§ 3232. Definitions. For the purpose of this title:

1. "Director of the budget" means the director of the budget of the
state of New York.

2. "Corporation" means the New York local government assistance
corporation as created by this title.

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

4. "State" means the state of New York.

5. "Revenues" means all aid, rents, fees, charges, payments and other
income and receipts paid or payable to the corporation or to a trustee
for the account of the corporation, including any payment required to be
made to the corporation by this title.

6. "Operating expenses" means all expenses incurred by the corporation
in the administration of the corporation including but not limited to
salaries, administrative expenses, insurance premiums, fees payable to
providers of bond or note facilities, auditing and legal expenses and
fees and expenses incurred for professional consultants and fiduciaries.

7. "Capital reserve fund requirement" means, as of any particular date
of computation and with respect to any capital reserve fund, the maximum
amount required to pay, during the then current or any succeeding fiscal
year, on all bonds of the corporation secured by such capital reserve
fund outstanding as of the date of computation, the maximum combined
amount of all interest payable during such fiscal year and all
installments of principal (including mandatory sinking fund payments and
amounts, payable on principal so paid, that are treated as original
issue discount under the code and regulations thereunder) payable during
such fiscal year; provided that the corporation may, if it determines
that the security and marketability of bonds secured by a capital
reserve fund will not be unduly adversely affected, reduce the
requirement with respect to such capital reserve fund as so defined so
as to equal no less than half of the amount so calculated; and provided,
further, that the corporation may increase the amount calculated as
provided in this subdivision with respect to a capital reserve fund by
including any designated notes of the corporation as bonds, upon any
related issuance proceeds of which will fund the increase, and provided,
further, that interest payable at a variable rate on any bonds of the
corporation or payable at a rate then not determinable on short term
notes to be issue by the corporation in renewal or replacement of other
short term notes shall for purposes of any such calculation be assumed
to be payable at a rate or rates reasonably assumed by the corporation
having due regard for the security and marketability of all its bonds
and notes.

8. "Code" means the United States Internal Revenue Code of 1986, as
amended.

9. "Net proceeds" means the aggregate principal amount of any bonds or
notes issued by the corporation, reduced by any amount of such bonds or
notes that constitutes interest under the code and further reduced by
the portion of such aggregate principal amount issued (i) to fund the
capital reserve fund in accordance with the capital reserve fund
requirement and to fund any other reserves that the corporation
reasonably deems necessary for the security or marketability of its
bonds and notes, (ii) to provide capitalized interest, and (iii) to
provide fees and other charges and expenses, including underwriters'
discount, related to the issuance of such bonds or notes, including fees
and other charges payable from such proceeds to providers of bond or
note facilities.

10. "Bond or note facility" means any insurance policy, letter of
credit or other facility, agreement or arrangement referred to in
subdivision sixteen, seventeen or eighteen of section three thousand two
hundred thirty-five of this title.

11. "Local government" means a county, city, town, village, school
district, city school district or board of cooperative educational
services.