* § 109-b. Installment contracts. 1. As used in this section:\n (a) "Political subdivision" shall mean a municipal corporation, school\ndistrict, district corporation or board of cooperative educational\nservices.\n (b) "Installment purchase contract" shall mean any lease purchase\nagreement, installment sales agreement or other similar agreement\nproviding for periodic payments between a corporation, person or other\nentity and a political subdivision which has as its purpose the\nfinancing of equipment, machinery or apparatus.\n (c) "Certificate of participation" shall mean a security or other\ninstrument representing a proportionate interest or the right to receive\na proportionate share in lease, rental, installment or other periodic\npayments made or to be made by a political subdivision or made by the\nagency on behalf of a political subdivision pursuant to an installment\npurchase contract.\n (d) "Agency" shall mean the state of New York municipal bond bank\nagency established by section twenty-four hundred thirty-three of the\npublic authorities law.\n (e) "Agency certificates of participation" shall mean certificates of\nparticipation executed and delivered by the agency on behalf of, for the\nbenefit of and pursuant to a written agreement with a political\nsubdivision.\n (f) Functions performed by a governing board under this section shall,\nin the city of New York, be performed by the mayor and comptroller, and\nthe approvals of the mayor and the comptroller of any agreement,\ncontract, instrument, arrangement or transaction contemplated by this\nsection shall be the only approvals required therefor, subject to the\nprovisions of the New York state financial emergency act for the city of\nNew York.\n 2. A political subdivision may enter into an installment purchase\ncontract subject to the following restrictions:\n (a) Neither any person, partnership, corporation or other legal entity\nnor any political subdivision, officer, employee, agency or department\nnor the agency for agency certificates of participation shall execute\nand deliver or cause the execution and delivery of certificates of\nparticipation except in accordance with the provisions of this section\nand with express written approval of the governing board of such\npolitical subdivision and with the concurrence of the agency for agency\ncertificates of participation. The provisions of this section are hereby\nmade a part of every installment purchase contract entered into by such\na political subdivision or by the agency for agency certificates of\nparticipation. Every such contract shall contain a clause expressly\nreciting the provisions of this subdivision, provided, however, that the\nabsence of such clause in such a contract shall not obviate the duty of\nall parties thereto to comply with the provisions of this subdivision.\nNeither this provision, nor any other provision of this section, shall\nbe construed to prevent such political subdivisions from entering into\ninstallment purchase or lease purchase agreements funded without the use\nof certificates of participation or similar instruments, as otherwise\nprovided in this section.\n (b) Subject to the provisions of subdivision five of this section, the\ngoverning board of a political subdivision shall adopt a resolution\nauthorizing the installment purchase contract.\n (c) Subject to the provisions of subdivision five of this section,\nwhere the financing of equipment, machinery or apparatus pursuant to an\ninstallment purchase contract is to be provided by agency certificates\nof participation, the governing board of a political subdivision shall\nadopt a resolution authorizing the written contract with the agency\nsetting forth the rights and liabilities of the agency and the political\nsubdivision as provided for in section twenty-four hundred thirty-five-a\nof the public authorities law.\n (d) The term of such installment purchase contract, including all\nrenewals thereof, shall
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.