§ 126.00 Exclusion of certain indebtedness for school purposes; New
York City. a. In ascertaining the power of the city of New York to
contract indebtedness, there may be excluded the outstanding
indebtedness contracted by such city for school purposes, evidenced by
bonds, to the extent to which state aid for common schools, not
exceeding two million five hundred thousand dollars, shall be applied by
such city to meet the interest and the annual requirements for the
amortization and payment of part or all of one or more issues of such
bonds.

b. Such exclusion shall be effective only during a fiscal year of the
city in which its expense budget provides for the payment of such debt
service from such state aid for common schools.

c. At any time during a fiscal year for which the expense budget of
the city provides for the payment of such debt service from such state
aid or at any time prior to such fiscal year but after the expense
budget for such fiscal year has been finally adopted, an application may
be filed with the state comptroller for the purpose of obtaining an
exclusion of such outstanding indebtedness. Such application shall be
made on behalf of the city by its chief fiscal officer in his
discretion, or by its chief fiscal officer on the direction of its
finance board. The application shall be verified by the chief fiscal
officer or finance board making the application. The application shall
be in such form and shall contain such information as shall be
prescribed by the state comptroller.

d. Within five days after the filing of such application with the
state comptroller, such chief fiscal officer making the application
shall cause a notice to be published that such application has been
filed with the state comptroller. Such notice shall be published in the
official newspaper or newspapers of the city. The notice also shall
contain a statement of the amount of outstanding indebtedness sought to
be excluded and a statement of the amount of state aid for schools
allocated to the payment of debt service. Proof of publication of such
notice shall be filed in the office of the state comptroller. A copy of
the application and of all financial statements, documents, computations
and other data and information which will be submitted by the chief
fiscal officer of such city to the state comptroller in support of such
application shall be filed in the office of such chief fiscal officer
and shall be public records.

e. After the filing of such application, the state comptroller shall
review the facts set forth therein. The state comptroller shall have the
power to examine the accounts and records of the city with respect to
such application. He may also require the chief fiscal officer and other
public officers, boards and agencies of such city to furnish such
additional data and information in their possession as he deems
necessary to enable him to make his determination.

f. The state comptroller shall issue a written certificate setting
forth his determination as to the extent to which any such outstanding
indebtedness may be excluded. If an exclusion is allowed by the state
comptroller, such certificate shall constitute the authorization for the
exclusion of such amount of such indebtedness in ascertaining the power
of such city to contract indebtedness. If the state comptroller
disallows the application, the certificate shall set forth the reasons
for such disallowances. The determination of the state comptroller shall
be conclusive. The certificate of the state comptroller shall not be
issued until ten days after the filing of such proof of publication in
the office of the state comptroller and shall be issued within twenty
days after such filing. The certificate of the state comptroller
granting an exclusion shall be effective until the close of the fiscal
year for which an application has been filed setting forth that the
expense budget of the city provides for the payment of debt service from
state aid for common schools. The certificate of the state comptroller
shall be executed under his hand and seal in duplicate. One of such
certificates shall be filed in the department of audit and control and
the other in the office of the chief fiscal officer of such city. Both
of such certificates shall be public records.