§ 107.00 Down payment. a. As used in this section the term "current
funds" shall include:

1. Budgetary appropriations for capital improvements or equipment,
which appropriations have not lapsed.

2. The proceeds of capital notes issued for the payment of the cost of
capital improvements or equipment.

3. Revenues other than real estate taxes or assessments, which have
been collected or received during a fiscal year in excess of the total
amount of such revenues as estimated for such fiscal year, and surplus
funds and unexpended balances, which are available to be applied toward
the payment of the cost of capital improvements or equipment.

4. Capital reserve funds established pursuant to section six-c of the
general municipal law.

5. The trade-in allowance received for any equipment traded in as part
of the cost of equipment being purchased.

Nothing herein contained shall be construed to permit the diversion of
the proceeds of budgetary appropriations, capital notes, or capital
reserve funds to a purpose other than that for which such
appropriations, capital notes, or capital reserve funds, respectively,
were made, issued or established.

b. No municipality shall:

1. Issue bonds or bond anticipation notes for a specific capital
improvement or items of equipment or several specific capital
improvements or items of equipment or a combination thereof, or

2. Make expenditures for a specific capital improvement from the
proceeds of bonds or bond anticipation notes issued for a class or
classes of capital improvements or from a fund into which the proceeds
of bonds or bond anticipation notes are paid
unless it shall have first provided from current funds a sum of money
sufficient to pay at least five per centum of the estimated cost of each
such capital improvement or such equipment. The term "estimated cost",
as used in this paragraph, shall not include (a) the portion of the cost
of any capital improvement which is to be paid by the United States or
the state of New York or which is to be paid from funds, other than
loans, granted to such municipality therefor by the United States or the
state of New York, or (b) the portion of the cost of any capital
improvement which is to be paid by assessments upon benefited real
property in an area less than the area of the municipality.

c. 1. During the first fiscal year of a city commencing on or after
July first, nineteen hundred forty-four, in which its debt-contracting
power has been exhausted by more than fifty per centum and in which its
net indebtedness is in excess of one hundred twenty-five million
dollars, such minimum percentage to be provided by such city from
current funds, as prescribed in paragraph b of this section, shall be
increased by nine per centum. Thereafter, during each succeeding fiscal
year such minimum percentage to be provided from current funds shall be
increased by two per centum over and above the minimum percentage
required for the preceding fiscal year, notwithstanding any increase in
the amount of the debt-contracting power of any such city during such
succeeding fiscal years. For the purposes of this subdivision the term
"current funds" shall include only budgetary appropriations for capital
improvements or equipment which appropriations have not lapsed, or the
proceeds of capital notes issued for the payment of the cost of capital
improvements or equipment.

2. The term "net indebtedness" used in this paragraph shall mean the
total net indebtedness as ascertained pursuant to section 138.00 of this
chapter. The percentage of debt-contracting power exhausted shall be
computed pursuant to the provisions of subdivision two of paragraph a of
section 140.00 of this chapter.

d. The provisions of this section shall not apply to:

1. Bonds to be issued to redeem bond anticipation notes previously
issued.

2. Judgments, other than for capital improvements.

3. The following capital improvements:

(a) The acquisition, construction, reconstruction or equipment of or
addition to a water supply or distribution system, whether or not
including land.

(b) A capital improvement which the finance board by resolution
estimates will be self-sustaining.

(c) The acquisition, construction or equipment of or addition to rapid
transit railroads, whether or not including land.

(d) The acquisition, construction, reconstruction or equipment of or
addition to electric light and power or gas plants or systems, whether
or not including land.

(e) The acquisition, construction, reconstruction of or addition to
docks, piers or wharf property, whether or not including land.

(f) The acquisition, construction, reconstruction of or addition to a
bridge or a tunnel and the approaches thereto, whether or not including
land, the cost of which is estimated to exceed ten million dollars.

(g) A capital improvement, the cost of which is estimated to exceed
twenty million dollars.

(h) A capital improvement, the cost of which is estimated to exceed
one million dollars and part of which cost is to be paid by assessments
upon benefited real property in an area less than the area of the
municipality.

(i) A capital improvement, of which at least fifty per centum of the
cost is to be paid by assessments upon benefited real property in an
area less than the area of the municipality, whether or not the cost of
such improvement is estimated to be in excess of one million dollars.

(j) A capital improvement or the acquisition of equipment, when
necessitated by some destructive agency or to prevent the happening of a
calamity. The finance board, shall, by a four-fifths vote of its voting
strength, determine when such an emergency exists. The determination of
the finance board as to the existence of such an emergency shall be
conclusive.

(k) The construction, reconstruction and equipment of city hospitals
and schools, whether or not including land, if the bonds authorized for
any such object or purpose shall have a maximum maturity not to exceed
one-half of the maximum period of probable usefulness for any such
object or purpose prescribed in paragraph a of section 11.00 of this
chapter. Such maximum maturity shall be computed from the date of the
bonds or the date of the first bond anticipation note issued in
anticipation of such bonds, whichever date is the earlier, and shall not
exceed fifteen years in any event.

(l) The acquisition, construction, reconstruction, or equipment of or
addition to facilities for the conveyance, treatment and disposal of
sewage, whether or not including land.

(m) The cost of the preparation, pursuant to section ninety-nine-d of
the general municipal law, of surveys, preliminary plans and detailed
plans, specifications and estimates necessary for planning for a capital
improvement which it is contemplated might be undertaken in the future.

4. The financing by any municipality of any object or purpose, if the
bonds authorized for any such object or purpose shall have a maximum
maturity not to exceed one-half of the maximum period of probable
usefulness. Such maximum maturity shall be computed from the date of the
bonds or the date of the first bond anticipation note issued in
anticipation of such bonds, whichever date is the earlier, and shall not
exceed fifteen years in any event.

5. The financing by any municipality of any object or purpose which
has a period of probable usefulness of five years, or less, as
prescribed in paragraph a of section 11.00 of this chapter.

6. The financing by any municipality of any urban renewal program or
part thereof having a period of probable usefulness determined pursuant
to subdivision forty-one-a of section 11.00 of this chapter.

7. The financing by any municipality of any object or purpose which
has a period of probable usefulness prescribed in subdivision forty-one
or subdivision forty-one-b of paragraph a of section 11.00 of this
chapter.

8. Notwithstanding any other provision of law, the financing by the
city of New York prior to July first, two thousand twenty-five of any
object or purpose which has a period of probable usefulness determined
by law by the issuance of any bonds or notes, including (i) the issuance
of bonds or notes to obtain reimbursement for funds heretofore advanced
for the object or purpose for which the bonds or notes are being issued,
(ii) the issuance of bonds or notes to redeem notes previously issued
for the object or purpose for which the bonds or notes are being issued
or (iii) the issuance of bonds to refund bonds previously issued for the
object or purpose for which bonds are being issued.

9. Notwithstanding any other provision of law, the financing by any
municipality, prior to July fifteenth, two thousand twenty-seven, of any
object or purpose which has a period of probable usefulness determined
by law, by the issuance of any bonds and notes, including (i) the
issuance of bonds or notes, to redeem notes previously issued for the
object or purpose for which the bonds or notes are being issued or (ii)
the issuance of bonds to refund bonds previously issued for the object
or purpose for which bonds are being issued.