Bill Text: NY S05654 | 2023-2024 | General Assembly | Amended
Bill Title: Relates to the delivery of the good faith deposit following award of the bonds to the successful bidder; provides that a municipality, school district or district corporation may require that such deposit be made as a condition precedent to the consideration of a bid for the bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-04-15 - REPORTED AND COMMITTED TO FINANCE [S05654 Detail]
Download: New_York-2023-S05654-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 5654--A 2023-2024 Regular Sessions IN SENATE March 10, 2023 ___________ Introduced by Sen. MARTINEZ -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the local finance law, in relation to the delivery of the good faith deposit following award of the bonds to the successful bidder The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 3 of paragraph c of section 58.00 of the local 2 finance law, as amended by chapter 416 of the laws of 2012, is amended 3 to read as follows: 4 3. A requirement that [as a condition precedent to the consideration5of his or her bid, each] the successful bidder shall deposit with such 6 official as the agency in charge of the sale may designate, a certified 7 or cashier's check drawn upon an incorporated bank or trust company to 8 the order of the municipality, school district or district corporation 9 or such official, for the amount specified in the notice, but in no 10 event less than one-half of one per centum of the amount of bonds 11 to be bid for. Notwithstanding the provisions of this subdivision, a 12 municipality, school district or district corporation may require that 13 such deposit be made as a condition precedent to the consideration of a 14 bid for the bonds. Such notice may also provide that, in lieu of a 15 certified or cashier's check, [bidders may furnish as security] the 16 deposit may also be in the form of cash in such amount remitted by wire 17 transfer to an account specified in the notice or an eligible surety 18 bond or an eligible letter of credit, approved by such official as to 19 form, sufficiency, and manner of execution. For purposes of this 20 section, "eligible surety bond" shall mean a bond executed by an insur- 21 ance company authorized to do business in this state, the claims-paying 22 ability of which is rated in one of the three highest rating categories EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD05688-04-3S. 5654--A 2 1 by at least one nationally recognized statistical rating organization; 2 and "eligible letter of credit" shall mean an irrevocable letter of 3 credit issued in favor of the municipality, school district or district 4 corporation, for a term not to exceed ninety days by a bank, as that 5 term is defined in section two of the banking law, whose commercial 6 paper and other unsecured short-term debt obligations (or, in the case 7 of a bank which is the principal subsidiary of a holding company, whose 8 holding company's commercial paper and other unsecured short-term debt 9 obligations) are rated in one of the three highest rating categories 10 (based on the credit of such bank or holding company) by at least one 11 nationally recognized statistical rating organization or by a bank that 12 is in compliance with applicable federal minimum risk-based capital 13 requirements. 14 § 2. This act shall take effect immediately.
