N.Y. Local Finance Law 85.80 – Authority for municipality or emergency financial control board to file petition under federal statute
§ 85.80 Authority for municipality or emergency financial control board to file petition under federal statute. A municipality or its emergency financial control board in addition to, or in lieu of, filing a petition under this title, or the city of New York or the New York state financial control board, may file any petition with any United States district court or court of bankruptcy under any provision of the laws of the United States, now or hereafter in effect, for the composition or adjustment of municipal indebtedness. Nothing contained in this title shall be construed to limit the authorization granted by this section. However, no municipality shall file any petition authorized by this section for so long as its local ARRA bonds, as defined in § 2432 of the public authorities law, purchased by the state of New York municipal bond bank agency and secured by its pledge of tax revenues pursuant to the authority of § 2436-b of the public authorities law remain outstanding.
Terms Used In N.Y. Local Finance Law 85.80
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- emergency financial control board: shall mean any such board established by state law for the municipality, and the term "covered organization" shall mean any such organization as defined in the act declaring that a state of financial emergency exists for such municipality. See N.Y. Local Finance Law 85.00
- Statute: A law passed by a legislature.