N.Y. Local Finance Law 143.00 – Contract liabilities: housing guarantees or subsidies; procedure for ascertaining the amount of such liabilities
§ 143.00 Contract liabilities: housing guarantees or subsidies; procedure for ascertaining the amount of such liabilities. a. The amount of the liability of a city, town or village on account of any contract for capital or periodic subsidies to a housing authority to be paid subsequent to the then current year shall be deemed indebtedness in the amount of the commuted value of the total of such subsidies remaining unpaid, calculated on the basis of an annual interest rate of four per centum.
Terms Used In N.Y. Local Finance Law 143.00
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
b. The amount of the liability of a city, town or village arising from a guarantee of the principal of and interest on indebtedness contracted by a housing authority shall be deemed indebtedness in the amount of the face value of the principal thereof remaining unpaid. If only interest is guaranteed, then the amount of liability arising therefrom shall be deemed indebtedness in the amount of the commuted value of the total interest guaranteed and remaining unpaid, calculated on the basis of an annual interest rate of four per centum.