S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5656
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              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:
 
   Section  1.  Paragraph b of section 21.00 of the local finance law, as
 amended by chapter 121 of the laws  of  2021,  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
 twenty-four,  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.
   § 2. Paragraph b of section 53.00 of the local finance law, as amended
 by chapter 121 of the laws of 2021, 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

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

 S. 5656                             2

 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
 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, and for bonds  issued  during  the  period  from  July
 fifteenth,  two  thousand fifteen up until and including July fifteenth,
 two thousand eighteen, and for bonds issued during the period from  July
 fifteenth,  two thousand eighteen up until and including July fifteenth,
 two thousand twenty-one, and for bonds issued  during  the  period  from
 July  fifteenth,  two  thousand  twenty-one  up until and including July
 fifteenth, two thousand twenty-four, 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  determined  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,  exclu-
 sive of the interest accruing on such installment to the date of redemp-
 tion,  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  hereinbe-
 fore 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,
 payable on the date of the redemption thereof; provided,  however,  that
 for bonds issued during the one-year period commencing July first, nine-
 teen  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
 S. 5656                             3

 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
 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,  and  for  bonds  issued
 during the period from July fifteenth, two thousand fifteen up until and
 including  July  fifteenth,  two thousand eighteen, and for bonds issued
 during the period from July fifteenth, two thousand  eighteen  up  until
 and  including  July  fifteenth,  two thousand twenty-one, and for bonds
 issued during the period from July fifteenth, two thousand twenty-one up
 until and including July fifteenth, two thousand twenty-four, a] A muni-
 cipality, 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.
   § 3. Section 107.00 of the local finance law is REPEALED.
   § 4. This act shall take effect immediately.