S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9092

                          I N  A S S E M B L Y

                             March 13, 2014
                               ___________

Introduced  by  M.  of  A.  PALMESANO  --  read once and referred to the
  Committee on Local Governments

AN ACT in relation to making certain findings  and  determinations  with
  respect  to  bond  anticipation  notes issued by the town of Campbell,
  county of Steuben, validating such notes, and authorizing the issuance
  of obligations of such with respect thereto

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative Findings. (a) It is hereby found and determined
that  the  town board of the town of Campbell, in the county of Steuben,
undertook the following described actions in relation to  the  formation
of Water District No. 2 within said town and the issuance of bond antic-
ipation  notes  to  finance  the  improvements  included  in  said water
district:
  (1) By an order adopted on September 14, 2009,  and  recorded  in  the
office  of the Steuben County Clerk on November 11, 2009 in book 2262 at
page 87, as amended and corrected by an amended order adopted on  Novem-
ber  8,  2010, and recorded in the office of the Steuben County Clerk on
November 16, 2010 in book 2311 at page 288, pursuant to  article  12  of
the  town  law, said town board approved the establishment of said Water
District No. 2 and the construction of the improvements to  be  included
in said water district at a maximum cost not to exceed $225,080.00.
  (2)  Pursuant to a resolution adopted by said town board on August 10,
2009, said town issued its note, dated September 4, 2009 in the  princi-
pal  amount  of  $225,080  maturing  on September 4, 2010 to finance the
improvements to be included as part of said Water District No. 2.  Ther-
eafter, pursuant to a bond resolution adopted  by  said  town  board  on
September  13,  2010  and  a certificate of the Supervisor of said town,
dated September 20, 2010, said note was refinanced by the issuance of  a
bond  anticipation note dated September 20, 2010 in the principal amount
of $225,080 maturing on September 20, 2011. Thereafter,  pursuant  to  a
resolution  adopted  by  said  town  board  on  September 12, 2011 and a
certificate of the supervisor of said town dated September 20,  2011,  a
principal payment of $10,000 was made on said bond anticipation note and

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD13695-01-4

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said  note  was  renewed  by the issuance of a renewal bond anticipation
note dated September 20, 2011  in  the  principal  amount  of  $215,080,
maturing on September 20, 2012. Thereafter, pursuant to a certificate of
the  supervisor  of  said  town  dated  September  20, 2012, a principal
payment of $10,080 was made on said renewal bond anticipation  note  and
said  note  was  again  renewed by the issuance of a renewal bond antic-
ipation note dated  September  20,  2012  in  the  principal  amount  of
$205,000  maturing  on  September  20,  2013.  Thereafter, pursuant to a
certificate of the supervisor of said town dated September 20,  2013,  a
principal  payment  of $5,000 was made on said renewal bond anticipation
note and said note was again renewed by the issuance of a  renewal  bond
anticipation  note  dated  September 20, 2013 in the principal amount of
$200,000, maturing on September 19, 2014.
  (b) It is hereby further found and determined that the  note  and  the
bond  anticipation  notes  described  in subdivision (a) of this section
were not issued in compliance with  the  applicable  provisions  of  the
local finance law, in that: (i) the initial note dated September 4, 2009
was  issued  prior to the date that said Water District No. 2 was estab-
lished by the town board of said town of Campbell pursuant to the  order
dated  September 14, 2009, as amended and corrected by the amended order
dated November 8, 2010, and as such, under section 10.00  of  the  local
finance  law,  said  town  did  not  have the authority to contract such
indebtness; (ii) said note dated September 4, 2009 was issued  prior  to
the  adoption  by  said  town board a bond resolution in accordance with
sections 31.00 and 32.00 of the local finance law; (iii) said note dated
September 4, 2009 was not renewed until after September 4, 2010 maturity
date thereof; and (iv) a portion of the principal amount  of  said  bond
anticipation  notes  was  not  redeemed  from  a  source  other than the
proceeds of bonds within two years of the date of issuance of  the  said
note  dated  September 4, 2009, and further portions of said bond antic-
ipation notes were not redeemed by September 4 of each subsequent  year,
as required by section 23.00 of the local finance law.
  S 2. Notwithstanding the defects described in section one of this act,
the  bond  anticipation notes and renewals thereof issued by the Town of
Campbell, as described in section one of this act, and  all  resolution,
acts  and  proceedings heretofore adopted or taken by the town board and
the supervisor of said town in relation thereto, are  hereby  validated,
ratified and confirmed. Subject to the adoption by the town board of the
town  of  Campbell  of  an  amending  bond resolution in accordance with
sections 31.00 and 32.00 of the local finance law determining  that  the
period  of  probable  usefulness  of the object or purpose for which the
said bond anticipation notes were issued is 40 years, said town is here-
by authorized to hereinafter issue bonds or  renewal  bond  anticipation
notes  in  the aggregate principal amount of $195,000 for the purpose of
refinancing the outstanding bond anticipation note issued for the object
or purpose described in section one, provided that, notwithstanding  the
provisions of paragraph (b-1) of section 23.00 of the local finance law,
a  portion  of  any such renewal bond application notes hereafter issued
shall be redeemed from a source other than the  proceeds  of  bonds  not
later  than  September  19, 2015 and each September 19 thereafter for so
long as any such renewal bond anticipation notes remain outstanding; and
provided further that, in the event that the renewal  bond  anticipation
note,  dated  September 20, 2013 described in paragraph 2 of subdivision
(a) of section one of this act has, prior to the effective date of  this
act,  been  amended to extend the maturity date thereof, been renewed by
another renewal bond anticipation note, or been redeemed in  full,  said

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town,  following  enactment  of  this  act,  shall  have  the authority,
notwithstanding any such extension, renewal or redemption, to issue  the
bonds  or renewal bond anticipation notes authorized by this section for
the  purpose  of  refinancing such extended or renewed bond anticipation
note for the  purpose  of  reborrowing  the  principal  amount  of  such
redeemed  bond  anticipation  note  up  to  the maximum principal amount
authorized by this section.
  S 3. Except as otherwise set forth in this act,  the  bonds  and  bond
anticipation  notes,  and  renewals thereof, issued pursuant to this act
shall be issued in accordance with the provisions of the  local  finance
law.
  S  4. If any clause, sentence, subdivision, paragraph, section or part
of this act be adjudged by any court of competent  jurisdiction,  to  be
invalid,  such  judgment  shall  not  affect,  impair  or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, subdivision,  paragraph,  section  or  part  thereof  directly
involved  in  the  controversy  in  which  such judgment shall have been
rendered.
  S 5. This act shall take effect immediately.