securities rated in the highest category shall be valued at one hundred percent of their market value; those securities rated in the second highest rating category shall be valued at ninety percent of their market value; and those securities rated in the third highest rating category shall be valued at eighty percent of their market value. When two nationally recognized statistical rating organizations rate a security in two different categories, the security shall be considered to be rated in the higher of the two categories.]

§ 44. The state comptroller shall provide a model investment policy for local governments pursuant to section 39 of the general municipal law and model security and custodial agreements for local governments pursuant to section 10 of the general municipal law. It is the intent of the legislature that such model policy and agreements shall provide information and assistance to local government officials who are formulating local policies and agreements. The provision of such model policy and agreements by the comptroller shall not be construed as a mandate upon local governments to adopt identical policies and agreements.

§ 45. This act shall take effect on the one hundred twentieth day after it shall have become a law, provided that section forty-three of this act shall take effect June 30, 1995; and provided, however, that the amendments to the opening paragraph of subdivision 2 of section 11 of the general municipal law, made by section thirteen of this act and the opening paragraph of paragraph b of section 165.00 of the local finance law, made by section twenty-six of this act shall not affect the expiration and reversion of such provisions as provided in chapter 680 of the laws of 1976, as amended.

CHAPTER 709

AN ACT to amend chapter 905 of the laws of 1986 amending the general municipal law, relating to authorizing financing assistance for civic facilities by industrial development agencies, in relation to extending the provisions of such chapter

Became a law July 31, 1992, with the approval of the Governor.
Passed by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Section 5 of chapter 905 of the laws of 1986 amending the general municipal law, relating to authorizing financing assistance for civic facilities by industrial development agencies, as amended by chapter 388 of the laws of 1991, is amended to read as follows:

§ 5. This act shall take effect immediately and shall remain in full force and effect until [January] April 1, 1993, when upon such date (i) the provisions of subdivision 4 of section 854 of the general municipal law, as amended by section one of this act, shall revert to and be read as set out in law on the date immediately preceding the effective date of this act, and (ii) the provisions of sections two and three act shall be deemed to be repealed.

§ 2. This act shall take effect immediately.

CHAPTER 710

of this

AN ACT to authorize the city of Glen Cove to finance a deficit by the issuance and sale of serial bonds

Became a law July 31, 1992, with the approval of the Governor. Passed on Home Rule request pursuant to Article IX, section 2(b) (2) of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. (a) The city of Glen Cove is hereby authorized to issue serial bonds in the aggregate principal sum not to exceed three million

dollars for the specific object and purpose of providing for the funding of the accumulated deficit incurred as of December 31, 1991, including any tax anticipation notes which may be a part of the deficit. In anticipation of the issuance and sale of such serial bonds, bond anticipation notes are hereby authorized to be issued.

(b) Further, the city of Glen Cove is hereby authorized to issue serial bonds in an aggregate principal amount as not to exceed three million dollars for the purpose of liquidating the projected deficit to be incurred in its budget during the 1992 fiscal year, due to overestimates of revenue and understatements of expenditures. The city of Glen Cove shall not authorize bonds or bond anticipation notes unless or until the existence of the cumulative and projected deficits is identified and the amount thereof is confirmed by the state comptroller. The city shall prepare a report detailing the size and cause of the deficit within thirty days from the close of the fiscal year or the effective date of this act, whichever is later, and submit such report to the state comptroller. Within thirty days after receiving the report, the state comptroller shall perform such reviews as may be necessary and confirm the existence of a deficit and the amount thereof.

$ 2. (a) The specific object or purpose referred to in section one of this act is hereby declared to be a public purpose which the city of Glen Cove is hereby authorized to accomplish and the period of probable usefulness thereof is hereby determined to be ten years.

(b) Notwithstanding the provisions of any other law, general, special or local, the city of Glen Cove is hereby authorized to levy a tax to be collected in installments sufficient to pay the principal and the interest on said bonds and bond anticipation notes and to adopt a bond resolution authorizing the serial bonds herein authorized to be issued.

§ 3. To facilitate the marketing of bonds and bond anticipation notes authorized to be issued by this act, the city of Glen Cove may, notwithstanding any limitations on the private sales of bonds provided by law, and subject to the approval of the state comptroller of the terms and conditions of such sales: (a) arrange for the underwriting of its bonds and notes at private sale through negotiated agreement, compensation for such underwriting to be provided by negotiated fee or by sale of such bonds or notes to an underwriter at a price of less than the sum of par value of, and the accrued interest on, such obligations; or (b) arrange for the private sale of its bonds or notes through negotiated agreement, compensation for such sales to be provided by negotiated fee, if required. The cost of such underwriting or private placement shall be deemed a preliminary cost for purposes of section 11.00 of the local finance law.

such

§ 4. In addition to the provisions set forth in paragraph b of section 10.00 of the local finance law, for each fiscal year Occurring during the time bonds or bond anticipation notes issued pursuant to this act are outstanding, the mayor of such city shall monitor all budgets and for each such budget, prepare a quarterly report of summarized budget data depicting overall trends of actual revenues and budget expenditures for the entire budget rather than individual line items. Such reports shall compare revenue estimates and appropriations as set forth in budget with the actual revenues and expenditures made to date. All quarterly reports shall be accompanied by a recommendation from the mayor of such city setting forth any remedial action necessary to resolve any unfavorable budget variance including the overestimation of revenues and the underestimation of appropriations. The mayor of such city shall also prepare a quarterly trial balance of general ledger accounts. The quarterly budgetary report and trial balance shall be prepared in accordance with generally accepted accounting principals. These reports shall be prepared within sixty days after the end of each quarter and shall be submitted to the common council, the office of the state comptroller,

the chairman of the senate finance committee and the chairman of the assembly ways and means committee.

§ 5. This act shall take effect immediately.

EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

CHAPTER 711

AN ACT to authorize the city of Utica to issue serial bonds and/or bond anticipation notes for the purpose of liquidating deficits in the city's general fund

Became a law July 31, 1992, with the approval of the Governor. Passed on Home Rule request pursuant to Article IX, section 2(b) (2) of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The city of Utica, Oneida county, is hereby authorized to issue serial bonds in an aggregate principal amount not to exceed nine million eight hundred thousand dollars for the specific object or purpose of (i) liquidating the cumulative projected deficit of three million three hundred thousand dollars in its general fund at the close of its fiscal year ending March 31, 1992, (ii) liquidating a projected deficit by permanently funding the one million seven hundred thousand dollars' worth of budget notes issued on March 30, 1992 to pay the cost of an object or purpose for which no provision was made in the city's annual budget for the fiscal year ending March 31, 1992 and (iii) liquidating the projected deficit of four million eight hundred thousand dollars in its general fund at the close of its current fiscal year ending March 31, 1993 resulting from no provision being made in the city's annual budget for its current fiscal year to pay employee retirement fund contributions to the state and employee social security expenses to the federal government. In anticipation of the issuance of the bonds authorized to be issued by this act, bond anticipation notes are hereby authorized to be issued.

§ 2. (a) Notwithstanding anything in this act to the contrary, the city of Utica, Oneida county, shall not authorize the issuance of any bonds or bond anticipation notes for the purpose of liquidating the projected deficit in its general fund at the close of the fiscal year ended March 31, 1992 until the amount of such deficit is determined by the state comptroller. The city shall prepare a report detailing the amount and cause of such deficit within thirty days from the effective date of this act and shall submit such report to the state comptroller. Within thirty days after receiving such report, the state comptroller shall perform such reviews as may be necessary to determine the amount of such deficit. Bonds or bond anticipation notes to liquidate such deficit shall not be issued in an amount exceeding the amount of such deficit as determined by the state comptroller.

(b) Notwithstanding anything in this act to the contrary, the city of Utica, Oneida county, shall not issue any bonds for the purpose of either liquidating the projected deficit by permanently funding the budget notes or for the purpose of liquidating the projected deficit in its general fund at the close of its current fiscal year ending March 31, 1993 until the amount of each such respective deficit is determined by the state comptroller. The city shall timely prepare a report or reports detailing the amount and cause of each such deficit and submit such to the state comptroller. Within thirty days after receiving each such report, the state comptroller shall perform such reviews as may be necessary to determine the amount of each such deficit. Bonds to liquidate either or both of such deficits shall not be issued in an amount exceeding the respective amounts of such deficits as determined by the state comptroller. Nothing herein provided shall prevent such city from authorizing the issuance of bonds or bond anticipation notes for the purpose of liquidating either of such deficits or from issuing bond anticipation notes therefor prior to a determination by the state comptroller of the amount of either of such deficits. In the event that bond anticipation notes are issued in an amount in excess of the amount of either of such deficits as determined by the state comptroller, such city shall redeem such bond anticipation notes in the amount by which the amount of such bond anticipation notes exceed the amount of such respective deficits as determined by the state comptroller.

§ 3. It is hereby determined that the financing of the deficits hereinbefore described is an object or purpose of said city of Utica for which indebtedness may be incurred, the period of probable usefulness of which is hereby determined to be ten years, computed from the date of

such bonds or from the date of the first bond anticipation note issued in anticipation of the sale of such bonds, whichever date is earlier. Such bonds and bond anticipation notes shall be general obligations of the city of Utica, to which the faith and credit of the city is pledged, and the city shall make an annual appropriation sufficient to pay the principal of and interest on such obligations as the same shall become due.

§ 4. Except as hereinafter provided, all proceedings in connection with the authorization and issuance of bonds and/or bond anticipation notes authorized to be issued pursuant to this act shall be had and taken in accordance with the provisions of the local finance law.

a

§ 5. For each fiscal year occurring during the time bonds and/or bond anticipation notes issued pursuant to this act are outstanding, the city comptroller shall monitor all budgets and, for each such budget, prepare a quarterly report of summarized budget data depicting overall trends of actual revenues and budget expenditures for the entire budget rather than individual line items. Such reports shall compare revenue estimates and appropriations as set forth in such budget with the actual revenues and expenditures made to date. All quarterly reports shall be accompanied by a recommendation from the city comptroller to the common council setting forth any remedial action necessary to resolve any unfavorable budget variance including the overestimation of revenues and the underestimation of appropriations. The city comptroller shall also prepare quarterly trial balance of general ledger accounts. The above quarterly budgetary report and trial balance shall be prepared in accordance with generally accepted accounting principles and shall include the general and sewer funds. These reports shall be completed within thirty days after the end of each quarter and shall be submitted to the mayor, the budget officer, president of the common council, state division of the budget, office of the state comptroller, chairman of the assembly ways and means committee and chairman of the senate finance committee. § 6. (a) As additional security for any issue of bonds and/or bond anticipation notes authorized to be issued pursuant to this act and issued prior to March 31, 1994, the common council of the city of Utica is hereby authorized to irrevocably pledge to the payment of the principal of and interest on such bonds and/or bond anticipation notes the city's share of the proceeds to be received by such city from taxes authorized by section 1210 of the tax law, or any successor law thereto, or such portion thereof determined by said common council at the time of issuance of said bonds and/or bond anticipation notes to be necessary to so additionally secure such bonds and/or bond anticipation notes, subject to the following limitations and conditions:

(i) Any such pledge shall become effective on the date of issue of any bonds and/or bond anticipation notes the payment of which is secured by such pledge;

(ii) Any such pledge may be made subject to such terms and conditions, not inconsistent with this act, as may be determined necessary or appropriate by such common council, subject, however, to any prior rights to holders of outstanding bonds and/or bond anticipation notes secured by a pledge of such sales tax proceeds and shall be deemed to be in effect only while bonds and/or bond anticipation notes which are secured by such pledge are outstanding; and

(iii) Any such pledge shall not be authorized by such common council unless such common council shall have determined that such pledge is necessary and in the public interest.

(b) Any pledge made pursuant to this section shall be valid and binding from the time when such pledge takes effect, and the moneys SO pledged and thereafter received by the city shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act. The lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the city irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which such a pledge is created need be filed or recorded.

(c) The state does hereby pledge and agree with the holders of any issue of bonds and/or bond anticipation notes secured by such a pledge that the state will not limit or alter the rights hereby vested in the city to fulfill the terms of any agreements made with said holders pursuant to this act, or in any way impair the rights and remedies of such EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law

holders or the security for 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 holders, are fully paid and discharged; provided, however, that this pledge shall be subject to the reserved right of the state to alter the base and rate of taxation and exemptions from taxation of the taxes which may be imposed by the city of Utica and pledged, pursuant to this act, as additional security for any issue of bonds and/or bond anticipation notes of such city. The city is authorized to include this pledge and agreement of the state in any agreement with the holders of such bonds.

§ 7. To facilitate the marketing of bonds and/or bond anticipation notes authorized to be issued pursuant to this act, the city of Utica may, notwithstanding any limitations on the private sales of bonds provided by law and subject to the approval by the state comptroller of the terms and conditions of such sales: (a) arrange for the underwriting of such bonds and/or notes at private sale through negotiated fees or by sale of such bonds and/or notes to an underwriter at a price of less than the sum of par value of, and the accrued interest on, such obligations; or (b) arrange for the private sale of such bonds and/or notes through negotiated agreement, with compensation for such sales to be provided by negotiated agreement and/or negotiated fee, if required. The cost of such underwriting or private placement shall be deemed a preliminary cost for purposes of section 11.00 of the local finance law. 8. This act shall take effect immediately.

CHAPTER 712

AN ACT in relation to authorizing the town of Wallkill, Orange county, to issue serial bonds for the purpose of liquidating déficits in the town's general and highway funds

Became a law July 31, 1992, with the approval of the Governor. Passed on Home Rule request pursuant to Article IX, section 2(b) (2) of the Constitution by a majority vote, three-fifths being present.

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The town of Wallkill, Orange county, is hereby authorized to issue serial bonds in an aggregate principal amount as not to exceed four million seven hundred five thousand dollars for the specific object or purpose of (i) liquidating the deficit of one million nine hundred sixty-seven thousand dollars in its general fund at the close of its fiscal year ended December thirty-first, nineteen hundred ninety-one, (ii) liquidating the deficit of six hundred fifty thousand dollars in its highway fund at the close of its fiscal year ended December thirtyfirst, nineteen hundred ninety-one, (iii) liquidating the projected deficit of one million six hundred sixty thousand dollars in its general fund at the close of its current fiscal year ending December thirtyfirst, nineteen hundred ninety-two, (iv) liquidating the projected deficit of three hundred fifty thousand dollars in its highway fund at the close of its current fiscal year ending December thirty-first, nineteen hundred ninety-two, and (v) paying costs and expenses incidental to the issuance of the serial bonds authorized to be issued pursuant to the provisions of this act in an amount not to exceed seventy-eight thousand dollars. In anticipation of the issuance of the bonds authorized to be issued by this act, bond anticipation notes are hereby authorized to be issued.

§ 2. (a) Notwithstanding anything in this act to the contrary, the town of Wallkill, Orange county, shall not authorize the issuance of any bonds or bond anticipation notes for the purpose of liquidating the deficit in either its general fund or its highway fund at the close of the fiscal year ended December thirty-first, nineteen hundred ninety-one until the amount of each such respective deficit is determined by the state comptroller. The town shall prepare a report detailing the amount and cause of each such deficit within thirty days from the effective