Section 25.00. Revenue anticipation notes

a. As used in this section:
    1. The term "taxes" shall mean taxes other than real estate taxes.
    2.  The  terms "rents," "rates" or "charges" shall mean sewer or water
  rents, rates or charges.
    3. The term "moneys" shall mean moneys to be received from the  state,
  the  United  States  government  or  from the county as a portion of the
  distribution of the county sales  and  compensating  use  tax,  and  for
  special  act  public school districts enumerated in chapter five hundred
  sixty-six of the laws of nineteen hundred sixty-seven, as amended, shall
  also mean tuition payments to be received from public  school  districts
  and social services districts.
    4.  The  term  "other  income" shall mean income derived from electric
  light and power plants or distribution systems, or other utility  plants
  or   distribution  systems,  or  any  other  type  of  income  producing
  facilities or operations owned and  operated  by  a  municipality  or  a
  district corporation.
    5.  The  term  "revenue" includes taxes, rents, rates, charges, moneys
  and other income.
    b. (1) Revenue anticipation notes may be issued by  any  municipality,
  school   district  or  district  corporation  in  anticipation  of:  the
  collection or receipt of revenue, provided that each such note shall  be
  issued  only  against  a specific type of revenue, or for the purpose of
  renewing a previously issued revenue anticipation note.
    (2)  Notwithstanding  the  provisions  of  paragraph   one   of   this
  subdivision, revenue anticipation notes may be issued by the city of New
  York  for  revenues  receivable from state and federal governments on an
  overall basis, rather than by specific sources of revenue.
    c. 1. Revenue anticipation notes may be issued during any fiscal  year
  in  which  such  taxes,  rents,  rates  or  charges  or  other income in
  anticipation of which such notes are issued become due  and  payable  or
  such  moneys  become  due; however, such notes may be issued by a school
  district in anticipation of moneys to  be  received  in  a  fiscal  year
  during the two weeks prior to the commencement of such fiscal year.
    2.  In  addition  to  the  powers  granted by subparagraph one of this
  paragraph c or by any other provision of this section, the city  of  New
  York  may issue revenue anticipation notes in anticipation of a specific
  type of revenue, as defined in this sub-paragraph two, which  is  to  be
  received  or  collected  by  such  city  in the fiscal year of such city
  commencing after the fiscal year during which such notes are issued,  in
  an  amount  not  exceeding  the portion of such specific type of revenue
  estimated by the mayor of such city to be attributable to or based  upon
  transactions or activities occurring during the months of April, May and
  June  of  the  fiscal  year during which such notes are issued, less the
  amount of such portion of such specific type of revenue so estimated  by
  the  mayor, which has actually been received or collected at the time of
  the issuance of such notes and the amount  of  any  outstanding  revenue
  anticipation  notes issued against such portion of such specific type of
  revenue so estimated by the mayor. The proceeds of notes issued pursuant
  to this sub-paragraph two may be applied to any purposes or expenditures
  of the fiscal year of such city during  which  such  notes  are  issued,
  including payment into the general fund of such city for use during such
  fiscal  year,  or  for  the redemption of notes in renewal of which such
  notes were issued. The provisions of paragraph d of this  section  shall
  not  apply  to  revenue  anticipation  notes  issued  pursuant  to  this
  subparagraph two. As used in this subparagraph two, the  term  "revenue"
  shall  mean  any taxes, rents, rates, charges, moneys or other income as
  defined in paragraph a of this section, imposed, charged or received  by
  such  city  pursuant  to  any state or local law heretofore or hereafter

  enacted and attributable to or based  upon  transactions  or  activities
  occurring  in  the months of April, May and June of a fiscal year during
  which revenue anticipation notes are issued by  such  city  pursuant  to
  this  subparagraph  two and which is to be received or collected by such
  city in the fiscal year commencing after such April, May and  June,  and
  shall  include, but not be limited to: (a) taxes imposed under titles G,
  M, N, V of chapter forty-six of the administrative code of the  city  of
  New  York  with  respect  to  which  returns are required to be filed in
  accordance with the provisions of  subdivision  (e)  of  section  twelve
  hundred fifty-one of the tax law; (b) taxes imposed under titles P and Q
  of  chapter  forty-six  of  such  code with respect to which returns are
  required to be filed on or before the twenty-fifth day of July, nineteen
  hundred sixty-five for the calendar  month  of  June,  nineteen  hundred
  sixty-five;  (c)  taxes  imposed  by  such  city pursuant to chapter two
  hundred fifty-seven of the  laws  of  nineteen  hundred  sixty-three  as
  heretofore  or  hereafter  amended or supplemented; (d) taxes imposed by
  such city by  local  laws  adopted  or  amended  after  April  eleventh,
  nineteen  hundred sixty-five, pursuant to article twenty-nine of the tax
  law as heretofore  or  hereafter  amended  or  supplemented;  (e)  taxes
  payable  into  the  general  fund  of  the  city of New York pursuant to
  section two hundred sixty-one of the tax law as heretofore or  hereafter
  amended  or  supplemented;  (f)  charges for the supply of water by such
  city in accordance with meter rates and minimum charges for such  supply
  of  water  measured  by  meter,  payable  as  prescribed  by section 415
  (1)-17.0 of  the  administrative  code  of  the  city  of  New  York  as
  heretofore or hereafter amended or supplemented; (g) the amounts payable
  to such city pursuant to subdivision two of section one hundred twelve-a
  of  the  highway law as heretofore or hereafter amended or supplemented;
  (h) the amounts payable into the general fund of such city  pursuant  to
  section  eighty-nine of the state finance law as heretofore or hereafter
  amended or supplemented; and (i) taxes imposed by such city pursuant  to
  chapter  two  hundred  thirty-five  of  the  laws  of  nineteen  hundred
  fifty-two as heretofore or hereafter amended.
    d.  The  total  amount  of  revenue   anticipation   notes   which   a
  municipality,  school  district  or  district  corporation  may issue in
  anticipation of the collection or receipt of a specific type of  revenue
  shall be determined in the following manner:
    1. In a municipality, school district or district corporation in which
  an  annual budget is prepared and adopted for a fiscal year prior to the
  commencement thereof, such amount shall be
    (a) The amount of such specific type of revenue as  estimated  in  the
  annual   budget  of  such  municipality,  school  district  or  district
  corporation for such fiscal year, or the amount of such specific type of
  revenue recognized for the fiscal year preceding  that  for  which  such
  budget  is  to  be or has been adopted, whichever amount is the smaller,
  less
    (b) The amount of such specific type of revenue so estimated  in  such
  budget  which has actually been received or collected at the time of the
  issuance of such notes,  and  the  amount  of  any  outstanding  revenue
  anticipation  notes issued against such specific type of revenue for the
  fiscal year  for  which  such  notes  are  to  be  issued.  For  such  a
  municipality,   school   district  or  district  corporation,  the  term
  "estimated amount" as used in paragraph g of this section shall mean the
  smaller amount determined in item (a) of this subdivision prior  to  the
  deductions required by this item.
    The provisions of this subdivision shall not be applicable (1) where a
  specific  type  of  revenue has not been estimated in such budget and in
  that case such amount  shall  be  the  amount  of  such  revenue  as  is

  estimated  by  the  chief fiscal officer to be recognized for the fiscal
  year for which such budget has been adopted, or  (2)  where  a  specific
  type  of  revenue  has  not  been  recognized for the entire fiscal year
  preceding  that  for which such budget has been adopted and in that case
  such amount shall be the amount, if any, of the specific type of revenue
  as estimated in the annual budget, less, in either case, the  amount  of
  such  specific  type  of  revenue  which  has  actually been received or
  collected at the time of the issuance of such notes, and the  amount  of
  any  outstanding revenue anticipation notes issued against such specific
  type of revenue for the fiscal year for  which  such  notes  are  to  be
  issued.
    2. In a municipality, school district or district corporation in which
  an  annual  budget  is  not  prepared  or  in  which an annual budget is
  prepared for a fiscal year but is adopted subsequent to the commencement
  thereof, such amount shall be
    (a) The amount of such specific type of  revenue  recognized  for  the
  fiscal  year  next preceding the fiscal year for which such notes are to
  be issued, or the amount of such specific type of revenue recognized for
  the second fiscal year preceding the fiscal year for  which  such  notes
  are to be issued, whichever amount is the smaller, less
    (b)  The  amount  of such specific type of revenue for the fiscal year
  for which such notes are to be issued, which has actually been  received
  or  collected  at the time of the issuance of such notes, and the amount
  of any  outstanding  revenue  anticipation  notes  issued  against  such
  specific type of revenue for the fiscal year for which such notes are to
  be  issued.  For  such  a  municipality,  school  district  or  district
  corporation, the term "estimated amount" as used in paragraph g of  this
  section  shall  mean  the  smaller amount determined in item (a) of this
  subdivision prior to the deductions required by this item.
    The provisions of this subdivision shall not  be  applicable  where  a
  specific  type  of revenue has not been recognized for the entire fiscal
  year next preceding the fiscal year for which such budget is  to  be  or
  has  been  adopted  and  in that case such amount shall be the amount of
  such revenue as is estimated in such budget or,  if  there  is  no  such
  estimate,  then  the amount of such revenue as is estimated by the chief
  fiscal officer to be recognized for  the  fiscal  year  for  which  such
  budget  is  to  be  adopted,  less  the  amount of such specific type of
  revenue for the fiscal year for which such budget is to be or  has  been
  adopted which has actually been collected or received at the time of the
  issuance  of  such  notes,  and  the  amount  of any outstanding revenue
  anticipation notes issued against such specific type of revenue.
    * 3. Notwithstanding the provisions of subdivisions  one  and  two  of
  this  paragraph, if the restrictions imposed therein upon the amount for
  which revenue anticipation notes may be issued against any specific type
  of revenue in any fiscal  year  shall  cause  undue  hardship  upon  any
  municipality,   school   district  or  district  corporation,  any  such
  municipality, school district or district corporation may apply  to  the
  state  comptroller for authority to issue such notes in an amount not in
  excess of the amount of such specific type of revenue  as  estimated  in
  the  annual  budget  of, or contemplated to be collected or received by,
  any municipality, school district or district corporation for or  during
  the  fiscal  year  in  which  such taxes, rents, rates, charges or other
  income shall become due and payable or  such  moneys  become  due.  Such
  application  shall be in writing and shall be signed and verified by the
  chief fiscal officer of the municipality, school  district  or  district
  corporation.  The state comptroller shall prescribe the procedure in any
  such proceeding and the information to be furnished to him necessary  to
  make  such  determination. The state comptroller shall have power in any

  such proceeding to determine if such restrictions have caused,  or  will
  cause,  an undue hardship upon any such municipality, school district or
  district corporation, and, if he so determines, then he shall have power
  to   authorize  any  such  municipality,  school  district  or  district
  corporation to issue such notes in  an  amount  not  in  excess  of  the
  limitation   hereinabove   expressed   in  this  subdivision,  and  such
  determination and  authorization  by  the  state  comptroller  shall  be
  conclusive  as  to  the amount of such notes which may be issued against
  any such specific type of revenue.
    * NB There are 2 subdivision 3's of paragraph d
    * 3. Notwithstanding any other provisions of this paragraph d  in  the
  city  of  New  York such amount shall be (a) The amount of such specific
  type of revenue consisting of revenue other than moneys, as is estimated
  in the annual budget of such city to be collected  or  received  in  the
  fiscal  year  for  which such budget has been adopted, and the amount of
  such specific type of revenue consisting of moneys as  is  estimated  in
  the  annual  budget  of such city to be due in the fiscal year for which
  such budget has been adopted, less (b) The amount of such specific  type
  of  revenue so estimated in such budget which has actually been received
  or collected at the time of the issuance of such notes, and  the  amount
  of  any  outstanding  revenue  anticipation  notes  issued  against such
  specific type of revenue for the fiscal year in which such taxes, rents,
  rates, charges or other income become due and payable or in  which  such
  moneys become due. For the city of New York, the term "estimated amount"
  as  used in paragraph g of this section shall mean the amount determined
  in item (a) of this subparagraph three prior to the  deduction  required
  by item (b) of this subparagraph three.
    The  provisions  of  this  subparagraph  three shall not be applicable
  where a specific type of revenue has not been estimated in  such  budget
  and  in  that case such amount shall be the amount of such specific type
  of revenue consisting of revenue other than moneys, as is  estimated  by
  the  mayor to be collected or received in the fiscal year for which such
  budget has been adopted, and the amount of such specific type of revenue
  consisting of moneys as is estimated by the  mayor  to  be  due  in  the
  fiscal  year  for which such budget had been adopted, less the amount of
  such specific type of  revenue  which  has  actually  been  received  or
  collected  at  the time of the issuance of such notes, and the amount of
  any outstanding revenue anticipation notes issued against such  specific
  types  of revenue for the fiscal year in which such taxes, rents, rates,
  charges or other income become due and payable or in which  such  moneys
  become due.
    * NB There are 2 subdivision 3's of paragraph d
    4. Whenever this paragraph requires a determination or estimate of the
  amount  of a specific type of revenue recognized or to be recognized for
  a  fiscal  year,  such  determination  or  estimate  shall  be  made  in
  conformance  with  the  basis  of  accounting  used by the municipality,
  school district or district  corporation  to  prepare  the  most  recent
  annual  financial report filed pursuant to section thirty of the general
  municipal law.
    d-2. The provisions of paragraph  d  of  this  section  shall  not  be
  applicable  to  revenue anticipation notes issued in anticipation of the
  receipt of moneys from the federal government pursuant to title  one  of
  the housing act of nineteen hundred forty-nine, as amended.
    e.  The  proceeds of revenue anticipation notes shall be used only for
  the purpose of (1) meeting expenditures payable from the type of revenue
  in anticipation of  which  such  notes  were  issued,  or  (2)  for  the
  redemption of notes in renewal of which such notes were issued.

    f.  Revenue anticipation notes shall mature within one year and may be
  renewed from time to time, but each renewal shall be for  a  period  not
  exceeding  one  year  and  in no event shall such notes, or the renewals
  thereof, extend beyond the close of the second  fiscal  year  succeeding
  the fiscal year in which such notes were issued. Such notes shall not be
  renewed  in  an amount in excess of the difference between the amount of
  the uncollected or unreceived revenue in anticipation of which they were
  issued and the amount of  any  other  outstanding  revenue  anticipation
  notes  issued  in  anticipation  of  the  collection  or receipt of such
  revenue.
    g. Whenever the amount of revenue  anticipation  notes  issued  for  a
  fiscal year against a specific type of revenue shall equal the estimated
  amount  of  such  specific  type  of  revenue  in  anticipation  of  the
  collection or receipt of which such notes shall have been  issued,  less
  the  amount  of such revenue actually received or collected, all of such
  revenue, as thereafter received or collected, shall be set  aside  in  a
  special  bank  account  to  be used only for the payment of such revenue
  anticipation notes as they become due. Any municipality, school district
  or district  corporation  may  make  budgetary  appropriations  for  the
  redemption  of  revenue  anticipation  notes  whether or not required or
  otherwise authorized by law to do so. In the event such an appropriation
  is made, such municipality,  school  district  or  district  corporation
  shall  not  be  required to pay into the special account the proceeds of
  the specific type of revenue against which such notes  were  issued  but
  such  proceeds  may be used in the manner provided by law or if there is
  no provision of law  pertaining  to  the  use  of  such  proceeds,  such
  proceeds shall be treated as surplus moneys for the fiscal year in which
  they are collected.
    h.  Notwithstanding  the provisions of paragraph b of this section any
  municipality, school district or district corporation may issue a single
  revenue anticipation note in anticipation of the collection  or  receipt
  of  any number of, or all, specific types of revenue, providing that the
  amount of indebtedness to be contracted against each  specific  type  of
  revenue shall be stated in the resolution or certificate authorizing the
  issuance  of  such note, and such amount shall not exceed the respective
  amounts of indebtedness which could be contracted against each  specific
  type  of revenue under any other paragraph of this section. The proceeds
  of  any  such  single  revenue  anticipation  note  shall  be  severable
  according  to  the  specific types of revenue against which indebtedness
  has been therein contracted and shall be treated in the same  manner  as
  the  proceeds  of separate revenue anticipation notes, each of which was
  issued against a specific type of revenue, would have been applied.  Any
  municipality,  school  district or district corporation which issues any
  such single revenue anticipation note shall comply with  the  provisions
  of  paragraph  g  of  this section, except that for the purposes of such
  paragraph (1) any such single revenue anticipation note shall be treated
  as a group of separate revenue anticipation notes, each issued against a
  specific type of  revenue,  and  (2)  the  amount  issued  against  each
  specific type of revenue shall be the amount stated in the resolution or
  certificate   authorizing  the  issuance  of  any  such  single  revenue
  anticipation  note.  The  municipality,  school  district  or   district
  corporation  shall  keep proper records which will show at all times the
  unpaid balances  due  on  any  such  single  revenue  anticipation  note
  according to the types of revenue against which such note was issued.
    i.  (a)  A board of cooperative educational services may issue revenue
  anticipation notes, as authorized by paragraph g of subdivision four  of
  section  nineteen hundred fifty of the education law, in anticipation of
  money to be received from the state, the United States  government,  and

  from  its  component school districts for services or for administrative
  and clerical expenses.
    (b)  For  the  purposes of this subdivision i, and for the purposes of
  sections 30.00 and 39.00 and titles four, five, six and twelve  of  this
  chapter,  the  board  of  cooperative  educational services shall be the
  finance board, its president shall be its chief fiscal officer, and  its
  fiscal  year shall be the fiscal year of its component school districts;
  provided, further, that the provision of section 162.00 of this  chapter
  shall  be  applicable  to  revenue  anticipation notes issued under this
  subdivision.
    j. 1. The provisions of this paragraph shall  apply  only  to  revenue
  anticipation  notes,  including  renewals thereof, issued by the city of
  Buffalo during its fiscal years ending June thirtieth, in  each  of  the
  years   nineteen  hundred  eighty-four,  nineteen  hundred  eighty-five,
  nineteen hundred eighty-six, nineteen hundred eighty-seven, and nineteen
  hundred eighty-eight, in anticipation of the receipt of  state  aid  and
  local  assistance, and only to such issues of revenue anticipation notes
  as to which the certificate  described  in  subdivision  three  of  this
  paragraph is filed.
    2.  Each  issue  of revenue anticipation notes shall be issued only in
  anticipation of the receipt of a specific type or types of state aid and
  local assistance,  provided  that  the  amount  of  indebtedness  to  be
  contracted for each such specific type of state aid and local assistance
  shall  be  stated  in  the  proceedings authorizing the issuance of such
  notes. Except as  provided  in  subdivision  eight  of  this  paragraph,
  revenue anticipation notes shall be payable only at the office of a bank
  or  trust  company  designated as the paying agent thereof in accordance
  with  this  chapter.  Revenue  anticipation  notes,  including  renewals
  thereof,  shall mature not later than the last day of the fiscal year of
  such city in which such notes were originally  issued.  The  proceedings
  authorizing  revenue  anticipation  notes  may include provisions, which
  shall constitute a covenant by such city with the purchasers and holders
  and owners from time to time of such notes, limiting the  power  of  the
  city  to  authorize  and  issue additional notes during the then current
  fiscal year of such city in anticipation of the same  specific  type  or
  types  of state aid and local assistance as the notes authorized by such
  proceedings.
    3. Prior to the delivery of each issue of revenue anticipation  notes,
  the  chief  fiscal  officer  of  such  city  shall  file  with the state
  comptroller a certificate setting forth with respect to such  issue  (i)
  the  principal  amount, (ii) the date of issue, (iii) the maturity date,
  (iv) the interest rate or  rates,  (v)  if  interest  shall  be  payable
  otherwise  than  at maturity, the date or dates for the payment thereof,
  (vi) the name and address of  the  paying  agent,  (vii)  the  name  and
  address  of  each  purchaser,  or if a purchaser shall be a syndicate or
  similar account, the name and address of each  managing  underwriter  of
  such  syndicate  or  similar  account, (viii) the amount payable on each
  principal payment date and interest payment date, (ix) a description  of
  the  type  or types of state aid and local assistance in anticipation of
  which such revenue anticipation notes are being issued and, if more than
  one type of state aid and local assistance is involved,  the  amount  of
  indebtedness  being  contracted  against each specific type of state aid
  and local assistance, and (x) a schedule setting forth the total  amount
  of  each such type or types of state aid or local assistance anticipated
  to be received, and the expected date or dates of anticipated receipt of
  such  state  aid  or  local  assistance.  Such  certificate   shall   be
  accompanied  by a statement executed by the chief fiscal officer of such
  city certifying that, with respect to any  specific  type  or  types  of

  state  aid or local assistance referred to therein which is not required
  by law to be paid by the state on a fixed date or  dates,  the  city  of
  Buffalo  will  effectuate  procedures  by  which any claim or request on
  which  such  payment  is  conditioned  will  be timely submitted so that
  payment can be made  by  the  state  in  accordance  with  the  schedule
  contained  in  such  certificate  as item (x). Such statement shall also
  contain a certification that the amounts and times of payments of  state
  aid  and local assistance contained in such schedule have been estimated
  by the use of reasonable and appropriate data and methods of estimation,
  all in accordance with applicable law.
    4. All revenue anticipation notes, in addition  to  a  pledge  of  the
  faith  and  credit of such city for the payment thereof, shall contain a
  recital to the effect that they are entitled  to  the  benefits  of  the
  provisions of this paragraph.
    5. Commencing on the date not less than five days prior to and on each
  day thereafter up to and including any principal and/or interest payment
  date referred to in the certificate filed by the chief fiscal officer of
  the  city  with  the  state comptroller pursuant to subdivision three of
  this paragraph, the state comptroller shall pay  to  such  paying  agent
  from  moneys as provided in subdivision six of this paragraph the amount
  required to pay in full  the  principal  and/or  interest  due  on  such
  payment date as set forth in such certificate. Moneys so paid shall pass
  immediately  from  the  state and vest in such paying agent in trust for
  the benefit of the holders of the revenue anticipation  notes  to  which
  such  certificate  relates. No other person having any claim of any kind
  in tort, contract or otherwise against such city shall have any right to
  or claim against the moneys held by such paying agent, and  such  moneys
  shall   not   be  subject  to  any  order,  judgment,  lien,  execution,
  attachment, setoff or counterclaim by any such other person. Such moneys
  shall be held by such paying agent in a separate trust account and shall
  be applied only to the payment of the principal and/or interest  due  on
  such revenue anticipation notes, provided, however, that the contract by
  and  between  such  city  and  such paying agent may provide for (i) the
  investment by such paying agent of such moneys in direct obligations  of
  or  in  obligations guaranteed by the United States of America, provided
  such obligations shall be payable or redeemable at  the  option  of  the
  holder  within  such  time  as  the proceeds shall be needed to pay such
  principal and/or interest due on such revenue  anticipation  notes,  and
  (ii)  the  use  by  such paying agent of such moneys for the purchase of
  direct obligations of or obligations guaranteed by the United States  of
  America  under  one or more repurchase agreements with any bank or trust
  company having its principal office in the state of New  York,  provided
  that  any  such repurchase agreement shall provide for the repurchase of
  such obligations within such time as such moneys are needed to  pay  the
  principal  and/or  interest  due on such revenue anticipation notes at a
  repurchase price at least sufficient to  make  the  amount  so  invested
  available  for  the  payment  of  principal  and/or interest due on such
  revenue anticipation notes, and provided, further, that, at the time  of
  such  purchase,  the  market value of such obligations shall be at least
  equal to one hundred two per centum of the amount so invested. No person
  having any claim of any kind in tort, contract or otherwise against such
  city shall have any right to or claim against any moneys  of  the  state
  appropriated  by  the state and in anticipation of which such notes have
  been issued, other than a claim for  payment  by  the  holders  of  such
  notes,  and  such  moneys  shall  not be subject to any order, judgment,
  lien, execution, attachment, setoff or counterclaim by any such  person;
  provided,  however,  that  nothing  contained in this paragraph shall be
  construed to limit, impair, impede or otherwise adversely affect in  any

  manner  the  rights or remedies of the purchasers and holders and owners
  of any bonds or notes of  the  state  or  any  agency,  instrumentality,
  public  benefit  corporation or political subdivision thereof, including
  the  city of Buffalo, under which such purchasers and holders and owners
  have any right of payment of such bonds or notes by  recourse  to  state
  aid  or  local  assistance  moneys held by the state and with respect to
  which the state has covenanted with  such  purchasers  and  holders  and
  owners  that  it will not repeal, revoke or rescind any provision of law
  or amend or modify the same so as to limit, impair or  impede  any  such
  rights  or  remedies.  Notwithstanding  any  provision  of  law  to  the
  contrary, no  instrument  relating  to  any  transaction  authorized  or
  contemplated by this paragraph need be filed under the provisions of the
  uniform commercial code.
    6.  Commencing  on  the day when the state comptroller determines that
  the principal and interest due or to come due on the outstanding revenue
  anticipation notes issued for a fiscal year against a specific  type  or
  types  of state aid or local assistance pursuant to this paragraph shall
  equal ninety percent of the amount of such specific type of state aid or
  local  assistance  as  set  forth  on  the  schedule  included  in   the
  certificate  filed  with  him  pursuant  to  subdivision  three  of this
  paragraph remaining to be paid to such city on or prior to any principal
  and/or interest payment date, the state  comptroller  shall  deduct  and
  withhold  from  the  amount  appropriated for each such specific type of
  state aid and local assistance otherwise payable to such city an  amount
  sufficient  to  pay, when due, the principal of and interest on all such
  revenue anticipation notes issued and then outstanding  in  anticipation
  thereof.  Amounts  so  deducted  and  withheld  shall be transferred and
  credited by the state comptroller to the account  established  for  such
  specific  state  aid  or  local  assistance  in  the state aid and local
  assistance revenue withholding  fund  established  pursuant  to  section
  ninety-two-l  of  the  state finance law, at such time as any payment of
  each such specific type of state aid or local assistance  is  scheduled,
  by law or otherwise, to be made to such city. In each case, the payments
  required  to  be  made  by the state comptroller pursuant to subdivision
  five of this paragraph shall be made from  amounts  on  deposit  in  the
  accounts  established for each such specific type of state aid and local
  assistance in the state aid and  local  assistance  revenue  withholding
  fund.  Whenever  any issue of revenue anticipation notes has been issued
  in anticipation of more than one specific type of state  aid  and  local
  assistance as authorized by subdivision two of this paragraph, each such
  payment  shall  be  made  from  each  separate  account according to the
  principal amount of indebtedness contracted against each  specific  type
  of state aid and local assistance.
    7.  The  state of New York hereby covenants with the holders from time
  to time of revenue anticipation notes issued by such city that  it  will
  not  repeal,  rescind  or revoke the provisions of this paragraph or the
  provisions of section ninety-two-l of the state finance law or amend  or
  modify  the  same  as to limit, impair or impede the rights and remedies
  granted hereby to such holders, provided, however, that nothing in  this
  paragraph  contained  shall be deemed or construed as giving or pledging
  the credit of the state or  as  requiring  the  state  to  continue  the
  payment  of  any specific type or types of state aid or local assistance
  to such city or as limiting or prohibiting the state from  repealing  or
  amending  any  law heretofore or hereafter enacted relating to state aid
  and local assistance to such city, the manner and  time  of  payment  or
  apportionment  thereof,  or  the  amount thereof, nor shall such revenue
  anticipation notes be a debt of the state and the  state  shall  not  be
  liable thereon.

    8.  Notwithstanding  any  other  provision  of  this paragraph, at the
  expiration of one hundred eighty days after the  maturity  date  of  any
  issue  of  revenue anticipation notes issued hereunder, the amounts held
  by the paying agent thereof for the payment  of  the  principal  of  and
  interest  on  the  notes of such issue which have not been presented for
  payment shall be paid over and remitted by such  paying  agent  to  such
  city  and  thereafter  the holders of such notes shall look only to such
  city for such payment.
    9. All other provisions of this  chapter  not  inconsistent  with  the
  provisions   of   this   paragraph   shall  continue  to  apply  to  the
  authorization and issuance of revenue anticipation notes by such city.
    k.  1.  A  special  act  public  school  district  may  issue  revenue
  anticipation notes or obtain letters of credit in anticipation of moneys
  to  be  received  from  the state, the United States government and from
  public  school  districts  or  social  services  districts  which  place
  students in the special act public school district.
    2.  For  the  purposes  of  this  paragraph,  and  for the purposes of
  sections 30.00 and 39.00 and titles four, five, six and twelve  of  this
  article,  the  board  of  education  shall  be the finance board and its
  president shall be its chief fiscal  officer;  provided,  further,  that
  section   162.00   of  this  article  shall  be  applicable  to  revenue
  anticipation notes issued under this paragraph.