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Enhancing The Security Behind Municipal Obligations: Flushing And U.S. Trust Lead The Way, Kenneth W. Bond
Enhancing The Security Behind Municipal Obligations: Flushing And U.S. Trust Lead The Way, Kenneth W. Bond
Fordham Urban Law Journal
When bond counsel' render their legal opinion approving the issuance and delivery of a municipal obligation, one of the opinions traditionally expressed is that the obligation is "valid and legally binding according to its terms." Significant, here, are the words "valid" and "binding." The validity of a municipal obligation can usually be determined by straightforward observation. Bond counsel must be satisfied that (1) the issuer has statutory and sometimes constitutional authority to borrow and incur indebtedness (2) the funds borrowed are to be used for a public purpose and (3) the issuer has complied with the preconditions to issuing debt …
Note: New York - A City In Crisis: Fiscal Emergency Legislation And The Constitutional Attacks, Gayle Gutekunst-Roth
Note: New York - A City In Crisis: Fiscal Emergency Legislation And The Constitutional Attacks, Gayle Gutekunst-Roth
Fordham Urban Law Journal
Generous spending and, some would add, fiscal mismanagement have been a New York City tradition, putting tremendous pressures on both the City and State budgets. To forestall the deterioration of the City's financial condition and the subsequent collapse of the City itself, the New York State Legislature enacted a series of laws, many of which were feverishly incorporated into the body of State law in extraordinary session. With the creation of public authorities, the authorization of State funds to aid these authorities, and State hindrance of the payment of municipal debt service obligations, came inevitable claims in the courts that …