(i) to fund any debt service reserve fund,
(ii) to provide capitalized interest,
(iii) to provide for original issue discount, and
(iv) to provide for the payment of fees and other charges and
expenses, including underwriters' discount, related to the issuance of
such bonds or notes, or related to the provision of any applicable bond
or note facilities, excluding refunding bonds.
Provided, however, that upon any refunding or repayment of such bonds
or notes the total aggregate principal amount of outstanding bonds and
notes may be greater than thirty-five million dollars ($35,000,000) only
if the present value of the aggregate debt service of the refunding or
repayment bonds to be issued shall not exceed the present value of the
aggregate debt service of the bonds so to be refunded or repaid. For
purposes hereof, the present values of the aggregate debt service of the
refunding or repayment bonds and of the aggregate debt service of the
bonds so refunded or repaid, shall be calculated by utilizing the
effective interest rate of the refunding or repayment bonds, which shall
be that rate arrived at by doubling the semi-annual interest rate
(compounded semi-annually) necessary to discount the debt service
payments on the refunding or repayment bonds from the payment dates
thereof to the date of issue of the refunding or repayment bonds and to
the price bid including estimated accrued interest or proceeds received
by the agency including estimated accrued interest from the sale
thereof.
Such local law shall be subject to the following limitations and
conditions:
(i) Any such local law shall become effective on the date of issue of
any bonds and/or bond anticipation notes the payment of which is secured
by the proceeds of such sales and compensating use taxes;
(ii) Any such local law shall be made subject to such terms and
conditions, not inconsistent with this section, as may be determined
necessary or appropriate by such city council and agency, subject,
however, to any rights of holders of previously issued bonds and/or bond
anticipation notes secured by such tax proceeds and shall be deemed to
be in effect only while bonds and/or bond anticipation notes which are
so secured are outstanding and may provide that it shall not be
repealed, rescinded or revoked or amended in a manner which is
prejudicial to the interests of said holders while such obligations
shall be outstanding;
(iii) Enactment of such local law shall be conditioned upon the
execution of an agreement between the city of Niagara Falls and the
county of Niagara whereby such county agrees to pay such city's share of
the proceeds of taxes payable to such city pursuant to section twelve
hundred sixty-two of the tax law to the state comptroller for so long as
bonds or notes issued pursuant to this section remain outstanding;
(iv) Any such local law shall not be enacted unless such city council
shall have determined that such local law is necessary and in the public
interest; and
(v) Notwithstanding any of the foregoing to the contrary, the
aforesaid pledge shall be deemed executory only to the extent of moneys
appropriated and made available therefor by the city.
(b) The state does hereby covenant and agree with the owners of each
issue of bonds and/or bond anticipation notes of the agency secured by a
pledge of proceeds of such sales and compensating use taxes that the
state will not repeal, rescind or revoke the provisions of this section
or section ninety-two-t of the state finance law or modify the same as
to limit, impair, or impede the rights hereby vested in the city and/or
the agency or in any way limit, impair, or impede the rights and
remedies of owners of said bonds and/or bond anticipation notes, until
such bonds and/or bond anticipation notes, together with the interest
thereon, and all costs and expenses in connection with any action or
proceeding by or on behalf of such owners, are fully paid or otherwise
discharged or defeased; provided that (i) nothing in this section shall
be deemed or construed as giving or pledging the credit of the state to
the payment of said bonds and/or bond anticipation notes; and (ii) this
pledge shall be subject to the reserved right of the state to alter the
base, rate, method of taxation and exemptions from taxation or the
method of distribution of the taxes which may be imposed pursuant to
section twelve hundred ten and section twelve hundred sixty-two of the
tax law, or any successor law thereto. The city and the agency are
authorized to include this covenant and agreement of the state in any
sale of such bonds and/or bond anticipation notes.
(c) The agency shall provide in any sale of bonds and/or bond
anticipation notes which are secured by proceeds of sales and
compensating use taxes as provided herein that the proceeds of the taxes
which would otherwise be received by the city pursuant to section twelve
hundred ten of the tax law or proceeds payable to the city pursuant to
section twelve hundred sixty-two of the tax law, or any successor
statutes thereto, shall, upon the occurrence of events described in
subdivision two of section ninety-two-t of the state finance law, be
paid by the state comptroller into the Niagara Falls sales tax fund for
disposition as provided in such section. The state comptroller is
hereby authorized and directed to pay such moneys to such fund, and to
make such arrangements as are deemed appropriate to facilitate such
payments, including, but not limited to the electronic transfer thereof.
(d) Upon delivery of any issue of bonds or notes secured by the
proceeds of sales and compensating use taxes as herein authorized, the
chair of the agency shall file with the state comptroller and the county
treasurer a certificate setting forth with respect to such issue the
name and address of the trustee for the holders thereof. Upon the
appointment of a successor trustee with respect to any issue of bonds or
notes secured as provided herein, a supplemental certificate shall be
filed with the state comptroller and the county treasurer prior to the
effective date of such appointment. Such trustee shall on or before
November first annually certify to the state comptroller and to the city
council the amount required for the ensuing city fiscal year for payment
of debt service on bonds or notes issued pursuant to this section and to
restore any deficiencies in any reserve funds established in connection
with the issuance of such bonds or notes.
(e) Pursuant to an appropriation by the city council of the amount
certified pursuant to subdivision (d) of this section, the state
comptroller shall pay such amount to the trustee out of proceeds of the
taxes pledged pursuant to this section. Any such proceeds in excess of
such certified amount shall be paid by the state comptroller to the city
of Niagara Falls. In the event that the amount to be paid by the state
comptroller is less than the amount certified pursuant to subdivision
(d) of this section, the comptroller shall pay such difference to the
trustee for the bondholders out of the first monies available for the
next succeeding payments of (i) state aid apportioned to the city of
Niagara Falls as per capita aid for the support of local government
pursuant to section fifty-four of this chapter or (ii) such other aid or
assistance payable by the state to the city and not otherwise allocated
as shall supersede or supplement such state per capita aid, including
federal monies apportioned to the city by the state, after giving
written notice to the chief fiscal officer of the city of Niagara Falls.
Any amount so paid over shall be deducted from the corresponding
apportionment of such per capita state aid otherwise payable to the city
of Niagara Falls, and shall not obligate the state to make nor entitle
the city to receive any additional apportionment or payment of per
capita state aid. Nothing herein shall affect the reserved right of the
state to amend such section fifty-four or otherwise reduce or eliminate
such per capita aid and such other aid or assistance.
(f) The state comptroller may conclusively rely upon the information
set forth or included by reference in any certificate filed therewith
pursuant to this section or section ninety-two-t of the state finance
law, and shall not be liable to the owner of any bond or note of the
agency on account of any reasonable action taken based upon such
information. The county treasurer may conclusively rely upon the
information set forth in any certificate filed therewith pursuant to
this section or section ninety-two-t of the state finance law, and shall
not be liable to the owner of any bond or note of the agency on account
of any reasonable action taken based upon such information.
(g) During the period that any local law enacted pursuant to this
section shall be in force, the city shall not issue revenue anticipation
notes in anticipation of the receipt of taxes authorized pursuant to
section twelve hundred ten of the tax law, which taxes are described in
subdivisions (b), (d), (e) and/or (f) of section eleven hundred five of
the tax law, and, in the event that the city issues revenue anticipation
notes in anticipation of the collection or receipt of any other
categories of sales taxes used as security to the bondholders pursuant
to the provisions of this section, when determining the total amount of
revenue anticipation notes which may be issued, in addition to the
amounts described in subparagraph (b) of subdivision three of paragraph
(d) of section 25.00 of the local finance law or the amounts described
in the unnumbered paragraph following such subparagraph (b), as the case
may be, there shall also be deducted an amount equal to the debt service
on the bonds or notes of the agency so secured thereafter remaining to
be paid during the fiscal year of the city with respect to which such
revenue anticipation notes are issued.
Structure New York Laws