* § 9-a. Establishment and application of a general debt service fund.
1. Commencing on the first day of the first full fiscal quarter
subsequent to the first sale of a federally guaranteed city obligation,
the city shall establish a general debt service fund for the purpose of
paying debt service due or becoming due in the then current fiscal year
and in subsequent fiscal years. All monies in the fund shall be held by
the comptroller, who shall administer and maintain the fund in
accordance with the provisions of this section.

2. All payments of or on account of real estate taxes or assessments,
other than the proceeds of tax anticipation notes, shall be immediately
upon receipt deposited in such fund. The comptroller shall retain,
disburse and apply monies in the fund during each month as follows:

a. During the first month of each fiscal quarter, there shall be
retained in the fund, subject to the provisions of subdivision three of
this section, all real estate tax payments deposited in the fund until
there shall have been retained from monies so deposited during such
month an amount equal to the total monthly debt service, computed as of
the date of any disbursement of money from the fund, for the second and
third months of such fiscal quarter; provided that such amount shall be
reduced by any amount already on deposit in the fund which may be used
to pay the monthly debt service for such months.

For purposes of this section, fiscal quarter shall mean the
three-month period beginning July first, October first, January first or
April first, and monthly debt service shall mean, as of any date of
computation, the amount of monies equal to the aggregate of (i) all
interest payable during such month on bonds and notes of the city, plus
(ii) the amount of principal (including payments into sinking funds)
maturing or otherwise coming due during such month on all bonds of the
city (excluding principal payments made from sinking funds required by
the terms of certain city bonds), plus (iii) the amount of principal to
be paid on notes of the city during such month from sources other than
the proceeds of bonds or renewal notes (exclusive of revenue
anticipation notes and tax anticipation notes or renewals thereof issued
less than two years prior to the date of computation).

b. During the second and third months of each fiscal quarter, there
shall be retained in the fund, subject to the provisions of subdivision
three of this section, all real estate tax payments deposited in the
fund until there shall have been retained from monies so deposited
during such month an amount equal to the total monthly debt service,
computed as of the date of any disbursement of monies from the fund, for
the first month of the next succeeding fiscal quarter; provided that
such amount shall be reduced by any amount already on deposit in the
fund which may be used to pay the monthly debt service for such month.

c. During any month of a fiscal quarter, after the retentions required
by paragraphs a and b of this subdivision have been made for such month,
the comptroller shall deposit any remaining balance of real estate taxes
received during such month, first into the TAN debt service account to
the extent required under subdivision six of this section, and second
into the board fund to be applied in accordance with procedures of the
board.

d. The city may at any time pay into the fund any monies required by
law to be used to pay monthly debt service and any other monies
available for such purpose.

3. The board may approve, subject to agreements made with the holders
or guarantors of outstanding notes or bonds issued by or for the benefit
of the city after the effective date of this act, criteria for
calculating a proportion of real estate tax receipts to be retained in
the fund in order to provide for the retention of amounts required by
the provisions of subdivision two of this section in lieu of the
retention of all initial receipts as required by such subdivision;
provided, that if the board at any time determines that retentions in
the fund pursuant to the provisions of such subdivision are or are
likely to be insufficient to provide for the payment of monthly debt
service when due, in order to ensure that the amounts on deposit in the
fund will be sufficient to pay monthly debt service when due, the board
shall require (i) that real estate tax receipts be retained in the fund
in greater amounts or at earlier dates than the provisions of such
subdivision require, or (ii) that other revenues or cash resources of
the city be paid into the fund. The board shall consider the impact of
earlier or larger retention of real estate tax receipts on the city's
seasonal borrowing requirements when determining whether it shall
require such additional retention or that other revenues or cash
resources of the city be paid into the fund. Prior to the issuance by
the city of any bonds or notes, the board shall review any criteria then
in effect which determine the proportion of real estate tax receipts to
be retained in the fund to determine whether the proposed debt service
schedule for such bonds or notes is consistent with the monies which
will be available therefor or whether such criteria should be revised.
The board shall from time to time take such action as it determines is
necessary, including disapproval of a proposed issue pursuant to
paragraph f of subdivision one of section seven, so that the monies in
the fund shall be adequate to meet debt service requirements.

4. Commencing on the first day of the second month of the first full
fiscal quarter subsequent to the first sale of a federally guaranteed
city obligation, the payment of monthly debt service shall be made,
first, from amounts retained in the fund. Amounts retained in the fund
shall be used only to pay debt service of the city.

5. Upon the issuance of any tax anticipation notes following the
effective date of this act, the comptroller shall establish and, so long
as any tax anticipation notes shall be outstanding, shall maintain a tax
anticipation note debt service account within the fund for the purpose
of paying the principal of tax anticipation notes.

6. The city shall determine the date on which the principal due or to
become due on an outstanding issue of tax anticipation notes shall equal
ninety percent of the available tax levy with respect to such issue, and
upon reasonable notice thereof the comptroller shall commence on such
date to pay into the TAN debt service account from collections of such
taxes and assessments, after retaining amounts required to be deposited
in the fund, amounts sufficient to pay when due, the principal of such
issue of tax anticipation notes. The payments of the principal of tax
anticipation notes shall be made, first, from amounts retained in the
TAN debt service account.

7. Upon the issuance of any revenue anticipation notes following the
effective date of this act, the comptroller shall establish and, so long
as any revenue anticipation notes shall be outstanding, shall maintain a
revenue anticipation note debt service account within the fund for the
purpose of paying the principal of revenue anticipation notes. Each
specific type of revenue in anticipation of which such notes are issued
and available for such purpose shall be deposited in such account
immediately upon receipt by the city. Where such revenue consists of
state aid or other revenue to be paid to the city by the comptroller, on
the date such revenue is payable to the city, the comptroller shall
deposit such revenue directly into such account in lieu of payment to
the city. All revenues deposited in the RAN debt service account shall
be paid immediately into the board fund except as otherwise provided in
subdivision eight of this section.

8. The city shall determine the date on which the principal due or to
become due on an outstanding issue of revenue anticipation notes shall
equal ninety percent of the total amount of revenue against which such
notes were issued remaining to be paid to the city on or before the
fifth day prior to the maturity date of such notes and upon reasonable
notice thereof the comptroller shall commence on such date to retain in
the RAN debt service account from amounts deposited or to be deposited
therein of each specific type of revenue in anticipation of which
revenue such anticipation notes were issued, an amount sufficient to
pay, when due, the principal of such revenue anticipation notes. Monies
retained in such account shall vest immediately in the comptroller in
trust for the benefit of the holders of the revenue anticipation notes
in anticipation of which such notes were issued. 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 monies 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
monies shall not be subject to any order, judgment, lien, execution,
attachment, setoff or counter-claim 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 New
York, 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 monies held by the state or for the payment of which bonds or
notes state aid or local assistance monies are a designated source. The
payment of the principal of revenue anticipation notes shall be made
first from amounts retained in the RAN debt service account.

9. Whenever the amount contained in the TAN debt service account or
the RAN debt service account exceeds the amount required to be retained
in such account such excess monies, including earnings on investments of
monies in the fund, shall be withdrawn from such account and paid into
the board fund.

10. Subject to agreements made with holders or guarantors of
outstanding notes or bonds issued by or for the benefit of the city
after the effective date of this act, the comptroller shall invest the
monies retained in the fund in accordance with law.

11. The limitations imposed upon the city by this section shall be in
addition to any limitations imposed upon the city under the local
finance law. In the event any provisions of the local finance law shall
be inconsistent with the provisions of this section, the provisions of
this section shall prevail. The requirements of this section shall not
apply to any note 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 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.

12. Notwithstanding any other provision of this section, the city may,
at any time, subject to approval by the comptroller, designate a trust
company or bank having its principal place of business in the state of
New York and having the powers of a trust company in the state of New
York to hold all or any part of the monies in the fund and to administer
and maintain the monies so held in accordance with the applicable
provisions of this section and any agreements made pursuant thereto.

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