* § 2. Definitions. As used in this act, the following words and terms
shall have the following meanings unless the context shall indicate
another or different meaning or intent.

1. "Comptroller" means the comptroller of the state of New York.

2. "City" means the city of New York.

3. "Mayor" means the mayor of the city of New York.

4. "City comptroller" means the comptroller of the city.

5. "Covered organization" means any governmental agency, public
authority or public benefit corporation which receives or may receive
monies directly, indirectly or contingently, (other than monies received
for the sale of goods or the rendering of services or the loan of monies
to the city) from the city, and in any event includes, without
limitation, the board of education of the city of New York, the board of
higher education of the city of New York, the New York city transitional
finance authority, the health and hospitals corporation, the New York
city transit authority, the New York city housing authority, the New
York city housing development corporation, city university construction
fund, Battery park city authority, New York city convention and
exhibition center corporation, Manhattan and Bronx surface transit
operating authority, Staten Island rapid transit operating authority,
the New York city sports authority and the Brooklyn sports center
authority but shall not include (i) any governmental agency, public
authority or public benefit corporation specifically exempted from the
provisions of this act by order of the board upon application of such
agency, authority, or corporation to the board or at the board's own
motion upon a finding by the board that such exemption does not
materially affect the ability of the city to adopt and maintain a budget
pursuant to the provisions of this act and provided that at the time of
such exemption there shall have been and during the period of such
exemption there shall be an annual audit by a nationally recognized
independent certified public accounting firm or consortium of firms, one
of which shall be a nationally recognized firm, of the covered
organization's financial statements performed in accordance with
generally accepted auditing standards and report by such auditor thereon
which includes an opinion that the financial statements so audited have
been prepared in accordance with generally accepted accounting
principles (subject to the provisions of subdivision two-a of section
eight of this act) and such other information as such auditors deem
appropriate, (ii) any state public authority as defined in section two
hundred one of the civil service law, unless specifically named above,
or (iii) any governmental agency, authority, commission or
instrumentality created by compact or agreement between the state of New
York and another state or states; provided, however, that the board may
terminate any exemption granted by order of the board pursuant to this
subdivision upon a determination that the circumstances upon which such
exemption was granted are no longer applicable.

6. "Board" means the governmental agency created by section five of
this act.

7. "Deputy comptroller" means the deputy comptroller for the city of
New York created by section forty-one-a of the executive law.

8. "Municipal assistance corporation for the city of New York" means
the corporate governmental agency created by section three thousand
thirty-three of the public authorities law.

9. "Short-term obligations" means tax anticipation notes, bond
anticipation notes, revenue anticipation notes, budget notes and urban
renewal notes of the city.

10. "Revenues" mean all taxes, federal and state aid, rents, fees,
charges, payments, all proceeds from borrowings and other income and
receipts paid or payable to or for the account of the city or any of the
covered organizations.

11. "Financial plan" means the financial plan of the city and the
covered organizations to be developed pursuant to section eight of this
act, as from time to time modified.

12. "Control period" means the period of time from the effective date
of this act until the date when (a) there shall no longer be effective
or outstanding any guarantee by the United States of America as to
payment of principal of or interest on any note or bond issued by the
city or a state financing agency, (b) the board shall determine, based
on annual audit reports furnished in accordance with section seven-a,
that for each of the three immediately preceding fiscal years, the city
has adopted and adhered to budgets covering all expenditures other than
capital items, the results of which did not show a deficit when reported
in accordance with generally accepted accounting principles subject to
the provisions of subdivision two-a of section eight of this act and (c)
the comptroller of the state and the comptroller of the city jointly
shall certify that securities sold by or for the benefit of the city
during the fiscal year immediately preceding such date and the then
current fiscal year in the general public market satisfied the capital
and seasonal financing requirements of the city during such period and
that there is a substantial likelihood that such securities can be sold
in the general public market from such date through the end of the next
succeeding fiscal year in amounts which will satisfy substantially all
of the capital and seasonal financing requirements of the city during
such period in accordance with the financial plan then in effect,
provided that for these purposes sales to any fund whose governing body
includes any designated representative of the state or city or to any
financial institution which participates in a private placement for the
purchase of securities for the benefit of the city during its nineteen
hundred seventy-nine fiscal year shall not be deemed sales in the
general public market, unless in the case of sales to such a financial
institution such comptrollers jointly certify at the time of each such
sale that a sale could have been made in such amount and on reasonably
comparable terms in the general public market. After termination of the
control period in accordance with the foregoing provisions and until
there shall no longer be outstanding any notes or bonds issued by the
city or a state financing agency which are entitled to the benefits of
the pledge and agreement authorized by section ten-a hereof, the board
shall reimpose a control period upon a determination at any time that
any of the following events has occurred or that there is a substantial
likelihood and imminence of such occurrence: (i) the city shall have
failed to pay the principal of or interest on any of its bonds or notes
when due or payable (other than notes held by the municipal assistance
corporation for the city of New York to the extent that such corporation
has evidenced its intention not to present such notes for payment during
the fiscal year in which the determination is made provided that such
notes were held by such corporation on June thirtieth, nineteen hundred
seventy-eight or were issued in exchange for or in refunding or renewal
of notes held by such corporation on such date), (ii) the city shall
have incurred a deficit of more than one hundred million dollars during
its fiscal year in the results of operations covered by a budget
covering all expenditures other than capital items as reported in
accordance with generally accepted accounting principles, subject to the
provisions of subdivision two-a of section eight of this act, (iii) the
city shall have issued notes in violation of section nine-b of this act
as amended from time to time, (iv) the city shall have otherwise
violated any provision of this act and such violation substantially
impairs the ability of the city to pay principal of or interest on its
bonds or notes when due and payable or its ability to adopt or adhere to
a budget covering all expenditures other than capital items balanced in
accordance with this act or (v) the comptrollers' joint certification at
any time, at the request of the board or on the comptrollers' joint
initiative, which joint certification shall be made from time to time as
promptly as circumstances warrant and reported to the board, that on the
basis of facts existing at such time they could not make the joint
certification described by clause (c) of the preceding sentence. The
board shall terminate any such reimposed control period when it
determines that none of the conditions which would permit the board to
reimpose a control period exist. After termination of a control period
the board shall annually consider items (i) through (v) above and
determine whether, in its judgment, any of the events described in such
items have occurred and the board shall publish each such determination.
Each such joint certification made by the comptrollers hereunder shall
be based on their separate written determinations which shall take into
account a report and opinion of a nationally recognized independent
expert in the marketing of municipal securities selected by the board as
well as any other information which may be available to each comptroller
and each such separate written determination by the comptrollers shall
have annexed thereto the report and opinion of such expert and any other
information taken into account and shall be made public when delivered
to the board. Notwithstanding any part of the foregoing to the contrary,
in no event shall any control period continue beyond the earlier of (a)
July first, two thousand eight or (b) the date (i) when all bonds and
notes containing the pledge and agreement authorized by section ten-a of
this act are refunded, redeemed, discharged or otherwise defeased or
(ii) when there shall no longer be outstanding any guarantee by the
United States of America or any agency or instrumentality thereof as to
payment of principal of or interest on any note or bond issued by the
city or a state financing agency, whichever of (i) or (ii) shall occur
later.

13. "Debt service repayment account" means the special account
established pursuant to subdivision four of section nine of this act.

14. "Fund" means the general debt service fund established pursuant to
section nine-a of this act.

15. "Board fund" means the board fund established pursuant to section
nine of this act.

16. "TAN debt service account" means the tax anticipation note debt
service account established within the fund pursuant to section nine-a
of this act.

17. "RAN debt service account" means the revenue anticipation note
debt service account established within the fund pursuant to section
nine-a of this act.

18. "Available funds" means at any date of computation the monies held
by the city or a covered organization which (i) are not required (a) to
be applied to the fund, the TAN debt service account, the RAN debt
service account or otherwise to meet the debt service requirements of
the city and the covered organizations on their bonds and notes (other
than bonds and notes of covered organizations payable from revenues not
included in the fund) as they become due, or (b) to pay other
liabilities of the city and the covered organizations having statutory
or contractual priority over remaining liabilities of the city and the
covered organizations, and (ii) therefore, may be applied to the payment
of other obligations on an allocated basis as specified by the city for
expenditures in accordance with a financial plan.

19. "Available tax levy" with respect to an issue of tax anticipation
notes means at any date of computation the total amount of city real
estate taxes or assessments projected, consistent with the financial
plan then in effect, to be received in cash on or before the fifth day
preceding the maturity date of such tax anticipation note issue, less
amounts required during the period between the date of computation and
the fifth day preceding such maturity date to be paid into the general
debt service fund or otherwise required to pay interest payable on other
outstanding city bonds and notes, principal (including payments into
sinking funds) coming due on outstanding city bonds and principal to be
paid from sources other than the proceeds of bonds or renewal notes on
other outstanding city notes (exclusive of revenue anticipation notes or
renewals thereof issued less than two years prior to the date of
computation) but not including payments from sinking funds required by
the terms of certain city bonds. For the purposes of this subdivision
such amounts required shall not include principal of or interest on any
notes of the city held by the municipal assistance corporation for the
city of New York to the extent that such corporation has evidenced its
intention not to present such notes for payment of principal or interest
during the fiscal year in which the computation is made provided that
such notes were held by such corporation on June thirtieth, nineteen
hundred seventy-eight or were issued in exchange for or in refunding or
renewal of notes held by such corporation on such date.

20. "State financing agency" means the municipal assistance
corporation for the city of New York or its successor.

* Terminates July 1, 2008 or ... see § 13