Section 593-A. Pledge of tax revenues for payment of certain bonds of the Niagara Falls urban renewal agency

(a) As security for the  payment  of  any  issue  of  bonds  to  be  issued by the Niagara Falls urban renewal
  agency to finance land acquisition and clearance, site improvements  and
  parking   construction   in   connection  with  the  East  Falls  Street
  Redevelopment  Project  and/or  bond  anticipation   notes   issued   in
  anticipation  thereof,  the city council of the city of Niagara Falls is
  hereby authorized to enact a  local  law  pledging  the  total  proceeds
  consisting  of  net  collections of all sales and compensating use taxes
  received by the city of Niagara Falls from taxes authorized pursuant  to
  section  twelve  hundred  ten of the tax law and proceeds payable to the
  city pursuant to section twelve hundred sixty-two of the tax law, or any
  successor statutes thereto and directing the state  comptroller  to  pay
  over  such  proceeds to the Niagara Falls sales tax fund pursuant to the
  provisions of section ninety-two-t of the state finance law, or  to  the
  trustee for the holders of such bonds pursuant to the certificate issued
  by such trustee pursuant to subdivision (d) of this section. The lien of
  such  pledge  shall  be  valid  and binding upon the city and agency and
  their respective successors and assigns as against  all  parties  having
  claims  of  any  kind in tort, contract or otherwise against the city or
  the agency irrespective of whether such parties have notice thereof. The
  lien of such pledge shall inure to the benefit of  the  agency  and  its
  successors  and  assigns including any owners of such bonds and notes to
  whom such proceeds are pledged. The agency shall not issue any bonds  or
  notes  in  connection  with  such  project  in  an  amount  in excess of
  thirty-five million dollars, plus a principal amount of bonds or notes:
    (i) to fund any debt service reserve fund,
    (ii) to provide capitalized interest,
    (iii) to provide for original issue discount, and
    (iv) to provide  for  the  payment  of  fees  and  other  charges  and
  expenses,  including  underwriters' discount, related to the issuance of
  such bonds or notes, or related to the provision of any applicable  bond
  or note facilities, excluding refunding bonds.
    Provided,  however, that upon any refunding or repayment of such bonds
  or notes the total aggregate principal amount of outstanding  bonds  and
  notes may be greater than thirty-five million dollars ($35,000,000) only
  if  the  present value of the aggregate debt service of the refunding or
  repayment bonds to be issued shall not exceed the present value  of  the
  aggregate  debt  service  of  the bonds so to be refunded or repaid. For
  purposes hereof, the present values of the aggregate debt service of the
  refunding or repayment bonds and of the aggregate debt  service  of  the
  bonds  so  refunded  or  repaid,  shall  be  calculated by utilizing the
  effective interest rate of the refunding or repayment bonds, which shall
  be that rate arrived  at  by  doubling  the  semi-annual  interest  rate
  (compounded  semi-annually)  necessary  to  discount  the  debt  service
  payments on the refunding or repayment  bonds  from  the  payment  dates
  thereof  to the date of issue of the refunding or repayment bonds and to
  the price bid including estimated accrued interest or proceeds  received
  by  the  agency  including  estimated  accrued  interest  from  the sale
  thereof.
    Such local law shall be  subject  to  the  following  limitations  and
  conditions:
    (i)  Any such local law shall become effective on the date of issue of
  any bonds and/or bond anticipation notes the payment of which is secured
  by the proceeds of such sales and compensating use taxes;
    (ii) Any such local law shall  be  made  subject  to  such  terms  and
  conditions,  not  inconsistent  with  this section, as may be determined
  necessary or appropriate by  such  city  council  and  agency,  subject,

  however, to any rights of holders of previously issued bonds and/or bond
  anticipation  notes  secured by such tax proceeds and shall be deemed to
  be in effect only while bonds and/or bond anticipation notes  which  are
  so  secured  are  outstanding  and  may  provide  that  it  shall not be
  repealed,  rescinded  or  revoked  or  amended  in  a  manner  which  is
  prejudicial  to  the  interests  of  said holders while such obligations
  shall be outstanding;
    (iii) Enactment of such  local  law  shall  be  conditioned  upon  the
  execution  of  an  agreement  between  the city of Niagara Falls and the
  county of Niagara whereby such county agrees to pay such city's share of
  the proceeds of taxes payable to such city pursuant  to  section  twelve
  hundred sixty-two of the tax law to the state comptroller for so long as
  bonds or notes issued pursuant to this section remain outstanding;
    (iv)  Any such local law shall not be enacted unless such city council
  shall have determined that such local law is necessary and in the public
  interest; and
    (v)  Notwithstanding  any  of  the  foregoing  to  the  contrary,  the
  aforesaid  pledge shall be deemed executory only to the extent of moneys
  appropriated and made available therefor by the city.
    (b) The state does hereby covenant and agree with the owners  of  each
  issue of bonds and/or bond anticipation notes of the agency secured by a
  pledge  of  proceeds  of  such sales and compensating use taxes that the
  state will not repeal, rescind or revoke the provisions of this  section
  or  section  ninety-two-t of the state finance law or modify the same as
  to limit, impair, or impede the rights hereby vested in the city  and/or
  the  agency  or  in  any  way  limit,  impair,  or impede the rights and
  remedies of owners of 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 owners, are fully paid or otherwise
  discharged or defeased; provided that (i) nothing in this section  shall
  be  deemed or construed as giving or pledging the credit of the state to
  the payment of said bonds and/or bond anticipation notes; and (ii)  this
  pledge  shall be subject to the reserved right of the state to alter the
  base, rate, method of taxation  and  exemptions  from  taxation  or  the
  method  of  distribution  of  the taxes which may be imposed pursuant to
  section twelve hundred ten and section twelve hundred sixty-two  of  the
  tax  law,  or  any  successor  law  thereto. The city and the agency are
  authorized to include this covenant and agreement of the  state  in  any
  sale of such bonds and/or bond anticipation notes.
    (c)  The  agency  shall  provide  in  any  sale  of  bonds and/or bond
  anticipation  notes  which  are  secured  by  proceeds  of   sales   and
  compensating use taxes as provided herein that the proceeds of the taxes
  which would otherwise be received by the city pursuant to section twelve
  hundred  ten  of the tax law or proceeds payable to the city pursuant to
  section twelve hundred sixty-two  of  the  tax  law,  or  any  successor
  statutes  thereto,  shall,  upon  the  occurrence of events described in
  subdivision two of section ninety-two-t of the  state  finance  law,  be
  paid  by the state comptroller into the Niagara Falls sales tax fund for
  disposition as provided in such  section.    The  state  comptroller  is
  hereby  authorized  and directed to pay such moneys to such fund, and to
  make such arrangements as are  deemed  appropriate  to  facilitate  such
  payments, including, but not limited to the electronic transfer thereof.
    (d)  Upon  delivery  of  any  issue  of  bonds or notes secured by the
  proceeds of sales and compensating use taxes as herein  authorized,  the
  chair of the agency shall file with the state comptroller and the county
  treasurer  a  certificate  setting  forth with respect to such issue the
  name and address of the  trustee  for  the  holders  thereof.  Upon  the

  appointment of a successor trustee with respect to any issue of bonds or
  notes  secured  as  provided herein, a supplemental certificate shall be
  filed with the state comptroller and the county treasurer prior  to  the
  effective  date  of  such  appointment.  Such trustee shall on or before
  November first annually certify to the state comptroller and to the city
  council the amount required for the ensuing city fiscal year for payment
  of debt service on bonds or notes issued pursuant to this section and to
  restore any deficiencies in any reserve funds established in  connection
  with the issuance of such bonds or notes.
    (e)  Pursuant  to  an  appropriation by the city council of the amount
  certified pursuant  to  subdivision  (d)  of  this  section,  the  state
  comptroller  shall pay such amount to the trustee out of proceeds of the
  taxes pledged pursuant to this section. Any such proceeds in  excess  of
  such certified amount shall be paid by the state comptroller to the city
  of  Niagara  Falls. In the event that the amount to be paid by the state
  comptroller is less than the amount certified  pursuant  to  subdivision
  (d)  of  this  section, the comptroller shall pay such difference to the
  trustee for the bondholders out of the first monies  available  for  the
  next  succeeding  payments  of  (i) state aid apportioned to the city of
  Niagara Falls as per capita aid for  the  support  of  local  government
  pursuant to section fifty-four of this chapter or (ii) such other aid or
  assistance  payable by the state to the city and not otherwise allocated
  as shall supersede or supplement such state per  capita  aid,  including
  federal  monies  apportioned  to  the  city  by  the state, after giving
  written notice to the chief fiscal officer of the city of Niagara Falls.
  Any amount so  paid  over  shall  be  deducted  from  the  corresponding
  apportionment of such per capita state aid otherwise payable to the city
  of  Niagara  Falls, and shall not obligate the state to make nor entitle
  the city to receive any  additional  apportionment  or  payment  of  per
  capita state aid.  Nothing herein shall affect the reserved right of the
  state  to amend such section fifty-four or otherwise reduce or eliminate
  such per capita aid and such other aid or assistance.
    (f) The state comptroller may conclusively rely upon  the  information
  set  forth  or  included by reference in any certificate filed therewith
  pursuant to this section or section ninety-two-t of  the  state  finance
  law,  and  shall  not  be liable to the owner of any bond or note of the
  agency on account  of  any  reasonable  action  taken  based  upon  such
  information.  The  county  treasurer  may  conclusively  rely  upon  the
  information set forth in any certificate  filed  therewith  pursuant  to
  this section or section ninety-two-t of the state finance law, and shall
  not  be liable to the owner of any bond or note of the agency on account
  of any reasonable action taken based upon such information.
    (g) During the period that any local  law  enacted  pursuant  to  this
  section shall be in force, the city shall not issue revenue anticipation
  notes  in  anticipation  of  the receipt of taxes authorized pursuant to
  section twelve hundred ten of the tax law, which taxes are described  in
  subdivisions  (b), (d), (e) and/or (f) of section eleven hundred five of
  the tax law, and, in the event that the city issues revenue anticipation
  notes in  anticipation  of  the  collection  or  receipt  of  any  other
  categories  of  sales taxes used as security to the bondholders pursuant
  to the provisions of this section, when determining the total amount  of
  revenue  anticipation  notes  which  may  be  issued, in addition to the
  amounts described in subparagraph (b) of subdivision three of  paragraph
  (d)  of  section 25.00 of the local finance law or the amounts described
  in the unnumbered paragraph following such subparagraph (b), as the case
  may be, there shall also be deducted an amount equal to the debt service
  on the bonds or notes of the agency so secured thereafter  remaining  to

  be  paid  during  the fiscal year of the city with respect to which such
  revenue anticipation notes are issued.