New York Laws
Article 5-A - Certificates of Participation
66-A - Restriction on Issuance of Certificates of Participation.

§ 66-a. Restriction on issuance of certificates of participation. 1.
No person, partnership, corporation or other legal entity nor any state
officer, employee, agency, department, the city university of New York,
the legislature or the judiciary shall issue certificates of
participation or similar instruments representing the right to receive a
proportionate share in lease, installment or other periodic payments to
be made by any state department, agency or the city university of New
York except in accordance with the provisions of this article and with
the express written approval of the state comptroller. The provisions of
this section are hereby made a part of every purchase contract entered
into by such a state entity providing for periodic payments by any state
department, agency or the city university of New York. Every such
contract shall contain a clause expressly reciting the provisions of
this subdivision, provided, however, that the absence of such clause in
such a contract shall not obviate the duty of all parties thereto to
comply with the provisions of this subdivision. Neither this provision,
nor any other provision of this article shall be construed to prevent
such state entities from entering into installment purchase or lease
purchase agreements funded without the use of certificates of
participation or similar instruments.

2. For the purposes of this article, "state departments and agencies"
shall not include the legislature or the judiciary, and the provisions
of this article, unless otherwise specified, shall not apply to
installment purchase or lease purchase contracts entered into by the
legislature or the judiciary financed by the issuance of certificates of
participation or similar instruments representing the right to receive a
proportionate share in lease, installment or other periodic payments to
be made by the legislature or judiciary.

3. No state officer, employee, department, agency or the city
university of New York shall enter into any agreement in connection with
the issuance of certificates of participation which requires any payment
by the state to the trustee, on behalf of holders of such certificates,
during the month of April of any year.