§ 90.00 Refunding of bonds. a. 1. A municipality, school district or
district corporation may issue serial bonds to refund bonds issued on or
after January first, nineteen hundred thirty-nine, other than bonds
issued to redeem notes, certificates or other evidences of indebtedness
issued prior to January first, nineteen hundred thirty-nine, in
anticipation of such bonds. The last installment of such refunding bonds
issued to refund bonds issued pursuant to the social services law, or
the former social welfare law, or the former public welfare law, for the
purpose of safety net assistance, as defined in such laws, shall mature
within ten years after the date of issue of the bonds to be refunded. In
all other cases the last installment of such refunding bonds shall
mature not later than the expiration of the maximum period of probable
usefulness permitted by law at the time of the issuance of the bonds to
be refunded or the refunding bonds for the object or purpose for which
the bonds to be refunded were issued. Such period shall be computed from
the date of issuance of the bonds to be refunded or from the date of
issuance of the first bond anticipation note issued in anticipation of
such bonds, whichever date is the earlier.

2. Notwithstanding the provisions of subdivision one of this
paragraph, bonds issued by a school district prior to December first two
thousand one, or prior to thirty days after the effective date of this
subdivision, whichever is later, for the purpose of financing facilities
which were eligible for building aid pursuant to section thirty-six
hundred two of the education law, and for which the aid apportionments
payable in two thousand two--two thousand three and/or two thousand
three--two thousand four school years for approved expenditures for debt
service are subsequently reduced as a result of the application of
assumed amortization to unpaid principal outstanding as of July first,
two thousand two, may be refunded and the refunding bonds may be sold at
either public or private sale in accordance with the provisions of
section 90.10 of this title; provided, however, the school district need
not comply with: (i) subparagraph (a) of subdivision two of paragraph b
of section 90.10 of this title; and (ii) if the bonds to be refunded are
to be redeemed or paid on the same date as the refunding bonds are
issued, the school district need not comply with the provisions of
section 90.10 of this title relating to the escrow of the proceeds of
the sale of the refunding bonds.

3. Refunding bonds shall not be issued to refund bonds issued to
finance an object or purpose which, at the time of the issuance of such
bonds, had a period of probable usefulness of five years or less.

4. If a budgetary appropriation has been made for the payment of the
principal on bonds, such maturity shall not be included in a refunding
bond issue.

b. The maturities and amount of such refunding bonds shall be so
arranged that the combined amount of:

1. The bonds of the original issue, and

2. Refunding bonds previously issued to refund bonds of the original
issue, if any,
to be redeemed by an appropriation other than from the proceeds of
refunding bonds during the year of refunding and the combined amount of:

1. The bonds of the original issue,

2. Such refunding bonds, and

3. Refunding bonds previously issued to refund bonds of the original
issue, if any,
to be redeemed by an appropriation other than from the proceeds of
refunding bonds in each succeeding year thereafter is not more than
fifty per centum in excess of the combined amount of:

1. The bonds of the original issue,

2. Such refunding bonds, and

3. Refunding bonds previously issued to refund bonds of the original
issue, if any,
redeemed or to be redeemed during any preceding year by an appropriation
other than from the proceeds of refunding bonds.

b-1. Refunding bonds need not comply with paragraph b of this section
provided that no annual installment of each separate series of refunding
bonds shall be more than fifty per centum in excess of the smallest
prior installment or the finance board of the municipality, school
district or district corporation issuing the bonds shall have determined
to use a substantially level or declining annual debt service schedule
for the refunding bonds. The amount of annual installments of the
refunding bonds may be determined without reference to the stated
maturities of the bonds to be refunded.

c. 1. Bonds issued on or after January first, nineteen hundred
thirty-nine, shall not be refunded within five years after the date of
original issue. This restriction shall not apply to bonds issued by the
city of New York, bonds issued by the county of Nassau for the objects
or purposes described in subdivision thirty-three-a of paragraph a of
section 11.00 of this chapter or to bonds issued to refund:

(i) Bonds issued, or

(ii) Bonds issued to redeem notes, certificates or other evidences of
temporary indebtedness issued prior to January first, nineteen hundred
thirty-nine.

* 2. Notwithstanding the provisions of subdivision one of this
paragraph and subdivision three of paragraph a of this section, bonds
may be refunded and the refunding bonds may be sold at either public or
private sale where the present value of the refunding bonds is less than
the present value of the bonds to be refunded computed in accordance
with subparagraph (a) of subdivision two of paragraph b of section 90.10
of this title and where the issuer complies with all other requirements
of such section; provided, however, that if such bonds are being sold to
the New York state environmental facilities corporation in connection
with a hardship state revolving fund financing at a rate equal to zero
percent, compliance with subparagraph (a) of subdivision two of
paragraph b of section 90.10 of this title shall not be required;
provided further, however, that if the bonds to be refunded are to be
redeemed or paid on the same date as the refunding bonds are issued, the
issuer need not comply with the provisions of section 90.10 of this
title relating to the escrow of the proceeds of the sale of the
refunding bonds.

* NB Effective until September 30, 2026

* 2. Notwithstanding the provisions of subdivision one of this
paragraph and subdivision three of paragraph a of this section, bonds
may be refunded and the refunding bonds may be sold at either public or
private sale where the present value of the refunding bonds is less than
the present value of the bonds to be refunded computed in accordance
with subparagraph (a) of subdivision two of paragraph b of section 90.10
of this title and where the issuer complies with all other requirements
of such section; provided, however, that if the bonds to be refunded are
to be redeemed or paid on the same date as the refunding bonds are
issued, the issuer need not comply with the provisions of section 90.10
of this title relating to the escrow of the proceeds of the sale of the
refunding bonds.

* NB Effective September 30, 2026

d. With the approval of and on terms and conditions prescribed by the
state comptroller, a municipality, school district or district
corporation may issue bonds to refund:

1. Bonds issued,

2. Bonds issued to redeem notes, certificates or other evidences of
temporary indebtedness issued, or

3. Bonds issued to refund bonds issued
prior to January first, nineteen hundred thirty-nine, but in no event
shall such refunding bonds mature later than twenty years after the date
thereof. The provisions of section 21.00 of this chapter shall not apply
to this paragraph.

e. The issuance of refunding bonds shall be authorized by a "refunding
bond resolution". The title of such resolution shall state that the
bonds to be authorized thereby are "refunding bonds".

f. Such a resolution shall contain, in substance, the following
provisions:

1. The amount of refunding bonds to be issued.

2. A description and the date of the bonds to be refunded.

3. If the bonds to be refunded are bonds which were issued on or after
January first, nineteen hundred thirty-nine, other than bonds issued to
redeem notes, certificates or other evidences of temporary indebtedness
issued prior to January first, nineteen hundred thirty-nine, in
anticipation of such bonds, a statement of the maximum period of
probable usefulness, at the time of the issuance of the bonds to be
refunded, of the object or purpose for which such bonds were issued.

4. A statement of the proposed maturities of such refunding bonds.

g. The provisions of this chapter relating to the authorization, form
and contents, sale, execution and issuance of bonds other than refunding
bonds, shall apply to the authorization, form and contents, sale,
execution and issuance of refunding bonds, except that:

1. The provisions of section 107.00 of this chapter shall not apply to
the issuance of refunding bonds.

2. The authorization of the issuance of refunding bonds shall not be
subject to a mandatory or permissive referendum.

3. Outstanding bonds may, pursuant to a power to recall and redeem or
with the consent of the holders thereof, be exchanged for refunding
bonds (i) if the refunding bonds are to bear interest at a rate equal to
or lower than that borne by the bonds to be refunded or (ii) if, in the
case of the city of New York prior to July first, two thousand
twenty-five, the annual payment required for principal and interest on
the refunding bond is less than the annual payment required for
principal and interest on the bond to be refunded, in each case such
annual payments to be determined by dividing the total principal and
interest payments due over the remaining life of the bond by the number
of years to maturity of the bond or (iii) if the bonds to be refunded
were issued by the city of New York after June thirtieth, nineteen
hundred seventy-eight and prior to July first, two thousand twenty-five
and contain covenants referring to the existence of the New York state
financial control board for the city of New York or any other covenants
relating to matters other than the prompt payment of principal and
interest on the obligations when due and the refunding bond omits or
modifies any such covenant.

4. All refunding bonds shall contain a recital that they are issued
pursuant to this chapter, which recital shall be conclusive evidence of
their validity and of the regularity of their issuance.

h. The authority herein granted to authorize the issuance of refunding
bonds shall in no way be affected by the invalidity of or any
irregularity in any proceedings authorizing the issuance of the bonds to
be refunded, except that refunding bonds shall not be issued to refund
bonds adjudged invalid by the final judgment of a court of competent
jurisdiction.

i. 1. Refunding bonds issued subsequent to January first, nineteen
hundred thirty-nine to refund:

(a) Bonds issued, or

(b) Bonds issued to redeem notes, certificates or other evidences of
temporary indebtedness issued
prior to January first, nineteen hundred thirty-nine, may be refunded by
the issuance of refunding bonds, but such refunding bonds shall mature
not later than twenty years from the date of the original refunding
bonds. Such refunding bonds shall be issued only with the approval of
and on terms and conditions prescribed by the state comptroller.

2. All other refunding bonds issued on or after January first,
nineteen hundred thirty-nine, shall not be refunded.

j. Bond anticipation notes shall not be issued in anticipation of the
sale of refunding bonds.

k. The premium, if any, resulting from the public sale of refunding
bonds may be expended for (1) the payment of the costs of the issuance
of such refunding bonds, including, but not limited to, legal fees,
printing or engraving and publication of notices, and (2) the payment of
the principal of and interest on such refunding bonds.