to the extent such amounts are pledged to 
bondholders, but in no event shall revenues include any transitional state aid. 

22. "State" means the state of New York. 

23. "Tax revenues" means sales and compensating use tax net collections paid or payable to the authority pursuant to 
section twelve hundred sixty-one of the tax law. 

24. "Transitional state aid" means any state aid appropriated to the authority for the benefit of the county for (a) un-
restricted aid purposes and (b) the purpose of assisting the county in streamlining the tax certiorari claims process and 
eliminating the need to borrow for such costs. 


 § 3652. Nassau county interim finance authority 

1. There is hereby created the Nassau county interim finance authority. The authority shall be a corporate govern-
mental agency and instrumentality of the state constituting a public benefit corporation. 

2. In accordance with the provisions of this title, the authority may issue bonds only to finance costs, including the 
refunding of bonds issued by the authority to finance costs, and fund reserves to secure such bonds. 

3. The authority shall continue until its oversight, control or other responsibilities, and its liabilities have been met or 
otherwise discharged. Upon the termination of the existence of the authority, all of its rights and property shall pass to 
and be vested in the county. 

 § 3653. Administration of the authority 

1. The authority shall be administered by seven directors appointed by the governor. Of the seven directors, one each 
shall be appointed on the written recommendation of the majority leader of the state senate, the speaker of the state 
assembly and the state comptroller, respectively. Two of the members appointed directly by the governor and the 
members appointed on the recommendation of the majority leader of the state senate, the recommendation of the 
speaker of the state assembly and the recommendation of the state comptroller shall be residents of the county of 
Nassau. Each director shall be appointed for a term of four years, provided however, that two of the directors first 
appointed by the governor shall serve for a term ending December thirty-first, two thousand four, and the five other 
directors first appointed shall serve for the following terms: the directors appointed on recommendation of the ma-
jority leader of the state senate, the speaker of the state assembly and the state comptroller shall serve for a term ending 
December thirty-first, two thousand five and the two remaining directors first appointed directly by the governor shall 
serve for a term ending on December thirty-first, two thousand six. Each director shall hold office until his or her 
successor has been appointed and qualified. Thereafter each director shall serve a term of four years, except that any 
director appointed to fill a vacancy shall serve only until the expiration of his or her predecessor's term. 

2. The governor shall designate a chairperson and a vice-chairperson from among the directors. The chairperson shall 
preside over all meetings of the directors and shall have such other duties as the directors may prescribe. The 
vice-chairperson shall preside over all meetings of the directors in the absence of the chairperson and shall have such 
other duties as the directors may prescribe. 

3. The directors of the authority shall serve without salary, but each director shall be reimbursed for actual necessary 
expenses incurred in the performance of such director's official duties as a director of the authority. 

4. notwithstanding any inconsistent provision of any general, special or local law, ordinance, resolution or charter, no 
officer, member or employee of the state of New York, any city, county, town or village, any governmental entity 
operating any public school or college, any school district or any other public agency or instrumentality which exer-
cises governmental powers under the laws of the state, shall forfeit his or her office or employment by reason of his or 
her acceptance of appointment as a director, officer or employee of the authority, nor shall service as such director, 
officer or employee of the authority be deemed incompatible or in conflict with such office or employment. 

5. Four directors shall constitute a quorum for the transaction of any business or the exercise of any power of the 
authority. no action shall be taken by the authority except pursuant to a favorable vote of at least four directors par-
ticipating in a meeting at which such action is taken. 

6. The authority shall appoint a treasurer and may appoint officers and agents as it may require and prescribe their 
duties. 

7. At least annually, commencing no more than one year after the date on which authority bonds are first issued, the 
authority shall report to the county executive, county legislature, the county comptroller, the director of the budget and 
the state comptroller on the costs financed by the authority and the amount of such financing for each such cost over 
the past year. 


 § 3654. General powers of the authority 

Except as otherwise limited by this title, the authority shall have the following powers in addition to those specially 
conferred elsewhere in this title, subject only to agreements with bondholders: 

1. to sue and be sued; 

2. to have a seal and alter the same at pleasure; 

3. to make and alter by-laws for its organization and management and, subject to agreements with its bondholders, to 
make and alter rules and regulations governing the exercise of its powers and fulfillment of its purposes under this 
title; 

4. to make and execute contracts and all other instruments or agreements necessary or convenient to carry out any 
powers and functions expressly given in this title; 

5. to commence any action to protect or enforce any right conferred upon it by any law, contract or other agreement; 

6. to borrow money and issue bonds, or to refund the same, and to provide for the rights of the holders of its bonds; 

7. as security for the payment of the principal of and interest on any bonds issued by it pursuant to this title and any 
agreements made in connection therewith and for its obligations under bond facilities, to pledge all or any part of its 
revenues or assets; 

8. to procure insurance, letters of credit or other credit enhancement with respect to its bonds, or facilities for the 
payment of tenders of such bonds or facilities for the payment upon maturity of short-term notes not renewed; 

9. to enter into interest rate exchange or similar arrangements with any person under such terms and conditions as the 
authority may determine, not inconsistent with the general laws of this state and other provisions of this title, in-
cluding, without limitation, provisions as to default or early termination and indemnification by the authority or any 
other party thereto for loss of benefits as a result thereof; provided, however, that such exchanges or similar ar-
rangements shall be limited to fifty percent of the amount authorized in subdivision one of section thirty-six hundred 
fifty-six of this article to pay the financeable costs described in paragraph (a) of subdivision eleven of section thirty-six 
hundred fifty-one of this article; 

10. to procure insurance, letters of credit or other credit enhancement with respect to arrangements described in sub-
division nine of this section; 

11. to accept gifts, grants, loans or contributions of funds or financial or other aid in any form from the county, state or 
federal government or any agency or instrumentality thereof, or from any other source and to expend the proceeds for 
any of its corporate purposes in accordance with the provisions of this title; 

12. subject to the provisions of any contract with bondholders, to invest any funds held in reserves or sinking funds, or 
any funds not required for immediate use or disbursement, at the discretion of the authority, in (a) obligations of the 
state or the United States government, (b) obligations the principal and interest of which are guaranteed by the state or 
the United States government, (c) certificates of deposit, whether negotiable or non-negotiable, and banker's accep-
tances of any of the fifty largest banks in the United States which bank, at the time of investment, has an outstanding 
unsecured, uninsured and unguaranteed debt issue ranked in either of the two highest rating categories of two na-
tionally recognized independent rating agencies, (d) commercial paper of any bank or corporation created under the 
laws of either the United States or any state of the United States which commercial paper, at the time of the invest-
ment, has received the highest rating of two nationally recognized independent rating agencies, (e) bonds, debentures, 
or other evidences of indebtedness, issued or guaranteed at the time of the investment by the federal national mortgage 
association, federal home loan mortgage corporation, student loan marketing association, federal farm credit system, 
or any other United States government sponsored agency, provided that at the time of the investment such agency 
receives, or its obligations receive, any of the three highest rating categories of two nationally recognized independent 
rating agencies, (f) any bonds or other obligations of any state or the United States of America or of any political 
subdivision thereof or any agency, instrumentality or local governmental unit of any such state or political subdivision 
which bonds or other obligations, at the time of the investment, have received any of the three highest ratings of two 
nationally recognized independent rating agencies, (g) any repurchase agreement with any bank or trust company 
organized under the laws of any state of the United States of America or any national banking association or gov-
ernment bond dealer reporting to, trading with, and recognized as a primary dealer by the Federal Reserve Bank of 
New York, which agreement is secured by any one or more of the securities described in paragraph (a), (b) or (e) of 
this subdivision which securities shall at all times have a market value of not less than the full amount of the repur-
chase agreement and be delivered to another bank or trust company organized under the laws of New York State or 
any national banking association domiciled in New York State, as custodian, and (h) reverse repurchase agreements 
with any bank or trust company organized under the laws of any state of the United States of America or any national 
banking association or government bond dealer reporting to, trading with, and recognized as a primary dealer by the 
Federal Reserve Bank of New York, which agreement is secured by any one or more of the securities described in 
paragraph (a), (b) or (e) of this subdivision which securities shall at all times have a market value of not less than the 
full amount of the repurchase agreement and be delivered to another bank or trust company organized under the laws 
of New York State or any national banking association domiciled in New York State, as custodian. 

13. to appoint such officers and employees as it may require for the performance of its duties and to fix and determine 
their qualifications, duties, and compensation, and to retain or employ counsel, auditors and private financial con-
sultants and other services on a contract basis or otherwise for rendering professional, business or technical services 
and advice; and, in taking such actions, the authority shall consider the financial impact on the county; and 

14. to do any and all things necessary or convenient to carry out its purposes and exercise the powers expressly given 
and granted in this title; provided, however, such authority shall under no circumstances acquire, hold or transfer title 
to, lease, own beneficially or otherwise, manage, operate or otherwise exercise control over any real property, any 
improvement to real property or any interest therein other than a lease or sublease of office space deemed necessary or 
desirable by the authority. 


 § 3655. Declaration of need 

1. The county shall determine and declare whether it requests the authority to undertake a financing of costs. Any such 
request shall be made by the county executive and approved by the legislature. Any such financing shall be consistent 
with the adopted budget and financial plan required under sections thirty-six hundred sixty-six and thirty-six hundred 
sixty-seven of this title, as applicable. 

2. Upon declaration by the county of such need, the county executive shall request that the authority provide financing 
in accordance with the provisions of this title. 

3. Upon approval by the authority, in its discretion in accordance with the provisions of this title, of such financing 
request, the authority may enter into agreements with the county, and the county, acting by the county executive, 
approved by the legislature, may enter into agreements with the authority in accordance with the provisions of this title 
as to the financing of costs by the authority, the application of tax revenues to the authority to secure its bonds, and 
further assurances in respect of the authority's receipt of such revenues and the fiscal affairs of the county, including 
but not limited to the manner of preparation of budget reports and financial plans as provided for in sections thirty-six 
hundred sixty-six and thirty-six hundred sixty-seven of this title, as applicable. The authority's revenues shall not be 
deemed funds of the county. Any such agreements may be pledged by the authority to secure its bonds and may not be 
modified thereafter except as provided by the terms of the pledge. 

4. Such agreements shall (a) describe the particular financeable costs to be financed in whole or in part by the au-
thority, (b) describe the plan for the financing of the costs, (c) set forth the method by which and by whom and the 
terms and conditions upon which money provided by the authority shall be disbursed to the county, (d) where ap-
propriate, provide for the payment of such costs by the county under such contracts as shall be awarded by the county 
or for the county to make a capital contribution of such proceeds as county funds to another entity for the payment or 
reimbursement of such costs, and (e) require every contract entered into by the county, or another entity receiving 
funds from the county, for costs to be financed in whole or in part by the authority to be subject to the provisions of the 
county charter and other applicable laws governing contracts of the county or such entity, as the case may be. nothing 
contained in this title shall relieve or modify the application to the county or any entity acting on behalf of the county 
or any covered organization of the requirements of law relating (i) to contracts for procurement, design, construction, 
services and materials, or (ii) the provisions of section two hundred twenty of the labor law, or (iii) the provisions of 
article five-A of the general municipal law. 

5. At least annually, commencing no more than one year after the date on which authority bonds are first issued, the 
county executive shall report to the authority, the comptroller, the legislature, the state comptroller, the chairs of the 
senate finance committee and the assembly ways and means committee, and the director of the budget on the costs 
financed by the authority and the amount of such financing over the past year, which report shall describe, by reference 
to the specific items in the county's budget or financial plan, its compliance therewith. 

§ 3656. Bonds of the authority 

1. The authority shall have the power and is hereby authorized from time to time to issue bonds in such principal 
amounts as it may determine to be necessary pursuant to section thirty-six hundred fifty-five of this title to pay any 
financeable costs and to fund reserves to secure such bonds, including incidental expenses in connection therewith. 
Provided, however, the aggregate principal amounts of such bonds issued to pay the financeable costs described in 
paragraph (a) of subdivision twelve of section thirty-six hundred fifty-one of this title shall not exceed four hundred 
fifteen million dollars, excluding bonds, notes, or other obligations issued to refund or otherwise repay bonds, notes, 
or other obligations theretofore issued for such purposes. notwithstanding the foregoing limit on the amount of bonds 
that the authority may issue to pay the financeable costs described in paragraph (a) of subdivision twelve of section 
thirty-six hundred fifty-one of this title, the authority shall have the power to issue up to an additional seven hundred 
ninety million dollars of bonds, excluding bonds, notes, or other obligations issued to refund or otherwise repay bonds, 
notes, or other obligations theretofore issued for such purpose, to pay such costs if the county's indebtedness to be 
refunded, repaid or restructured with the payment of such bonds was originally incurred by the county to pay tax 
certiorari settlements or assignments of any kind to which the county is a party. Provided further, the aggregate 
principal amounts of such bonds issued to pay the financeable costs described in paragraph (c) of subdivision twelve 
of section thirty-six hundred fifty-one of this title, which resulted from certiorari proceedings commenced prior to 
June first, two thousand, shall not exceed four hundred million dollars, excluding bonds, notes, or other obligations 
issued to refund or otherwise repay bonds, notes, or other obligations theretofore issued for such purposes. And, 
provided further, the aggregate principal amounts of such bonds issued to pay the financeable county costs described 
in paragraph (c) of subdivision twelve of section thirty-six hundred fifty-one of this title, which resulted from certiorari 
proceedings commenced on or after June first, two thousand, shall not exceed four hundred million dollars in the 
aggregate for the fiscal years two thousand through two thousand seven, however, of said four hundred million dollars 
only fifteen million dollars may be issued in the fiscal year two thousand six and ten million dollars may be issued in 
the fiscal year two thousand seven, excluding bonds, notes, or other obligations issued to refund or otherwise repay 
bonds, notes, or other obligations theretofore issued for such purposes. Effective in the year two thousand six, upon 
request of the county, the authority shall issue, in the amount requested, bonds to pay tax certiorari settlements or 
judgments of any kind to which the county is a party, not to exceed fifteen million dollars; and effective in the year two 
thousand seven, upon request of the county, the authority shall issue, in the amount requested, bonds to pay tax certiorari 
settlements or judgments of any kind to which the county is a party, not to exceed ten million dollars. Whenever 
this title establishes a limit on the principal amount of bonds that the authority is authorized to issue, there shall not be 
counted against such limit (i) amounts determined by the authority as reasonable to be used to pay the cost of issuing 
such bonds, (ii) the amount of bonds that would constitute interest under the Internal Revenue Code of 1986, [Fn1] as 
amended, and (iii) amounts determined by the authority as necessary to establish any reserves. 
The authority shall have the power from time to time to refund any bonds of the authority by the issuance of new 
bonds, whether the bonds to be refunded have or have not matured, and may issue bonds partly to refund bonds of the 
authority then outstanding and partly to pay the financeable costs pursuant to section thirty-six hundred fifty-five of 
this title. Bonds issued by the authority shall be payable solely out of particular revenues or other moneys of the 
authority as may be designated in the proceedings of the authority under which the bonds shall be authorized to be 
issued, subject to any agreements entered into between the authority and the county, and subject to any agreements 
with the holders of outstanding bonds pledging any particular revenues or moneys; but in no event shall transitional 
state aid be pledged as security for or be made available for the payment of bonds. 

2. The authority is authorized to issue its bonds for a period ending not later than December thirty-first, two thousand 
seven. The authority may issue bonds to refund bonds previously issued without regard to the limitation in the first 
sentence of this subdivision, but in no event shall any bonds of the authority finally mature later than January thir-
ty-first, two thousand thirty-six. notwithstanding any other provision of law, no bond of the authority shall mature 
more than thirty years from the date of its issue. 

3. Bonds of the authority may be issued, amortized, redeemed and refunded without regard to the provisions of the 
local finance law; provided, however, that the principal amount of outstanding bonds issued by the authority shall be 
deemed to be indebtedness of the county solely in ascertaining the amount of indebtedness the county may contract 
pursuant to the local finance law and the state constitution and the authority shall not exceed such limitation. 

4. The directors may delegate to the chairperson or other director or officer of the authority the power to set the final 
terms of bonds. 

5. The authority in its sole discretion shall determine that the issuance of its bonds is appropriate. Bonds shall be 
authorized by resolution of the authority. Bonds shall bear interest at such fixed or variable rates and shall be in such 
denominations, be in such form, either coupon or registered, be sold at such public or private sale, be executed in such 
manner, be denominated in United States currency, be payable in such medium of payment, at such place and be 
subject to such terms of redemption as the authority may provide in such resolution. no bonds of the authority may be 
sold at private sale unless such sale and the terms thereof have been approved in writing by (a) the state comptroller 
where such sale is not to the state comptroller, or (b) the director of the budget, where such sale is to the state 
comptroller. 

6. As a condition precedent to authorizing the issuance of any bonds hereunder, the authority may include in any 
agreement with the county such provisions as are deemed necessary and appropriate including express provisions 
regarding compliance with sections thirty-six hundred sixty-six and thirty-six hundred sixty-seven of this title, as 
applicable. 

7. Any resolution or resolutions authorizing bonds or any issue of bonds may contain provisions which may be a part 
of the contract with the holders of the bonds thereby authorized as to: 

(a) pledging all or part of the authority's revenues, together with any other moneys, securities or contracts, to secure the 
payment of the bonds, subject to such agreements with bondholders as may then exist; 

(b) the setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof; 

(c) limitations on the purposes to which the proceeds from the sale of bonds may be applied; 

(d) limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured 
and the refunding of bonds; 

(e) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, in-
cluding the proportion of bondholders which must consent thereto and the manner in which such consent may be 
given; 

(f) vesting in a trustee or trustees such properties, rights, powers and duties in trust as the authority may determine, 
which may include any or all of the rights, powers and duties of the trustee appointed by the bondholders pursuant to 
section thirty-six hundred sixty-four of this title and limiting or abrogating the rights of the bondholders to appoint a 
trustee under such section or limiting the rights, duties and powers of such trustee; and 

(g) defining the acts or omissions to act which may constitute a default in the obligations and duties of the authority to 
the bondholders and providing for the rights and remedies of the bondholders in the event of such default, including as 
a matter of right the appointment of a receiver; provided, however, that such acts or omissions to act which may 
constitute a default and such rights and remedies shall not be inconsistent with the general laws of the state and other 
provisions of this title. 

8. In addition to the powers herein conferred upon the authority to secure its bonds, the authority shall have power in 
connection with the issuance of bonds to enter into such agreements for the benefit of the bondholders as the authority 
may deem necessary, convenient or desirable concerning the use or disposition of its revenues or other moneys, in-
cluding the entrusting, pledging or creation of any other security interest in any such revenues, moneys and the doing 
of any act, including refraining from doing any act, which the authority would have the right to do in the absence of 
such agreements. The authority shall have power to enter into amendments of any such agreements within the powers 
granted to the authority by this title and to perform such agreements. The provisions of any such agreements may be 
made a part of the contract with the holders of bonds of the authority. 

9. notwithstanding any provision of the uniform commercial code [Fn2] to the contrary, any pledge of or other se-
curity interest in revenues, moneys, accounts, contract rights, general intangibles or other personal property made or 
created by the authority shall be valid, binding and perfected from the time when such pledge is made or other security 
interest attaches without any physical delivery of the collateral or further act, and the lien of any such pledge or other 
security interest shall be valid, binding and perfected against all parties having claims of any kind in tort, contract or 
otherwise against the authority irrespective of whether such parties have notice thereof. no instrument by which such 
a pledge or security interest is created nor any financing statement need be recorded or filed. 

10. Whether or not the bonds of the authority are of such form and character as to be negotiable instruments under the 
terms of the uniform commercial code, the bonds are hereby made negotiable instruments within the meaning of and 
for all the purposes of the uniform commercial code, subject only to the provisions of the bonds for registration. 

11. neither the directors of the authority nor any person executing bonds shall be liable personally thereon or be 
subject to any personal liability or accountability solely by reason of the issuance thereof. The bonds or other obli-
gations of the authority shall not be a debt of either the state or the county, and neither the state nor the county shall be 
liable thereon, nor shall they be payable out of any funds other than those of the authority; and such bonds shall contain 
on the face thereof a statement to such effect. 

12. The authority, subject to such agreements with bondholders as then may exist, shall have power to purchase bonds 
of the authority out of any moneys available therefor, which shall thereupon be cancelled. 


 § 3657. Resources of the authority 

1. Subject to the provisions of this title, the directors of the authority shall receive, accept, invest, administer, expend 
and disburse for its corporate purposes all money of the authority from whatever sources derived including (a) tax 
revenues; (b) the proceeds of bonds; and (c) any other payments, gifts or appropriations to the authority from any other 
source. 

2. Subject to the provisions of any contract with bondholders, (a) the money of the authority shall be paid to the au-
thority and shall not be commingled with any other money, and (b) all money received by the authority which, together 
with other money of the authority available for the expenses of the authority, the payment of debt service and pay-
ments to reserve funds, exceeds the amount required for such purposes, as determined by the authority, shall, subject 
to the provisions of subdivision six of this section and to the terms of any agreement between the authority and the 
county, be transferred to the county as frequently as practicable. 

3. The money in any of the authority's accounts shall be paid out on checks signed by the treasurer of the authority, or 
by other lawful and appropriate means such as wire or electronic transfer, on requisitions of the chairperson of the 
authority or of such other officer as the directors shall authorize to make such requisition, or pursuant to a bond res-
olution or trust indenture. 

4. All deposits of authority money shall be secured by obligations of the United States or of the state or of the county at 
a market value at least equal at all times to the amount of the deposit, and all banks and trust companies are authorized 
to give such security for such deposits. The authority shall have the power, notwithstanding the provisions of this 
section, to contract with the holders of any of its bonds as to the custody, collection, securing, investment and payment 
of any money of the authority or any money held in trust or otherwise for the payment of bonds or in any way to secure 
bonds, and to carry out any such contract notwithstanding that such contract may be inconsistent with the other pro-
visions of this title. Money held in trust or otherwise for the payment of bonds or in any way to secure bonds and 
deposits of such money may be secured in the same manner as money of the authority, and all banks and trust com-
panies are authorized to give such security for such deposits. 

5. Tax revenues received by the authority pursuant to section twelve hundred sixty-one of the tax law, together with 
any other revenues received by the authority, shall be applied in the following order of priority: first pursuant to the 
authority's contracts with bondholders, then to pay the authority's operating expenses not otherwise provided for, and 
then, subject to the authority's agreements with the county, to transfer the balance of such tax revenues not required to 
meet contractual or other obligations of the authority to the county as frequently as practicable. 

6. (a) This subdivision shall apply only to revenue anticipation notes, including renewals thereof, issued by the county 
during its fiscal year ending December thirty-first, two thousand, in anticipation of the receipt of county tax revenues, 
and only to such issues of revenue anticipation notes as to which the certificate described in paragraph (b) of this 
subdivision is filed. 

(b) notwithstanding the provisions of subdivision five of this section with respect to the transfer of the balance of tax 
revenues to the county, prior to the delivery of each such issue of revenue anticipation notes, the chief fiscal officer of 
the county shall file with the authority a request that the authority establish a county of Nassau revenue anticipation 
note withholding fund which shall constitute a special bank account for purposes of paragraph g of section 25.00 of the 
local finance law. Such request by such chief fiscal officer shall be accompanied by a certificate setting forth with 
respect to such issue (i) the principal amount, (ii) the date of issue, (iii) the maturity date, (iv) the interest rate or rates, 
(v) if interest shall be payable otherwise than at maturity, the date or dates for the payment thereof, (vi) the name and 
address of the paying agent, (vii) the name and address of each purchaser, or, if a purchaser shall be a syndicate or 
similar account, the name and address of each managing underwriter of such syndicate or similar account, (viii) the 
amount payable on each principal payment date and interest payment date, and (ix) a schedule setting forth the total 
amount of county tax revenues anticipated to be received, and the expected date or dates of anticipated receipt of such 
county tax revenues. Such certificate shall be accompanied by a statement executed by the chief fiscal officer certi-
fying that the amounts and times of payments of county tax revenues contained in such schedule have been estimated 
by the use of reasonable and appropriate data and methods of estimation, all in accordance with applicable law. 

(c) All such revenue anticipation notes, in addition to a pledge of the faith and credit of the county for the payment 
thereof, shall contain a recital to the effect that they are entitled to the benefits of the provisions of this subdivision. 

(d) Commencing on the date not less than five days prior to and on each day thereafter up to and including any prin-
cipal and/or interest payment date referred to in the certificate filed by the chief fiscal officer with the authority pur-
suant to paragraph (b) of this subdivision, the authority shall pay to such paying agent from county tax revenues 
transferred and credited by the authority to the county of Nassau revenue anticipation note withholding fund as pro-
vided in paragraph (e) of this subdivision the amount required to pay in full the principal and/or interest due on such 
payment date as set forth in such certificate. Moneys so paid shall pass immediately from the authority and vest in such 
paying agent in trust for the benefit of the holders of the revenue anticipation notes to which such certificate relates. no 
other person having any claim of any kind in tort, contract or otherwise against the county shall have any right to or 
claim against the moneys held by such paying agent, and such moneys shall not be subject to any order, judgment, lien, 
execution, attachment, setoff or counterclaim by any such other person. Such moneys shall be held by such paying 
agent in a separate trust account and shall be applied only to the payment of the principal and/or interest due on such 
revenue anticipation notes, provided, however, that the contract by and between the county and such paying agent may 
provide for (i) the investment by such paying agent of such moneys in direct obligations of, or in obligations guar-
anteed by, the United States of America, provided such obligations shall be payable or redeemable at the option of the 
holder within such time as the proceeds shall be needed to pay such principal and/or interest due on such revenue 
anticipation notes, and (ii) the use by such paying agent of such moneys for the purchase of direct obligations of, or 
obligations guaranteed by, the United States of America under one or more repurchase agreements with any bank or 
trust company having its principal office in the state of New York, provided that any such repurchase agreement shall 
provide for the repurchase of such obligations within such time as such moneys are needed to pay the principal and/or 
interest due on such revenue anticipation notes at a repurchase price at least sufficient to make the amount so invested 
available for the payment of principal and/or interest due on such revenue anticipation notes, and provided, further, 
that, at the time of such purchase, the market value of such obligations shall be at least equal to one hundred two per 
centum of the amount so invested. no person having any claim of any kind in tort, contract or otherwise against the 
county shall have any right to or claim against any moneys in anticipation of which such notes have been issued, other 
than a claim for payment by the holders of such notes, and such moneys shall not be subject to any order, judgment, 
lien, execution, attachment, setoff or counterclaim by any such person. notwithstanding any provision of law to the 
contrary, no instrument relating to any transaction authorized or contemplated by this paragraph need be filed under 
the provisions of the uniform commercial code. 

(e) Commencing on the day when the authority determines that the principal and interest due or to come due on such 
outstanding revenue anticipation notes issued against such county tax revenues in accordance with the provisions of 
this subdivision shall equal the amount of such county tax revenues as set forth on the schedule included in the cer-
tificate filed with the authority pursuant to paragraph (b) of this subdivision remaining to be paid to the county on or 
prior to any principal and/or interest payment date, the authority shall deduct and withhold from the amount of such 
county tax revenues otherwise payable to the county an amount sufficient to pay, when due, the principal of and 
interest on all such revenue anticipation notes issued and then outstanding in anticipation thereof. Amounts so de-
ducted and withheld shall be transferred and credited by the authority to the account established for such county tax 
revenues in the county of Nassau revenue anticipation note withholding fund established by the authority in accor-
dance with the chief fiscal officer's request pursuant to paragraph (b) of this subdivision. The payments required to be 
made by the authority pursuant to paragraph (d) of this subdivision shall be made from amounts on deposit in the 
accounts established for such county tax revenues in the county of Nassau revenue anticipation note withholding fund. 

(f) notwithstanding any other provision of this subdivision, at the expiration of one hundred eighty days after the 
maturity date of any issue of revenue anticipation notes issued in accordance with the provisions of this subdivision, 
the amounts held by the paying agent thereof for the payment of the principal of and interest on the notes of such issue 
which have not been presented for payment shall be paid over and remitted by such paying agent to the county and 
thereafter the holders of such notes shall look only to the county for such payment. 

(g) All other provisions of the local finance law not inconsistent with the provisions of this subdivision shall continue 
to apply to the authorization and issuance of revenue anticipation notes by the county. 


 § 3658. Agreement with the state 

The state does hereby pledge to and agree with the holders of any issue of bonds issued by the authority pursuant to 
this title and secured by such a pledge that the state will not limit, alter or impair the rights hereby vested in the au-
thority to fulfill the terms of any agreements made with such holders pursuant to this title, or in any way impair the 
rights and remedies of such holders or the security for such bonds until such bonds, together with the interest thereon 
and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid 
and discharged. The authority is authorized to include this pledge and agreement of the state in any agreement with the 
holders of such bonds. nothing contained in this title shall be deemed to restrict the right of the state to amend, modify, 
repeal or otherwise alter statutes imposing or relating to taxes or fees, or appropriations relating thereto. The authority 
shall not include within any resolution, contract or agreement with holders of the bonds issued under this title any 
provision which provides that a default occurs as a result of the state exercising its right to amend, repeal, modify or 
otherwise alter such taxes, fees, or appropriations. nothing in this title shall be deemed to obligate the state to make 
any payments or impose any taxes to satisfy the debt service obligations of the authority. 

 
 § 3659. Agreement with the county 


The county is authorized to pledge to and agree with the holders of any issue of bonds issued by the authority pursuant 
to this title and secured by such a pledge that the county will not limit, alter or impair the rights hereby vested in the 
authority to fulfill the terms of any agreements made with such holders pursuant to this title, or in any way impair the 
rights and remedies of such holders or the security for such bonds until such bonds, together with the interest thereon 
and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid 
and discharged. nothing contained in this title shall be deemed to restrict any right of the county to amend, modify or 
otherwise alter local laws, ordinances or resolutions imposing or relating to the taxes imposed pursuant to the authority 
of article twenty-nine of the tax law or other taxes or fees or appropriations related to any such taxes or fees, so long as, 
after giving effect to such amendment, modification or other alteration, the amount of tax revenues projected by the 
authority to be available during each of its fiscal years following the effective date of such amendment, modification 
or other alteration shall be not less than two hundred percent of maximum annual debt service on authority bonds then 
outstanding. Subject to the foregoing sentence, the authority shall not include in any resolution, contract or agreement 
with the holders of its bonds any provision which provides that a default occurs as a result of the county exercising its 
right to amend, modify, or otherwise alter such taxes imposed pursuant to the authority of article twenty-nine of the tax 
law or other taxes or fees. nothing in this title shall be deemed to obligate the county to make additional payments or 
impose taxes other than those imposed pursuant to the authority of paragraph one of subdivision (a) of section twelve 
hundred ten of the tax law to satisfy the debt service obligations of the authority. 

 
 § 3660. Bonds legal for investment and deposit 


The bonds of the authority are hereby made securities in which all public officers and bodies of the state and all public 
corporations, municipalities and municipal subdivisions, all insurance companies and associations and other persons 
carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations in-
cluding savings and loan associations, building and loan associations, investment companies and other persons car-
rying on a banking business, all administrators, conservators, guardians, executors, trustees and other fiduciaries, and 
all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or in other obligations of 
the state, may properly and legally invest funds, including capital, in their control or belonging to them. The bonds are 
also hereby made securities which may be deposited with and may be received by all public officers and bodies of the 
state and all municipalities and public corporations for any purpose for which the deposit of bonds or other obligations 
of the state is now or may hereafter be authorized. 

 
 § 3661. Tax exemption and tax contract by the state 


1. It is hereby determined that the creation of the authority and the carrying out of its corporate purposes are in all 
respects for the benefit of the people of the state of New York and are public purposes. Accordingly, the authority shall 
be regarded as performing an essential governmental function in the exercise of the powers conferred upon it by this 
title. The property of the authority, its income and its operations shall be exempt from taxation, assessments, special 
assessments and ad valorem levies. The authority shall not be required to pay any fees, taxes, special ad valorem levies 
or assessments of any kind, whether state or local, including, but not limited to, fees, taxes, special ad valorem levies 
or assessments on real property, franchise taxes, sales taxes or other taxes, upon or with respect to any property owned 
by it or under its jurisdiction, control or supervision, or upon the uses thereof, or upon or with respect to its activities or 
operations in furtherance of the powers conferred upon it by this title, or upon or with respect to any fares, tolls, 
rentals, rates, charges, fees, revenues or other income received by the authority. 


2. Any bonds issued pursuant to this title, their transfer and the income therefrom shall, at all times, be exempt from 
taxation. 


3. The state hereby covenants with the purchasers and with all subsequent holders and transferees of bonds issued by 
the authority pursuant to this title, in consideration of the acceptance of and payment for the bonds, that the bonds of 
the authority issued pursuant to this title and the income therefrom and all revenues, moneys, and other property 
pledged to pay or to secure the payment of such bonds shall at all times be exempt from taxation. 

 

 § 3662. Actions against the authority 


1. Except in an action for wrongful death, no action or proceeding shall be prosecuted or maintained against the au-
thority for personal injury or damage to real or personal property alleged to have been sustained by reason of the 
negligence or wrongful act of the authority or of any director, officer, agent or employee thereof, unless (a) it shall 
appear by and as an allegation in the complaint or moving papers that a notice of claim shall have been made and 
served upon the authority, within the time limit prescribed by and in compliance with section fifty-e of the general 
municipal law, (b) it shall appear by and as an allegation in the complaint or moving papers that at least thirty days 
have elapsed since the service of such notice and that adjustment or payment thereof has been neglected or refused, 
and (c) the action or proceeding shall be commenced within one year after the happening of the event upon which the 
claim is based. An action against the authority for wrongful death shall be commenced in accordance with the notice of 
claim and time limitation provisions of title eleven of article nine of this chapter. 


2. Wherever a notice of claim is served upon the authority, it shall have the right to demand an examination of the 
claimant relative to the occurrence and extent of the injuries or damages for which claim is made, in accordance with 
the provisions of section fifty-h of the general municipal law. 

3. The authority may require any person presenting for settlement an account or claim for any cause whatever against 
the authority to be sworn before a director, counsel or an attorney, officer or employee thereof designated for such 
purpose, concerning such account or claim and when so sworn, to answer orally as to any facts relative to such account 
or claim. The authority shall have power to settle or adjust any claims in favor of or against the authority. 

4. The rate of interest to be paid by the authority upon any judgment for which it is liable, other than a judgment on 
bonds, shall not exceed the maximum rate of interest on judgments and accrued claims against municipal authorities as 
provided in the general municipal law. Interest on payments of principal or interest on any bonds in default shall 
accrue at the rate specified in the general municipal law until paid or otherwise satisfied. 

5. The venue of every action, suit or special proceeding brought against the authority shall be laid in the supreme court 
in the county of Nassau. 

6. neither any director of the authority nor any officer, employee, or agent of the authority, while acting within the 
scope of his or her authority, shall be subject to any liability resulting from exercising or carrying out any of the 
powers given in this title. 

7. Indemnification. (a) The state shall save harmless and indemnify directors, officers and employees of and repre-
sentatives to the authority, 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 director, officer, employee or representative occurring in the discharge of his or her duties and 
within the scope of his or her service on behalf of the authority 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 director, officer or 
employee of or representative to the authority shall be saved harmless and indemnified, notwithstanding the limita-
tions 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 or she reasonably believed to be in the 
best interest of the authority or not to have had reasonable cause to believe that his or her conduct was lawful. 


(b) In connection with any such claim, demand, suit, or judgment, any director, officer or employee of or representa-
tive to the authority shall be entitled to representation by private counsel of his or her choice in any civil judicial 
proceeding whenever the attorney general determines based upon his or her 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 individual 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 indi-
viduals is entitled to representation by private counsel under the provisions of this section, the attorney general shall so 
certify to the state 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 authority, upon the audit 
and warrant of the state 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 directors, officers, or employees of and 
representatives to the authority by section seventeen of the public officers law, by action of the authority or otherwise. 
The provisions of this subdivision shall inure only to directors, officers and employees of and representatives to the 
authority, 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. 

§ 3663. Audits 

1. The accounts of the authority shall be subject to the audit of the comptroller and the state comptroller. In addition, 
the authority shall be subject to an annual financial audit performed by an independent certified accountant selected by 
the authority. Such audit report shall be submitted to the county executive, the presiding officer, the comptroller, the 
governor, the state comptroller, the chair and ranking minority member of the senate finance committee and the chair 
and ranking minority member of the assembly ways and means committee. 

2. For each fiscal year during the existence of the authority, and within one hundred twenty days after the close of the 
county's fiscal year, the county shall submit its audited financial statements to the authority. 

§ 3664. Remedies of bondholders 

Subject to any resolution or resolutions adopted pursuant to paragraph (f) of subdivision seven of section thirty-six 
hundred fifty-six of this title: 

1. In the event that the authority shall default in the payment of principal of or interest on any issue of bonds after the 
same shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of 
thirty days, or shall default in any agreement made with the holders of any issue of bonds, the holders of at least 
twenty-five per centum in aggregate principal amount of the bonds of such issue then outstanding, by instrument or 
instruments filed in the office of the clerk of the county and proved or acknowledged in the same manner as a deed to 
be recorded, may appoint a trustee to represent the holders of such bonds for the purpose provided in this section. 

2. Such trustee may, and upon written request of the holders of at least twenty-five per centum in principal amount of 
such bonds outstanding shall, in his or her or its own name: 

(a) by action or proceeding in accordance with the civil practice law and rules, enforce all rights of the bondholders 
and require the authority to carry out any other agreements with the holders of such bonds and to perform its duties 
under this title; 
(b) bring an action or proceeding upon such bonds; 
(c) by action or proceeding, require the authority to account as if it were the trustee of an express trust for the holder of 
such bonds; and 
(d) by action or proceeding, enjoin any acts or things which may be unlawful or in violation of the rights of the holders 
of such bonds. 

3. Such trustee shall, in addition to the provisions of subdivisions one and two of this section, have and possess all of 
the powers necessary or appropriate for the exercise of any functions specifically set forth in this section or incident to 
the general representation of bondholders in the enforcement and protection of their rights. 

4. The supreme court shall have jurisdiction of any action or proceeding by the trustee on behalf of such bondholders. 


 § 3665. Assistance to the authority; employees of the authority 

1. With the consent of any public corporation, the authority may use agents, employees and facilities thereof, paying to 
such public corporation its agreed proportion of the compensation or costs. 

2. Officers and employees of state or county agencies may be transferred to the authority without examination and 
without loss of any civil service or retirement status or rights. Any officer or employee of the authority who heretofore 
acquired or shall hereafter acquire such position status by transfer and who at the time of such transfer was a member 
of the New York state and local employees' retirement system shall continue to be a member of such system as long as 
he or she continues in such service, and shall continue to have all the rights, privileges and obligations of membership 
in such system. 


 § 3666. 2000 fiscal year budget modification 

1. The control period as set forth in section thirty-six hundred sixty-nine of this title shall be instituted on June thirtieth, 
two thousand, unless prior to such date (a) the county executive, after approval by the legislature, shall have submitted 
to the authority a modification to the county's budget for the 2000 fiscal year, as in effect on May tenth, two thousand; 
and (b) the authority shall have determined that such modification when implemented will ensure a reduction of the 
projected gap, through recurring or nonrecurring actions, for the 2000 fiscal year and, together with any budget 
modifications prior to May tenth, two thousand, through recurring actions, for the three next succeeding fiscal years, in 
an amount not less than fifty million dollars per year. 

2. In order that such budget modification be effective on or before June thirtieth, two thousand, the county executive 
shall within seven days following the effective date of this title [Fn1] submit a proposed modification to the legisla-
ture. Within seven days thereafter, the legislature shall approve such modification or a substitute modification. Upon 
approval by the legislature, the county executive shall submit such modification to the authority. not later than ten 
days after such budget modification shall have been submitted to the authority, the authority shall approve or disap-
prove such modification, provided that the authority may approve such modification only upon its determination that 
such modification when implemented will ensure such reduction of the projected gap for each fiscal year as required 
by subdivision one of this section. 

3. In the event the authority shall disapprove such budget modification based on disapproval of certain actions or 
assumptions, the authority shall promptly thereafter notify the county executive of its reasons. The county executive 
shall thereafter, after approval by the legislature, resubmit a budget modification, based on actions or assumptions 
other than those that have been disapproved by the authority, for consideration by the authority and in sufficient time 
for the authority to have a seven day review period prior to June thirtieth, two thousand. 


 § 3667. County financial plans 


1. The county executive shall prepare and submit to the authority a four-year financial plan, initially for the fiscal years 
ending December thirty-first, two thousand one through two thousand four, together with the proposed budget for the 
fiscal year ending on December thirty-first, two thousand one, not later than the date required for submission of such 
budget to the legislature pursuant to the county charter. Such financial plan shall, in addition to the requirements for 
financial plans set forth in subdivisions two and three of this section, contain actions sufficient to ensure with respect 
to the major operating funds for each fiscal year of the plan that annual aggregate operating expenses for such fiscal 
year shall not exceed annual aggregate operating revenues for such fiscal year. For purposes of determining operating 
revenues in the fiscal years ending December thirty-first, two thousand one through two thousand seven, such plan 
may assume (a) borrowings by the county or the authority to finance tax certiorari judgments or settlements in annual 
amounts not exceeding one hundred million dollars, or, in the aggregate for all such years, four hundred million 
dollars; however, of said four hundred million dollars, no more than fifteen million dollars may be counted as oper-
ating revenue in the fiscal year two thousand six and no more than ten million dollars may be counted as operating 
revenue in fiscal year two thousand seven, and (b) receipt by the county of nCIFA assistance and transitional state aid 
in the following collective amounts for each respective fiscal year: 

Amount 

Fiscal Year 


2001 amount 

2001 

2002 amount 

2002 

2003 amount 

2003 

2004 amount 

2004. 


The one hundred million dollars annual limit on assumed tax certiorari borrowings may be waived by the authority 
respecting any fiscal year, upon its determination that the results of any increased and accelerated settlement or liti-
gation efforts by the county justify such waiver. 


As used in this subdivision: 

"2001 amount" means that amount expected to be provided by the authority to ensure balanced major operating fund 
operations upon its determination that the county has taken recurring actions to close between thirty-five per centum 
(35%) and forty per centum (40%) of the projected gap. 

"2002 amount" means that amount expected to be provided by the authority to ensure balanced major operating fund 
operations upon its determination that the county has taken recurring actions to close between forty-five per centum 
(45%) and fifty per centum (50%) of the projected gap. 

"2003 amount" means that amount expected to be provided by the authority to ensure balanced major operating fund 
operations upon its determination that the county has taken recurring actions to close between sixty per centum (60%) 
and sixty-five per centum (65%) of the projected gap. 

"2004 amount" means that amount expected to be provided by the authority to ensure balanced major operating fund 
operations upon its determination that the county has taken recurring actions to close between eighty per centum 
(80%) and eighty-five per centum (85%) of the projected gap. 

2. Pursuant to the procedures contained in this subdivision, each year during the interim finance period or during a 
control period the county shall develop, and may from time to time modify, taking into account recommendations of 
the authority, a four year financial plan covering the county and the covered organizations. Each such financial plan 
and financial plan modification shall conform to the requirements of paragraph (a) of this subdivision and shall pro-
vide that the major operating funds of the county will be balanced in accordance with generally accepted accounting 
principles. The financial plan shall be developed and approved, and may from time to time be modified, in accordance 
with the following procedures: 

(a) The county executive shall prepare and submit to the authority and the legislature a revised financial plan to the 
authority covering the four year period beginning with the ensuing fiscal year, together with the proposed budget for 
the ensuing fiscal year, not later than the date required for submission of such budget pursuant to the county charter. 
On such dates, the county executive shall also submit to the authority a certificate stating that such budget is consistent 
with the financial plan submitted therewith and that operation within the budget is feasible. 

(b) not more than twenty days after submission of a financial plan or more than fifteen days after submission of a 
financial plan modification, the authority shall determine whether the financial plan or financial plan modification is 
complete and complies with the provisions of section thirty-six hundred sixty-six and this section and the other re-
quirements of this title, and shall submit its recommendations with respect to the financial plan or financial plan 
modification in accordance with the provisions of this subdivision. 

(c) Upon the approval by the county of a budget in accordance with the provisions of the county charter and approval 
of the financial plan by the legislature, the county executive shall submit such approved budget and financial plan to 
the authority accompanied by expenditure, revenue and cash flow projections on a quarterly basis and certify to the 
authority that such budget is consistent with the financial plan to be submitted to the authority. 

(d) If the authority determines that the financial plan or financial plan modification provided pursuant to paragraphs 
(c) or (f) of this subdivision is complete and complies with the standards set forth in this subdivision, the authority 
shall make a certification to the county setting forth revenue estimates agreed to by the authority in accordance with 
such determination. 

(e) The authority shall, in the event it disagrees with elements of the financial plan provided pursuant to paragraphs (c) 
or (f) of this subdivision, provide notice thereof to the county executive, the legislature and the comptroller, with 
copies to the director of the budget, the state comptroller, the chair of the assembly ways and means committee and the 
chair of the senate finance committee, if, in the judgment of the authority, such plan: 


(i) is incomplete; 

(ii) fails to contain projections of revenues and expenditures that are based on reasonable and appropriate assumptions 
and methods of estimation; 

(iii) fails to provide that operations of the county and the covered organizations will be conducted within the cash 
resources available according to the authority's revenue estimates; or 

(iv) fails to comply with the provisions of this title or other requirements of law. 

 
(f) After the initial adoption of an approved financial plan, the revenue estimates certified by the authority and the 
financial plan shall be regularly reexamined by the authority in consultation with the county and the covered organ-
izations and the county executive shall provide a modified financial plan in such detail and within such time periods as 
the authority may require. In the event of reductions in such revenue estimates, or in the event the county or a covered 
organization shall expend funds at a rate that would exceed the aggregate expenditure limitation for the county or 
covered organization prior to the expiration of the fiscal year, the county executive 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 revised revenue estimates or aggregate expenditure limitations. 

(g) If, within a time period specified by the authority, the county fails to make such modifications after reductions in 
revenue estimates, or to provide a modified plan in detail and within such time period required by the authority, the 
authority shall adopt a resolution so finding. 

(h) The county shall amend its budget or shall submit a financial plan modification for the approval of the authority 
such that the county's budget and the approved financial plan shall be consistent. In no event shall the county operate 
under a budget that is inconsistent with an approved financial plan. 

3. The 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 authority may specify, and shall include the county and all the covered organizations, and shall, 
in such detail as the authority from time to time may prescribe, include (a) statements of all estimated revenues and of 
all expenditures and cash flow projections of the county and each of the covered organizations, (b) a report on the 
status of efforts to reform and streamline the tax certiorari claims process and eliminate the need in each year of the 
plan for the county to borrow to finance such claims or judgments, including an accounting of the expenditure of any 
transitional state aid for such purposes, and (c) an accounting of the expenditure of any remaining transitional state aid 
available to the county for each year of the plan. 

4. The financial plan shall include any information which the authority may request to satisfy itself that (a) projected 
employment levels, collective bargaining agreements and other actions relating to employee costs, capital construc-
tion and such other matters as the authority may specify are consistent with the provisions made for such obligations in 
the financial plan, (b) the county 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, (c) adequate reserves are provided to maintain essential programs in 
the event revenues have been overestimated or expenditures underestimated for any period, and (d) the county has 
adequate cash resources to meet its obligations. In addition, except to the extent such reporting requirements may be 
modified pursuant to agreement between the authority and the county, for each fiscal year occurring during the interim 
finance period or while bonds issued pursuant to this title are outstanding, the county executive shall prepare a quar-
terly report of summarized budget data depicting overall trends of actual revenues and budget expenditures for the 
entire budget rather than individual line items and updated quarterly cash flow projections of receipts and disburse-
ments. Such reports shall compare revenue estimates and appropriations as set forth in such budget and in the quarterly 
revenue and expenditure projections submitted therewith with the actual revenues and expenditures made to date. 
Such reports shall also compare actual receipts and disbursements with the estimates contained in the cash flow pro-
jections, together with variances and their explanation. All quarterly reports shall be accompanied by recommenda-
tions from the county executive to the legislature setting forth any remedial action necessary to resolve any unfa-
vorable budget variance including the overestimation of revenues and the underestimation of appropriations. These 
reports shall be completed within thirty days after the end of each quarter and shall be submitted to the legislature, the 
authority, the director of the budget and the state comptroller. Except during a control period, for each fiscal year 
occurring during the interim finance period or while bonds issued pursuant to this title are outstanding, the county 
executive shall submit a proposed budget or revision thereto to the authority concurrent with submission to the leg-
islature, and shall submit the adopted budget to the authority immediately upon its adoption. 

5. For each financial plan and financial plan modification to be prepared and submitted by the county executive to the 
authority pursuant to the provisions of this section, the covered organizations shall submit to the county such infor-
mation with respect to their projected expenditures, revenues and cash flows for each of the years covered by such 
financial plan or modification as the county executive shall determine. notwithstanding any other provision of law 
limiting the authority of the county with respect to any covered organization, the county, 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. 


6. The authority and the county shall confer concerning the projected effect on the budgets of the county and the 
covered organizations of any change in generally accepted accounting principles, or change in the application of 
generally accepted accounting principles to the county and the covered organizations, made or to be implemented after 
the effective date of this title. If the authority 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 by the county, the authority may authorize and approve a method of 
phasing the requirements of such change into such budgets over such reasonably expeditious time period as the au-
thority deems appropriate. 


 § 3668. Monitoring and review 

Except as otherwise provided in section thirty-six hundred sixty-nine of this title, the authority shall: 

1. conduct meetings at least annually; 

2. obtain from the county all information required pursuant to this section, and such other financial statements and 
projections, budgetary data and information, and management reports and materials as the authority deems necessary 
or desirable to accomplish the purposes of this title; 


3. recommend to the county and the covered organizations such measures relating to their operation, management, 
efficiency and productivity as the authority deems appropriate to reduce costs and improve services so as to advance 
the purposes of this title; 


4. consult with the county in the preparation of the budget of the county; 


5. with respect to any county borrowing proposed to be issued after July first, two thousand, review the terms of and 
comment, within thirty days after notification by the county of a proposed borrowing, on the prudence of each pro-
posed issuance of bonds or notes to be issued by the county and no such borrowing shall be made unless first reviewed 
and commented upon by the authority. The authority shall provide such comments within thirty days after notification 
by the county of a proposed borrowing to the county executive, the comptroller, the legislature, the director of the 
budget and the state comptroller; 


6. determine whether to make transitional state aid available, and on what schedule, based upon the county's com-
pliance with the requirements of sections thirty-six hundred sixty-six and thirty-six hundred sixty-seven of this title, as 
applicable, and the requirements, if any, of the appropriations bills authorizing such transitional state aid; and 


7. perform such audits and reviews of the county and any agency thereof and any covered organizations as it deems 
necessary. 


 § 3669. Control period 

1. The authority shall impose a control period upon its determination at any time that any of the following events has 
occurred or that there is a substantial likelihood and imminence of such occurrence: (a) the county shall have failed to 
pay the principal of or interest on any of its bonds or notes when due or payable, (b) the county shall have incurred a 
major operating funds deficit of one percent or more in the aggregate results of operations of such funds during its 
fiscal year assuming all revenues and expenditures are reported in accordance with generally accepted accounting 
principles, subject to the provisions of this title, (c) the county shall have otherwise violated any provision of this title 
and such violation substantially impairs the marketability of the county's bonds or notes, (d) the chief fiscal officer's 
certification at any time, at the request of the authority or on the chief fiscal officer's initiative, which certification shall 
be made from time to time as promptly as circumstances warrant and reported to the authority, that on the basis of facts 
existing at such time such officer could not make the certification described by paragraph (b) of this subdivision in the 
definition of interim finance period in section thirty-six hundred fifty-one of this title, or (e) the authority makes the 
finding required under paragraph (g) of subdivision two of section thirty-six hundred sixty-seven of this title. The 
authority shall terminate any such control period when it determines that none of the conditions which would permit 
the authority to impose a control period exist. After termination of a control period the authority shall annually con-
sider paragraphs (a) through (e) of this subdivision and determine whether, in its judgment, any of the events described 
in such paragraphs have occurred and the authority shall publish each such determination. Any certification made by 
the chief fiscal officer hereunder shall be based on such officers' [Fn1] written determination which shall take into 
account a report and opinion of an independent expert in the marketing of municipal securities selected by the au-
thority, and the opinion of such expert and any other information taken into account shall be made public when de-
livered to the authority. notwithstanding any part of the foregoing to the contrary, in no event shall any control period 
continue beyond the later of (i) January first, two thousand thirty, or (ii) the date when all bonds of the authority are 
refunded, discharged or otherwise defeased. 


2. In carrying out the purposes of this title during any control period: 


(a) The authority shall (i) consult with the county and the covered organizations in the preparation of the financial 
plan, and certify to the county the revenue estimates approved therein, (ii) prescribe the form of the financial plan and 
the supporting information required in connection therewith, (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, 
and (iv) in the event the authority has made the finding required under section thirty-six hundred sixty-seven of this 
title, formulate and adopt its modifications to the financial plan, such modifications to become effective on their 
adoption by the authority. 

(b) The authority shall, from time to time and to the extent it deems necessary or desirable in order to accomplish the 
purposes of this title, (i) review the operations, management, efficiency and productivity of such county operations 
and of such covered organizations or portions thereof as the authority may determine, and make reports thereon; (ii) 
audit compliance with the financial plan in such areas as the authority may determine; (iii) recommend to the county 
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 title; and (iv) obtain 
information on the financial condition and needs of the county and the covered organizations. nothing herein shall 
diminish the powers of the state comptroller otherwise provided by law and the authority may request the assistance of 
the state comptroller in the performance of the above functions. 

(c) The authority shall (i) receive from the county and the covered organizations and from the state comptroller, and 
review, such financial statements and projections, budgetary data and information, and management reports and 
materials as the authority deems necessary or desirable to accomplish the purposes of this title, and (ii) inspect, copy 
and audit such books and records of the county and the covered organizations as the authority deems necessary or 
desirable to accomplish the purposes of this title. 

(d) All contracts entered into by the county or any covered organization during any control period must be consistent 
with the provisions of this title and must comply with the requirements of the financial plan as approved by the au-
thority. With respect to all contracts or other obligations to be entered into by the county or any covered organization 
during any control period requiring the payment of funds or the incurring of costs by the county or any covered or-
ganizations: 


(i) Within twenty days from the commencement of a control period, the county executive shall present to the authority 
proposed guidelines respecting the categories and types of contracts and other obligations required to be reviewed by 
the authority pursuant to this subdivision. Any such guidelines may provide a different standard for review with re-
spect to contracts of any covered organization as the authority shall determine. Within thirty days from the com-
mencement of a control period, the authority shall approve or modify and approve such proposed guidelines or 
promulgate its own in the event that such proposed guidelines are not submitted to it within the twenty days as pro-
vided for herein. Such guidelines may thereafter be modified by the authority from time to time on not less than thirty 
days' notice to the county executive and the county executive may from time to time propose modifications to the 
authority. Unless expressly disapproved or modified by the authority within thirty days (or such additional time, not 
exceeding thirty days, as the authority shall have notified the county or covered organization that it requires to com-
plete its review and analysis) from the date of submission by the county executive, any such proposed guidelines or 
modifications shall be deemed approved by the authority; 


(ii) Prior to entering into any contract or other obligation subject to review of the authority under its guidelines, the 
county or any covered organization shall submit a copy of such contract or other obligation to the authority accom-
panied by an analysis of the projected costs of such contract or other obligation and certification that performance 
thereof will be in accordance with the financial plan, all in such form and with such additional information as the 
authority may prescribe. The authority 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) The authority shall, by order, disapprove any contract or other obligation reviewed by it only after adoption of a 
resolution determining that, in its judgment, the performance of such contract or other obligation would be inconsis-
tent with the financial plan, and upon such order the county or covered organization shall not enter into such contract 
or other obligation; and 


(iv) If the authority approves the terms of a reviewed contract or other obligation, the county or covered organization 
may enter into such contract or other obligation upon the terms submitted to the authority. Failure of the authority to 
notify the county or covered organization within thirty days (or such additional time, not exceeding thirty days, as the 
authority shall have notified the county 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 authority approval thereof. 

(e) The authority shall review the terms of each proposed long-term and short-term borrowing by the county and any 
covered organization to be effected during any control period, and no such borrowing shall be made during any control 
period unless it is approved by the authority. neither the county nor any covered organization shall be prohibited from 
issuing bonds or notes to pay outstanding bonds or notes. 

(f) The authority shall issue, to the appropriate official of the county and each covered organization, such orders as it 
deems necessary to accomplish the purposes of this title, including, but not limited to, timely and satisfactory im-
plementation 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 subdivision four of 
this section. 

(g) The authority is authorized to and shall withhold any transitional state aid and not pay such moneys to the county 
during any control period. 

3. Authorization for wage freeze. (a) During a control period, upon a finding by the authority that a wage freeze is 
essential to the adoption or maintenance of a county budget or a financial plan that is in compliance with this title, the 
authority, after enactment of a resolution so finding, may declare a fiscal crisis. Upon making such a declaration, the 
authority shall be empowered to order that all increases in salary or wages of employees of the county and employees 
of covered organizations which will take effect after the date of the order pursuant to collective bargaining agree-
ments, other analogous contracts or interest arbitration awards, now in existence or hereafter entered into, requiring 
such salary increases as of any date thereafter are suspended. Such order may also provide that all increased payments 
for holiday and vacation differentials, shift differentials, salary adjustments according to plan and step-ups or incre-
ments for employees of the county and employees of covered organizations which will take effect after the date of the 
order pursuant to collective bargaining agreements, other analogous contracts or interest arbitration awards requiring 
such increased payments as of any date thereafter are, in the same manner, suspended. For the purposes of computing 
the pension base of retirement allowances, any suspended salary or wage increases and any suspended other payments 
shall not be considered as part of compensation or final compensation or of annual salary earned or earnable. The 
suspensions authorized hereunder shall continue until one year after the date of the order and, to the extent of any 
determination of the authority that a continuation of such suspensions, to a date specified by the authority, is necessary 
in order to achieve the objectives of the financial plan, such suspensions shall be continued to the date specified by the 
authority, which date shall in no event be later than the end of the interim finance period, provided that such suspen-
sions shall terminate with respect to employees who have agreed to a deferral of salary or wage increase upon the 
certification of the agreement by the authority pursuant to paragraph (b) of this subdivision. 

(b) This subdivision shall not be applicable to employees of the county or employees of a covered organization cov-
ered by a collective bargaining agreement or an employee of the county 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 authority 
as being an acceptable and appropriate contribution toward alleviating the fiscal crisis of the county. Any such 
agreement to a deferment of salary or wage increase may provide that for the purposes of computing the pension base 
of retirement allowances, any deferred salary or wage increase may be considered as part of compensation or final 
compensation or of annual salary earned or earnable. 

(c) The authority 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 or benefits 
shall, in whole or in part, be terminated. 


4. Prohibition; penalties. (a) During any control period (i) no officer or employee of the county 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 county or of any of the covered organizations shall 
involve the county 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 authority unless such contract has been so approved and 
unless such contract or obligation or liability is in compliance with the financial plan as then in effect. 

(b) no officer or employee of the county or any of the covered organizations shall take any action in violation of any 
valid order of the authority 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 to the authority 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 
authority or its agents thereof. 

(c) In addition to any penalty or liability under any other law, any officer or employees of the county or any of the 
covered organizations who shall violate paragraph (a) or (b) of this subdivision shall be subject to appropriate ad-
ministrative discipline, including, when circumstances warrant, suspension from duty without pay or removal from 
office by order of either the governor or the county executive; and any officer or employees of the county or any of the 
covered organizations who shall knowingly and willfully violate paragraph (a) or (b) of this subdivision shall, upon 
conviction, be guilty of a misdemeanor.  

(d) In the case of a violation of paragraph (a) or (b) of this subdivision by an officer or employee of the county or any 
of the covered organizations, the county executive or the chief executive officer of such covered organization shall 
immediately report to the authority all pertinent facts together with a statement of the action taken thereon. 

 
 § 3670. Miscellaneous provisions  

1. notwithstanding anything to the contrary in title six-A of article two of the local finance law, neither the county nor 
any covered organization shall file any petition authorized by such title six-A without the approval of the authority and 
the state comptroller. no such petition shall be filed as long as any bonds issued by the authority remain outstanding. 
Failure of the authority or the state comptroller to notify the county or a covered organization within thirty days (or 
such additional time, not exceeding thirty days, as the authority or state comptroller shall have notified the county or 
covered organization that it requires to complete its review) after submission to it of a petition shall be deemed to 
constitute authority or state comptroller approval thereof. 

2. nothing contained in this title shall limit the right of the county or any covered organization to comply with the 
provisions of any existing contract within or for the benefit of the holders of any bonds or notes of the county or such 
covered organization. 

3. nothing contained in this title shall be construed to limit the power of the county or a covered organization during 
any interim finance period to determine, from time to time, within available funds for the county or for such covered 
organization, the purposes for which expenditures are to be made by the county or such covered organization and the 
amounts of such expenditures, consistent with the aggregate expenditures then permitted under the financial plan for 
the county or such covered organization. 

4. The authority's fiscal year shall be January first through December thirty-first. 

5. nothing contained in this title shall alter or modify the right of any town, city or village within the county regarding 
funding assistance due from the county as authorized pursuant to section twelve hundred sixty-two-e of the tax law. 

6. The authority shall adopt guidelines for procurement contracts in accordance with section twenty-eight hundred 
seventy-nine of this chapter. 

 § 3671. Effect of inconsistent provisions 

Insofar as the provisions of this title are inconsistent with the provisions of any other act, general or special, or of any 
charter, local law, ordinance or resolution of any municipality, the provisions of this title shall be controlling. nothing 
contained in this section shall be held to supplement or otherwise expand the powers or duties of the authority oth-
erwise set forth in this title. 

 § 3672. Separability; construction 

If any clause, sentence, paragraph, section, or part of this title shall be adjudged by any court of competent jurisdiction 
to be invalid, such judgment shall not affect, impair or invalidate the remainder thereof, but shall be confined in its 
operation to the clause, sentence, paragraph, section, or part thereof involved in the controversy in which such 
judgment shall have been rendered. The provisions of this title shall be liberally construed to assist the effectuation of 
the public purposes furthered hereby. 

               

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