Legislation
SECTION 3-A
Rate of interest on judgments and accrued claims against municipal corporations
General Municipal (GMU) CHAPTER 24, ARTICLE 2
§ 3-a. Rate of interest on judgments and accrued claims against
municipal corporations. 1. Except as provided in subdivisions two, four
and five of this section, the rate of interest to be paid by a municipal
corporation upon any judgment or accrued claim against the municipal
corporation shall not exceed nine per centum per annum.
2. The rate of interest to be paid upon any judgment or accrued claim
against the municipal corporation arising out of condemnation
proceedings or action to recover damages for wrongful death shall not
exceed six per centum per annum.
3. The term "municipal corporation" as used in this section shall mean
and include a city, county, village, town, school district, fire
district, a special or public district organized for the purpose of
financing the costs of public improvements or a pension or retirement
system supported in whole or in part by any such city, county, village,
town, school district or special or public district.
4. Payments of interest or principal on any note or bond of the city
of New York issued on or after the effective date of this act which is
guaranteed under the New York City Loan Guarantee Act of 1978, Public
Law 95-339, and which such city has not paid or made funds available to
pay when due, shall accrue interest at the rate borne for principal by
such obligation from such due date until (i) there shall have been
deposited with an independent trustee sufficient monies to cover such
overdue payment and any interest accrued thereon to the date of such
deposit and (ii) the making of such deposit shall have been announced
for three days in succession in a newspaper of general circulation in
the city of New York.
5. Bonds, notes and certificates of participation, and agreements and
instruments related to the foregoing, as authorized pursuant to
paragraph (e) of section 54.10, section 54.90 or section 168.00 of the
local finance law, or section one hundred nine-b of this chapter may
provide for the payment of interest on judgments and claims payable to
or for the account of providers of credit or liquidity support or their
successors in interest, notwithstanding any limitations imposed by this
section.
municipal corporations. 1. Except as provided in subdivisions two, four
and five of this section, the rate of interest to be paid by a municipal
corporation upon any judgment or accrued claim against the municipal
corporation shall not exceed nine per centum per annum.
2. The rate of interest to be paid upon any judgment or accrued claim
against the municipal corporation arising out of condemnation
proceedings or action to recover damages for wrongful death shall not
exceed six per centum per annum.
3. The term "municipal corporation" as used in this section shall mean
and include a city, county, village, town, school district, fire
district, a special or public district organized for the purpose of
financing the costs of public improvements or a pension or retirement
system supported in whole or in part by any such city, county, village,
town, school district or special or public district.
4. Payments of interest or principal on any note or bond of the city
of New York issued on or after the effective date of this act which is
guaranteed under the New York City Loan Guarantee Act of 1978, Public
Law 95-339, and which such city has not paid or made funds available to
pay when due, shall accrue interest at the rate borne for principal by
such obligation from such due date until (i) there shall have been
deposited with an independent trustee sufficient monies to cover such
overdue payment and any interest accrued thereon to the date of such
deposit and (ii) the making of such deposit shall have been announced
for three days in succession in a newspaper of general circulation in
the city of New York.
5. Bonds, notes and certificates of participation, and agreements and
instruments related to the foregoing, as authorized pursuant to
paragraph (e) of section 54.10, section 54.90 or section 168.00 of the
local finance law, or section one hundred nine-b of this chapter may
provide for the payment of interest on judgments and claims payable to
or for the account of providers of credit or liquidity support or their
successors in interest, notwithstanding any limitations imposed by this
section.