S T A T E O F N E W Y O R K
________________________________________________________________________
7645
I N S E N A T E
June 11, 2012
___________
Introduced by Sen. MARTINS -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the local finance law and chapter 413 of the laws of
1991, amending the local finance law and other laws relating to
providing relief to local governments for certain mandated programs
and services, in relation to local government borrowing practices and
mandate relief
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph b of section 21.00 of the local finance law, as
amended by chapter 186 of the laws of 2009, is amended to read as
follows:
b. Serial bonds shall mature in annual installments. The first
installment shall mature not later than eighteen months after the date
of such bonds or two years after the date of the first bond anticipation
note or notes issued in anticipation of such bonds, whichever is the
earlier, provided, however, that until July fifteenth, two thousand
[twelve] FIFTEEN, the first installment shall mature not later than two
years after the date of such bonds or two years after the date of the
first bond anticipation note or notes issued in anticipation of such
bonds, whichever is the earlier. However, if bond anticipation notes are
issued in anticipation of bonds and if a portion of such notes or the
renewals thereof are redeemed from a source other than the proceeds of
such bonds within two years from the date of the first such note or
notes and a further portion thereof shall be so redeemed prior to the
termination of each twelve months' period succeeding the date such
original portion was so redeemed, the first installment of such bonds
may, in the alternative, be made to mature not later than five years
from the date of the first such note or notes.
S 2. Paragraph b of section 53.00 of the local finance law, as amended
by chapter 186 of the laws of 2009, is amended to read as follows:
b. If such bonds or notes are payable in installments, the install-
ments remaining unpaid may be called for redemption only (i) in the
inverse order of their maturity or, (ii) in equal proportionate amounts;
provided, however, that for bonds issued during the one-year period
commencing July first, nineteen hundred eighty-eight, and for bonds
issued during the one-year period commencing July first, nineteen
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16176-01-2
S. 7645 2
hundred eighty-nine, and for bonds issued during the one-year period
commencing July first, nineteen hundred ninety, and for bonds issued
during the three-year period commencing July first, nineteen hundred
ninety-one, and for bonds issued during the period from July first,
nineteen hundred ninety-four up until and including July fifteenth,
nineteen hundred ninety-seven and for bonds issued during the period
from July fifteenth, nineteen hundred ninety-seven up until and includ-
ing July fifteenth, two thousand, and for bonds issued during the period
from July fifteenth, two thousand up until and including July fifteenth,
two thousand three, and for bonds issued during the period from July
fifteenth, two thousand three up until and including July fifteenth, two
thousand six, and for bonds issued during the period from July
fifteenth, two thousand six up until and including July fifteenth, two
thousand nine, and for bonds issued during the period from July
fifteenth, two thousand six up until and including July fifteenth, two
thousand twelve, AND FOR BONDS ISSUED DURING THE PERIOD FROM JULY
FIFTEENTH, TWO THOUSAND NINE UP UNTIL AND INCLUDING JULY FIFTEENTH, TWO
THOUSAND FIFTEEN, installments remaining unpaid on such 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 deter-
mined by the finance board of a municipality, school district or
district corporation at the time of the issuance thereof. Whenever any
bonds or notes are called for redemption prior to the date of their
maturity, interest shall cease to be paid thereon after the date for
redemption set forth in such call for redemption. The sum to be paid to
redeem any unpaid installment prior to its maturity, exclusive of the
interest accruing on such installment to the date of redemption, shall
in no event be in excess of the lesser amount of either (i) the par
value of such installment plus one-half of one per centum of such par
value for each calendar year or part thereof elapsing between the date
for redemption set forth in such call for redemption and the date of
maturity of such installment, provided, however, that such amount shall
not exceed one hundred five per centum of such par value, or (ii) the
par value of such installment plus the total of all unpaid interest on
such installment which would have accrued from the date of redemption to
the date of maturity thereof had such installment not been redeemed
prior to maturity, except that bonds sold to the state of New York
municipal bond bank agency, which are subject to call as hereinbefore
authorized, may provide for the payment of a redemption premium not to
exceed five per centum of the par value of the bonds to be called, paya-
ble on the date of the redemption thereof; provided, however, that for
bonds issued during the one-year period commencing July first, nineteen
hundred eighty-eight, and for bonds issued during the one-year period
commencing July first, nineteen hundred eighty-nine, and for bonds
issued during the one-year period commencing July first, nineteen
hundred ninety, and for bonds issued during the three-year period
commencing July first, nineteen hundred ninety-one, and for bonds issued
during the period from July first, nineteen hundred ninety-four up until
and including July fifteenth, nineteen hundred ninety-seven, and for
bonds issued during the period from July fifteenth, nineteen hundred
ninety-seven up until and including July fifteenth, two thousand, and
for bonds issued during the period from July fifteenth, two thousand up
until and including July fifteenth, two thousand three, and for bonds
issued during the period from July fifteenth, two thousand three up
until and including July fifteenth, two thousand six, and for bonds
issued during the period from July fifteenth, two thousand six up until
S. 7645 3
and including July fifteenth, two thousand nine, and for bonds issued
during the period from July fifteenth, two thousand nine up until and
including July fifteenth, two thousand twelve, AND FOR BONDS ISSUED
DURING THE PERIOD FROM JULY FIFTEENTH, TWO THOUSAND TWELVE UP UNTIL AND
INCLUDING JULY FIFTEENTH, TWO THOUSAND FIFTEEN, a municipality, school
district, or district corporation may provide for redemption of such
bonds prior to the date of their maturity at a price or prices as may be
as determined by the issuer of such bonds or notes at the time of the
issuance thereof.
S 3. The opening paragraph of paragraph a of section 54.90 of the
local finance law, as amended by chapter 186 of the laws of 2009, is
amended to read as follows:
Whenever in the judgment of the finance board the interest of a muni-
cipality would be served thereby, the municipality may issue bonds or
notes, on or before July fifteenth, two thousand [twelve] FIFTEEN, with
interest rates that vary in accordance with a formula or procedure and
are subject to a maximum rate of interest set forth or referred to in
the bonds or notes and may provide the holders thereof with such rights
to require the municipality or other persons to purchase such bonds or
notes or renewals thereof from the proceeds of the resale thereof or
otherwise from time to time prior to the final maturity of such bonds or
notes as the finance board may determine and the municipality may
resell, at any time prior to final maturity, any such bonds or notes
acquired as a result of the exercise of such rights; provided, however,
that at no time shall the total principal amount of bonds and notes
issued pursuant to this paragraph (other than bonds and notes bearing
interest at rates and for periods of time that are specified at issu-
ance) exceed ten percent of the limit prescribed by section 104.00 of
this article.
S 4. Subdivision 9 of paragraph d of section 107.00 of the local
finance law, as amended by chapter 186 of the laws of 2009, is amended
to read as follows:
9. Notwithstanding any other provision of law, the financing by any
municipality, prior to July fifteenth, two thousand [twelve] FIFTEEN, of
any object or purpose which has a period of probable usefulness deter-
mined by law, by the issuance of any bonds and notes, including (i) the
issuance of bonds or notes, to redeem notes previously issued for the
object or purpose for which the bonds or notes are being issued or (ii)
the issuance of bonds to refund bonds previously issued for the object
or purpose for which bonds are being issued.
S 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws
of 1991, amending the local finance law and other laws relating to
providing relief to local governments for certain mandated programs and
services, as amended by chapter 186 of the laws of 2009, are amended to
read as follows:
(a) section six, sixteen and seventeen of this act shall expire and be
deemed repealed on and after July 15, [2012] 2015, and upon such date
the amendments made to the provisions of the local finance law by such
sections shall also expire and such provisions shall revert to and be
read as set out in law on the date immediately preceding the effective
date of such sections six, sixteen and seventeen of this act;
(e) subdivision (b) of section thirty-five of this act shall expire
and be deemed repealed on and after July 15, [2012] 2015;
S 6. This act shall take effect immediately.
