(b) A municipal corporation shall not contract indebtedness for a
joint service, and a municipality shall not contract indebtedness for a
joint water, sewage or drainage project, to a greater extent than it is
authorized by law to spend money for any such service or project and
provided also that this section shall not relieve any such unit of
government of any duty imposed by law to include in its annual budget or
tax levy or otherwise to pay from current funds all or part of any
expenditure that it may make for any such service or project.
(c) Where the agreement between the municipal corporations or
municipalities in relation to any joint service or any joint water,
sewage or drainage project does not provide that the indebtedness which
is to be contracted is to be joint indebtedness, the amounts of
indebtedness which are to be contracted severally by the parties to the
agreement shall be in the proportions specified in the agreement. Where
the agreement does not provide how the indebtedness shall be contracted,
and the parties cannot otherwise agree, the indebtedness shall be
contracted as joint indebtedness.
(d) Any involuntary indebtedness which is incurred because of a joint
service or joint water, sewage or drainage project shall, until
satisfied, be deemed the joint indebtedness of the parties to the
agreement. The payment of any such indebtedness, however, may be
financed by the issuance of obligations severally by such parties for
specific proportions of the amount thereof according to the terms of the
agreement. Where the agreement does not provide how such involuntary
indebtedness shall be financed, and the parties cannot otherwise agree,
the obligations issued to finance the payment thereof shall be joint
indebtedness.
(e) Where joint indebtedness is contracted pursuant to the provisions
of this section the participating municipal corporations or
municipalities, by joint action of their finance boards or their chief
fiscal officers, as the case may be, may issue obligations pursuant to
the provisions of this chapter in the same manner as a single county,
city, town, village or school district and shall pledge the joint faith
and credit of the issuers for the payment of all such indebtedness.
(f) Notwithstanding any other provision of this title, or of any other
provision of law, in relation to (1) the allocation and apportionment of
joint indebtedness for the purpose of determining the debt-contracting
power of a municipal corporation or municipality or (2) the exclusion of
any such joint indebtedness in determining the debt-contracting power of
a municipal corporation or municipality, the liability of the
participating municipal corporations or municipalities for the payment
of the principal of an interest on such joint indebtedness shall be a
joint liability of the participating municipal corporations or
municipalities.
(g) Where there has been a pledge of the faith and credit of any
municipal corporation or municipality pursuant to section 100.00 of this
chapter for the payment of any several indebtedness, or of any joint
indebtedness, in relation to a joint service or a joint water, sewage or
drainage project, provisions shall be made annually by appropriation for
the payment of the interest thereon and of the amounts required for the
redemption thereof in compliance with the provisions of section two of
article eight of the constitution. If at any time the respective
appropriating authorities of any such municipal corporation or
municipality shall fail to make such appropriations, a sufficient sum
shall be set apart from the first revenues thereafter received and shall
be applied to such purposes. The chief fiscal officer of any such
participating municipal corporation or municipality may be required to
set apart and apply such revenues as aforesaid at the suit of any holder
of obligations issued for any such indebtedness. All laws requiring the
withholding of state aid in the event of the default in the payment of
the principal of and interest on indebtedness shall be applicable in the
event of a default in the payment of the principal of and interest on
any such several indebtedness or joint indebtedness.
(h) The powers which may be exercised by a finance board in relation
to such joint indebtedness or several indebtedness shall include, but
shall not be limited to, the following:
1. Determining the period of probable usefulness for any object or
purpose or class thereof.
2. Determining the subdivision of paragraph a of section 11.00 of this
chapter which applies to any object or purpose or class thereof.
3. Authorizing the issuance of bonds and the issuance and renewal of
bond anticipation notes, capital notes, tax anticipation notes, revenue
anticipation notes and budget notes subject to the provisions of this
section and sections 21.00, 23.00, 24.00, 25.00, 28.00, 29.00, 30.00,
31.00, 32.00, 33.00, 33.10, 34.00, 35.00, 36.00, 37.00, 38.10, 39.00,
40.00 and 41.10 of this chapter.
4. Prescribing the terms, form and contents of obligations, the place
of payment thereof, and providing for the sale, execution, issuance and
delivery and cancellation thereof subject to the provisions of this
section and sections 50.00, 51.00, 52.00, 53.00, 54.00, 55.00, 55.10,
56.00, 57.00, 58.00, 59.00, 60.00, 61.00, 62.00, 62.10, 63.00 and 63.10
of this chapter, except as otherwise provided in subparagraph (u) of
this subdivision.
5. Entering into contracts with a bank or trust company for the place
of payment of obligations and for the purpose of having a bank or trust
company act as paying agent or as registration agent subject to the
provisions of this section and sections 54.00 and 70.00 of this chapter.
6. Adopting the procedure specified in sections 80.00 and 81.00 of
this chapter which would be requisite to making sections 82.00, 83.00
and 84.00 of this chapter applicable.
7. Repealing or revoking resolutions or certificates authorizing the
issuance of obligations, subject, however, to the provisions of section
41.00 of this chapter.
8. Refunding of capital notes pursuant to the provisions of section
91.00 of this chapter, except that the provisions of paragraph b of
section 107.00 of this chapter shall not be applicable in any such
refunding of joint indebtedness or several indebtedness.
9. Reissuing obligations in place of lost, destroyed, partially
destroyed or defaced obligations pursuant to section 104.00 of this
chapter.
10. Depositing and investing the proceeds of obligations subject to
the provisions of section 165.00 of this chapter.
11. Authorizing the temporary use of funds pursuant to section 165.10
of this chapter.
(i) The finance boards of the participating municipal corporations or
municipalities shall provide that the place of payment of bonds or notes
constituting joint indebtedness shall be in the office of an appropriate
officer of one of the participating municipal corporations or
municipalities if a contract is not made with a bank or trust company as
the place of payment as provided in section 54.00 of this chapter.
(j) The finance boards of the participating municipal corporations or
municipalities shall designate an appropriate officer of one of the
participating municipal corporations or municipalities as registration
agent in relation to any bonds or notes constituting joint indebtedness
if a contract is not entered into with a bank or trust company to act as
registration agent as provided in section 70.00 of this chapter. The
officer so designated shall perform all of the duties and keep all of
the records in relation to such joint indebtedness required by sections
70.00, 71.00, 72.00, 73.00, 74.00, 75.00 and paragraph d of section
164.00 of this chapter.
(k) The finance board of the participating municipal corporations or
municipalities shall designate an appropriate officer of one of the
participating municipal corporations or municipalities to keep the
record of any bonds or notes constituting joint indebtedness as required
by section 163.00 of this chapter.
(l) Notwithstanding any other provisions of this section, if any power
of a finance board of any participating municipal corporation or
municipality may be delegated to its chief fiscal officer or to any
other official or body under any section of this chapter, such chief
fiscal officer or other official or body may exercise the powers so
delegated in relation to matters to which this title and other
provisions of this chapter apply.
(m) Notwithstanding any other provisions of this section, where any
power may be delegated to the chief fiscal officers of the participating
municipal corporations or municipalities pursuant to this section, the
finance boards of the participating municipal corporations or
municipalities may agree that any such power may be delegated to and
exercised by one of such chief fiscal officers.
(n) Where any action is taken in relation to joint indebtedness for
which the joint faith and credit of the participating municipal
corporations or municipalities would be pledged, or in relation to
obligations issued pursuant to this chapter, the finance boards of each
of the participating municipal corporations or municipalities must
separately authorize such action to be taken, except as otherwise
provided in subparagraphs (l) and (m) of this subdivision. Such separate
authorization by each such finance board shall be subject to the
provisions of this chapter, and of local laws enacted pursuant to this
chapter, which would be applicable in the event that the object or
purpose in relation to which action is being taken was the object or
purpose solely of the county, city, town, village or school district
which the finance board represents.
(o) Where the fiscal years of the participating municipal corporations
or municipalities are not the same and where joint indebtedness is to be
or has been contracted by the issuance or renewal of tax anticipation
notes, revenue anticipation notes, capital notes and budget notes or any
action is required to be taken in, or limitation is applicable in
connection with, a "fiscal year," the finance boards of such
participants may determine that the "fiscal year" for such purposes
shall be the same as the fiscal year of one of the participants.
(p) Notwithstanding the provisions of section 31.00 of this chapter,
any school district which is a participating municipal corporation in
relation to a joint service may, in connection with such joint service,
adopt one or more bond resolutions or capital note resolutions
authorizing the issuance of bonds or capital notes as several
indebtedness, or may participate in the adoption of any such resolution
authorizing the issuance of bonds or capital notes as joint
indebtedness, for a class of objects or purposes for which objects or
purposes serial bonds may be issued, subject, however, to the applicable
provisions of section 37.00 of this chapter.
(q) A bond resolution, a capital note resolution or a budget note
resolution adopted in compliance with the provisions of sections 32.00
and 40.00 of this chapter for a joint service or a joint water, sewage
or drainage project shall state the total amount of the indebtedness
which is to be contracted severally by the issuance of bonds, capital
notes or budget notes by each of the participating municipal
corporations or municipalities for the object or purpose or class
thereof set forth in the resolution, or, if joint indebtedness is to be
contracted, any such resolution shall set forth the total amount of the
joint indebtedness which is to be contracted and the amounts which it is
estimated will be allocated and apportioned to each of the participating
municipal corporations or municipalities for the purpose of ascertaining
their debt-contracting powers.
(r) Notices to be published in relation to a mandatory or permissive
referendum pursuant to sections 33.10, 35.00, 36.00 and 37.00 of this
chapter, and notices required to be published in connection with the
voting of a special tax or a tax to be collected in installments as a
condition precedent to the adoption of a bond resolution for a joint
service or joint water, sewage or drainage project, shall state the
total amount of the indebtedness which is to be contracted severally by
the issuance of bonds and capital notes by each of the participating
municipal corporations or municipalities for the object or purpose or
class thereof for which it is proposed that bonds or capital notes will
be issued, or, if joint indebtedness is to be contracted, any such
notice shall set forth the total amount of the joint indebtedness which
is to be contracted and the amounts which it is estimated will be
allocated and apportioned to each of the participating municipal
corporations or municipalities for the purpose of ascertaining their
debt-contracting powers.
(s) The notice required to be published in an official newspaper
pursuant to section 81.00 of this chapter shall, where joint
indebtedness is to be incurred, be published in the official newspaper
or newspapers of each of the participating municipal corporations or
municipalities or if there be no such newspaper or newspapers, then in
one or more newspapers having general circulation in such municipal
corporations or municipalities as the finance boards shall designate,
except that where any newspaper is the official newspaper of all of the
participating municipal corporations or municipalities or is the only
newspaper designated by the finance boards as a newspaper having general
circulation in all of the participating municipal corporations or
municipalities only one notice need be published in any such newspaper.
(t) If bonds which would constitute several indebtedness are sold at
private sale pursuant to the provisions of paragraph b of section 63.00
of this chapter, the amount of such bonds shall be included in any
computation of the total amount of bonds which may be sold at private
sale in any fiscal year of the issuer.
(u) Bonds which would constitute joint indebtedness may be sold at
private sale pursuant to and, except as hereinafter provided, subject to
the provisions of paragraph b of section 63.00 of this chapter. The
total amount of such bonds which may be so sold at private sale in any
calendar year shall not exceed one million dollars. The limitation of
paragraph b of section 63.00 in relation to the total amount of bonds
which may be sold at private sale in any fiscal year of the issuer shall
not be applicable to bonds sold pursuant to this subparagraph. The
amount of any bonds sold pursuant to this subparagraph shall not be
included in computing the total amount of bonds not constituting joint
indebtedness which could be sold at private sale in any fiscal year of
the issuer pursuant to paragraph b of section 63.00.
(v) The provisions of paragraph b of section 107.00 of this chapter in
relation to down payment shall not apply in relation to any joint
service or joint water, sewage or drainage project which is to be
financed in whole or in part by the issuance of obligations constituting
joint indebtedness or several indebtedness of the participating
municipal corporations or municipalities.
(w) The limitations on the amount of budget notes which may be issued
in any fiscal year and which are set forth in subdivisions two and three
of paragraph a of section 29.00 of this chapter and in paragraph i of
such section shall not be applicable to budget notes issued for the
purposes permitted by such subdivisions two and three of paragraph a and
such paragraph i of section 29.00 and in relation to a joint service or
a joint water, sewage or drainage project. Such budget notes issued for
such purposes shall not affect the power of a county, city, town,
village or school district to issue budget notes for other purposes
under such provisions of section 29.00 of this chapter.
(x) The provisions of sections 160.00, 160.10, 161.00, 162.00, 165.00,
166.00, 167.00, 170.00 and 180.00 of this chapter relating to action by
the finance board, delegation of powers and duties, negotiability of
obligations, tax exemption, use of proceeds, inclusive of premiums, from
the sale of obligations, legal actions and appeals, powers to adopt
local laws and liberal construction, and all other pertinent provisions
of this chapter essential to effectuate the objects and purposes of this
title, shall be applicable in relation to the indebtedness and financing
of a joint service or a joint water, sewage or drainage project, except
as otherwise expressly provided in this title.
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