Amendment to Interfund Advance Resolution

New York General Municipal Law §6-d governs temporary interfund advances by municipalities, including the conditions under which interest must be charged. The amended resolution states interest will be paid 'if required by law' without citing the specific provision that triggers the requirement. Consider whether counsel should confirm which statute (likely GML §6-d) applies, what interest rate it mandates or permits, and whether the conditional framing ('if required') is sufficient to ensure compliance or whether it could be read to excuse non-payment of interest that is in fact legally required. A more precise recitation of the governing authority would reduce ambiguity.

GML §6-d imposes specific conditions on temporary interfund advances, including limits on duration and requirements that the advance be repaid within the fiscal year or within a defined period. The resolution amends only the interest clause; consider whether the underlying advance resolution was properly structured under §6-d in the first instance, and whether this amendment inadvertently reopens questions about the advance's conformity with those requirements. Counsel review of both the original and amended resolution together is advisable.

Sewer operations may be subject to enterprise-fund accounting requirements and restrictions on how costs and revenues are recorded between funds. If the Sewer Fund is operated as a revenue-producing undertaking under GML Article 14-C (§400 et seq.), there may be specific rules about how interfund obligations are recorded and whether interest charges affect rate-setting obligations. Consider whether counsel or the Village's auditor should confirm that the interest obligation, once triggered, is properly accounted for within the Sewer Fund's enterprise accounting.

The sole RESOLVED clause conditions the interest obligation on it being 'required by law,' but the minutes as summarized do not reflect any discussion identifying which law applies or under what circumstances interest would be triggered. While the vote was unanimous and the motion was properly moved and seconded, a brief recorded discussion or a recital in a WHEREAS clause identifying the governing statute would strengthen the procedural record and provide clarity for future administrations or auditors reviewing the advance.