Bill Text: NY A09191 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to long-term environmental facilities corporation financing and the town of Cairo; provides relief by validating and ratifying the town of Cairo's actions with respect to a bond anticipation note and renewals.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2014-06-19 - substituted by s6910 [A09191 Detail]

Download: New_York-2013-A09191-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         9191
                                 I N  A S S E M B L Y
                                    March 27, 2014
                                      ___________
       Introduced by M. of A. P. LOPEZ -- read once and referred to the Commit-
         tee on Local Governments
       AN  ACT  to legalize, validate, ratify and confirm certain actions taken
         by the town of Cairo, Greene county, New York, with respect  to  obli-
         gations heretofore issued, and authorizing the issuance of obligations
         of said town with respect thereto
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. Legislative findings. It is  hereby  found  and  determined
    2  that:    (i)  the town of Cairo, Greene county, New York, has heretofore
    3  duly adopted bond resolutions  authorizing  the  aggregate  issuance  of
    4  $2,915,000  serial  bonds  to  finance  the upgrade and expansion to the
    5  town's wastewater treatment plant, construction of  a  force  main,  and
    6  additional  improvements to its sewer system; (ii) pursuant to such bond
    7  resolutions, said town issued a bond anticipation note in the  principal
    8  amount of $750,000 on December 24, 2008 and renewals of said bond antic-
    9  ipation note on December 24, 2009 and December 23, 2010 and made a prin-
   10  cipal  payment of $29,285 on said bond anticipation note on December 23,
   11  2010; (iii) pursuant to such bond resolutions, said town  also  obtained
   12  short term financing through the New York state environmental facilities
   13  corporation  ("EFC")  on  September  29,  2011  in the maximum aggregate
   14  amount of $2,885,715.00,  which  refinanced  the  outstanding  principal
   15  balance  of  said  bond anticipation note of $720,715; (iv) the town did
   16  not make the minimum principal payments on the EFC short term  financing
   17  bond  anticipation  notes of $19,300 for 2011 and $20,000 for 2012 until
   18  December 2013; (v) section 21.00 of the local finance law states that no
   19  annual installment of bonds or bond anticipation  notes  shall  be  more
   20  than fifty per centum of the smallest prior installment, except that the
   21  municipality may determine to provide for substantially level or declin-
   22  ing  annual  debt  service,  and  section 23.00 of the local finance law
   23  states that notes or the renewals thereof shall not extend more than two
   24  years beyond the original date of issue unless a portion of  such  notes
   25  or  the  renewals thereof shall be redeemed from a source other than the
   26  proceeds of bonds  within two years from such original date of issue and
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14271-01-4
       A. 9191                             2
    1  unless a further portion thereof shall  be  so  redeemed  prior  to  the
    2  termination  of  each  twelve  months'  period  succeeding the date such
    3  original portion was so redeemed; and (vi)  the  timing  of  the  town's
    4  payments  on  the EFC note render it incapable of amortizing a long-term
    5  conversion of the short-term EFC financing to comply with the  aforesaid
    6  amortization  requirements  of  sections  21.00  and  23.00 of the local
    7  finance law.
    8    S 2. Notwithstanding the defects described in section one of this act,
    9  the bond anticipation notes and any renewals thereof issued by the  town
   10  of  Cairo  as described in section one of this act, and all resolutions,
   11  acts and proceedings heretofore adopted or taken by the town  board  and
   12  the  supervisor  of said town in relation thereto, are hereby validated,
   13  ratified and confirmed and any principal payment made by  such  town  in
   14  2013  on  the bond anticipation note shall be deemed to be in compliance
   15  with the amortization requirements of sections 21.00, 23.00, and  169.00
   16  of the local finance law.
   17    S  3.  Except  as  otherwise set forth in this act, the bonds and bond
   18  anticipation notes, and renewals thereof, issued pursuant  to  this  act
   19  shall  be  issued in accordance with the provisions of the local finance
   20  law.
   21    S 4. If any clause, sentence, subdivision, paragraph or part  of  this
   22  act  be  adjudged  by any court of competent jurisdiction to be invalid,
   23  such judgment shall not affect, impair or invalidate the remainder ther-
   24  eof, but shall be confined in its operation  to  the  clause,  sentence,
   25  subdivision, paragraph, section or part thereof directly involved in the
   26  controversy in which such judgment shall have been rendered.
   27    S 5. This act shall take effect immediately.