New York Laws
Title 3 - Local Obligations: Authorization Thereof
40.10 - Deficiency Note Resolution; Form and Contents; Authorization Thereof.

§ 40.10 Deficiency note resolution; form and contents; authorization
thereof. a. The issuance of deficiency notes or renewals thereof shall
be authorized by a "deficiency note resolution". Each such resolution
shall be properly dated and shall bear a title which will indicate that
it relates to a deficiency note.

b. Any municipality, school district or district corporation may adopt
one or more deficiency note resolutions authorizing the issuance of
deficiency notes for the specific object or purpose of covering a
deficiency in any fund or funds arising from revenues being less than
the amount estimated in the budget for the current fiscal year of the
municipality, school district or district corporation.

c. A deficiency note resolution shall contain, in substance, at least
the following provisions:

1. a statement of the specific object or purpose for which the
deficiency notes to be authorized by such resolution are to be issued;

2. a statement of the amount of deficiency notes to be issued, the
amount and the cause of the deficiency in revenues, and that no other
source of financing is available;

3. a statement of the period of maturity of such notes; and

4. if such notes are to be issued in renewal of other notes, a
statement that the date of maturity of such notes shall not extend
beyond the applicable period provided in section 29.20 of this article
for the maturity of such notes.

d. Every deficiency note resolution shall be adopted by at least a
majority vote of the voting strength of the finance board. A two-thirds
vote of the voting strength of the finance board shall be required to
adopt a deficiency note resolution authorizing the issuance of renewal
notes or authorizing the issuance of deficiency notes in a year next
succeeding a year in which deficiency notes were issued.