Section 42. Definitions

For  the purposes of this article, the following
  terms shall have the following meanings:
    1. "Cooperative   investment agreement"   shall   mean  the  temporary
  investment  of  moneys  by more than one municipal corporation  pursuant
  to  a municipal cooperation agreement entered into  in  accordance  with
  the provisions of article five-G of this chapter and this article.  Such
  term,  however,  shall  not   include   investments   made pursuant to a
  municipal cooperation agreement that:   (a) has as its  primary  purpose
  the  performance  of  a function, power or  duty,  or the provision of a
  joint service, other than the investment of  funds,  provided  that  the
  only  moneys invested pursuant to such an agreement are those reasonably
  necessary  to  perform such  other  function,  power or duty or  provide
  such  other joint service; or (b)  identifies  the specific  investments
  to be made thereunder and  provides for the termination of the agreement
  upon the sale,  redemption  or maturity of such investments.
    2. "Irrevocable letter of credit" shall mean an irrevocable letter  of
  credit  issued in  favor of every participant in the agreement by a bank
  whose commercial paper and other unsecured  short-term debt  obligations
  (or,  in  the  case  of  a  bank  which is the principal subsidiary of a
  holding  company, whose  holding  company's  commercial paper  and other
  unsecured short-term debt obligations) are rated in  one  of  the  three
  highest  rating  categories (based on the credit of such bank or holding
  company) by at least one   nationally   recognized   statistical  rating
  organization  or by a bank that is in compliance with applicable federal
  minimum risk-based capital requirements.
    3. "Market value" shall mean market prices obtained from a  nationally
  recognized   security pricing service or from a minimum of three primary
  reporting dealers in government securities as determined by the  federal
  reserve bank.
    4.  "Municipal corporation" shall have the same meaning as in  section
  one hundred nineteen-n of this chapter.
    5.  "Participant"  shall  mean  each municipal corporation that enters
  into   a   cooperative  investment  agreement  in  accordance  with  the
  provisions of this article.