New York Laws
Title 5 - Local Obligations: Registration, Conversion and Reconversion Thereof
70.00 - Fiscal Agent.

§ 70.00 Fiscal agent. a. The term "fiscal agent" as used in this
title shall mean:

1. In counties, the chief fiscal officer thereof, unless the finance
board shall designate a different officer.

2. In cities, the chief fiscal officer thereof.

3. In towns and villages, the clerk thereof.

4. In school districts and district corporations, the clerk or
secretary or such other officer thereof as the finance board shall
designate, except that in a river improvement or drainage district
established by or under the supervision of the department of
conservation the state comptroller shall act as fiscal agent. However, a
finance board on behalf of any municipality, school district or district
corporation, or in the case of the city of New York the chief fiscal
officer thereof, may contract from time to time, with any bank or banks
or trust company or trust companies located and authorized to do
business in this state for the purpose of having such bank or trust
company act, in connection with all its obligations, or any specific
issue or issues of its obligations, or any specific type or types of its
obligations, as the fiscal agent for such municipality, school district
or district corporation, including the maintenance of an office for the
registration, conversion, reconversion and transfer of bonds and notes,
the preparation and substitution of new bonds and notes, and for the
payment of the principal thereof, redemption premium, if any, interest
thereon, and for related services, and for the payment by such
municipality, school district or district corporation of a reasonable
compensation to any such bank or trust company for the services to be
performed by it pursuant to such contract. Any such bank or trust
company shall be responsible to the municipality, school district or
district corporation for the faithful and safe conduct of the services
to be performed by it as such fiscal agent, or services related thereto;
for the fidelity and integrity of the officers and agents of such bank
or trust company performing the duties of a fiscal agent, or services
related thereto; and for all loss or damage which may result from any
failure of such officers or agents to discharge their duties and for any
improper or incorrect discharge of those duties; and shall save the
municipality, school district or district corporation free and harmless
from any and all loss or damage occasioned by or incurred in the
performance of such services. Such contracts may be terminated by the
finance board of the municipality, school district or district
corporation, or in the case of the city of New York the chief fiscal
officer thereof, at any time.

b. The fiscal agent, if not already under bond, shall execute a bond
in such form, in such sum and with such sureties as the finance board,
or in the case of the city of New York the chief fiscal officer thereof,
shall direct and approve, and such approval shall be indicated upon the
bond. Such bond shall then be filed in the office of the clerk of the
county in which the municipality, school district or district
corporation is located. If the municipality, school district or district
corporation is located in more than one county, a duplicate original of
such bond, approved by the finance board, or in the case of the city of
New York the chief fiscal officer thereof, shall be filed in the office
of the clerk of each county in which the municipality, school district
or district corporation is located, except that in a city containing
more than one county such bond shall be filed only in the office of the
city clerk. The expense of such bond shall be a charge upon the
municipality, school district or district corporation. The provisions of
this paragraph shall not apply to a bank or trust company which has been
designated as fiscal agent of a municipality, school district or

district corporation pursuant to the provisions of paragraph a of this
section, unless the finance board of such municipality, school district
or district corporation, or in the case of the city of New York the
chief fiscal officer thereof, shall by resolution determine that such
bank or trust company shall be required to furnish a bond for the
faithful performance of its duties as fiscal agent.

c. No municipality, school district or district corporation, or any
fiscal agent thereof, shall charge, impose, collect, or receive from the
holder of any obligation issued pursuant to this chapter, or issued
pursuant to laws in effect prior to the effective date of this chapter,
any fee or consideration for any services required to be performed by a
fiscal agent pursuant to the provisions of this chapter. However, the
holder of an obligation shall bear the expense of preparing new bonds or
coupons which he shall request to be issued pursuant to the provisions
of title five of this article, also the actual and necessary expenses
for the mailing, shipping or the insuring of obligations incurred in
connection with the rendition of services performed by a fiscal agent at
his request. At least annually every fiscal agent shall render to and
file with the finance board of the municipality, school district or
district corporation, or in the case of the city of New York the chief
fiscal officer thereof, for which he or it acts a statement of all
moneys received and disbursed by such agent for the expenses mentioned
in this paragraph. Notwithstanding the foregoing provisions of this
paragraph, if the finance board of a municipality, school district or
district corporation, or in the case of the city of New York the chief
fiscal officer thereof, shall determine that it would be to the
financial advantage of the municipality, school district or district
corporation not to impose and collect such mailing, shipping or
insurance charges, it may adopt a resolution directing its fiscal agent
not to impose and collect any or all of such charges.

d. Notwithstanding any other provisions of law, the comptroller of the
city of New York may prescribe rules and regulations for the
registration, conversion, reconversion and transfer of the bonds and
notes of the city of New York, including the preparation and
substitution of new bonds, for the payment of the principal thereof,
redemption premium, if any, and interest thereon, and for other
authorized services to be performed by such fiscal agent.

e. Any bank or trust company acting as the fiscal agent of a
municipality, school district or district corporation may bid for,
purchase, acquire, hold, sell or dispose of obligations of the
municipality, school district or district corporation for which it acts
as such agent, and may enter into other service contracts with the
municipality, school district or district corporation. No bank or trust
company acting as such fiscal agent shall print, engrave, or otherwise
prepare, new bonds or coupons required in connection with the conversion
and reconversion of bonds as provided in title five of this article, if
such bank or trust company acts as fiscal agent in such conversion or
reconversion.

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