S 7497: Establishes the city of Dunkirk interim finance authority; provides for its functions, powers and duties; repeals the city of Dunkirk fiscal recovery act.

  
  STATE OF NEW YORK ________________________________________________________________________ 7497 2025-2026 Regular Sessions  IN SENATE April 21, 2025 ___________ Introduced by Sen. BORRELLO -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions AN ACT to amend the public authorities law, in relation to establishing the city of Dunkirk interim finance authority The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 10-D of the public authorities law is amended by 2 adding a new title 1-A to read as follows: 3 TITLE 1-A 4 CITY OF DUNKIRK INTERIM FINANCE AUTHORITY 5 Section 3750. Short title. 6 3751. Definitions. 7 3752. City of Dunkirk interim finance authority. 8 3753. Administration of the authority. 9 3754. General powers of the authority. 10 3755. Declaration of need. 11 3756. Bonds of the authority. 12 3757. Resources of the authority. 13 3758. Agreement with the state. 14 3759. Agreement with the city. 15 3760. Bonds legal for investment and deposit. 16 3761. Tax exemption and tax contract by the state. 17 3762. Actions against the authority. 18 3763. Audits. 19 3764. Remedies of bondholders. 20 3765. Assistance to the authority; employees of the authority. 21 3766. 2025 fiscal year budget modification. 22 3767. City financial plans. 23 3768. Monitoring and review. 24 3769. Control period. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11445-03-5 
 S. 7497 2 1 3770. Miscellaneous provisions. 2 3771. Effect of inconsistent provisions. 3 3772. Separability; construction. 4 § 3750. Short title. This title shall be known and may be cited as the 5 "City of Dunkirk Interim Finance Authority Act". 6 § 3751. Definitions. For the purposes of this title, unless the 7 context otherwise requires: 8 1. "Authority" or "city of Dunkirk interim finance authority" means 9 the public benefit corporation created by this title. 10 2. "Bonds" means bonds, notes and other evidences of indebtedness, 11 issued or incurred by the authority. 12 3. "Chief fiscal officer" means the chief fiscal officer of the city 13 as defined in the city charter. 14 4. "Fiscal affairs officer" means the fiscal affairs officer of the 15 city. 16 5. "Control period" means a period determined by the authority in 17 accordance with section thirty-seven hundred sixty-nine of this title. 18 6. "City" means the city of Dunkirk. 19 7. "City charter" means the city government law of the city of 20 Dunkirk, as amended. 21 8. "Mayor" means the mayor of the city of Dunkirk. 22 9. "City tax revenues" means (a) that portion of tax revenues that is 23 deducted and withheld for transfer and credit by the authority to the 24 city of Dunkirk revenue anticipation note withholding fund established 25 by the authority and (b) the balance of tax revenues transferred by the 26 authority to the city, pursuant to section thirty-seven hundred fifty- 27 seven of this title. 28 10. "Covered organization" means any governmental agency, public 29 authority or public benefit corporation which receives or may receive 30 moneys directly, indirectly or contingently from the city, but excluding 31 the authority and (a) any governmental agency, public authority or 32 public benefit corporation specifically exempted from the provisions of 33 this title by order of the authority upon application of such agency, 34 public authority, or corporation to the authority or at the authority's 35 own motion upon a finding by the authority that such exemption does not 36 materially affect the ability of the city to adopt and maintain a budget 37 pursuant to the provisions of this title, and provided that at the time 38 of such exemption, there shall have been and during the period of such 39 exemption there shall be an annual audit by a nationally recognized 40 independent certified public accounting firm or consortium of firms, one 41 of which shall be a nationally recognized firm, of the covered organiza- 42 tion's financial statements performed in accordance with generally 43 accepted auditing standards and report by such auditor thereon which 44 includes an opinion that the financial statements so audited have been 45 prepared in accordance with generally accepted accounting principles and 46 such other information as such auditors deem appropriate, (b) any state 47 public authority as defined in section two hundred one of the civil 48 service law, unless specifically named above, or (c) any governmental 49 agency, authority, commission or instrumentality created by compact or 50 agreement between the state of New York and another state or states; 51 provided, however, that the authority may terminate any exemption grant- 52 ed by order of the authority pursuant to this subdivision upon a deter- 53 mination that the circumstances upon which such exemption was granted 54 are no longer applicable. 55 11. "Director of the budget" means the director of the budget of the 56 state. 
 S. 7497 3 1 12. "Financeable costs" or "costs" means costs to finance (a) amounts 2 necessary to accomplish a refunding, repayment or restructuring of a 3 portion of the city's outstanding indebtedness or that of any covered 4 organization, (b) cash flow needs of the city, (c) tax certiorari 5 settlements and judgments of any kind to which the city is a party, (d) 6 appropriated capital costs of the city, including the costs of any 7 preliminary studies, surveys, maps, plans, estimates and hearings, (e) 8 amounts necessary to finance any city deficit, to the extent authorized 9 by state law, or (f) incidental costs, including, but not limited to, 10 legal fees, printing or engraving, publication of notices, taking of 11 title, apportionment of costs, and capitalized interest, insurance 12 premiums, costs related to items authorized in subdivisions seven 13 through ten of section thirty-seven hundred fifty-four of this title or 14 any underwriting or other costs incurred in connection with the financ- 15 ing thereof. 16 13. "Financial plan" means the financial plan of the city and the 17 covered organizations to be developed pursuant to section thirty-seven 18 hundred sixty-seven of this title, as from time to time amended. 19 14. "Interim finance period" means the period of time from the effec- 20 tive date of this title until the date when (a) the authority shall 21 determine, based on annual audit reports furnished in accordance with 22 this title, that for each fiscal year, through and including fiscal year 23 two thousand eight, that the city has adopted and adhered to budgets 24 covering all expenditures the results of which did not show a major 25 operating funds deficit when reported in accordance with generally 26 accepted accounting principles, subject to the provisions of this title, 27 and shall further determine that in the then current fiscal year there 28 is a substantial likelihood that the results of the city's operations 29 will not show a deficit in the major operating funds when so reported 30 and (b) the chief fiscal officer shall certify that securities sold by 31 or for the benefit of the city during the fiscal year immediately 32 preceding such date and the then current fiscal year in the general 33 public market satisfied the financing requirements of the city during 34 such period and that there is a substantial likelihood that such securi- 35 ties can be sold in the general public market from such date through the 36 end of the next succeeding fiscal year in amounts which will satisfy 37 substantially all of the capital and seasonal financing requirements of 38 the city during such period in accordance with the financial plan then 39 in effect. 40 15. "Legislature" means the legislature of the city. 41 16. "Major operating funds" means the general fund, the police 42 district fund, the police headquarters fund, the city parks fund and the 43 fire prevention fund of the city, together with any other funds of the 44 city or a covered organization from time to time designated by the 45 authority. 46 17. "NCIFA assistance" means the amount of debt service savings in a 47 given fiscal year generated from the proceeds of bonds made available to 48 or for the benefit of the city or any covered organization as determined 49 by the authority. 50 18. "Presiding officer" means the presiding officer of the legisla- 51 ture, elected pursuant to the rules of the legislature. 52 19. "Projected gap" means the excess, if any, of annual aggregate 53 projected expenditures over annual aggregate projected revenues for the 54 major operating funds in each year of a financial plan as determined by 55 the city and certified by the authority. For purposes of determining the 56 projected gap in each fiscal year, annual aggregate projected revenues 
 S. 7497 4 1 shall not include the amount of NCIFA assistance or transitional state 2 aid expected to be available for such fiscal year. 3 20. "Public corporation" means and includes the city, the state and 4 every public corporation as defined in the general construction law. 5 21. "Revenues" means the tax revenues and all aid, rents, fees, charg- 6 es, payments and other income and receipts paid or payable to the 7 authority or a trustee for the account of the authority to the extent 8 such amounts are pledged to bondholders, but in no event shall revenues 9 include any transitional state aid. 10 22. "State" means the state of New York. 11 23. "Tax revenues" means sales and compensating use tax net 12 collections paid or payable to the authority pursuant to section twelve 13 hundred sixty-one of the tax law. 14 24. "Transitional state aid" means any state aid appropriated to the 15 authority for the benefit of the city for (a) unrestricted aid purposes 16 and (b) the purpose of assisting the city in streamlining the tax 17 certiorari claims process and eliminating the need to borrow for such 18 costs. 19 § 3752. City of Dunkirk interim finance authority. 1. There is hereby 20 created the city of Dunkirk interim finance authority. The authority 21 shall be a corporate governmental agency and instrumentality of the 22 state constituting a public benefit corporation. 23 2. In accordance with the provisions of this title, the authority may 24 issue bonds only to finance costs, including the refunding of bonds 25 issued by the authority to finance costs, and fund reserves to secure 26 such bonds. 27 3. The authority shall continue until its oversight, control or other 28 responsibilities, and its liabilities have been met or otherwise 29 discharged. Upon the termination of the existence of the authority, all 30 of its rights and property shall pass to and be vested in the city. 31 § 3753. Administration of the authority. 1. The authority shall be 32 administered by nine directors appointed by the governor. Of the nine 33 directors, one each shall be appointed on the written recommendation of 34 the temporary president of the senate, the minority leader of the 35 senate, the speaker of the assembly, the minority leader of the assembly 36 and the state comptroller, respectively. Two of the members appointed 37 directly by the governor and the members appointed on the recommendation 38 of the temporary president of the senate, the recommendation of the 39 minority leader of the senate, the recommendation of the speaker of the 40 assembly, the recommendation of the minority leader of the assembly and 41 the recommendation of the state comptroller shall be residents of Chau- 42 tauqua county. Each director shall be appointed for a term of four 43 years, provided however, that two of the directors first appointed by 44 the governor shall serve for a term ending December thirty-first, two 45 thousand twenty-nine, and the five other directors first appointed shall 46 serve for the following terms: the directors appointed on recommendation 47 of the temporary president of the senate, the minority leader of the 48 senate, the speaker of the assembly, the minority leader of the assembly 49 and the state comptroller shall serve for a term ending December thir- 50 ty-first, two thousand thirty and the two remaining directors first 51 appointed directly by the governor shall serve for a term ending on 52 December thirty-first, two thousand thirty-one. Each director shall hold 53 office until such director's successor has been appointed and qualified. 54 Thereafter each director shall serve a term of four years, except that 55 any director appointed to fill a vacancy shall serve only until the 56 expiration of their predecessor's term. 
 S. 7497 5 1 2. The governor, the temporary president of the senate, the minority 2 leader of the senate, the speaker of the assembly, the minority leader 3 of the assembly, and the state comptroller shall designate a chairperson 4 and a vice-chairperson from among the directors. The chairperson shall 5 preside over all meetings of the directors and shall have such other 6 duties as the directors may prescribe. The vice-chairperson shall 7 preside over all meetings of the directors in the absence of the chair- 8 person and shall have such other duties as the directors may prescribe. 9 3. The directors of the authority shall serve without salary, but each 10 director shall be reimbursed for actual necessary expenses incurred in 11 the performance of such director's official duties as a director of the 12 authority. 13 4. Notwithstanding any inconsistent provision of any general, special 14 or local law, ordinance, resolution or charter, no officer, member or 15 employee of the state of New York, any city, county, town or village, 16 any governmental entity operating any public school or college, any 17 school district or any other public agency or instrumentality which 18 exercises governmental powers under the laws of the state, shall forfeit 19 their office or employment by reason of their acceptance of appointment 20 as a director, officer or employee of the authority, nor shall service 21 as such director, officer or employee of the authority be deemed incom- 22 patible or in conflict with such office or employment. 23 5. Five directors shall constitute a quorum for the transaction of any 24 business or the exercise of any power of the authority. No action shall 25 be taken by the authority except pursuant to a favorable vote of at 26 least five directors participating in a meeting at which such action is 27 taken. 28 6. The authority shall appoint a treasurer and may appoint officers 29 and agents as it may require and prescribe their duties. 30 7. At least annually, commencing no more than one year after the date 31 on which authority bonds are first issued, the authority shall report to 32 the mayor, the city legislature, the fiscal affairs officer, the direc- 33 tor of the budget, the speaker of the assembly, the temporary president 34 of the senate, the minority leader of the senate, the minority leader of 35 the assembly and the state comptroller on the costs financed by the 36 authority and the amount of such financing for each such cost over the 37 past year. 38 § 3754. General powers of the authority. Except as otherwise limited 39 by this title, the authority shall have the following powers in addition 40 to those specially conferred elsewhere in this title, subject only to 41 agreements with bondholders: 42 1. to sue and be sued; 43 2. to have a seal and alter the same at pleasure; 44 3. to make and alter by-laws for its organization and management and, 45 subject to agreements with its bondholders, to make and alter rules and 46 regulations governing the exercise of its powers and fulfillment of its 47 purposes under this title; 48 4. to make and execute contracts and all other instruments or agree- 49 ments necessary or convenient to carry out any powers and functions 50 expressly given in this title; 51 5. to commence any action to protect or enforce any right conferred 52 upon it by any law, contract or other agreement; 53 6. to borrow money and issue bonds, or to refund the same, and to 54 provide for the rights of the holders of its bonds; 55 7. as security for the payment of the principal of and interest on any 56 bonds issued by it pursuant to this title and any agreements made in 
 S. 7497 6 1 connection therewith and for its obligations under bond facilities, to 2 pledge all or any part of its revenues or assets; 3 8. to procure insurance, letters of credit or other credit enhancement 4 with respect to its bonds, or facilities for the payment of tenders of 5 such bonds or facilities for the payment upon maturity of short-term 6 notes not renewed; 7 9. to enter into interest rate exchange or similar arrangements with 8 any person under such terms and conditions as the authority may deter- 9 mine, not inconsistent with the general laws of this state and other 10 provisions of this title, including, without limitation, provisions as 11 to default or early termination and indemnification by the authority or 12 any other party thereto for loss of benefits as a result thereof; 13 provided, however, that such exchanges or similar arrangements shall be 14 limited to fifty percent of the amount authorized in subdivision one of 15 section thirty-seven hundred fifty-six of this title to pay the finance- 16 able costs described in paragraph (a) of subdivision twelve of section 17 thirty-seven hundred fifty-one of this title; 18 10. to procure insurance, letters of credit or other credit enhance- 19 ment with respect to arrangements described in subdivision nine of this 20 section; 21 11. to accept gifts, grants, loans or contributions of funds or finan- 22 cial or other aid in any form from the city, county, state or federal 23 government or any agency or instrumentality thereof, or from any other 24 source and to expend the proceeds for any of its corporate purposes in 25 accordance with the provisions of this title; 26 12. subject to the provisions of any contract with bondholders, to 27 invest any funds held in reserves or sinking funds, or any funds not 28 required for immediate use or disbursement, at the discretion of the 29 authority, in (a) obligations of the state or the United States govern- 30 ment, (b) obligations the principal and interest of which are guaranteed 31 by the state or the United States government, (c) certificates of depos- 32 it, whether negotiable or non-negotiable, and banker's acceptances of 33 any of the fifty largest banks in the United States which bank, at the 34 time of investment, has an outstanding unsecured, uninsured and unguar- 35 anteed debt issue ranked in either of the two highest rating categories 36 of two nationally recognized independent rating agencies, (d) commercial 37 paper of any bank or corporation created under the laws of either the 38 United States or any state of the United States which commercial paper, 39 at the time of the investment, has received the highest rating of two 40 nationally recognized independent rating agencies, (e) bonds, deben- 41 tures, or other evidences of indebtedness, issued or guaranteed at the 42 time of the investment by the federal national mortgage association, 43 federal home loan mortgage corporation, student loan marketing associ- 44 ation, federal farm credit system, or any other United States government 45 sponsored agency, provided that at the time of the investment such agen- 46 cy receives, or its obligations receive, any of the three highest rating 47 categories of two nationally recognized independent rating agencies, (f) 48 any bonds or other obligations of any state or the United States of 49 America or of any political subdivision thereof or any agency, instru- 50 mentality or local governmental unit of any such state or political 51 subdivision which bonds or other obligations, at the time of the invest- 52 ment, have received any of the three highest ratings of two nationally 53 recognized independent rating agencies, (g) any repurchase agreement 54 with any bank or trust company organized under the laws of any state of 55 the United States of America or any national banking association or 56 government bond dealer reporting to, trading with, and recognized as a 
 S. 7497 7 1 primary dealer by the Federal Reserve Bank of New York, which agreement 2 is secured by any one or more of the securities described in paragraph 3 (a), (b) or (e) of this subdivision which securities shall at all times 4 have a market value of not less than the full amount of the repurchase 5 agreement and be delivered to another bank or trust company organized 6 under the laws of New York State or any national banking association 7 domiciled in New York state, as custodian, and (h) reverse repurchase 8 agreements with any bank or trust company organized under the laws of 9 any state of the United States of America or any national banking asso- 10 ciation or government bond dealer reporting to, trading with, and recog- 11 nized as a primary dealer by the Federal Reserve Bank of New York, which 12 agreement is secured by any one or more of the securities described in 13 paragraph (a), (b) or (e) of this subdivision which securities shall at 14 all times have a market value of not less than the full amount of the 15 repurchase agreement and be delivered to another bank or trust company 16 organized under the laws of New York state or any national banking asso- 17 ciation domiciled in New York state, as custodian. 18 13. to appoint such officers and employees as it may require for the 19 performance of its duties and to fix and determine their qualifications, 20 duties, and compensation, and to retain or employ counsel, auditors and 21 private financial consultants and other services on a contract basis or 22 otherwise for rendering professional, business or technical services and 23 advice; and, in taking such actions, the authority shall consider the 24 financial impact on the city; and 25 14. to do any and all things necessary or convenient to carry out its 26 purposes and exercise the powers expressly given and granted in this 27 title; provided, however, such authority shall under no circumstances 28 acquire, hold or transfer title to, lease, own beneficially or other- 29 wise, manage, operate or otherwise exercise control over any real prop- 30 erty, any improvement to real property or any interest therein other 31 than a lease or sublease of office space deemed necessary or desirable 32 by the authority. 33 § 3755. Declaration of need. 1. The city shall determine and declare 34 whether it requests the authority to undertake a financing of costs. Any 35 such request shall be made by the mayor and approved by the legislature. 36 Any such financing shall be consistent with the adopted budget and 37 financial plan required under sections thirty-seven hundred sixty-six 38 and thirty-seven hundred sixty-seven of this title, as applicable. 39 2. Upon declaration by the city of such need, the mayor shall request 40 that the authority provide financing in accordance with the provisions 41 of this title. 42 3. Upon approval by the authority, in its discretion in accordance 43 with the provisions of this title, of such financing request, the 44 authority may enter into agreements with the city, and the city, acting 45 by the mayor, approved by the legislature, may enter into agreements 46 with the authority in accordance with the provisions of this title as to 47 the financing of costs by the authority, the application of tax revenues 48 to the authority to secure its bonds, and further assurances in respect 49 of the authority's receipt of such revenues and the fiscal affairs of 50 the city, including but not limited to the manner of preparation of 51 budget reports and financial plans as provided for in sections thirty- 52 seven hundred sixty-six and thirty-seven hundred sixty-seven of this 53 title, as applicable. The authority's revenues shall not be deemed funds 54 of the city. Any such agreements may be pledged by the authority to 55 secure its bonds and may not be modified thereafter except as provided 56 by the terms of the pledge. 
 S. 7497 8 1 4. Such agreements shall (a) describe the particular financeable costs 2 to be financed in whole or in part by the authority, (b) describe the 3 plan for the financing of the costs, (c) set forth the method by which 4 and by whom and the terms and conditions upon which money provided by 5 the authority shall be disbursed to the city, (d) where appropriate, 6 provide for the payment of such costs by the city under such contracts 7 as shall be awarded by the city or for the city to make a capital 8 contribution of such proceeds as city funds to another entity for the 9 payment or reimbursement of such costs, and (e) require every contract 10 entered into by the city, or another entity receiving funds from the 11 city, for costs to be financed in whole or in part by the authority to 12 be subject to the provisions of the city charter and other applicable 13 laws governing contracts of the city or such entity, as the case may be. 14 Nothing contained in this title shall relieve or modify the application 15 to the city or any entity acting on behalf of the city or any covered 16 organization of the requirements of law relating to (i) contracts for 17 procurement, design, construction, services and materials, or (ii) the 18 provisions of section two hundred twenty of the labor law, or (iii) the 19 provisions of article five-A of the general municipal law. 20 5. At least annually, commencing no more than one year after the date 21 on which authority bonds are first issued, the mayor shall report to the 22 authority, fiscal affairs officer, the legislature, the state comp- 23 troller, the chairs of the senate finance committee and the assembly 24 ways and means committee, and the director of the budget on the costs 25 financed by the authority and the amount of such financing over the past 26 year, which report shall describe, by reference to the specific items in 27 the city's budget or financial plan, its compliance therewith. 28 § 3756. Bonds of the authority. 1. (a) The authority shall have the 29 power and is hereby authorized from time to time to issue bonds in such 30 principal amounts as it may determine to be necessary pursuant to 31 section thirty-seven hundred fifty-five of this title to pay any 32 financeable costs and to fund reserves to secure such bonds, including 33 incidental expenses in connection therewith. Provided, however, the 34 aggregate principal amounts of such bonds issued to pay the financeable 35 city costs described in paragraph (c) of subdivision twelve of section 36 thirty-seven hundred fifty-one of this title, which resulted from 37 certiorari proceedings commenced on or after June first, two thousand 38 twenty-five, shall not exceed eight hundred million dollars in the 39 aggregate, excluding bonds, notes, or other obligations issued to refund 40 or otherwise repay bonds, notes, or other obligations theretofore issued 41 for such purposes. Effective in the year two thousand thirty-one, upon 42 request of the city, the authority shall issue, in the amount requested, 43 bonds to pay tax certiorari settlements or judgments of any kind to 44 which the city is a party, not to exceed fifteen million dollars; and 45 effective in the year two thousand thirty-two, upon request of the city, 46 the authority shall issue, in the amount requested, bonds to pay tax 47 certiorari settlements or judgments of any kind to which the city is a 48 party, not to exceed ten million dollars. Whenever this title estab- 49 lishes a limit on the principal amount of bonds that the authority is 50 authorized to issue, there shall not be counted against such limit (i) 51 amounts determined by the authority as reasonable to be used to pay the 52 cost of issuing such bonds, (ii) the amount of bonds that would consti- 53 tute interest under the Internal Revenue Code of 1986, as amended, and 54 (iii) amounts determined by the authority as necessary to establish any 55 reserves. 
 S. 7497 9 1 (b) The authority shall have the power from time to time to refund any 2 bonds of the authority by the issuance of new bonds, whether the bonds 3 to be refunded have or have not matured, and may issue bonds partly to 4 refund bonds of the authority then outstanding and partly to pay the 5 financeable costs pursuant to section thirty-seven hundred fifty-five of 6 this title. Bonds issued by the authority shall be payable solely out of 7 particular revenues or other moneys of the authority as may be desig- 8 nated in the proceedings of the authority under which the bonds shall be 9 authorized to be issued, subject to any agreements entered into between 10 the authority and the city, and subject to any agreements with the hold- 11 ers of outstanding bonds pledging any particular revenues or moneys; but 12 in no event shall transitional state aid be pledged as security for or 13 be made available for the payment of bonds. 14 2. The authority is authorized to issue its bonds for a period ending 15 not later than December thirty-first, two thousand forty-six. The 16 authority may issue bonds to refund bonds previously issued without 17 regard to the limitation in the first sentence of this subdivision, but 18 in no event shall any bonds of the authority finally mature later than 19 January thirty-first, two thousand seventy-six. Notwithstanding any 20 other provision of law, no bond of the authority shall mature more than 21 thirty years from the date of its issue. 22 3. Bonds of the authority may be issued, amortized, redeemed and 23 refunded without regard to the provisions of the local finance law; 24 provided, however, that the principal amount of outstanding bonds issued 25 by the authority shall be deemed to be indebtedness of the city solely 26 in ascertaining the amount of indebtedness the city may contract pursu- 27 ant to the local finance law and the state constitution and the authori- 28 ty shall not exceed such limitation. 29 4. The directors may delegate to the chairperson or other director or 30 officer of the authority the power to set the final terms of bonds. 31 5. The authority in its sole discretion shall determine that the issu- 32 ance of its bonds is appropriate. Bonds shall be authorized by resol- 33 ution of the authority. Bonds shall bear interest at such fixed or 34 variable rates and shall be in such denominations, be in such form, 35 either coupon or registered, be sold at such public or private sale, be 36 executed in such manner, be denominated in United States currency, be 37 payable in such medium of payment, at such place and be subject to such 38 terms of redemption as the authority may provide in such resolution. No 39 bonds of the authority may be sold at private sale unless such sale and 40 the terms thereof have been approved in writing by (a) the state comp- 41 troller where such sale is not to the state comptroller, or (b) the 42 director of the budget, where such sale is to the state comptroller. 43 6. As a condition precedent to authorizing the issuance of any bonds 44 hereunder, the authority may include in any agreement with the city such 45 provisions as are deemed necessary and appropriate including express 46 provisions regarding compliance with sections thirty-seven hundred 47 sixty-six and thirty-seven hundred sixty-seven of this title, as appli- 48 cable. 49 7. Any resolution or resolutions authorizing bonds or any issue of 50 bonds may contain provisions which may be a part of the contract with 51 the holders of the bonds thereby authorized as to: 52 (a) pledging all or part of the authority's revenues, together with 53 any other moneys, securities or contracts, to secure the payment of the 54 bonds, subject to such agreements with bondholders as may then exist; 55 (b) the setting aside of reserves and the creation of sinking funds 56 and the regulation and disposition thereof; 
 S. 7497 10 1 (c) limitations on the purposes to which the proceeds from the sale of 2 bonds may be applied; 3 (d) limitations on the issuance of additional bonds, the terms upon 4 which additional bonds may be issued and secured and the refunding of 5 bonds; 6 (e) the procedure, if any, by which the terms of any contract with 7 bondholders may be amended or abrogated, including the proportion of 8 bondholders which must consent thereto and the manner in which such 9 consent may be given; 10 (f) vesting in a trustee or trustees such properties, rights, powers 11 and duties in trust as the authority may determine, which may include 12 any or all of the rights, powers and duties of the trustee appointed by 13 the bondholders pursuant to section thirty-seven hundred sixty-four of 14 this title and limiting or abrogating the rights of the bondholders to 15 appoint a trustee under such section or limiting the rights, duties and 16 powers of such trustee; and 17 (g) defining the acts or omissions to act which may constitute a 18 default in the obligations and duties of the authority to the bondhold- 19 ers and providing for the rights and remedies of the bondholders in the 20 event of such default, including as a matter of right the appointment of 21 a receiver; provided, however, that such acts or omissions to act which 22 may constitute a default and such rights and remedies shall not be 23 inconsistent with the general laws of the state and other provisions of 24 this title. 25 8. In addition to the powers herein conferred upon the authority to 26 secure its bonds, the authority shall have power in connection with the 27 issuance of bonds to enter into such agreements for the benefit of the 28 bondholders as the authority may deem necessary, convenient or desirable 29 concerning the use or disposition of its revenues or other moneys, 30 including the entrusting, pledging or creation of any other security 31 interest in any such revenues, moneys and the doing of any act, includ- 32 ing refraining from doing any act, which the authority would have the 33 right to do in the absence of such agreements. The authority shall have 34 power to enter into amendments of any such agreements within the powers 35 granted to the authority by this title and to perform such agreements. 36 The provisions of any such agreements may be made a part of the contract 37 with the holders of bonds of the authority. 38 9. Notwithstanding any provision of the uniform commercial code to the 39 contrary, any pledge of or other security interest in revenues, moneys, 40 accounts, contract rights, general intangibles or other personal proper- 41 ty made or created by the authority shall be valid, binding and 42 perfected from the time when such pledge is made or other security 43 interest attaches without any physical delivery of the collateral or 44 further act, and the lien of any such pledge or other security interest 45 shall be valid, binding and perfected against all parties having claims 46 of any kind in tort, contract or otherwise against the authority irre- 47 spective of whether such parties have notice thereof. No instrument by 48 which such a pledge or security interest is created nor any financing 49 statement need be recorded or filed. 50 10. Whether or not the bonds of the authority are of such form and 51 character as to be negotiable instruments under the terms of the uniform 52 commercial code, the bonds are hereby made negotiable instruments within 53 the meaning of and for all the purposes of the uniform commercial code, 54 subject only to the provisions of the bonds for registration. 55 11. Neither the directors of the authority nor any person executing 56 bonds shall be liable personally thereon or be subject to any personal 
 S. 7497 11 1 liability or accountability solely by reason of the issuance thereof. 2 The bonds or other obligations of the authority shall not be a debt of 3 either the state or the city, and neither the state nor the city shall 4 be liable thereon, nor shall they be payable out of any funds other than 5 those of the authority; and such bonds shall contain on the face thereof 6 a statement to such effect. 7 12. The authority, subject to such agreements with bondholders as then 8 may exist, shall have power to purchase bonds of the authority out of 9 any moneys available therefor, which shall thereupon be cancelled. 10 § 3757. Resources of the authority. 1. Subject to the provisions of 11 this title, the directors of the authority shall receive, accept, 12 invest, administer, expend and disburse for its corporate purposes all 13 money of the authority from whatever sources derived including (a) tax 14 revenues; (b) the proceeds of bonds; and (c) any other payments, gifts 15 or appropriations to the authority from any other source. 16 2. Subject to the provisions of any contract with bondholders, (a) the 17 money of the authority shall be paid to the authority and shall not be 18 commingled with any other money, and (b) all money received by the 19 authority which, together with other money of the authority available 20 for the expenses of the authority, the payment of debt service and 21 payments to reserve funds, exceeds the amount required for such 22 purposes, as determined by the authority, shall, subject to the 23 provisions of subdivision six of this section and to the terms of any 24 agreement between the authority and the city, be transferred to the city 25 as frequently as practicable. 26 3. The money in any of the authority's accounts shall be paid out on 27 checks signed by the treasurer of the authority, or by other lawful and 28 appropriate means such as wire or electronic transfer, on requisitions 29 of the chairperson of the authority or of such other officer as the 30 directors shall authorize to make such requisition, or pursuant to a 31 bond resolution or trust indenture. 32 4. All deposits of authority money shall be secured by obligations of 33 the United States or of the state or of the city at a market value at 34 least equal at all times to the amount of the deposit, and all banks and 35 trust companies are authorized to give such security for such deposits. 36 The authority shall have the power, notwithstanding the provisions of 37 this section, to contract with the holders of any of its bonds as to the 38 custody, collection, securing, investment and payment of any money of 39 the authority or any money held in trust or otherwise for the payment of 40 bonds or in any way to secure bonds, and to carry out any such contract 41 notwithstanding that such contract may be inconsistent with the other 42 provisions of this title. Money held in trust or otherwise for the 43 payment of bonds or in any way to secure bonds and deposits of such 44 money may be secured in the same manner as money of the authority, and 45 all banks and trust companies are authorized to give such security for 46 such deposits. 47 5. Tax revenues received by the authority pursuant to section twelve 48 hundred sixty-one of the tax law, together with any other revenues 49 received by the authority, shall be applied in the following order of 50 priority: first pursuant to the authority's contracts with bondholders, 51 then to pay the authority's operating expenses not otherwise provided 52 for, and then, subject to the authority's agreements with the city, to 53 transfer the balance of such tax revenues not required to meet contrac- 54 tual or other obligations of the authority to the city as frequently as 55 practicable. 
 S. 7497 12 1 6. (a) This subdivision shall apply only to revenue anticipation 2 notes, including renewals thereof, issued by the city during its fiscal 3 year ending December thirty-first, two thousand twenty-five, in antic- 4 ipation of the receipt of city tax revenues, and only to such issues of 5 revenue anticipation notes as to which the certificate described in 6 paragraph (b) of this subdivision is filed. 7 (b) Notwithstanding the provisions of subdivision five of this section 8 with respect to the transfer of the balance of tax revenues to the city, 9 prior to the delivery of each such issue of revenue anticipation notes, 10 the chief fiscal officer of the city shall file with the authority a 11 request that the authority establish a city of Dunkirk revenue antic- 12 ipation note withholding fund which shall constitute a special bank 13 account for purposes of paragraph g of section 25.00 of the local 14 finance law. Such request by such chief fiscal officer shall be accompa- 15 nied by a certificate setting forth with respect to such issue (i) the 16 principal amount, (ii) the date of issue, (iii) the maturity date, (iv) 17 the interest rate or rates, (v) if interest shall be payable otherwise 18 than at maturity, the date or dates for the payment thereof, (vi) the 19 name and address of the paying agent, (vii) the name and address of each 20 purchaser, or, if a purchaser shall be a syndicate or similar account, 21 the name and address of each managing underwriter of such syndicate or 22 similar account, (viii) the amount payable on each principal payment 23 date and interest payment date, and (ix) a schedule setting forth the 24 total amount of city tax revenues anticipated to be received, and the 25 expected date or dates of anticipated receipt of such city tax revenues. 26 Such certificate shall be accompanied by a statement executed by the 27 chief fiscal officer certifying that the amounts and times of payments 28 of city tax revenues contained in such schedule have been estimated by 29 the use of reasonable and appropriate data and methods of estimation, 30 all in accordance with applicable law. 31 (c) All such revenue anticipation notes, in addition to a pledge of 32 the faith and credit of the city for the payment thereof, shall contain 33 a recital to the effect that they are entitled to the benefits of the 34 provisions of this subdivision. 35 (d) Commencing on the date not less than five days prior to and on 36 each day thereafter up to and including any principal and/or interest 37 payment date referred to in the certificate filed by the chief fiscal 38 officer with the authority pursuant to paragraph (b) of this subdivi- 39 sion, the authority shall pay to such paying agent from city tax reven- 40 ues transferred and credited by the authority to the city of Dunkirk 41 revenue anticipation note withholding fund as provided in paragraph (e) 42 of this subdivision the amount required to pay in full the principal 43 and/or interest due on such payment date as set forth in such certif- 44 icate. Moneys so paid shall pass immediately from the authority and vest 45 in such paying agent in trust for the benefit of the holders of the 46 revenue anticipation notes to which such certificate relates. No other 47 person having any claim of any kind in tort, contract or otherwise 48 against the city shall have any right to or claim against the moneys 49 held by such paying agent, and such moneys shall not be subject to any 50 order, judgment, lien, execution, attachment, setoff or counterclaim by 51 any such other person. Such moneys shall be held by such paying agent in 52 a separate trust account and shall be applied only to the payment of the 53 principal and/or interest due on such revenue anticipation notes, 54 provided, however, that the contract by and between the city and such 55 paying agent may provide for (i) the investment by such paying agent of 56 such moneys in direct obligations of, or in obligations guaranteed by, 
 S. 7497 13 1 the United States of America, provided such obligations shall be payable 2 or redeemable at the option of the holder within such time as the 3 proceeds shall be needed to pay such principal and/or interest due on 4 such revenue anticipation notes, and (ii) the use by such paying agent 5 of such moneys for the purchase of direct obligations of, or obligations 6 guaranteed by, the United States of America under one or more repurchase 7 agreements with any bank or trust company having its principal office in 8 the state of New York, provided that any such repurchase agreement shall 9 provide for the repurchase of such obligations within such time as such 10 moneys are needed to pay the principal and/or interest due on such 11 revenue anticipation notes at a repurchase price at least sufficient to 12 make the amount so invested available for the payment of principal 13 and/or interest due on such revenue anticipation notes, and provided, 14 further, that, at the time of such purchase, the market value of such 15 obligations shall be at least equal to one hundred two per centum of the 16 amount so invested. No person having any claim of any kind in tort, 17 contract or otherwise against the city shall have any right to or claim 18 against any moneys in anticipation of which such notes have been issued, 19 other than a claim for payment by the holders of such notes, and such 20 moneys shall not be subject to any order, judgment, lien, execution, 21 attachment, setoff or counterclaim by any such person. Notwithstanding 22 any provision of law to the contrary, no instrument relating to any 23 transaction authorized or contemplated by this paragraph need be filed 24 under the provisions of the uniform commercial code. 25 (e) Commencing on the day when the authority determines that the prin- 26 cipal and interest due or to come due on such outstanding revenue antic- 27 ipation notes issued against such city tax revenues in accordance with 28 the provisions of this subdivision shall equal the amount of such city 29 tax revenues as set forth on the schedule included in the certificate 30 filed with the authority pursuant to paragraph (b) of this subdivision 31 remaining to be paid to the city on or prior to any principal and/or 32 interest payment date, the authority shall deduct and withhold from the 33 amount of such city tax revenues otherwise payable to the city an amount 34 sufficient to pay, when due, the principal of and interest on all such 35 revenue anticipation notes issued and then outstanding in anticipation 36 thereof. Amounts so deducted and withheld shall be transferred and cred- 37 ited by the authority to the account established for such city tax 38 revenues in the city of Dunkirk revenue anticipation note withholding 39 fund established by the authority in accordance with the chief fiscal 40 officer's request pursuant to paragraph (b) of this subdivision. The 41 payments required to be made by the authority pursuant to paragraph (d) 42 of this subdivision shall be made from amounts on deposit in the 43 accounts established for such city tax revenues in the city of Dunkirk 44 revenue anticipation note withholding fund. 45 (f) Notwithstanding any other provision of this subdivision, at the 46 expiration of one hundred eighty days after the maturity date of any 47 issue of revenue anticipation notes issued in accordance with the 48 provisions of this subdivision, the amounts held by the paying agent 49 thereof for the payment of the principal of and interest on the notes of 50 such issue which have not been presented for payment shall be paid over 51 and remitted by such paying agent to the city and thereafter the holders 52 of such notes shall look only to the city for such payment. 53 (g) All other provisions of the local finance law not inconsistent 54 with the provisions of this subdivision shall continue to apply to the 55 authorization and issuance of revenue anticipation notes by the city. 
 S. 7497 14 1 § 3758. Agreement with the state. The state does hereby pledge to and 2 agree with the holders of any issue of bonds issued by the authority 3 pursuant to this title and secured by such a pledge that the state will 4 not limit, alter or impair the rights hereby vested in the authority to 5 fulfill the terms of any agreements made with such holders pursuant to 6 this title, or in any way impair the rights and remedies of such holders 7 or the security for such bonds until such bonds, together with the 8 interest thereon and all costs and expenses in connection with any 9 action or proceeding by or on behalf of such holders, are fully paid and 10 discharged. The authority is authorized to include this pledge and 11 agreement of the state in any agreement with the holders of such bonds. 12 Nothing contained in this title shall be deemed to restrict the right of 13 the state to amend, modify, repeal or otherwise alter statutes imposing 14 or relating to taxes or fees, or appropriations relating thereto. The 15 authority shall not include within any resolution, contract or agreement 16 with holders of the bonds issued under this title any provision which 17 provides that a default occurs as a result of the state exercising its 18 right to amend, repeal, modify or otherwise alter such taxes, fees, or 19 appropriations. Nothing in this title shall be deemed to obligate the 20 state to make any payments or impose any taxes to satisfy the debt 21 service obligations of the authority. 22 § 3759. Agreement with the city. The city is authorized to pledge to 23 and agree with the holders of any issue of bonds issued by the authority 24 pursuant to this title and secured by such a pledge that the city will 25 not limit, alter or impair the rights hereby vested in the authority to 26 fulfill the terms of any agreements made with such holders pursuant to 27 this title, or in any way impair the rights and remedies of such holders 28 or the security for such bonds until such bonds, together with the 29 interest thereon and all costs and expenses in connection with any 30 action or proceeding by or on behalf of such holders, are fully paid and 31 discharged. Nothing contained in this title shall be deemed to restrict 32 any right of the city to amend, modify or otherwise alter local laws, 33 ordinances or resolutions imposing or relating to the taxes imposed 34 pursuant to the authority of article twenty-nine of the tax law or other 35 taxes or fees or appropriations related to any such taxes or fees, so 36 long as, after giving effect to such amendment, modification or other 37 alteration, the amount of tax revenues projected by the authority to be 38 available during each of its fiscal years following the effective date 39 of such amendment, modification or other alteration shall be not less 40 than two hundred percent of maximum annual debt service on authority 41 bonds then outstanding. Subject to the foregoing sentence, the authority 42 shall not include in any resolution, contract or agreement with the 43 holders of its bonds any provision which provides that a default occurs 44 as a result of the city exercising its right to amend, modify, or other- 45 wise alter such taxes imposed pursuant to the authority of article twen- 46 ty-nine of the tax law or other taxes or fees. Nothing in this title 47 shall be deemed to obligate the city to make additional payments or 48 impose taxes other than those imposed pursuant to the authority of para- 49 graph one of subdivision (a) of section twelve hundred ten of the tax 50 law to satisfy the debt service obligations of the authority. 51 § 3760. Bonds legal for investment and deposit. The bonds of the 52 authority are hereby made securities in which all public officers and 53 bodies of the state and all public corporations, municipalities and 54 municipal subdivisions, all insurance companies and associations and 55 other persons carrying on an insurance business, all banks, bankers, 56 trust companies, savings banks and savings associations including 
 S. 7497 15 1 savings and loan associations, building and loan associations, invest- 2 ment companies and other persons carrying on a banking business, all 3 administrators, conservators, guardians, executors, trustees and other 4 fiduciaries, and all other persons whatsoever who are now or may here- 5 after be authorized to invest in bonds or in other obligations of the 6 state, may properly and legally invest funds, including capital, in 7 their control or belonging to them. The bonds are also hereby made secu- 8 rities which may be deposited with and may be received by all public 9 officers and bodies of the state and all municipalities and public 10 corporations for any purpose for which the deposit of bonds or other 11 obligations of the state is now or may hereafter be authorized. 12 § 3761. Tax exemption and tax contract by the state. 1. It is hereby 13 determined that the creation of the authority and the carrying out of 14 its corporate purposes are in all respects for the benefit of the people 15 of the state of New York and are public purposes. Accordingly, the 16 authority shall be regarded as performing an essential governmental 17 function in the exercise of the powers conferred upon it by this title. 18 The property of the authority, its income and its operations shall be 19 exempt from taxation, assessments, special assessments and ad valorem 20 levies. The authority shall not be required to pay any fees, taxes, 21 special ad valorem levies or assessments of any kind, whether state or 22 local, including, but not limited to, fees, taxes, special ad valorem 23 levies or assessments on real property, franchise taxes, sales taxes or 24 other taxes, upon or with respect to any property owned by it or under 25 its jurisdiction, control or supervision, or upon the uses thereof, or 26 upon or with respect to its activities or operations in furtherance of 27 the powers conferred upon it by this title, or upon or with respect to 28 any fares, tolls, rentals, rates, charges, fees, revenues or other 29 income received by the authority. 30 2. Any bonds issued pursuant to this title, their transfer and the 31 income therefrom shall, at all times, be exempt from taxation. 32 3. The state hereby covenants with the purchasers and with all subse- 33 quent holders and transferees of bonds issued by the authority pursuant 34 to this title, in consideration of the acceptance of and payment for the 35 bonds, that the bonds of the authority issued pursuant to this title and 36 the income therefrom and all revenues, moneys, and other property 37 pledged to pay or to secure the payment of such bonds shall at all times 38 be exempt from taxation. 39 § 3762. Actions against the authority. 1. Except in an action for 40 wrongful death, no action or proceeding shall be prosecuted or main- 41 tained against the authority for personal injury or damage to real or 42 personal property alleged to have been sustained by reason of the negli- 43 gence or wrongful act of the authority or of any director, officer, 44 agent or employee thereof, unless (a) it shall appear by and as an alle- 45 gation in the complaint or moving papers that a notice of claim shall 46 have been made and served upon the authority, within the time limit 47 prescribed by and in compliance with section fifty-e of the general 48 municipal law, (b) it shall appear by and as an allegation in the 49 complaint or moving papers that at least thirty days have elapsed since 50 the service of such notice and that adjustment or payment thereof has 51 been neglected or refused, and (c) the action or proceeding shall be 52 commenced within one year after the happening of the event upon which 53 the claim is based. An action against the authority for wrongful death 54 shall be commenced in accordance with the notice of claim and time limi- 55 tation provisions of title eleven of article nine of this chapter. 
 S. 7497 16 1 2. Wherever a notice of claim is served upon the authority, it shall 2 have the right to demand an examination of the claimant relative to the 3 occurrence and extent of the injuries or damages for which claim is 4 made, in accordance with the provisions of section fifty-h of the gener- 5 al municipal law. 6 3. The authority may require any person presenting for settlement an 7 account or claim for any cause whatever against the authority to be 8 sworn before a director, counsel or an attorney, officer or employee 9 thereof designated for such purpose, concerning such account or claim 10 and when so sworn, to answer orally as to any facts relative to such 11 account or claim. The authority shall have power to settle or adjust any 12 claims in favor of or against the authority. 13 4. The rate of interest to be paid by the authority upon any judgment 14 for which it is liable, other than a judgment on bonds, shall not exceed 15 the maximum rate of interest on judgments and accrued claims against 16 municipal authorities as provided in the general municipal law. Interest 17 on payments of principal or interest on any bonds in default shall 18 accrue at the rate specified in the general municipal law until paid or 19 otherwise satisfied. 20 5. The venue of every action, suit or special proceeding brought 21 against the authority shall be laid in the Dunkirk city court. 22 6. Neither any director of the authority nor any officer, employee, or 23 agent of the authority, while acting within the scope of their authori- 24 ty, shall be subject to any liability resulting from exercising or 25 carrying out any of the powers given in this title. 26 7. (a) The state shall save harmless and indemnify directors, officers 27 and employees of and representatives to the authority, all of whom shall 28 be deemed officers and employees of the state for purposes of section 29 seventeen of the public officers law, against any claim, demand, suit, 30 or judgment arising by reason of any act or omission to act by such 31 director, officer, employee or representative occurring in the discharge 32 of their duties and within the scope of their service on behalf of the 33 authority including any claim, demand, suit or judgment based on allega- 34 tions that financial loss was sustained by any person in connection with 35 the acquisition, disposition or holding of securities or other obli- 36 gations. In the event of any such claim, demand, suit or judgment, a 37 director, officer or employee of or representative to the authority 38 shall be saved harmless and indemnified, notwithstanding the limitations 39 of subdivision one of section seventeen of the public officers law, 40 unless such individual is found by a final judicial determination not to 41 have acted, in good faith, for a purpose which such individual reason- 42 ably believed to be in the best interest of the authority or not to have 43 had reasonable cause to believe that such individual's conduct was 44 lawful. 45 (b) In connection with any such claim, demand, suit, or judgment, any 46 director, officer or employee of or representative to the authority 47 shall be entitled to representation by private counsel of their choice 48 in any civil judicial proceeding whenever the attorney general deter- 49 mines based upon the attorney general's investigation and review of the 50 facts and circumstances of the case that representation by the attorney 51 general would be inappropriate. The attorney general shall notify the 52 individual in writing of such determination that the individual is enti- 53 tled to be represented by private counsel. The attorney general may 54 require, as a condition to payment of the fees and expenses of such 55 representative, that appropriate groups of such individuals be repres- 56 ented by the same counsel. If the individual or groups of individuals is 
 S. 7497 17 1 entitled to representation by private counsel under the provisions of 2 this section, the attorney general shall so certify to the state comp- 3 troller. Reasonable attorneys' fees and litigation expenses shall be 4 paid by the state to such private counsel from time to time during the 5 pendency of the civil action or proceeding, subject to certification 6 that the individual is entitled to representation under the terms and 7 conditions of this section by the authority, upon the audit and warrant 8 of the state comptroller. The provisions of this subdivision shall be in 9 addition to and shall not supplant any indemnification or other benefits 10 heretofore or hereafter conferred upon directors, officers, or employees 11 of and representatives to the authority by section seventeen of the 12 public officers law, by action of the authority or otherwise. The 13 provisions of this subdivision shall inure only to directors, officers 14 and employees of and representatives to the authority, shall not enlarge 15 or diminish the rights of any other party, and shall not impair, limit 16 or modify the rights and obligations of any insurer under any policy of 17 insurance. 18 § 3763. Audits. 1. The accounts of the authority shall be subject to 19 the audit of the fiscal affairs officer and the state comptroller. In 20 addition, the authority shall be subject to an annual financial audit 21 performed by an independent certified accountant selected by the author- 22 ity. Such audit report shall be submitted to the mayor, the presiding 23 officer, the comptroller, the governor, the state comptroller, the chair 24 and ranking minority member of the senate finance committee and the 25 chair and ranking minority member of the assembly ways and means commit- 26 tee. 27 2. For each fiscal year during the existence of the authority, and 28 within one hundred twenty days after the close of the city's fiscal 29 year, the city shall submit its audited financial statements to the 30 authority. 31 § 3764. Remedies of bondholders. Subject to any resolution or resol- 32 utions adopted pursuant to paragraph (f) of subdivision seven of section 33 thirty-seven hundred fifty-six of this title: 34 1. In the event that the authority shall default in the payment of 35 principal of or interest on any issue of bonds after the same shall 36 become due, whether at maturity or upon call for redemption, and such 37 default shall continue for a period of thirty days, or shall default in 38 any agreement made with the holders of any issue of bonds, the holders 39 of at least twenty-five per centum in aggregate principal amount of the 40 bonds of such issue then outstanding, by instrument or instruments filed 41 in the office of the clerk of the city and proved or acknowledged in the 42 same manner as a deed to be recorded, may appoint a trustee to represent 43 the holders of such bonds for the purpose provided in this section. 44 2. Such trustee may, and upon written request of the holders of at 45 least twenty-five per centum in principal amount of such bonds outstand- 46 ing shall, in their own name: 47 (a) by action or proceeding in accordance with the civil practice law 48 and rules, enforce all rights of the bondholders and require the author- 49 ity to carry out any other agreements with the holders of such bonds and 50 to perform its duties under this title; 51 (b) bring an action or proceeding upon such bonds; 52 (c) by action or proceeding, require the authority to account as if it 53 were the trustee of an express trust for the holder of such bonds; and 54 (d) by action or proceeding, enjoin any acts or things which may be 55 unlawful or in violation of the rights of the holders of such bonds. 
 S. 7497 18 1 3. Such trustee shall, in addition to the provisions of subdivisions 2 one and two of this section, have and possess all of the powers neces- 3 sary or appropriate for the exercise of any functions specifically set 4 forth in this section or incident to the general representation of bond- 5 holders in the enforcement and protection of their rights. 6 4. The supreme court shall have jurisdiction of any action or proceed- 7 ing by the trustee on behalf of such bondholders. 8 § 3765. Assistance to the authority; employees of the authority. 1. 9 With the consent of any public corporation, the authority may use 10 agents, employees and facilities thereof, paying to such public corpo- 11 ration its agreed proportion of the compensation or costs. 12 2. Officers and employees of state or city agencies may be transferred 13 to the authority without examination and without loss of any civil 14 service or retirement status or rights. Any officer or employee of the 15 authority who heretofore acquired or shall hereafter acquire such posi- 16 tion status by transfer and who at the time of such transfer was a 17 member of the New York state and local employees' retirement system 18 shall continue to be a member of such system as long as such officer or 19 employee continues in such service, and shall continue to have all the 20 rights, privileges and obligations of membership in such system. 21 § 3766. 2025 fiscal year budget modification. 1. The control period as 22 set forth in section thirty-seven hundred sixty-nine of this title shall 23 be instituted on June thirtieth, two thousand twenty-five, unless prior 24 to such date (a) the mayor, after approval by the legislature, shall 25 have submitted to the authority a modification to the city's budget for 26 the two thousand twenty-five fiscal year, as in effect on May tenth, two 27 thousand twenty-five; and (b) the authority shall have determined that 28 such modification when implemented will ensure a reduction of the 29 projected gap, through recurring or nonrecurring actions, for the two 30 thousand twenty-five fiscal year and, together with any budget modifica- 31 tions prior to May tenth, two thousand twenty-five, through recurring 32 actions, for the three next succeeding fiscal years, in an amount not 33 less than fifty million dollars per year. 34 2. In order that such budget modification be effective on or before 35 June thirtieth, two thousand twenty-five, the mayor shall within seven 36 days following the effective date of this title submit a proposed 37 modification to the legislature. Within seven days thereafter, the 38 legislature shall approve such modification or a substitute modifica- 39 tion. Upon approval by the legislature, the mayor shall submit such 40 modification to the authority. Not later than ten days after such budget 41 modification shall have been submitted to the authority, the authority 42 shall approve or disapprove such modification, provided that the author- 43 ity may approve such modification only upon its determination that such 44 modification when implemented will ensure such reduction of the project- 45 ed gap for each fiscal year as required by subdivision one of this 46 section. 47 3. In the event the authority shall disapprove such budget modifica- 48 tion based on disapproval of certain actions or assumptions, the author- 49 ity shall promptly thereafter notify the mayor of its reasons. The mayor 50 shall thereafter, after approval by the legislature, resubmit a budget 51 modification, based on actions or assumptions other than those that have 52 been disapproved by the authority, for consideration by the authority 53 and in sufficient time for the authority to have a seven day review 54 period prior to June thirtieth, two thousand twenty-five. 55 § 3767. City financial plans. 1. (a)(i) The mayor shall prepare and 56 submit to the authority a four-year financial plan, initially for the 
 S. 7497 19 1 fiscal years ending December thirty-first, two thousand twenty-six 2 through two thousand twenty-nine, together with the proposed budget for 3 the fiscal year ending on December thirty-first, two thousand twenty- 4 six, not later than the date required for submission of such budget to 5 the legislature pursuant to the city charter. Such financial plan shall, 6 in addition to the requirements for financial plans set forth in subdi- 7 visions two and three of this section, contain actions sufficient to 8 ensure with respect to the major operating funds for each fiscal year of 9 the plan that annual aggregate operating expenses for such fiscal year 10 shall not exceed annual aggregate operating revenues for such fiscal 11 year. For purposes of determining operating revenues in the fiscal years 12 ending December thirty-first, two thousand twenty-six through two thou- 13 sand thirty-two, such plan may assume (A) borrowings by the city or the 14 authority to finance tax certiorari judgments or settlements in annual 15 amounts not exceeding one hundred million dollars, or, in the aggregate 16 for all such years, four hundred million dollars; however, of said four 17 hundred million dollars, no more than fifteen million dollars may be 18 counted as operating revenue in the fiscal year two thousand thirty-one 19 and no more than ten million dollars may be counted as operating revenue 20 in fiscal year two thousand thirty-two, and (B) receipt by the city of 21 NCIFA assistance and transitional state aid in the following collective 22 amounts for each respective fiscal year: 23 Amount Fiscal Year 24 2026 amount 2026 25 2027 amount 2027 26 2028 amount 2028 27 2029 amount 2029. 28 (ii) The one hundred million dollars annual limit on assumed tax 29 certiorari borrowings may be waived by the authority respecting any 30 fiscal year, upon its determination that the results of any increased 31 and accelerated settlement or litigation efforts by the city justify 32 such waiver. 33 (b) As used in this subdivision: 34 (i) "2026 amount" means that amount expected to be provided by the 35 authority to ensure balanced major operating fund operations upon its 36 determination that the city has taken recurring actions to close between 37 thirty-five per centum and forty per centum of the projected gap. 38 (ii) "2027 amount" means that amount expected to be provided by the 39 authority to ensure balanced major operating fund operations upon its 40 determination that the city has taken recurring actions to close between 41 forty-five per centum and fifty per centum of the projected gap. 42 (iii) "2028 amount" means that amount expected to be provided by the 43 authority to ensure balanced major operating fund operations upon its 44 determination that the city has taken recurring actions to close between 45 sixty per centum and sixty-five per centum of the projected gap. 46 (iv) "2029 amount" means that amount expected to be provided by the 47 authority to ensure balanced major operating fund operations upon its 48 determination that the city has taken recurring actions to close between 49 eighty per centum and eighty-five per centum of the projected gap. 50 2. Pursuant to the procedures contained in this subdivision, each year 51 during the interim finance period or during a control period the city 52 shall develop, and may from time to time modify, taking into account 53 recommendations of the authority, a four year financial plan covering 54 the city and the covered organizations. Each such financial plan and 
 S. 7497 20 1 financial plan modification shall conform to the requirements of para- 2 graph (a) of this subdivision and shall provide that the major operating 3 funds of the city will be balanced in accordance with generally accepted 4 accounting principles. The financial plan shall be developed and 5 approved, and may from time to time be modified, in accordance with the 6 following procedures: 7 (a) The mayor shall prepare and submit to the authority and the legis- 8 lature a revised financial plan covering the four year period beginning 9 with the ensuing fiscal year, together with the proposed budget for the 10 ensuing fiscal year, not later than the date required for submission of 11 such budget pursuant to the city charter. On such dates, the mayor shall 12 also submit to the authority a certificate stating that such budget is 13 consistent with the financial plan submitted therewith and that opera- 14 tion within the budget is feasible. 15 (b) Not more than twenty days after submission of a financial plan or 16 more than fifteen days after submission of a financial plan modifica- 17 tion, the authority shall determine whether the financial plan or finan- 18 cial plan modification is complete and complies with the provisions of 19 section thirty-seven hundred sixty-six and this section and the other 20 requirements of this title, and shall submit its recommendations with 21 respect to the financial plan or financial plan modification in accord- 22 ance with the provisions of this subdivision. 23 (c) Upon the approval by the city of a budget in accordance with the 24 provisions of the city charter and approval of the financial plan by the 25 legislature, the mayor shall submit such approved budget and financial 26 plan to the authority accompanied by expenditure, revenue and cash flow 27 projections on a quarterly basis and certify to the authority that such 28 budget is consistent with the financial plan to be submitted to the 29 authority. 30 (d) If the authority determines that the financial plan or financial 31 plan modification provided pursuant to paragraph (c) or (f) of this 32 subdivision is complete and complies with the standards set forth in 33 this subdivision, the authority shall make a certification to the city 34 setting forth revenue estimates agreed to by the authority in accordance 35 with such determination. 36 (e) The authority shall, in the event it disagrees with elements of 37 the financial plan provided pursuant to paragraph (c) or (f) of this 38 subdivision, provide notice thereof to the mayor, the legislature and 39 the fiscal affairs officer, with copies to the director of the budget, 40 the state comptroller, the chair of the assembly ways and means commit- 41 tee and the chair of the senate finance committee, if, in the judgment 42 of the authority, such plan: 43 (i) is incomplete; 44 (ii) fails to contain projections of revenues and expenditures that 45 are based on reasonable and appropriate assumptions and methods of esti- 46 mation; 47 (iii) fails to provide that operations of the city and the covered 48 organizations will be conducted within the cash resources available 49 according to the authority's revenue estimates; or 50 (iv) fails to comply with the provisions of this title or other 51 requirements of law. 52 (f) After the initial adoption of an approved financial plan, the 53 revenue estimates certified by the authority and the financial plan 54 shall be regularly reexamined by the authority in consultation with the 55 city and the covered organizations and the mayor shall provide a modi- 56 fied financial plan in such detail and within such time periods as the 
 S. 7497 21 1 authority may require. In the event of reductions in such revenue esti- 2 mates, or in the event the city or a covered organization shall expend 3 funds at a rate that would exceed the aggregate expenditure limitation 4 for the city or covered organization prior to the expiration of the 5 fiscal year, the mayor shall submit a financial plan modification to 6 effect such adjustments in revenue estimates and reductions in total 7 expenditures as may be necessary to conform to such revised revenue 8 estimates or aggregate expenditure limitations. 9 (g) If, within a time period specified by the authority, the city 10 fails to make such modifications after reductions in revenue estimates, 11 or to provide a modified plan in detail and within such time period 12 required by the authority, the authority shall adopt a resolution so 13 finding. 14 (h) The city shall amend its budget or shall submit a financial plan 15 modification for the approval of the authority such that the city's 16 budget and the approved financial plan shall be consistent. In no event 17 shall the city operate under a budget that is inconsistent with an 18 approved financial plan. 19 3. The financial plan shall be in such form and shall contain such 20 information for each year during which the financial plan is in effect 21 as the authority may specify, and shall include the city and all the 22 covered organizations, and shall, in such detail as the authority from 23 time to time may prescribe, include (a) statements of all estimated 24 revenues and of all expenditures and cash flow projections of the city 25 and each of the covered organizations, (b) a report on the status of 26 efforts to reform and streamline the tax certiorari claims process and 27 eliminate the need in each year of the plan for the city to borrow to 28 finance such claims or judgments, including an accounting of the expend- 29 iture of any transitional state aid for such purposes, and (c) an 30 accounting of the expenditure of any remaining transitional state aid 31 available to the city for each year of the plan. 32 4. The financial plan shall include any information which the authori- 33 ty may request to satisfy itself that (a) projected employment levels, 34 collective bargaining agreements and other actions relating to employee 35 costs, capital construction and such other matters as the authority may 36 specify are consistent with the provisions made for such obligations in 37 the financial plan, (b) the city and the covered organizations are 38 taking whatever action is necessary with respect to programs mandated by 39 state and federal law to ensure that expenditures for such programs are 40 limited to and covered by the expenditures stated in the financial plan, 41 (c) adequate reserves are provided to maintain essential programs in the 42 event revenues have been overestimated or expenditures underestimated 43 for any period, and (d) the city has adequate cash resources to meet its 44 obligations. In addition, except to the extent such reporting require- 45 ments may be modified pursuant to agreement between the authority and 46 the city, for each fiscal year occurring during the interim finance 47 period or while bonds issued pursuant to this title are outstanding, the 48 mayor shall prepare a quarterly report of summarized budget data depict- 49 ing overall trends of actual revenues and budget expenditures for the 50 entire budget rather than individual line items and updated quarterly 51 cash flow projections of receipts and disbursements. Such reports shall 52 compare revenue estimates and appropriations as set forth in such budget 53 and in the quarterly revenue and expenditure projections submitted ther- 54 ewith with the actual revenues and expenditures made to date. Such 55 reports shall also compare actual receipts and disbursements with the 56 estimates contained in the cash flow projections, together with vari- 
 S. 7497 22 1 ances and their explanation. All quarterly reports shall be accompanied 2 by recommendations from the mayor to the legislature setting forth any 3 remedial action necessary to resolve any unfavorable budget variance 4 including the overestimation of revenues and the underestimation of 5 appropriations. These reports shall be completed within thirty days 6 after the end of each quarter and shall be submitted to the legislature, 7 the authority, the director of the budget and the state comptroller. 8 Except during a control period, for each fiscal year occurring during 9 the interim finance period or while bonds issued pursuant to this title 10 are outstanding, the mayor shall submit a proposed budget or revision 11 thereto to the authority concurrent with submission to the legislature, 12 and shall submit the adopted budget to the authority immediately upon 13 its adoption. 14 5. For each financial plan and financial plan modification to be 15 prepared and submitted by the mayor to the authority pursuant to the 16 provisions of this section, the covered organizations shall submit to 17 the city such information with respect to their projected expenditures, 18 revenues and cash flows for each of the years covered by such financial 19 plan or modification as the mayor shall determine. Notwithstanding any 20 other provision of law limiting the authority of the city with respect 21 to any covered organization, the city, in the preparation and submission 22 of the financial plan and modifications thereof, shall, except for debt 23 service or for other expenditures to the extent that such expenditures 24 are required by law, have the power to determine the aggregate expendi- 25 tures to be allocated to any covered organization in the financial plan 26 and any modifications thereto. 27 6. The authority and the city shall confer concerning the projected 28 effect on the budgets of the city and the covered organizations of any 29 change in generally accepted accounting principles, or change in the 30 application of generally accepted accounting principles to the city and 31 the covered organizations, made or to be implemented after the effective 32 date of this title. If the authority determines that immediate compli- 33 ance with such change will have a material effect on such budgets over a 34 time period insufficient to accommodate the effect without a substantial 35 adverse impact on the delivery of essential services by the city, the 36 authority may authorize and approve a method of phasing the requirements 37 of such change into such budgets over such reasonably expeditious time 38 period as the authority deems appropriate. 39 § 3768. Monitoring and review. Except as otherwise provided in section 40 thirty-seven hundred sixty-nine of this title, the authority shall: 41 1. conduct meetings at least annually; 42 2. investigate, within the city and covered organizations, potential 43 violations of the provisions of this chapter, fiscal mismanagement or 44 systemic negligence; provided further that the authority shall provide 45 an annual report to the governor, the temporary president of the senate, 46 the minority leader of the senate, the speaker of the assembly, the 47 minority leader of the assembly and the authorities budget office 48 detailing such investigations; 49 3. obtain from the city all information required pursuant to this 50 section, and such other financial statements and projections, budgetary 51 data and information, and management reports and materials as the 52 authority deems necessary or desirable to accomplish the purposes of 53 this title; 54 4. recommend to the city and the covered organizations such measures 55 relating to their operation, management, efficiency and productivity as 
 S. 7497 23 1 the authority deems appropriate to reduce costs and improve services so 2 as to advance the purposes of this title; 3 5. consult with the city in the preparation of the budget of the city; 4 6. with respect to any city borrowing proposed to be issued after July 5 first, two thousand twenty-five, review the terms of and comment, within 6 thirty days after notification by the city of a proposed borrowing, on 7 the prudence of each proposed issuance of bonds or notes to be issued by 8 the city and no such borrowing shall be made unless first reviewed and 9 commented upon by the authority. The authority shall provide such 10 comments within thirty days after notification by the city of a proposed 11 borrowing to the mayor, the fiscal affairs officer, the legislature, the 12 director of the budget and the state comptroller; 13 7. determine whether to make transitional state aid available, and on 14 what schedule, based upon the city's compliance with the requirements of 15 sections thirty-seven hundred sixty-six and thirty-seven hundred sixty- 16 seven of this title, as applicable, and the requirements, if any, of the 17 appropriations bills authorizing such transitional state aid; and 18 8. perform such audits and reviews of the city and any agency thereof 19 and any covered organizations as it deems necessary. 20 § 3769. Control period. 1. The authority shall impose a control period 21 upon its determination at any time that any of the following events have 22 occurred or that there is a substantial likelihood and imminence of such 23 occurrence: (a) the city shall have failed to pay the principal of or 24 interest on any of its bonds or notes when due or payable, (b) the city 25 shall have incurred a major operating funds deficit of one percent or 26 more in the aggregate results of operations of such funds during its 27 fiscal year assuming all revenues and expenditures are reported in 28 accordance with generally accepted accounting principles, subject to the 29 provisions of this title, (c) the city shall have otherwise violated any 30 provision of this title and such violation substantially impairs the 31 marketability of the city's bonds or notes, (d) the chief fiscal offi- 32 cer's certification at any time, at the request of the authority or on 33 the chief fiscal officer's initiative, which certification shall be made 34 from time to time as promptly as circumstances warrant and reported to 35 the authority, that on the basis of facts existing at such time such 36 officer could not make the certification described by paragraph (b) of 37 this subdivision in the definition of interim finance period in section 38 thirty-seven hundred fifty-one of this title, or (e) the authority makes 39 the finding required under paragraph (g) of subdivision two of section 40 thirty-seven hundred sixty-seven of this title. The authority shall 41 terminate any such control period when it determines that none of the 42 conditions which would permit the authority to impose a control period 43 exist. After termination of a control period the authority shall annual- 44 ly consider paragraphs (a) through (e) of this subdivision and determine 45 whether, in its judgment, any of the events described in such paragraphs 46 have occurred and the authority shall publish each such determination. 47 Any certification made by the chief fiscal officer hereunder shall be 48 based on such officer's written determination which shall take into 49 account a report and opinion of an independent expert in the marketing 50 of municipal securities selected by the authority, and the opinion of 51 such expert and any other information taken into account shall be made 52 public when delivered to the authority. Notwithstanding any part of the 53 foregoing to the contrary, in no event shall any control period continue 54 beyond the later of (i) January first, two thousand fifty-five, or (ii) 55 the date when all bonds of the authority are refunded, discharged or 56 otherwise defeased. 
 S. 7497 24 1 2. In carrying out the purposes of this title during any control peri- 2 od: 3 (a) The authority shall (i) consult with the city and the covered 4 organizations in the preparation of the financial plan, and certify to 5 the city the revenue estimates approved therein, (ii) prescribe the form 6 of the financial plan and the supporting information required in 7 connection therewith, (iii) exercise the rights of approval, disapproval 8 and modification with respect to the financial plan, including but not 9 limited to the revenue estimates contained therein, and (iv) in the 10 event the authority has made the finding required under section thirty- 11 seven hundred sixty-seven of this title, formulate and adopt its modifi- 12 cations to the financial plan, such modifications to become effective on 13 their adoption by the authority. 14 (b) The authority shall, from time to time and to the extent it deems 15 necessary or desirable in order to accomplish the purposes of this 16 title, (i) review the operations, management, efficiency and productiv- 17 ity of such city operations and of such covered organizations or 18 portions thereof as the authority may determine, and make reports there- 19 on; (ii) audit compliance with the financial plan in such areas as the 20 authority may determine; (iii) recommend to the city and the covered 21 organizations such measures relating to their operations, management, 22 efficiency and productivity as it deems appropriate to reduce costs and 23 improve services so as to advance the purposes of this title; and (iv) 24 obtain information on the financial condition and needs of the city and 25 the covered organizations. Nothing herein shall diminish the powers of 26 the state comptroller otherwise provided by law and the authority may 27 request the assistance of the state comptroller in the performance of 28 the above functions. 29 (c) The authority shall (i) receive from the city and the covered 30 organizations and from the state comptroller, and review, such financial 31 statements and projections, budgetary data and information, and manage- 32 ment reports and materials as the authority deems necessary or desirable 33 to accomplish the purposes of this title, and (ii) inspect, copy and 34 audit such books and records of the city and the covered organizations 35 as the authority deems necessary or desirable to accomplish the purposes 36 of this title. 37 (d) All contracts entered into by the city or any covered organization 38 during any control period must be consistent with the provisions of this 39 title and must comply with the requirements of the financial plan as 40 approved by the authority. With respect to all contracts or other obli- 41 gations to be entered into by the city or any covered organization 42 during any control period requiring the payment of funds or the incur- 43 ring of costs by the city or any covered organizations: 44 (i) Within twenty days from the commencement of a control period, the 45 mayor shall present to the authority proposed guidelines respecting the 46 categories and types of contracts and other obligations required to be 47 reviewed by the authority pursuant to this subdivision. Any such guide- 48 lines may provide a different standard for review with respect to 49 contracts of any covered organization as the authority shall determine. 50 Within thirty days from the commencement of a control period, the 51 authority shall approve or modify and approve such proposed guidelines 52 or promulgate its own in the event that such proposed guidelines are not 53 submitted to it within the twenty days as provided for herein. Such 54 guidelines may thereafter be modified by the authority from time to time 55 on not less than thirty days' notice to the mayor and the mayor may from 56 time to time propose modifications to the authority. Unless expressly 
 S. 7497 25 1 disapproved or modified by the authority within thirty days, or such 2 additional time, not exceeding thirty days, as the authority shall have 3 notified the city or covered organization that it requires to complete 4 it's review and analysis, from the date of submission by the mayor, any 5 such proposed guidelines or modifications shall be deemed approved by 6 the authority; 7 (ii) Prior to entering into any contract or other obligation subject 8 to review of the authority under its guidelines, the city or any covered 9 organization shall submit a copy of such contract or other obligation to 10 the authority accompanied by an analysis of the projected costs of such 11 contract or other obligation and certification that performance thereof 12 will be in accordance with the financial plan, all in such form and with 13 such additional information as the authority may prescribe. The authori- 14 ty shall promptly review the terms of such contract or other obligation 15 and the supporting information in order to determine compliance with the 16 financial plan; 17 (iii) The authority shall, by order, disapprove any contract or other 18 obligation reviewed by it only after adoption of a resolution determin- 19 ing that, in its judgment, the performance of such contract or other 20 obligation would be inconsistent with the financial plan, and upon such 21 order the city or covered organization shall not enter into such 22 contract or other obligation; and 23 (iv) If the authority approves the terms of a reviewed contract or 24 other obligation, the city or covered organization may enter into such 25 contract or other obligation upon the terms submitted to the authority. 26 Failure of the authority to notify the city or covered organization 27 within thirty days, or such additional time, not exceeding thirty days, 28 as the authority shall have notified the city or covered organization 29 that it requires to complete its review and analysis, after submission 30 to it of a contract or other obligation that such contract or other 31 obligation has been disapproved shall be deemed to constitute authority 32 approval thereof. 33 (e) The authority shall review the terms of each proposed long-term 34 and short-term borrowing by the city and any covered organization to be 35 affected during any control period, and no such borrowing shall be made 36 during any control period unless it is approved by the authority. 37 Neither the city nor any covered organization shall be prohibited from 38 issuing bonds or notes to pay outstanding bonds or notes. 39 (f) The authority shall issue, to the appropriate official of the city 40 and each covered organization, such orders as it deems necessary to 41 accomplish the purposes of this title, including, but not limited to, 42 timely and satisfactory implementation of an approved financial plan. 43 Any order so issued shall be binding upon the official to whom it was 44 issued and failure to comply with such order shall subject the official 45 to the penalties described in subdivision four of this section. 46 (g) The authority is authorized to and shall withhold any transitional 47 state aid and not pay such moneys to the city during any control period. 48 3. (a) During a control period, upon a finding by the authority that a 49 wage freeze is essential to the adoption or maintenance of a city budget 50 or a financial plan that is in compliance with this title, the authori- 51 ty, after enactment of a resolution so finding, may declare a fiscal 52 crisis. Upon making such a declaration, the authority shall be empowered 53 to order that all increases in salary or wages of employees of the city 54 and employees of covered organizations which will take effect after the 55 date of the order pursuant to collective bargaining agreements, other 56 analogous contracts or interest arbitration awards, now in existence or 
 S. 7497 26 1 hereafter entered into, requiring such salary increases as of any date 2 thereafter are suspended. Such order may also provide that all increased 3 payments for holiday and vacation differentials, and shift differentials 4 for employees of the city and employees of covered organizations which 5 will take effect after the date of the order pursuant to collective 6 bargaining agreements, other analogous contracts or interest arbitration 7 awards requiring such increased payments as of any date thereafter are, 8 in the same manner, suspended. Such order may also provide that all 9 increased payments for salary adjustments according to plan and step-ups 10 or increments be suspended; provided, however, when (i) the mayor 11 provides a four year financial plan approved by the city legislature 12 pursuant to paragraph (a) of subdivision two of section thirty-seven 13 hundred sixty-seven of this title and the authority determines, pursuant 14 to paragraph (b) of such subdivision, that such financial plan is 15 complete and complies with the standards set forth in such subdivision, 16 and (ii) the authority makes a certification to the city setting forth 17 revenue estimates agreed to by the authority in accordance with such 18 determination, the salary adjustments according to plan and step-ups or 19 increments, not including cost of living increases, shall not be 20 suspended for each year in which the four year financial plan has been 21 certified. This inability to suspend the salary adjustments according to 22 plan and step-ups or increments shall be applicable to city employees 23 and employees of covered organizations, whether or not they are covered 24 by a collectively negotiated agreement, if an individual employee or 25 members of an employee's bargaining unit previously participated in a 26 wage freeze implemented by the authority under this section and such 27 wage freeze was subsequently lifted by the authority by the issuance of 28 a resolution, pursuant to paragraph (b) or (c) of this subdivision, 29 certifying that the suspension of their wage increases or an agreement 30 by the collective bargaining representative or by such unrepresented 31 employee was an acceptable and appropriate contribution toward alleviat- 32 ing the fiscal crisis of the city. Irrespective of the duration of any 33 approved or accepted four year financial plan, for employees who are 34 members of a bargaining unit, this inability to suspend the salary 35 adjustment according to plan and step-ups or increments shall take 36 effect October first, two thousand forty-one and shall be in effect for 37 employees for the duration of the next collective bargaining agreement 38 succeeding either (i) the collective bargaining agreement in effect on 39 November sixth, two thousand forty-three or (ii) the most recently 40 expired collective bargaining agreement prior to November sixth, two 41 thousand forty-three; whichever is later. If the succeeding collective 42 bargaining agreement's duration is modified, extended, or renewed, this 43 modification, extension or renewal does not modify, extend or renew the 44 term of the inability to suspend salary adjustments according to plan 45 and step-ups or increments. For employees who are not members of a 46 bargaining unit, this inability to suspend the salary adjustment accord- 47 ing to plan and step-ups or increments shall be effective October first, 48 two thousand forty-one through December first, two thousand forty-six. 49 For the purposes of computing the pension base of retirement allowances, 50 any suspended salary or wage increases and any suspended other payments 51 shall not be considered as part of compensation or final compensation or 52 of annual salary earned or earnable. The suspensions authorized here- 53 under shall continue until one year after the date of the order and, to 54 the extent of any determination of the authority that a continuation of 55 such suspensions, to a date specified by the authority, is necessary in 56 order to achieve the objectives of the financial plan, such suspensions 
 S. 7497 27 1 shall be continued to the date specified by the authority, which date 2 shall in no event be later than the end of the interim finance period, 3 provided that such suspensions shall terminate with respect to employees 4 who have agreed to a deferral of salary or wage increase upon the 5 certification of the agreement by the authority pursuant to paragraph 6 (b) of this subdivision. 7 (b) This subdivision shall not be applicable to employees of the city 8 or employees of a covered organization covered by a collective bargain- 9 ing agreement or an employee of the city or a covered organization not 10 covered by a collective bargaining agreement where the collective 11 bargaining representative or such unrepresented employee has agreed to a 12 deferment of salary or wage increase, by an instrument in writing which 13 has been certified by the authority as being an acceptable and appropri- 14 ate contribution toward alleviating the fiscal crisis of the city. Any 15 such agreement to a deferment of salary or wage increase may provide 16 that for the purposes of computing the pension base of retirement allow- 17 ances, any deferred salary or wage increase may be considered as part of 18 compensation or final compensation or of annual salary earned or earna- 19 ble. 20 (c) The authority may, if it finds that the fiscal crisis has been 21 sufficiently alleviated or for any other appropriate reason, direct that 22 the suspensions of salary or wage increases or suspensions of other 23 increased payments or benefits shall, in whole or in part, be termi- 24 nated. 25 4. (a) If the authority has declared a fiscal crisis pursuant to 26 subdivision three of this section, the authority shall be empowered to 27 order a hiring freeze and suspend the hiring of new employees if the 28 authority determines that such hiring freeze is essential to the 29 adoption or maintenance of a city budget or a financial plan that is in 30 compliance with this title. 31 (b) The authority may, if it finds that the fiscal crisis has been 32 sufficiently alleviated or for any other appropriate reason, direct that 33 the suspensions of hiring shall, in whole or in part, be terminated. 34 5. (a) During any control period (i) no officer or employee of the 35 city or of any of the covered organizations shall make or authorize an 36 obligation or other liability in excess of the amount available therefor 37 under the financial plan as then in effect; (ii) no officer or employee 38 of the city or of any of the covered organizations shall involve the 39 city or any of the covered organizations in any contract or other obli- 40 gation or liability for the payment of money for any purpose required to 41 be approved by the authority unless such contract has been so approved 42 and unless such contract or obligation or liability is in compliance 43 with the financial plan as then in effect. 44 (b) No officer or employee of the city or any of the covered organiza- 45 tions shall take any action in violation of any valid order of the 46 authority or shall fail or refuse to take any action required by any 47 such order or shall prepare, present or certify any information (includ- 48 ing any projections or estimates) or report to the authority or any of 49 its agents that is false or misleading, or, upon learning that any such 50 information is false or misleading, shall fail promptly to advise the 51 authority or its agents thereof. 52 (c) In addition to any penalty or liability under any other law, any 53 officer or employees of the city or any of the covered organizations who 54 shall violate paragraph (a) or (b) of this subdivision shall be subject 55 to appropriate administrative discipline, including, when circumstances 56 warrant, suspension from duty without pay or removal from office by 
 S. 7497 28 1 order of either the governor or the mayor; and any officer or employees 2 of the city or any of the covered organizations who shall knowingly and 3 willfully violate paragraph (a) or (b) of this subdivision shall, upon 4 conviction, be guilty of a misdemeanor. 5 (d) In the case of a violation of paragraph (a) or (b) of this subdi- 6 vision by an officer or employee of the city or any of the covered 7 organizations, the mayor or the chief executive officer of such covered 8 organization shall immediately report to the authority all pertinent 9 facts together with a statement of the action taken thereon. 10 § 3770. Miscellaneous provisions. 1. Notwithstanding anything to the 11 contrary in title six-A of article two of the local finance law, neither 12 the city nor any covered organization shall file any petition authorized 13 by such title six-A without the approval of the authority and the state 14 comptroller. No such petition shall be filed as long as any bonds issued 15 by the authority remain outstanding. Failure of the authority or the 16 state comptroller to notify the city or a covered organization within 17 thirty days, or such additional time, not exceeding thirty days, as the 18 authority or state comptroller shall have notified the city or covered 19 organization that it requires to complete its review, after submission 20 to it of a petition shall be deemed to constitute authority or state 21 comptroller approval thereof. 22 2. Nothing contained in this title shall limit the right of the city 23 or any covered organization to comply with the provisions of any exist- 24 ing contract within or for the benefit of the holders of any bonds or 25 notes of the city or such covered organization. 26 3. Nothing contained in this title shall be construed to limit the 27 power of the city or a covered organization during any interim finance 28 period to determine, from time to time, within available funds for the 29 city or for such covered organization, the purposes for which expendi- 30 tures are to be made by the city or such covered organization and the 31 amounts of such expenditures, consistent with the aggregate expenditures 32 then permitted under the financial plan for the city or such covered 33 organization. 34 4. The authority's fiscal year shall be January first through December 35 thirty-first. 36 5. The authority shall adopt guidelines for procurement contracts in 37 accordance with section twenty-eight hundred seventy-nine of this chap- 38 ter. 39 § 3771. Effect of inconsistent provisions. Insofar as the provisions 40 of this title are inconsistent with the provisions of any other act, 41 general or special, or of any charter, local law, ordinance or resol- 42 ution of any municipality, the provisions of this title shall be 43 controlling. Nothing contained in this section shall be held to supple- 44 ment or otherwise expand the powers or duties of the authority otherwise 45 set forth in this title. 46 § 3772. Separability; construction. If any clause, sentence, para- 47 graph, section, or part of this title shall be adjudged by any court of 48 competent jurisdiction to be invalid, such judgment shall not affect, 49 impair or invalidate the remainder thereof, but shall be confined in its 50 operation to the clause, sentence, paragraph, section, or part thereof 51 involved in the controversy in which such judgment shall have been 52 rendered. The provisions of this title shall be liberally construed to 53 assist the effectuation of the public purposes furthered hereby. 54 § 2. This act shall take effect immediately.