§ 3965. Resources of the authority. 1. Subject to the provisions of\nthis title, the directors of the authority shall receive, accept,\ninvest, administer, expend and disburse for its corporate purposes all\nmoneys of the authority from whatever source derived including (a)\nrevenues and (b) proceeds of bonds, notes or other obligations.\n 2. Subject to the provisions of any contract with holders of bonds,\nnotes or other obligations, revenues of the authority shall be paid to\nthe authority and shall not be commingled with any other money.\n 3. The money in any of the authority's accounts shall be paid out on\nchecks signed by the treasurer of the authority, or by other lawful and\nappropriate means such as wire or electronic transfer, on requisitions\nof the chairperson of the authority or of such other officer as the\ndirectors shall authorize to make such requisition, or pursuant to a\nbond resolution or trust indenture.\n 4. All deposits of authority money shall be secured by obligations of\nthe United States or of the state or of the county at a market value at\nleast equal at all times to the amount of the deposit, and all banks and\ntrust companies are authorized to give such security for such deposits.\nThe authority shall have the power, notwithstanding the provisions of\nthis section, to contract with the holders of any of its bonds, notes or\nother obligations as to the custody, collection, securing, investment\nand payment of any money of the authority or any money held in trust or\notherwise for the payment of bonds, notes or other obligations or in any\nway to secure bonds, notes or other obligations, and to carry out any\nsuch contract notwithstanding that such contract may be inconsistent\nwith the other provisions of this title. Money held in trust or\notherwise for the payment of bonds, notes or other obligations or in any\nway to secure bonds, notes or other obligations, and deposits of such\nmoney, may be secured in the same manner as money of the authority, and\nall banks and trust companies are authorized to give such security for\nsuch deposits.\n 5. Revenues of the authority shall be applied in the following order\nof priority: first to pay debt service or for set asides to pay debt\nservice on the authority's bonds, notes, or other obligations and to\nreplenish any reserve funds securing such bonds, notes or other\nobligations of the authority in accordance with the provision of\nindenture or bond resolution of the authority; then to pay the\nauthority's operating expenses not otherwise provided for; and then,\nsubject to the authority's agreements with the county for itself or on\nbehalf of any covered organization to transfer as frequently as\npracticable the balance of revenues not required to meet contractual or\nother obligations of the authority to the county as provided in\nsubdivision seven of this section.\n 6. (a) Any such payment of state aid revenues to the authority shall\nnot obligate the state to make available, nor entitle the county to\nreceive, any additional state aid.\n (b) Nothing contained in this title shall be construed to create a\ndebt of the state within the meaning of any constitutional or statutory\nprovisions. Any provision with respect to state aid or state aid\nrevenues shall be deemed executory only to the extent of moneys\navailable, and no liability shall be incurred by the state beyond the\nmoneys available for that purpose, and any such payment by the\ncomptroller of state aid revenues is subject to annual appropriation of\nstate aid by the state legislature.\n (c) Nothing contained in this title shall be deemed to restrict the\nright of the state to amend, repeal, modify, or otherwise alter section\nfifty-four of the state finance law or any provision relating to state\naid to municipalities. The authority shall include within any\nresolution, contract, or agreement with holders of its bonds, notes or\nother obligations a provision which states that no default occurs as a\nresult of the state's exercising its right to amend, repeal, modify, or\notherwise alter section fifty-four of the state finance law or any other\nprovision relating to state aid to municipalities.\n 7. On a monthly basis, the authority shall prepare and provide to the\ncounty a detailed accounting of all revenues received and payments and\ndebt service set asides made, as attributable to the county. Such\naccounting shall reflect: (a) the amount of state aid revenues and\ncounty tax revenues received during such month; (b) the respective\nportion of debt service paid or set aside during such month by the\nauthority for its bonds, notes or other obligations attributable to the\ncounty; (c) the respective portion of reserve fund replenishment made or\nset aside during such month by the authority in connection with its\nbonds, notes or other obligations attributable to the county; and (d)\nthe respective portion of administrative expenses of the authority paid\nor set aside during such month by the authority attributable to the\ncounty. As soon as practicable after each monthly payment or set aside,\nthe authority shall make respective payments of the remaining monthly\nbalance or revenues to the county in accordance with such accounting. To\nthe extent that such respective monthly payments of the remaining\nbalance of revenues result in an overpayment or underpayment to the\ncounty, the authority shall in the immediately subsequent month, after\nmaking debt service payments or debt service set asides, replenishing\nany reserve funds and paying the administrative expenses of the\nauthority for such month, make an adjustment in favor of the county, as\nthe case may be, before determining the remaining amount of the balance\nof revenues for such subsequent month and paying such remaining monthly\nbalance of revenues to the county. Nothing in this title shall be deemed\nto restrict the authority of the state comptroller and the commissioner\nof taxation and finance to adjust for overpayments or underpayments\npursuant to the tax law.\n 8. (a) This subdivision shall apply only to revenue anticipation\nnotes, including renewals thereof, issued by the county during its\nfiscal year ending December thirty-first, two thousand five, in\nanticipation of the receipt of state aid revenues and/or county tax\nrevenues, and only to such issues of revenue anticipation notes as to\nwhich the certificate described in paragraph (b) of this subdivision is\nfiled. For purposes of this subdivision, "state aid" means state social\nservices aid, social services aid from the United States government,\nstate aid for court security, state aid for education of handicapped\nchildren, and aid and incentives for municipalities, and shall be paid\nby the state comptroller to the authority.\n (b) Notwithstanding the provisions of subdivision five of this section\nwith respect to the transfer of the balance of revenues to the county,\nprior to the delivery of each such issue of revenue anticipation notes,\nthe comptroller of the county shall file with the authority a request\nthat the authority establish a county of Erie revenue anticipation note\nwithholding fund which shall constitute a special bank account for\npurposes of paragraph g of section 25.00 of the local finance law. Such\nrequest by the comptroller shall be accompanied by a certificate setting\nforth with respect to such issue (i) the principal amount, (ii) the date\nof issue, (iii) the maturity date, (iv) the interest rate or rates, (v)\nif interest shall be payable otherwise than at maturity, the date or\ndates for the payment thereof, (vi) the name and address of the paying\nagent, (vii) the name and address of each purchaser, or, if a purchaser\nshall be a syndicate or similar account, the name and address of each\nmanaging underwriter of such syndicate or similar account, (viii) the\namount payable on each principal payment date and interest payment date,\nand (ix) a schedule setting forth the total amount of state aid revenues\nand county tax revenues anticipated to be received, and the expected\ndate or dates of anticipated receipt of such state aid revenues and\ncounty tax revenues. Such certificate shall be accompanied by a\nstatement executed by the comptroller certifying that the amounts and\ntimes of payments of state aid revenues and county tax revenues\ncontained in such schedule have been estimated by the use of reasonable\nand appropriate data and methods of estimation, all in accordance with\napplicable law.\n (c) All such revenue anticipation notes, in addition to a pledge of\nthe faith and credit of the county for the payment thereof, shall\ncontain a recital to the effect that they are entitled to the benefits\nof the provisions of this subdivision.\n (d) Commencing on the date not less than five days prior to and on\neach day thereafter up to and including any principal and/or interest\npayment date referred to in the certificate filed by the comptroller\nwith the authority pursuant to paragraph (b) of this subdivision, the\nauthority shall pay to such paying agent from state aid revenues and\ncounty tax revenues transferred and credited by the authority to the\ncounty of Erie revenue anticipation note withholding fund as provided in\nparagraph (e) of this subdivision the amount required to pay in full the\nprincipal and/or interest due on such payment date as set forth in such\ncertificate. Moneys so paid shall pass immediately from the authority\nand vest in such paying agent in trust for the benefit of the holders of\nthe revenue anticipation notes to which such certificate relates. No\nother person having any claim of any kind in tort, contract or otherwise\nagainst the county shall have any right to or claim against the moneys\nheld by such paying agent, and such moneys shall not be subject to any\norder, judgment, lien, execution, attachment, setoff or counterclaim by\nany such other person. Such moneys shall be held by such paying agent in\na separate trust account and shall be applied only to the payment of the\nprincipal and/or interest due on such revenue anticipation notes,\nprovided, however, that the contract by and between the county and such\npaying agent may provide for (i) the investment by such paying agent of\nsuch moneys in direct obligations of, or in obligations guaranteed by,\nthe United States of America, provided such obligations shall be payable\nor redeemable at the option of the holder within such time as the\nproceeds shall be needed to pay such principal and/or interest due on\nsuch revenue anticipation notes, and (ii) the use by such paying agent\nof such moneys for the purchase of direct obligations of, or obligations\nguaranteed by, the United States of America under one or more repurchase\nagreements with any bank or trust company having its principal office in\nthe state of New York, provided that any such repurchase agreement shall\nprovide for the repurchase of such obligations within such time as such\nmoneys are needed to pay the principal and/or interest due on such\nrevenue anticipation notes at a repurchase price at least sufficient to\nmake the amount so invested available for the payment of principal\nand/or interest due on such revenue anticipation notes, and provided,\nfurther, that, at the time of such purchase, the market value of such\nobligations shall be at least equal to one hundred two per centum of the\namount so invested. No person having any claim of any kind in tort,\ncontract or otherwise against the county shall have any right to or\nclaim against any moneys in anticipation of which such notes have been\nissued, other than a claim for payment by the holders of such notes, and\nsuch moneys shall not be subject to any order, judgment, lien,\nexecution, attachment, setoff or counterclaim by any such person.\nNotwithstanding any provision of law to the contrary, no instrument\nrelating to any transaction authorized or contemplated by this paragraph\nneed be filed under the provisions of the uniform commercial code.\n (e) Commencing on the day when the authority determines that the\nprincipal and interest due or to come due on such outstanding revenue\nanticipation notes issued against such state aid revenues and/or county\ntax revenues in accordance with the provisions of this subdivision shall\nequal the amount of such state aid revenues and such county tax revenues\nas set forth on the schedule included in the certificate filed with the\nauthority pursuant to paragraph (b) of this subdivision remaining to be\npaid to the county on or prior to any principal and/or interest payment\ndate, the authority shall deduct and withhold from the amount of such\nstate aid revenues and county tax revenues otherwise payable to the\ncounty an amount sufficient to pay, when due, the principal of and\ninterest on all such revenue anticipation notes issued and then\noutstanding in anticipation thereof. Amounts so deducted and withheld\nshall be transferred and credited by the authority to the account\nestablished for such state aid revenues and county tax revenues in the\ncounty of Erie revenue anticipation note withholding fund established by\nthe authority in accordance with the comptroller's request pursuant to\nparagraph (b) of this subdivision. The payments required to be made by\nthe authority pursuant to paragraph (d) of this subdivision shall be\nmade from amounts on deposit in the accounts established for such state\naid revenues and county tax revenues in the county of Erie revenue\nanticipation note withholding fund.\n (f) Notwithstanding any other provision of this subdivision, at the\nexpiration of one hundred eighty days after the maturity date of any\nissue of revenue anticipation notes issued in accordance with the\nprovisions of this subdivision, the amounts held by the paying agent\nthereof for the payment of the principal of and interest on the notes of\nsuch issue which have not been presented for payment shall be paid over\nand remitted by such paying agent to the county and thereafter the\nholders of such notes shall look only to the county for such payment.\n (g) All other provisions of the local finance law not inconsistent\nwith the provisions of this subdivision shall continue to apply to the\nauthorization and issuance of revenue anticipation notes by the county.\n