General Debt Service Fund
Pursuant to the Financial Emergency Act, the General Debt Service Fund (“GDSF”) was established for City bonds and certain City notes. Payments of the City real estate tax must be deposited in the GDSF, and retained under a statutory formula, for the payment of debt service. If the statutory formula does not result in retention of sufficient real estate taxes to comply with the City Covenants, the City will comply with the City Covenants either by providing for early retention of real estate taxes or by making cash payments into the GDSF. The principal of and interest on bonds will be paid from the GDSF until the Financial Emergency Act expires, and thereafter from a separate fund maintained in accordance with the City covenants. Since its inception in 1978, the GDSF has been fully funded at the beginning of each payment period.
Held by the New York State Comptroller Pursuant to Section 9-A of the NYS Financial Emergency Act and to the agreements made between the City and its bond and note holders, the New York City General Debt Service Fund may invest in:
- Obligations of or guaranteed by the United States
- In accordance with existing [Office of the State Comptroller] departmental legal opinions, Repurchase Agreements collateralized with United States Treasury obligations maturing in twelve years or less