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.
