Bill Text: NY S05656 | 2023-2024 | General Assembly | Introduced

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Bill Title: Permanently requires that the first installment of serial bonds mature not later than two years after the date of such bonds; provides that principal installments remaining unpaid on bonds may be called for redemption prior to their date of maturity in such amounts, at such times in such manner and pursuant to such terms as may be determined by the finance board of a municipality, school district or corporation at the time of the issuance thereof; repeals provisions that permanently eliminate the requirement that municipalities provide from current funds an amount equal to at least 5% of the estimated cost of each capital improvement (excluding from such cost state or federal grant funding and certain benefited area assessments) prior to the issuance of bonds or bond anticipation notes to finance such capital improvement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-04 - referred to local governments [S05656 Detail]

Download: New_York-2023-S05656-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5656

                               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

        AN ACT to amend the local finance law, in relation  to  installments  of
          certain  bonds;  and to repeal certain provisions of such law relating
          thereto

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Paragraph b of section 21.00 of the local finance law, as
     2  amended by chapter 121 of the laws  of  2021,  is  amended  to  read  as
     3  follows:
     4    b.  Serial  bonds  shall  mature  in  annual  installments.  The first
     5  installment shall mature not later than [eighteen months after the  date
     6  of such bonds or two years after the date of the first bond anticipation
     7  note  or  notes  issued  in anticipation of such bonds, whichever is the
     8  earlier, provided, however, that  until  July  fifteenth,  two  thousand
     9  twenty-four,  the  first  installment  shall  mature not later than] two
    10  years after the date of such bonds or two years after the  date  of  the
    11  first  bond  anticipation  note  or notes issued in anticipation of such
    12  bonds, whichever is the earlier. However, if bond anticipation notes are
    13  issued in anticipation of bonds and if a portion of such  notes  or  the
    14  renewals  thereof  are redeemed from a source other than the proceeds of
    15  such bonds within two years from the date of  the  first  such  note  or
    16  notes  and  a  further portion thereof shall be so redeemed prior to the
    17  termination of each twelve  months'  period  succeeding  the  date  such
    18  original  portion  was  so redeemed, the first installment of such bonds
    19  may, in the alternative, be made to mature not  later  than  five  years
    20  from the date of the first such note or notes.
    21    § 2. Paragraph b of section 53.00 of the local finance law, as amended
    22  by chapter 121 of the laws of 2021, is amended to read as follows:
    23    b.  If  such  bonds or notes are payable in installments, the install-
    24  ments remaining unpaid may be called for redemption  [only  (i)  in  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05691-01-3
        S. 5656                             2

     1  inverse order of their maturity or, (ii) in equal proportionate amounts;
     2  provided,  however,  that  for  bonds  issued during the one-year period
     3  commencing July first, nineteen  hundred  eighty-eight,  and  for  bonds
     4  issued  during  the  one-year  period  commencing  July  first, nineteen
     5  hundred eighty-nine, and for bonds issued  during  the  one-year  period
     6  commencing  July  first,  nineteen  hundred ninety, and for bonds issued
     7  during the three-year period commencing  July  first,  nineteen  hundred
     8  ninety-one,  and  for  bonds  issued  during the period from July first,
     9  nineteen hundred ninety-four up  until  and  including  July  fifteenth,
    10  nineteen  hundred  ninety-seven  and  for bonds issued during the period
    11  from July fifteenth, nineteen hundred ninety-seven up until and  includ-
    12  ing July fifteenth, two thousand, and for bonds issued during the period
    13  from July fifteenth, two thousand up until and including July fifteenth,
    14  two  thousand  three,  and  for bonds issued during the period from July
    15  fifteenth, two thousand three up until and including July fifteenth, two
    16  thousand  six,  and  for  bonds  issued  during  the  period  from  July
    17  fifteenth,  two  thousand six up until and including July fifteenth, two
    18  thousand nine,  and  for  bonds  issued  during  the  period  from  July
    19  fifteenth,  two  thousand six up until and including July fifteenth, two
    20  thousand twelve, and for  bonds  issued  during  the  period  from  July
    21  fifteenth,  two thousand nine up until and including July fifteenth, two
    22  thousand fifteen, and for bonds  issued  during  the  period  from  July
    23  fifteenth,  two  thousand fifteen up until and including July fifteenth,
    24  two thousand eighteen, and for bonds issued during the period from  July
    25  fifteenth,  two thousand eighteen up until and including July fifteenth,
    26  two thousand twenty-one, and for bonds issued  during  the  period  from
    27  July  fifteenth,  two  thousand  twenty-one  up until and including July
    28  fifteenth, two thousand twenty-four, installments  remaining  unpaid  on
    29  such bonds may be called for redemption] prior to their date of maturity
    30  in such amounts, at such times in such manner and pursuant to such terms
    31  as  may  be  determined  by  the finance board of a municipality, school
    32  district or district corporation at the time of  the  issuance  thereof.
    33  Whenever  any bonds or notes are called for redemption prior to the date
    34  of their maturity, interest shall cease to be  paid  thereon  after  the
    35  date  for  redemption set forth in such call for redemption. [The sum to
    36  be paid to redeem any unpaid installment prior to its  maturity,  exclu-
    37  sive of the interest accruing on such installment to the date of redemp-
    38  tion,  shall in no event be in excess of the lesser amount of either (i)
    39  the par value of such installment plus one-half of  one  per  centum  of
    40  such  par  value for each calendar year or part thereof elapsing between
    41  the date for redemption set forth in such call for  redemption  and  the
    42  date  of  maturity  of  such  installment,  provided, however, that such
    43  amount shall not exceed one hundred five per centum of such  par  value,
    44  or  (ii)  the par value of such installment plus the total of all unpaid
    45  interest on such installment which would have accrued from the  date  of
    46  redemption to the date of maturity thereof had such installment not been
    47  redeemed  prior  to maturity, except that bonds sold to the state of New
    48  York municipal bond bank agency, which are subject to call as  hereinbe-
    49  fore authorized, may provide for the payment of a redemption premium not
    50  to  exceed  five  per centum of the par value of the bonds to be called,
    51  payable on the date of the redemption thereof; provided,  however,  that
    52  for bonds issued during the one-year period commencing July first, nine-
    53  teen  hundred  eighty-eight,  and  for  bonds issued during the one-year
    54  period commencing July first,  nineteen  hundred  eighty-nine,  and  for
    55  bonds  issued during the one-year period commencing July first, nineteen
    56  hundred ninety, and  for  bonds  issued  during  the  three-year  period
        S. 5656                             3

     1  commencing July first, nineteen hundred ninety-one, and for bonds issued
     2  during the period from July first, nineteen hundred ninety-four up until
     3  and  including  July  fifteenth,  nineteen hundred ninety-seven, and for
     4  bonds  issued  during  the  period from July fifteenth, nineteen hundred
     5  ninety-seven up until and including July fifteenth,  two  thousand,  and
     6  for  bonds issued during the period from July fifteenth, two thousand up
     7  until and including July fifteenth, two thousand three,  and  for  bonds
     8  issued  during  the  period  from  July fifteenth, two thousand three up
     9  until and including July fifteenth, two  thousand  six,  and  for  bonds
    10  issued  during the period from July fifteenth, two thousand six up until
    11  and including July fifteenth, two thousand nine, and  for  bonds  issued
    12  during  the  period  from July fifteenth, two thousand nine up until and
    13  including July fifteenth, two thousand  twelve,  and  for  bonds  issued
    14  during  the period from July fifteenth, two thousand twelve up until and
    15  including July fifteenth, two thousand fifteen,  and  for  bonds  issued
    16  during the period from July fifteenth, two thousand fifteen up until and
    17  including  July  fifteenth,  two thousand eighteen, and for bonds issued
    18  during the period from July fifteenth, two thousand  eighteen  up  until
    19  and  including  July  fifteenth,  two thousand twenty-one, and for bonds
    20  issued during the period from July fifteenth, two thousand twenty-one up
    21  until and including July fifteenth, two thousand twenty-four, a] A muni-
    22  cipality, school district,  or  district  corporation  may  provide  for
    23  redemption  of such bonds prior to the date of their maturity at a price
    24  or prices as may be as determined by the issuer of such bonds  or  notes
    25  at the time of the issuance thereof.
    26    § 3. Section 107.00 of the local finance law is REPEALED.
    27    § 4. This act shall take effect immediately.