ยง 42. Definitions. For the purposes of this article, the following
terms shall have the following meanings:
1. "Cooperative investment agreement" shall mean the temporary
investment of moneys by more than one municipal corporation pursuant
to a municipal cooperation agreement entered into in accordance with
the provisions of article five-G of this chapter and this article. Such
term, however, shall not include investments made pursuant to a
municipal cooperation agreement that: (a) has as its primary purpose
the performance of a function, power or duty, or the provision of a
joint service, other than the investment of funds, provided that the
only moneys invested pursuant to such an agreement are those reasonably
necessary to perform such other function, power or duty or provide
such other joint service; or (b) identifies the specific investments
to be made thereunder and provides for the termination of the agreement
upon the sale, redemption or maturity of such investments.
2. "Irrevocable letter of credit" shall mean an irrevocable letter of
credit issued in favor of every participant in the agreement by a bank
whose commercial paper and other unsecured short-term debt obligations
(or, in the case of a bank which is the principal subsidiary of a
holding company, whose holding company's commercial paper and other
unsecured short-term debt obligations) are rated in one of the three
highest rating categories (based on the credit of such bank or holding
company) by at least one nationally recognized statistical rating
organization or by a bank that is in compliance with applicable federal
minimum risk-based capital requirements.
3. "Market value" shall mean market prices obtained from a nationally
recognized security pricing service or from a minimum of three primary
reporting dealers in government securities as determined by the federal
reserve bank.
4. "Municipal corporation" shall have the same meaning as in section
one hundred nineteen-n of this chapter.
5. "Participant" shall mean each municipal corporation that enters
into a cooperative investment agreement in accordance with the
provisions of this article.