Section 55 - Issuance of tax and revenue anticipation notes and bond anticipation notes1. When used in this section, the following terms shall be defined as follows: (a) "Tax and revenue anticipation note" shall mean a note issued in anticipation of the receipt of taxes and revenues, direct or indirect, for the purposes and within the amounts of appropriations theretofore made.(b) "Bond anticipation note" shall mean a note issued in anticipation of the receipt of the proceeds of the sale of bonds duly authorized at the time such notes are issued.(c) "Flexible note" shall mean a tax and revenue anticipation note or bond anticipation note the interest on which is payable at, and on one or more dates prior to, maturity.(d) "Short-term series note" shall mean a tax and revenue anticipation note or a bond anticipation note which is one of a series of notes issued pursuant to a financing program under which it is expected that each note will be paid from the proceeds of one or more renewal notes of such series, and in the case of the final note or notes of such series, from the taxes and revenues or the proceeds of bonds in anticipation of the receipt of which such note or notes have been issued. The term "short-term series note" shall include any note issued pursuant to a revolving credit agreement or other similar liquidity facility for the purpose of renewing or paying outstanding short-term series notes on their stated maturity dates when such short-term series notes are not renewed or paid from the proceeds of one or more other renewal notes of such series. Such a note issued pursuant to a revolving credit agreement or similar liquidity facility shall not be considered a flexible note for the purposes of this section.(e) "Financially responsible party or parties" shall mean a person or persons determined by the comptroller to have sufficient net worth and liquidity to purchase and pay for on a timely basis all of the notes and renewals thereof which may be tendered for repurchase or redemption by the holders thereof.2.(a)(i) The comptroller is authorized to issue tax and revenue anticipation notes and renewals thereof including, but not limited to, flexible notes and short-term series notes in such form and with such terms as the comptroller shall determine. Such notes and renewals thereof shall be non-interest bearing or bear interest at such rate or rates, which may vary from time to time, as, in the judgment of the comptroller, may be sufficient or necessary to effect the issuance and sale or resale thereof in the manner determined by the comptroller.(ii) Such notes and renewals thereof may be redeemable from time to time on such date or dates prior to maturity as the comptroller may determine. Such notes and renewals thereof may provide the holders thereof with such rights to require the state or other persons to purchase or redeem such notes and renewals thereof from the proceeds of the resale thereof or otherwise from time to time prior to the stated maturity thereof as the comptroller may determine. Notwithstanding the foregoing, the holders of such notes and renewals thereof sold pursuant to this subparagraph shall not be provided with the right to require the state to repurchase or redeem the notes and renewals thereof prior to their stated maturity unless the state has entered into one or more letter of credit agreements or other liquidity facility agreements entered into for the express purposes of such sales and which shall require a financially responsible party or parties to the agreement or agreements, other than the state, to purchase or redeem all or any portion of such notes and renewals thereof tendered by the holders thereof for repurchase or redemption prior to the stated maturity of such notes and renewals thereof. Such requirement to purchase or redeem such notes and renewals thereof shall continue until such time as the right of the holders of such notes and renewals thereof to require repurchase or redemption of such notes and renewals thereof prior to the stated maturity shall cease. Such notes and renewals thereof shall, together with the interest thereon, be paid from the taxes and revenues in anticipation of which they have been issued within one year from the date of original issue and so much of such taxes and revenues as will be sufficient to pay the amount borrowed, with the interest thereon, is pledged to the payment thereof. The comptroller is authorized to enter into such agreements with other persons as he deems necessary or appropriate in connection with the issuance, sale and resale of such notes and, at his discretion, to resell or retire any such notes purchased by the state prior to the stated maturity thereof.(iii) Whenever the comptroller shall issue tax and revenue anticipation notes in the form of an issue of flexible notes or short-term series notes, he shall specify in writing, at the time of original issuance thereof, the date or dates on which the notes or renewal notes of such issue are to be paid from taxes and revenues and not from the proceeds of resales or renewals thereof, and for purposes of paragraph (b) of this subdivision, the maturity date of the notes and renewal notes of such issue shall be the date or dates so specified by the comptroller. The provisions of paragraph (b) of this subdivision shall not apply to, and the comptroller shall not be required to set aside any taxes or revenues in a separate note repayment account pursuant to such paragraph (b) for, the payment of principal of or interest on flexible notes or short-term series notes or renewals thereof if such payment is due on any date other than the date so specified by the comptroller. The date or dates, if any, on which tax and revenue anticipation notes or renewals thereof may be redeemable prior to maturity, or on which the holders thereof may have the right to require the state or other persons to purchase or redeem such notes or renewals thereof from the proceeds of the resale thereof or otherwise prior to the stated maturity thereof, shall not be deemed the maturity date thereof for purposes of paragraph (b) of this subdivision.(b) No later than the tenth business day of each month during any fiscal year in which tax and revenue anticipation notes mature, the comptroller shall prepare a schedule of anticipated taxes and revenues receivable by the state as of the date of such schedule during the balance of such fiscal year in such detail as is necessary to carry out the purposes of this paragraph, based upon estimates of such taxes and revenues filed with him by the director of the budget. Except as may be required to comply with obligations to the holders of bonds of the state or the holders of bonds guaranteed by the state, commencing at any time that the outstanding principal amount of any issue of tax and revenue anticipation notes, and the interest due thereon, equals ninety-five percent of the amount of taxes and revenues shown on such schedule to be received during the period ending on the maturity date of the notes of such issue, after deducting from such taxes and revenues the aggregate principal amount of all outstanding notes of other issues, and the interest due thereon, which mature during such period and against which taxes and revenues have not, at such time, been collected and set aside in the note repayment account pursuant to the provisions of this subdivision, the comptroller shall set aside all taxes and revenues as received in a separate note repayment account until the balance in such account is sufficient to pay the notes of such issue and the interest thereon and the principal of and the interest on any other notes with a maturity date on or before such maturity date; provided, however, that the comptroller shall commence to set aside such taxes and revenues no later than the fifteenth day prior to the maturity date of any issue of notes and continue to set aside taxes and revenues until the balance in the note repayment account is sufficient to pay such notes and the interest thereon at maturity and the principal of and interest on any other notes maturing on or before such maturity date. The moneys in such repayment account shall be kept separate and apart from all other moneys in the custody of the comptroller, shall be deposited in a segregated bank account, and held in trust for the holders of notes and the interest in such moneys of holders of notes shall be in the order of maturity of notes, with the holders of notes of an earlier maturity having a first pledge over the holders of notes maturing later. Such moneys shall be disbursed only for the payment of notes and the interest thereon as they mature and may not be disbursed for any other purpose. Moneys in the note repayment account shall, at the direction of the comptroller, be invested in obligations of the United States of America or in obligations of or guaranteed by agencies of the United States of America where the payment of principal and interest is guaranteed by the United States of America or in certificates of deposit secured by obligations of the United States of America deposited by the issuer thereof with the bank maintaining such account in an amount equal to the amount of such certificate of deposit, provided that so much of the amount of such obligations or certificates as is necessary for the payment of any issue of notes is payable on or before the maturity date of such notes or, in the case of investments in obligations of the United States of America or in obligations of or guaranteed by agencies of the United States of America where the payment of principal and interest is guaranteed by the United States of America, is covered by agreements with primary dealers in obligations of or guaranteed by the United States of America for the repurchase thereof on or before the maturity date of such notes.(c) For purposes of paragraph (b) of this subdivision "taxes and revenues" shall mean all moneys payable into the general fund of the state except the proceeds of the issuance by the state of bonds, bond anticipation notes or notes, and "notes" shall mean notes issued in anticipation of the receipt of taxes and revenues.3. The comptroller is authorized to issue, whenever he may deem it for the best interests of the state to do so, bond anticipation notes and renewals thereof, including, but not limited to, flexible notes and short-term series notes, in such form and with such terms as he shall determine. Such notes and renewals thereof shall bear interest at such rate or rates of interest, which may vary from time to time, as in the judgment of the comptroller may be sufficient or necessary to effect a sale thereof and shall mature within a period not to exceed one year. Such notes and renewals thereof may be redeemable from time to time on such date or dates prior to maturity as the comptroller may determine. Such notes and renewals thereof may provide the holders thereof with such rights to require the state or other persons to purchase or redeem such notes or renewal notes from the proceeds of the resale thereof or otherwise from time to time prior to the stated maturity thereof as the comptroller may determine. The comptroller is authorized to enter into such agreements with other persons as he deems necessary or appropriate in connection with the issuance, sale and resale of such notes and, at his discretion, to resell or retire any such notes purchased by the state prior to the stated maturity thereof. Notwithstanding the foregoing, the holders of such notes and renewals thereof sold pursuant to this subdivision shall not be provided with the right to require the state to repurchase or redeem the notes and renewals thereof prior to their stated maturity unless the state has entered into one or more letter of credit agreements or other liquidity facility agreements entered into for the express purpose of such sales and which shall require a financially responsible party or parties to the agreement or agreements, other than the state, to purchase or redeem all or any portion of such notes and renewals thereof tendered by the holders thereof for repurchase or redemption prior to the stated maturity of such notes and renewals thereof. Such requirement to purchase or redeem such notes and renewals thereof shall continue until such time as the right of the holders of such notes and renewals thereof to require repurchase or redemption of such notes and renewals thereof prior to the stated maturity shall cease. The proceeds of the sale of such notes shall be used only for the purposes for which may be used the proceeds of the sale of bonds in anticipation of the sale whereof the notes were issued. All of such notes and any renewals thereof shall be payable at a fixed time, from the proceeds of the sale of bonds, and no renewal of any such note shall be issued after the sale of bonds in anticipation of which the original note was issued. In the event that a sale of such bonds shall not have occurred prior to the maturity of the notes so issued in anticipation of such sale the comptroller shall, in order to meet the notes then maturing, issue renewal notes for such purpose. Every such note and any renewals thereof shall, with the interest thereon, be payable from the proceeds of the sale of such bonds and not otherwise from any borrowing within two years from the date of original issue, except that notes or obligations payable from the proceeds of the sale of bonds issued or to be issued for any of the purposes authorized by article eighteen of the constitution, shall, with the interest thereon, be payable from the proceeds of the sale of such bonds within five years from the date of original issue. The total amount of such notes or renewals thereof issued and outstanding shall at no time exceed the total amount of bonds authorized to be issued but not yet issued. The comptroller shall include in his annual report, a detailed statement of all such loans made and bonds issued during the year and of his proceedings in relation thereto.4. The outstanding principal amount of all flexible notes issued by the state pursuant to subdivisions two and three of this section shall at no time exceed the sum of five hundred million dollars and the outstanding principal amount of all short term series notes issued by the state pursuant to subdivisions two and three of this section shall at no time exceed the sum of five hundred million dollars.5. The comptroller shall annually submit a report to the director of the budget, the chairman of the senate finance committee and the chairman of the assembly ways and means committee. Such report shall be submitted no later than the last business day of June and shall provide a comprehensive analysis of any flexible notes and/or short-term series notes issued or outstanding in the previous fiscal year. Such report shall include, but not be limited to: (a) An analysis of the effective interest rates associated with such flexible notes and short-term series notes;(b) An analysis of the expenses associated with the issuance of such notes, including any fees or commissions required pursuant to a note repurchase agreement or line of credit;(c) An analysis of the effective interest rates associated with such notes after consideration of the expenses described in paragraph (b) of this subdivision;(d) An analysis of any reinvestment opportunities and earnings provided by the issuance of such notes; and(e) Any other analyses which the comptroller may deem relevant to determining the costs and benefits associated with flexible notes and short term series notes.