Section 3965. Resources of the authority

1. Subject to the provisions of
  this title, the  directors  of  the  authority  shall  receive,  accept,
  invest,  administer,  expend and disburse for its corporate purposes all
  moneys of the authority  from  whatever  source  derived  including  (a)
  revenues and (b) proceeds of bonds, notes or other obligations.
    2.  Subject  to  the provisions of any contract with holders of bonds,
  notes or other obligations, revenues of the authority shall be  paid  to
  the authority and shall not be commingled with any other money.
    3.  The  money in any of the authority's accounts shall be paid out on
  checks signed by the treasurer of the authority, or by other lawful  and
  appropriate  means  such as wire or electronic transfer, on requisitions
  of the chairperson of the authority or of  such  other  officer  as  the
  directors  shall  authorize  to  make such requisition, or pursuant to a
  bond resolution or trust indenture.
    4. All deposits of authority money shall be secured by obligations  of
  the  United States or of the state or of the county at a market value at
  least equal at all times to the amount of the deposit, and all banks and
  trust companies are authorized to give such security for such  deposits.
  The  authority  shall  have the power, notwithstanding the provisions of
  this section, to contract with the holders of any of its bonds, notes or
  other obligations as to the custody,  collection,  securing,  investment
  and  payment of any money of the authority or any money held in trust or
  otherwise for the payment of bonds, notes or other obligations or in any
  way to secure bonds, notes or other obligations, and to  carry  out  any
  such  contract  notwithstanding  that  such contract may be inconsistent
  with the other  provisions  of  this  title.  Money  held  in  trust  or
  otherwise for the payment of bonds, notes or other obligations or in any
  way  to  secure  bonds, notes or other obligations, and deposits of such
  money, may be secured in the same manner as money of the authority,  and
  all  banks  and trust companies are authorized to give such security for
  such deposits.
    5. Revenues of the authority shall be applied in the  following  order
  of  priority:  first  to  pay debt service or for set asides to pay debt
  service on the authority's bonds, notes, or  other  obligations  and  to
  replenish  any  reserve  funds  securing  such  bonds,  notes  or  other
  obligations of  the  authority  in  accordance  with  the  provision  of
  indenture  or  bond  resolution  of  the  authority;  then  to  pay  the
  authority's operating expenses not otherwise  provided  for;  and  then,
  subject  to  the authority's agreements with the county for itself or on
  behalf  of  any  covered  organization  to  transfer  as  frequently  as
  practicable  the balance of revenues not required to meet contractual or
  other obligations  of  the  authority  to  the  county  as  provided  in
  subdivision seven of this section.
    6.  (a)  Any such payment of state aid revenues to the authority shall
  not obligate the state to make available,  nor  entitle  the  county  to
  receive, any additional state aid.
    (b)  Nothing  contained  in  this title shall be construed to create a
  debt of the state within the meaning of any constitutional or  statutory
  provisions.  Any  provision  with  respect  to  state  aid  or state aid
  revenues shall  be  deemed  executory  only  to  the  extent  of  moneys
  available,  and  no  liability shall be incurred by the state beyond the
  moneys  available  for  that  purpose,  and  any  such  payment  by  the
  comptroller  of state aid revenues is subject to annual appropriation of
  state aid by the state legislature.
    (c) Nothing contained in this title shall be deemed  to  restrict  the
  right  of the state to amend, repeal, modify, or otherwise alter section
  fifty-four of the state finance law or any provision relating  to  state
  aid   to   municipalities.   The  authority  shall  include  within  any

  resolution, contract, or agreement with holders of its bonds,  notes  or
  other  obligations  a provision which states that no default occurs as a
  result of the state's exercising its right to amend, repeal, modify,  or
  otherwise alter section fifty-four of the state finance law or any other
  provision relating to state aid to municipalities.
    7.  On a monthly basis, the authority shall prepare and provide to the
  county a detailed accounting of all revenues received and  payments  and
  debt  service  set  asides  made,  as  attributable  to the county. Such
  accounting shall reflect: (a) the  amount  of  state  aid  revenues  and
  county  tax  revenues  received  during  such  month; (b) the respective
  portion of debt service paid or set  aside  during  such  month  by  the
  authority  for its bonds, notes or other obligations attributable to the
  county; (c) the respective portion of reserve fund replenishment made or
  set aside during such month by the  authority  in  connection  with  its
  bonds,  notes  or  other obligations attributable to the county; and (d)
  the respective portion of administrative expenses of the authority  paid
  or  set  aside  during  such  month by the authority attributable to the
  county. As soon as practicable after each monthly payment or set  aside,
  the  authority  shall  make respective payments of the remaining monthly
  balance or revenues to the county in accordance with such accounting. To
  the extent that  such  respective  monthly  payments  of  the  remaining
  balance  of  revenues  result  in  an overpayment or underpayment to the
  county, the authority shall in the immediately subsequent  month,  after
  making  debt  service  payments or debt service set asides, replenishing
  any  reserve  funds  and  paying  the  administrative  expenses  of  the
  authority  for such month, make an adjustment in favor of the county, as
  the case may be, before determining the remaining amount of the  balance
  of  revenues for such subsequent month and paying such remaining monthly
  balance of revenues to the county. Nothing in this title shall be deemed
  to restrict the authority of the state comptroller and the  commissioner
  of  taxation  and  finance  to  adjust for overpayments or underpayments
  pursuant to the tax law.
    8. (a) This subdivision  shall  apply  only  to  revenue  anticipation
  notes,  including  renewals  thereof,  issued  by  the county during its
  fiscal  year  ending  December  thirty-first,  two  thousand  five,   in
  anticipation  of  the  receipt  of  state aid revenues and/or county tax
  revenues, and only to such issues of revenue anticipation  notes  as  to
  which  the certificate described in paragraph (b) of this subdivision is
  filed. For purposes of this subdivision, "state aid" means state  social
  services  aid,  social  services  aid from the United States government,
  state aid for court security, state aid  for  education  of  handicapped
  children,  and  aid and incentives for municipalities, and shall be paid
  by the state comptroller to the authority.
    (b) Notwithstanding the provisions of subdivision five of this section
  with respect to the transfer of the balance of revenues to  the  county,
  prior  to the delivery of each such issue of revenue anticipation notes,
  the comptroller of the county shall file with the  authority  a  request
  that  the authority establish a county of Erie revenue anticipation note
  withholding fund which shall  constitute  a  special  bank  account  for
  purposes  of paragraph g of section 25.00 of the local finance law. Such
  request by the comptroller shall be accompanied by 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,
  and (ix) a schedule setting forth the total amount of state aid revenues
  and county tax revenues anticipated to be  received,  and  the  expected
  date  or  dates  of  anticipated  receipt of such state aid revenues and
  county  tax  revenues.  Such  certificate  shall  be  accompanied  by  a
  statement  executed  by  the comptroller certifying that the amounts and
  times of  payments  of  state  aid  revenues  and  county  tax  revenues
  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.
    (c)  All  such  revenue anticipation notes, in addition to a pledge of
  the faith and credit of  the  county  for  the  payment  thereof,  shall
  contain  a  recital to the effect that they are entitled to the benefits
  of the provisions of this subdivision.
    (d) 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  comptroller
  with  the  authority  pursuant to paragraph (b) of this subdivision, the
  authority shall pay to such paying agent from  state  aid  revenues  and
  county  tax  revenues  transferred  and credited by the authority to the
  county of Erie revenue anticipation note withholding fund as provided in
  paragraph (e) of this subdivision 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 authority
  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  the  county 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 the county 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 the county shall  have  any  right  to  or
  claim  against  any moneys 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.
  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.
    (e)  Commencing  on  the  day  when  the authority determines that the
  principal and interest due or to come due on  such  outstanding  revenue
  anticipation  notes issued against such state aid revenues and/or county
  tax revenues in accordance with the provisions of this subdivision shall
  equal the amount of such state aid revenues and such county tax revenues
  as set forth on the schedule included in the certificate filed with  the
  authority  pursuant to paragraph (b) of this subdivision remaining to be
  paid to the county on or prior to any principal and/or interest  payment
  date,  the  authority  shall deduct and withhold from the amount of such
  state aid revenues and county tax  revenues  otherwise  payable  to  the
  county  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  authority  to  the  account
  established  for  such state aid revenues and county tax revenues in the
  county of Erie revenue anticipation note withholding fund established by
  the authority in accordance with the comptroller's request  pursuant  to
  paragraph  (b)  of this subdivision. The payments required to be made by
  the authority pursuant to paragraph (d) of  this  subdivision  shall  be
  made  from amounts on deposit in the accounts established for such state
  aid revenues and county tax revenues  in  the  county  of  Erie  revenue
  anticipation note withholding fund.
    (f)  Notwithstanding  any  other provision of this subdivision, at the
  expiration of one hundred eighty days after the  maturity  date  of  any
  issue  of  revenue  anticipation  notes  issued  in  accordance with the
  provisions of this subdivision, 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  the  county  and  thereafter  the
  holders of such notes shall look only to the county for such payment.
    (g)  All  other  provisions  of the local finance law not inconsistent
  with the provisions of this subdivision shall continue to apply  to  the
  authorization and issuance of revenue anticipation notes by the county.