N.Y. State Finance Law 66-A – Restriction on issuance of certificates of participation
§ 66-a. Restriction on issuance of certificates of participation. 1. No person, partnership, corporation or other legal entity nor any state officer, employee, agency, department, the city university of New York, the legislature or the judiciary shall issue certificates of participation or similar instruments representing the right to receive a proportionate share in lease, installment or other periodic payments to be made by any state department, agency or the city university of New York except in accordance with the provisions of this article and with the express written approval of the state comptroller. The provisions of this section are hereby made a part of every purchase contract entered into by such a state entity providing for periodic payments by any state department, agency or the city university of New York. Every such contract shall contain a clause expressly reciting the provisions of this subdivision, provided, however, that the absence of such clause in such a contract shall not obviate the duty of all parties thereto to comply with the provisions of this subdivision. Neither this provision, nor any other provision of this article shall be construed to prevent such state entities from entering into installment purchase or lease purchase agreements funded without the use of certificates of participation or similar instruments.
Terms Used In N.Y. State Finance Law 66-A
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Trustee: A person or institution holding and administering property in trust.
2. For the purposes of this article, "state departments and agencies" shall not include the legislature or the judiciary, and the provisions of this article, unless otherwise specified, shall not apply to installment purchase or lease purchase contracts entered into by the legislature or the judiciary financed by the issuance of certificates of participation or similar instruments representing the right to receive a proportionate share in lease, installment or other periodic payments to be made by the legislature or judiciary.
3. No state officer, employee, department, agency or the city university of New York shall enter into any agreement in connection with the issuance of certificates of participation which requires any payment by the state to the trustee, on behalf of holders of such certificates, during the month of April of any year.