New York Laws
Title 3 - Erie County Fiscal Stability Authority
3965 - Resources of the Authority.

(b) Nothing contained in this title shall be construed to create a
debt of the state within the meaning of any constitutional or statutory
provisions. Any provision with respect to state aid or state aid
revenues shall be deemed executory only to the extent of moneys
available, and no liability shall be incurred by the state beyond the
moneys available for that purpose, and any such payment by the
comptroller of state aid revenues is subject to annual appropriation of
state aid by the state legislature.
(c) Nothing contained in this title shall be deemed to restrict the
right of the state to amend, repeal, modify, or otherwise alter section
fifty-four of the state finance law or any provision relating to state
aid to municipalities. The authority shall include within any

resolution, contract, or agreement with holders of its bonds, notes or
other obligations a provision which states that no default occurs as a
result of the state's exercising its right to amend, repeal, modify, or
otherwise alter section fifty-four of the state finance law or any other
provision relating to state aid to municipalities.
7. On a monthly basis, the authority shall prepare and provide to the
county a detailed accounting of all revenues received and payments and
debt service set asides made, as attributable to the county. Such
accounting shall reflect: (a) the amount of state aid revenues and
county tax revenues received during such month; (b) the respective
portion of debt service paid or set aside during such month by the
authority for its bonds, notes or other obligations attributable to the
county; (c) the respective portion of reserve fund replenishment made or
set aside during such month by the authority in connection with its
bonds, notes or other obligations attributable to the county; and (d)
the respective portion of administrative expenses of the authority paid
or set aside during such month by the authority attributable to the
county. As soon as practicable after each monthly payment or set aside,
the authority shall make respective payments of the remaining monthly
balance or revenues to the county in accordance with such accounting. To
the extent that such respective monthly payments of the remaining
balance of revenues result in an overpayment or underpayment to the
county, the authority shall in the immediately subsequent month, after
making debt service payments or debt service set asides, replenishing
any reserve funds and paying the administrative expenses of the
authority for such month, make an adjustment in favor of the county, as
the case may be, before determining the remaining amount of the balance
of revenues for such subsequent month and paying such remaining monthly
balance of revenues to the county. Nothing in this title shall be deemed
to restrict the authority of the state comptroller and the commissioner
of taxation and finance to adjust for overpayments or underpayments
pursuant to the tax law.
8. (a) This subdivision shall apply only to revenue anticipation
notes, including renewals thereof, issued by the county during its
fiscal year ending December thirty-first, two thousand five, in
anticipation of the receipt of state aid revenues and/or county tax
revenues, and only to such issues of revenue anticipation notes as to
which the certificate described in paragraph (b) of this subdivision is
filed. For purposes of this subdivision, "state aid" means state social
services aid, social services aid from the United States government,
state aid for court security, state aid for education of handicapped
children, and aid and incentives for municipalities, and shall be paid
by the state comptroller to the authority.
(b) Notwithstanding the provisions of subdivision five of this section
with respect to the transfer of the balance of revenues to the county,
prior to the delivery of each such issue of revenue anticipation notes,
the comptroller of the county shall file with the authority a request
that the authority establish a county of Erie revenue anticipation note
withholding fund which shall constitute a special bank account for
purposes of paragraph g of section 25.00 of the local finance law. Such
request by the comptroller shall be accompanied by a certificate setting
forth with respect to such issue (i) the principal amount, (ii) the date
of issue, (iii) the maturity date, (iv) the interest rate or rates, (v)
if interest shall be payable otherwise than at maturity, the date or
dates for the payment thereof, (vi) the name and address of the paying
agent, (vii) the name and address of each purchaser, or, if a purchaser
shall be a syndicate or similar account, the name and address of each
managing underwriter of such syndicate or similar account, (viii) the

amount payable on each principal payment date and interest payment date,
and (ix) a schedule setting forth the total amount of state aid revenues
and county tax revenues anticipated to be received, and the expected
date or dates of anticipated receipt of such state aid revenues and
county tax revenues. Such certificate shall be accompanied by a
statement executed by the comptroller certifying that the amounts and
times of payments of state aid revenues and county tax revenues
contained in such schedule have been estimated by the use of reasonable
and appropriate data and methods of estimation, all in accordance with
applicable law.
(c) All such revenue anticipation notes, in addition to a pledge of
the faith and credit of the county for the payment thereof, shall
contain a recital to the effect that they are entitled to the benefits
of the provisions of this subdivision.
(d) Commencing on the date not less than five days prior to and on
each day thereafter up to and including any principal and/or interest
payment date referred to in the certificate filed by the comptroller
with the authority pursuant to paragraph (b) of this subdivision, the
authority shall pay to such paying agent from state aid revenues and
county tax revenues transferred and credited by the authority to the
county of Erie revenue anticipation note withholding fund as provided in
paragraph (e) of this subdivision the amount required to pay in full the
principal and/or interest due on such payment date as set forth in such
certificate. Moneys so paid shall pass immediately from the authority
and vest in such paying agent in trust for the benefit of the holders of
the revenue anticipation notes to which such certificate relates. No
other person having any claim of any kind in tort, contract or otherwise
against the county shall have any right to or claim against the moneys
held by such paying agent, and such moneys shall not be subject to any
order, judgment, lien, execution, attachment, setoff or counterclaim by
any such other person. Such moneys shall be held by such paying agent in
a separate trust account and shall be applied only to the payment of the
principal and/or interest due on such revenue anticipation notes,
provided, however, that the contract by and between the county and such
paying agent may provide for (i) the investment by such paying agent of
such moneys in direct obligations of, or in obligations guaranteed by,
the United States of America, provided such obligations shall be payable
or redeemable at the option of the holder within such time as the
proceeds shall be needed to pay such principal and/or interest due on
such revenue anticipation notes, and (ii) the use by such paying agent
of such moneys for the purchase of direct obligations of, or obligations
guaranteed by, the United States of America under one or more repurchase
agreements with any bank or trust company having its principal office in
the state of New York, provided that any such repurchase agreement shall
provide for the repurchase of such obligations within such time as such
moneys are needed to pay the principal and/or interest due on such
revenue anticipation notes at a repurchase price at least sufficient to
make the amount so invested available for the payment of principal
and/or interest due on such revenue anticipation notes, and provided,
further, that, at the time of such purchase, the market value of such
obligations shall be at least equal to one hundred two per centum of the
amount so invested. No person having any claim of any kind in tort,
contract or otherwise against the county shall have any right to or
claim against any moneys in anticipation of which such notes have been
issued, other than a claim for payment by the holders of such notes, and
such moneys shall not be subject to any order, judgment, lien,
execution, attachment, setoff or counterclaim by any such person.
Notwithstanding any provision of law to the contrary, no instrument

relating to any transaction authorized or contemplated by this paragraph
need be filed under the provisions of the uniform commercial code.
(e) Commencing on the day when the authority determines that the
principal and interest due or to come due on such outstanding revenue
anticipation notes issued against such state aid revenues and/or county
tax revenues in accordance with the provisions of this subdivision shall
equal the amount of such state aid revenues and such county tax revenues
as set forth on the schedule included in the certificate filed with the
authority pursuant to paragraph (b) of this subdivision remaining to be
paid to the county on or prior to any principal and/or interest payment
date, the authority shall deduct and withhold from the amount of such
state aid revenues and county tax revenues otherwise payable to the
county an amount sufficient to pay, when due, the principal of and
interest on all such revenue anticipation notes issued and then
outstanding in anticipation thereof. Amounts so deducted and withheld
shall be transferred and credited by the authority to the account
established for such state aid revenues and county tax revenues in the
county of Erie revenue anticipation note withholding fund established by
the authority in accordance with the comptroller's request pursuant to
paragraph (b) of this subdivision. The payments required to be made by
the authority pursuant to paragraph (d) of this subdivision shall be
made from amounts on deposit in the accounts established for such state
aid revenues and county tax revenues in the county of Erie revenue
anticipation note withholding fund.
(f) Notwithstanding any other provision of this subdivision, at the
expiration of one hundred eighty days after the maturity date of any
issue of revenue anticipation notes issued in accordance with the
provisions of this subdivision, the amounts held by the paying agent
thereof for the payment of the principal of and interest on the notes of
such issue which have not been presented for payment shall be paid over
and remitted by such paying agent to the county and thereafter the
holders of such notes shall look only to the county for such payment.
(g) All other provisions of the local finance law not inconsistent
with the provisions of this subdivision shall continue to apply to the
authorization and issuance of revenue anticipation notes by the county.