§ 57. Issuance of state bonds. 1. Whenever the legislature, after
authorization of a bond issue by the people at a general election, as
provided by section eleven of article seven of the state constitution,
or as provided by section three of article eighteen of the state
constitution, shall have authorized, by one or more laws, the creation
of a state debt or debts, bonds of the state, to the amount of the debt
or debts so authorized, shall be issued and sold by the state
comptroller. Any appropriation from the proceeds of the sale of bonds,
pursuant to this section, shall be deemed to be an authorization for the
creation of a state debt or debts to the extent of such appropriation.
The state comptroller may issue and sell a single series of bonds
pursuant to one or more such authorizations and for one or more duly
authorized works or purposes. As part of the proceedings for each such
issuance and sale of bonds, the state comptroller shall designate the
works or purposes for which they are issued. It shall not be necessary
for him to designate the works or purposes for which the bonds are
issued on the face of the bonds. The proceeds from the sale of bonds for
more than one work or purpose shall be separately accounted for
according to the works or purposes designated for such sale by the
comptroller and the proceeds received for each work or purpose shall be
expended only for such work or purpose. The bonds shall bear interest at
such rate or rates as in the judgment of the state comptroller may be
sufficient or necessary to effect a sale of the bonds, and such interest
shall be payable at least semi-annually, in the case of bonds with a
fixed interest rate, and at least annually, in the case of bonds with an
interest rate that varies periodically, in the city of New York unless
annual payments of principal and interest result in substantially level
or declining debt service payments over the life of an issue of bonds
pursuant to paragraph (b) of subdivision two of this section or unless
accrued interest is contributed to a sinking fund in accordance with
subdivision three of section twelve of article seven of the state
constitution, in which case interest shall be paid at such times and at
such places as shall be determined by the state comptroller prior to
issuance of the bonds.

2. Such bonds, or the portion thereof at any time issued, shall be
made payable (a) in equal annual principal installments or (b) in annual
installments of principal and interest which result in substantially
level or declining debt service payments, over the life of the bonds,
the first of which annual installments shall be payable not more than
one year from the date of issue and the last of which shall be payable
at such time as the comptroller may determine but not more than forty
years or state fiscal years after the date of issue, not more than fifty
years after the date of issue in the case of housing bonds, and not more
than twenty-five years in the case of urban renewal bonds. Where bonds
are payable pursuant to paragraph (b) of this subdivision, except for
the year or state fiscal year of initial issuance if less than a full
year of debt service is to become due in that year or state fiscal year,
either (i) the greatest aggregate amount of debt service payable in any
year or state fiscal year shall not differ from the lowest aggregate
amount of debt service payable in any other year or state fiscal year by
more than five percent or (ii) the aggregate amount of debt service in
each year or state fiscal year shall be less than the aggregate amount
of debt service in the immediately preceding year or state fiscal year.
For purposes of this subdivision, debt service shall include all
principal, redemption price, sinking fund installments or contributions,
and interest scheduled to become due. For purposes of determining
whether debt service is level or declining on bonds issued with a
variable rate of interest pursuant to paragraph b of subdivision four of
this section, the comptroller shall assume a market rate of interest as
of the date of issuance. Where the comptroller determines that interest
on any bonds shall be compounded and payable at maturity, such bonds
shall be payable only in accordance with paragraph (b) of this
subdivision unless accrued interest is contributed to a sinking fund in
accordance with subdivision three of section twelve of article seven of
the state constitution. In no case shall any bonds or portion thereof be
issued for a period longer than the probable life of the work or
purpose, or part thereof, to which the proceeds of the bonds are to be
applied, or in the alternative, the weighted average period of the
probable life of the works or purposes to which the proceeds of the
bonds are to be applied taking into consideration the respective amounts
of bonds issued for each work or purpose, as may be determined under
section sixty-one of this article and in accordance with the certificate
of the commissioner of general services, and/or the commissioner of
transportation, state architect, state commissioner of housing and urban
renewal, or other authority, as the case may be, having charge by law of
the acquisition, construction, work or improvement for which the debt
was authorized. Such certificate shall be filed in the office of the
state comptroller and shall state the group, or, where the probable
lives of two or more separable parts of the work or purposes are
different, the groups, specified in such section, for which the amount
or amounts, shall be provided by the issuance and sale of bonds.
Weighted average period of probable life shall be determined by
computing the sum of the products derived from multiplying the dollar
value of the portion of the debt contracted for each work or purpose (or
class of works or purposes) by the probable life of such work or purpose
(or class of works or purposes) and dividing the resulting sum by the
dollar value of the entire debt after taking into consideration any
original issue discount. Any costs of issuance financed with bond
proceeds shall be prorated among the various works or purposes. Such
bonds, or the portion thereof at any time sold, shall be of such
denominations, subject to the foregoing provisions, as the state
comptroller may determine. Notwithstanding the foregoing provisions of
this subdivision, the comptroller may issue all or a portion of such
bonds as serial debt, term debt or a combination thereof, maturing as
required by this subdivision, provided that the comptroller shall have
provided for the retirement each year or state fiscal year, or otherwise
have provided for the payment of, through sinking fund installment
payments or otherwise, a portion of such term bonds in an amount meeting
the requirements of paragraph (a) or (b) of this subdivision or shall
have established a sinking fund and provided for contributions thereto
as provided in subdivision eight of this section and section twelve of
article seven of the state constitution.

3. The bonds shall be sold in such lot or lots, from time to time, as
may be required for the work or purpose for which the creation of a
state debt or debts shall have been authorized and appropriations shall
have been made by law, but not in excess of the aggregate amount
authorized for such purpose. For the purpose of determining the total
amount of debt sold for a particular work or purpose, only the amount of
money actually received by the state shall be considered when bonds are
sold at a discount.

4. a. Such bonds shall be sold at par, at par plus a premium, or at a
discount to the bidder offering the lowest interest cost to the state,
taking into consideration any premium or discount and, in the case of
refunding bonds, the bona fide initial public offering price, not less
than two business days after the publication of a notice of sale at
least once in a definitive trade publication of the municipal bond
industry published on each business day in the state of New York which
is generally available in electronic or physical form to participants in
the municipal bond industry, which notice shall state the terms of the
sale. The comptroller may not change the terms of the sale unless notice
of such change is sent via a definitive trade wire service of the
municipal bond industry which, in general, makes available information
regarding activity and sales of municipal bonds and is generally
available to participants in the municipal bond industry, at least one
hour prior to the time of the sale as set forth in the original notice
of sale. In so changing the terms or conditions of a sale the
comptroller may send notice by such wire service that the sale will be
delayed by up to thirty days, provided that wire notice of the new sale
date will be given at least one business day prior to the new time when
bids will be accepted. In such event, no new notice of sale shall be
required to be published. Notwithstanding the provisions of section
three hundred five of the state technology law or any other law, if the
notice of sale contains a provision that bids will only be accepted
electronically in the manner provided in such notice of sale, the
comptroller shall not be required to accept non-electronic bids in any
form. Advertisements shall contain a provision to the effect that the
state comptroller, in his or her discretion, may reject any or all bids
made in pursuance of such advertisements, and in the event of such
rejection, the state comptroller is authorized to negotiate a private
sale or readvertise for bids in the form and manner above described as
many times as, in his or her judgment, may be necessary to effect a
satisfactory sale. Notwithstanding the foregoing provisions of this
paragraph, whenever in the judgment of the comptroller the interests of
the state will be served thereby, he or she may sell state bonds at
private sale at par, at par plus a premium, or at a discount. The
comptroller shall promulgate regulations governing the terms and
conditions of any such private sales, which regulations shall include a
provision that he or she give notice to the governor, the temporary
president of the senate, and the speaker of the assembly, of his or her
intention to conduct a private sale of obligations pursuant to this
section not less than two business days prior to such sale or the
execution of any binding agreement to effect such sale.

b. Notwithstanding paragraph a of this subdivision, whenever in the
judgment of the comptroller the interests of the state will be served
thereby, such bonds may be sold at public or private sale in accordance
with the procedures set forth in paragraph a of this subdivision, with
interest rates that vary in accordance with a formula or procedure set
forth or referred to in the bonds and may provide the holders thereof
with such rights to require the state or other persons to purchase or
redeem such bonds or renewals thereof from the proceeds of the resale
thereof or otherwise from time to time prior to the final maturity of
such bonds as the comptroller may determine and the state may resell, at
any time prior to final maturity, any such bonds acquired as a result of
the exercise of such rights. The holders of bonds sold pursuant to this
paragraph may be provided with the right to require the state to
repurchase or redeem the bonds prior to the final maturity thereof if
the state has entered into one or more letter of credit agreements or
other liquidity facility agreements entered into for the express
purposes of such sale and which shall require a financially responsible
party or parties to the agreement or agreements, which may be the state,
to purchase or redeem all or any portion of such bonds tendered by the
holders thereof for repurchase or redemption prior to the final maturity
of such bonds. Such requirement to purchase or redeem bonds shall
continue until such time as the right of the holders of such bonds to
require repurchase or redemption of such bonds prior to the final
maturity thereof shall cease. A financially responsible party or
parties, for purposes of this paragraph, shall mean a person or persons
determined by the comptroller to have sufficient net worth and liquidity
to purchase and pay for on a timely basis all of the bonds which may be
tendered for repurchase or redemption by the holders thereof.

5. The proceeds of bonds sold pursuant to this section shall be paid
into the treasury, and each portion thereof provided for a given work or
purpose shall be accounted for separately in one or more capital
projects funds in accordance with generally accepted accounting
principles and made available only for such work or purpose, and only to
the extent of appropriations.

6. Except with respect to bonds issued in the manner provided in
paragraph (c) of subdivision seven of this section, all bonds of the
state of New York which the comptroller of the state of New York is
authorized to issue and sell, shall be executed in the name of the state
of New York by the manual or facsimile signature of the state
comptroller and his seal (or a facsimile thereof) shall be thereunto
affixed, imprinted, engraved or otherwise reproduced. In case the state
comptroller who shall have signed and sealed any of the bonds shall
cease to hold the office of state comptroller before the bonds so signed
and sealed shall have been actually countersigned and delivered by the
fiscal agent or trustee, such bonds may, nevertheless, be countersigned
and delivered as herein provided, and may be issued as if the state
comptroller who signed and sealed such bonds had not ceased to hold such
office. Any bond of a series may be signed and sealed on behalf of the
state of New York by such person as at the actual time of the execution
of such bond shall hold the office of comptroller of the state of New
York, although at the date of the bonds of such series such person may
not have held such office. The coupons to be attached to the coupon
bonds of each series shall be signed by the facsimile signature of the
state comptroller of the state of New York or by any person who shall
have held the office of state comptroller of the state of New York on or
after the date of the bonds of such series, notwithstanding that such
person may not have been such state comptroller at the date of any such
bond or may have ceased to be such state comptroller at the date when
any such bond shall be actually countersigned and delivered. The bonds
of each series shall be countersigned with the manual signature of an
authorized employee of the fiscal agent or trustee of the state of New
York. No bond and no coupon thereunto appertaining shall be valid or
obligatory for any purpose until such manual countersignature of an
authorized employee of the fiscal agent or trustee of the state of New
York shall have been duly affixed to such bond.

7. (a) The state comptroller is authorized to issue bonds in fully
registered form, executed as provided in subdivision six of this
section, in such denominations as shall be determined by the state
comptroller and exchangeable for fully registered bonds in denominations
as shall be determined by the state comptroller.

(b) The state comptroller is authorized to issue bonds as a single
registered bond, executed as provided in subdivision six of this
section, in an amount equal to the principal amount of the series of
bonds being issued, or more than one registered bond in amounts equal to
the principal amount of the series of bonds maturing in a single year,
and to deposit the bond or bonds with a securities depository organized
under the banking law of the state of New York and qualifying as a
clearing agency registered under the United States Securities Exchange
Act of 1934, as amended. Book entries representing beneficial ownership
of the bonds shall be in denominations determined by the state
comptroller.

(c) The state comptroller is authorized to issue bonds as
uncertificated securities within the meaning of article eight of the
uniform commercial code with beneficial ownership in denominations
determined by the state comptroller and exchangeable in book entries in
denominations as shall be determined by the state comptroller.

8. Any sinking funds created pursuant to this section shall be
maintained and managed by the state comptroller or an agent or trustee
designated by the state comptroller and shall be funded in accordance
with the requirements of section twelve of article seven of the state
constitution. Money in such sinking funds shall be held as cash or shall
be invested in direct obligations of the federal government, or
obligations the interest on which is exempt from federal income taxation
and which are fully secured by direct obligations of the federal
government, having such maturities and interest payment dates as
required to make all payments to be made from the sinking fund as they
come due. Amounts in such sinking funds shall be used solely for the
purpose of retiring the bonds secured thereby except that amounts in
excess of the required balance on any contribution date and amounts
remaining in such funds after all of the bonds secured thereby have been
retired shall be deposited in the general fund. No appropriation shall
be required for disbursement of money, or income earned thereon, from
any sinking fund for the purpose of paying principal of and interest on
the bonds for which such fund was created, except that interest shall be
paid from any such fund only if, and to the extent that, it is not
payable annually and contributions on account of such interest were made
to the fund.