Section 3058. Conditions on extension of benefits to the city

The
  corporation shall, at the time of  any  exchange  of  the  corporation's
  bonds  and notes for obligations of the city pursuant to subdivision two
  of section three thousand fifty-five of this title  or  any  payment  of
  funds of the corporation to the city or of any purchase from the city of
  its  obligations  pursuant to section three thousand fifty-seven of this
  title, require the city to agree to observe and perform  the  conditions
  set  forth  below  in  this  section,  with  such  limitations as to the
  implementation of such conditions as the corporation may, subject to any
  contract  with  bondholders  or  noteholders,  then  approve;  provided,
  however, that no such specific limitations shall be so substantial as to
  effectively  constitute  a  waiver  of  any  such  conditions.  Any such
  conditions may thereafter, in the discretion of the corporation, subject
  to any contract with bondholders or  noteholders,  be  further  limited.
  Such  conditions shall cease to apply when all notes and bonds have been
  repaid or when the corporation has accumulated in its bond reserve funds
  or otherwise an amount equal to the principal of all  outstanding  notes
  and bonds and interest accrued thereon. The city shall have the right at
  any  time to pay the corporation an amount which, when added to the bond
  reserve funds, shall equal the principal of all  outstanding  notes  and
  bonds and interest accrued thereon and redemption premium if any. If the
  city  makes  such payment at a time when the corporation has outstanding
  notes or bonds that are not then callable, the city shall agree  to  pay
  the  corporation  on  demand  an  amount equal to the amount, if any, by
  which the amount of interest on such notes or  bonds  shall  exceed  the
  corporation's  income  from  the investment of its funds. Subject to the
  foregoing, the conditions that the corporation shall require the city to
  observe and perform shall be as follows:
    1. The city  shall  deliver  a  certificate,  executed  by  the  chief
  executive   officer   in   form   prescribed  by  the  corporation,  (a)
  representing  that  the  city  is  in  compliance  with  the  conditions
  described  below  in  this  section  as the corporation may specify, (b)
  undertaking to comply with any  of  such  specified  conditions  as  the
  corporation may then require, and (c) stating that all local legislative
  and executive action then required to permit such compliance by the city
  has  been  taken.  The  corporation  may  require the delivery with such
  certificate of an opinion of the city's  corporation  counsel  that  all
  such legislative and executive action has been taken.
    2.  For the fiscal year ending December thirty-first, nineteen hundred
  ninety-six, and for each fiscal  year  thereafter,  the  city's  budgets
  shall  be  prepared  in  accordance with the provisions of chapter seven
  hundred twenty-one of the  laws  of  nineteen  hundred  ninety-four,  as
  amended from time to time.
    3.  Each  fiscal  year  the  city  shall  take  such  action as may be
  necessary to enable an  independent  certified  public  accounting  firm
  selected and retained by the city at its cost to perform an annual audit
  and  to  furnish  to the corporation an annual report upon the financial
  statements of the city. Each such report shall be prepared in accordance
  with the generally accepted accounting principles. The city  shall  make
  available for inspection and copying all books, records, work papers and
  other  data and material as required by the independent certified public
  accounting firm conducting such  audit  and  the  city  shall  make  its
  officers  and  employees  available  to  and  shall  cooperate with such
  auditors so as to permit such annual  audit  to  be  completed  and  the
  report  issued  to  the  city  and to the corporation within one hundred
  twenty days after the close of the fiscal year.  Such  report  shall  be
  made available to the public promptly thereafter.

    4.  Beginning  with  the  fiscal  year  ending  December thirty-first,
  nineteen hundred ninety-six and for each  fiscal  year  thereafter,  the
  city  shall deliver its proposed budgets to the corporation. Delivery to
  the corporation shall be made concurrently with the  initial  submission
  of  the proposed budgets to the city council, but in any event not later
  than fifty days prior to the beginning of such fiscal year or such other
  date as the corporation may approve upon the request of the city.    The
  proposed  budgets  submitted  to  the  corporation  shall be prepared in
  accordance with the accounting methods referred to in subdivision  three
  of this section. Such budgets shall be identical to the proposed budgets
  submitted  to  the  city  council. The proposed budgets delivered to the
  corporation shall be accompanied by (i) a  statement  setting  forth  in
  detail  the  assumptions  of income and expense used in preparation, and
  (ii) a certificate of the chief  executive  officer  stating  that  such
  assumptions  are  reasonable  and  that  operation within the budgets is
  feasible. Subject to and in accordance with the  provisions  of  chapter
  seven hundred twenty-one of the laws of nineteen hundred ninety-four, as
  the  same  may  be  amended  from  time to time, the city shall in every
  fiscal year adopt and maintain budgets in which the total of all revenue
  items equals or exceeds the total of all expenditure items.
    5. If after the adoption of the  budgets  for  any  fiscal  year,  any
  increase  therein,  or  an  increase  in  total  expenditures  shall  be
  proposed, the chief executive officer shall cause such  proposal  to  be
  submitted  to  the  corporation  concurrently with its submission to the
  city council, together  with  a  statement  of  the  source  of  current
  revenues  or  other  identifiable and currently available funds required
  for the payment of such additional amounts.
    6. Commencing at such time as the corporation  may  specify,  but  not
  later  than February first, nineteen hundred ninety-six, the city budget
  director shall deliver to the corporation, not  less  than  thirty  days
  before  each  fiscal  quarter  (except,  within  thirty  days  after the
  commencement of the  first  fiscal  quarter),  an  expenditure  plan  to
  implement  the  city  budgets for such fiscal quarter and within amounts
  based on current income or other identifiable  and  currently  available
  funds.  The city budget director shall deliver to the corporation within
  thirty days after the end of each such  fiscal  quarter  covered  by  an
  expenditure  plan,  an  operations  report  reflecting  results  of city
  operations for such fiscal quarter and whether  the  city  has  operated
  within   the   related  expenditure  plan.  Each  expenditure  plan  and
  operations report shall be in such form as the corporation  may  specify
  and  shall be certified by the city budget director and shall detail and
  report upon action taken by the city to maintain balanced budgets.
    7. The city shall comply in all material respects with the expenditure
  limitations in its budgets as adopted or  modified  in  accordance  with
  subdivisions  four  and  five  of  this  section, and with chapter seven
  hundred twenty-one of the laws of nineteen hundred ninety-four,  as  the
  same may from time to time be amended.