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New York Local Finance - Title 9 - § 124.10 Exclusion of Certain Indebtedness for Sewage Facilities in Ascertaining the Power of a Municipality to Contract Indebtedness

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    §  124.10  Exclusion  of certain indebtedness for sewage facilities in
  ascertaining the power of a municipality to contract indebtedness. a. In
  ascertaining the power of a municipality to contract indebtedness, there
  may  be  excluded  any  outstanding  indebtedness  contracted  by   such
  municipality  on or after January first, nineteen hundred sixty-two, and
  prior to January first, two thousand fourteen, for the  construction  or
  reconstruction  of facilities for the conveyance, treatment and disposal
  of sewage.
    b. The date of contracting any  such  indebtedness  for  a  particular
  facility  shall  be  deemed to be the date of the first contract for the
  construction or reconstruction of such facility or the date of the first
  obligation  issued  to  finance  such  construction  or  reconstruction,
  whichever date is the earlier.
    c.  The  term  indebtedness,  as  used  in this section, shall include
  indebtedness evidenced by obligations issued on or after January  first,
  two  thousand  fourteen  for  the  purpose of financing any indebtedness
  contracted for the purposes and within the period specified in paragraph
  a of this section.
    d. The provisions of this section shall not be deemed to  prevent  the
  exclusion  of any refunded indebtedness if the indebtedness refunded was
  excludable pursuant to this section.
    e. Where indebtedness has been excluded pursuant to this section,  the
  revenues,  if  any, of the facility constructed or reconstructed, during
  the period for which the exclusion is effective, shall be applied to and
  actually used for the payment of all costs of operation, maintenance and
  repairs for such period, and payment of the  amounts  required  in  such
  period  for  the  interest  on  and amortization of or redemption of the
  indebtedness excluded, or such revenues shall be deposited in a  special
  fund  to  be  used  solely for such payments. The application and use of
  such payments or the deposits required therefor  shall  not  prohibit  a
  municipality from using any such revenues, in excess of such payments or
  deposits,  for  any  lawful  purpose  of the municipality for which such
  revenues may be used.
    f. The chief fiscal officer of a municipality in  his  discretion  may
  prepare,  or  on  the  direction  of  the finance board shall prepare, a
  verified itemized statement of outstanding or proposed  indebtedness  of
  the  municipality  contracted  or  to be contracted for the purposes and
  within the period specified in paragraph a of this section.  Such  chief
  fiscal  officer  in  his discretion may file, or on the direction of the
  finance  board  shall  file,  with  the  state  comptroller  a  verified
  application on behalf of the municipality for the purpose of obtaining a
  certification of the several amounts of such indebtedness to be excluded
  pursuant  to  this section. Such itemized statement shall be attached to
  and  form  a  part  of  the  application.  The  itemized  statement  and
  application  shall be in such form and contain such information as shall
  be prescribed by the state comptroller. In the case of application for a
  certification of amounts of proposed indebtedness to  be  excluded,  the
  application  shall  state  the  approximate  date  or  dates  when  such
  indebtedness, or portions thereof, are proposed  to  be  contracted  and
  whether  such  indebtedness  is  to  be  in  the  form of a contract for
  construction or in the form of obligations, or in both such forms.
    g. Within fifteen days after filing of such application with the state
  comptroller, the chief  fiscal  officer  shall  cause  a  notice  to  be
  published   that   such  application  has  been  filed  with  the  state
  comptroller. Such notice shall be published in the official newspaper or
  newspapers of the municipality, or if there  be  no  such  newspaper  or
  newspapers,  then  the finance board of the municipality shall designate
  one or more newspapers having a general circulation in the  municipality

  for  the  publication  of  such  notice. The notice also shall contain a
  statement of the amount of  outstanding  indebtedness,  if  any,  to  be
  excluded and a statement of the amount of proposed indebtedness, if any,
  to  be  excluded  if  and  when contracted. Proof of publication of such
  notice shall be filed in the office of the state comptroller. A copy  of
  the  itemized statement and application and of all financial statements,
  documents, computations and other data and  information  which  will  be
  submitted  by  the chief fiscal officer of the municipality to the state
  comptroller in support of such application shall be filed in the  office
  of the chief fiscal officer and shall be public records.
    h.  After  the  filing  of any such application, the state comptroller
  shall review the facts set forth therein. The  state  comptroller  shall
  have  the  power to examine the accounts and records of the municipality
  with respect to such application. He may also require the  chief  fiscal
  officer   and   other  public  officers,  boards  and  agencies  of  the
  municipality to furnish such additional data and  information  in  their
  possession  as  he  deems  necessary  to  enable  him  to  ascertain the
  indebtedness which may be excluded  pursuant  to  paragraph  a  of  this
  section.
    i.  The  state  comptroller  shall issue a written certificate setting
  forth the amounts of any such indebtedness which may be excluded. If the
  indebtedness described in the certificate is, or is to be, in  the  form
  of  (1)  a  contract  for  construction which is to be financed later by
  issuance of obligations pursuant to this  chapter  or  pursuant  to  any
  special  law  or  (2)  bond anticipation notes issued in anticipation of
  bonds to be issued pursuant to this chapter or pursuant to  any  special
  law,  such certification also shall be applicable to such obligations or
  bonds, as the case  may  be,  when  issued.  If  the  state  comptroller
  determines  that  the  indebtedness described in the application, or any
  part thereof, does not constitute indebtedness described in paragraph  a
  of  this  section the reasons for such determination shall be given. The
  certification  of  the  state  comptroller  shall  be  conclusive.   The
  certificate  of the state comptroller shall not be issued until ten days
  after the filing of such proof of publication in the office of the state
  comptroller and shall  be  issued  within  forty-five  days  after  such
  filing.  The  certificate of the state comptroller shall be effective so
  long as and to the extent that any such indebtedness  described  therein
  is   outstanding,  or  until  such  certificate  is  amended,  modified,
  superseded  or  rescinded  by  a  written  certificate  of   the   state
  comptroller  issued  upon  application of the municipality in the manner
  provided in paragraph f of this section. The certificate  of  the  state
  comptroller  shall be executed under his hand and seal in duplicate. One
  of such certificates shall be filed  in  the  department  of  audit  and
  control  and  the other in the office of the chief fiscal officer of the
  municipality.
    j. The provisions of this section  shall  not  affect  or  impair  any
  existing   exclusions   of   indebtedness,   or  the  power  to  exclude
  indebtedness granted by any other  provision  of  this  chapter  or  the
  constitution.  However,  if  any exclusion has been granted by the state
  comptroller  pursuant  to  section  123.00  of  this  chapter  for   any
  indebtedness  for  which  an exclusion has been granted pursuant to this
  section, the exclusion of such indebtedness granted pursuant to  section
  123.00 of this chapter shall cease to be applicable.
Section:  Previous  Title 9  120.00  121.00  121.10  121.20  121.30  122.00  123.00  124.00  124.10  125.00  126.00  Next

Last modified: February 15, 2014