A10610-2011 Actions

• Jun 18, 2012: substituted by s7645
• Jun 18, 2012: rules report cal.339
• Jun 18, 2012: reported
• Jun 13, 2012: reported referred to rules
• Jun 11, 2012: reported referred to ways and means
• Jun 8, 2012: referred to local governments

A10610-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 10610
 I N  ASSEMBLY
 June 8, 2012
 
 Introduced  by COMMITTEE ON RULES -- (at request of M. of A. Magnarelli)
 -- read once and referred to the Committee on Local Governments
 

AN ACT to amend the local finance law and chapter 413  of  the  laws  of
 1991,  amending  the  local  finance  law  and  other laws relating to
 providing relief to local governments for  certain  mandated  programs
 and  services, in relation to local government borrowing practices and
 mandate relief
 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 186 of the laws  of  2009,  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
 [twelve]  FIFTEEN, 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.
 

S 2. Paragraph b of section 53.00 of the local finance law, as amended
 by chapter 186 of the laws of 2009, 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
 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
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD16176-01-2
 
       A. 10610                            2
 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, 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 deter
 mined 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, exclusive of the
 interest accruing on such installment to the date of  redemption,  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  hereinbefore
 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, paya
 ble on the date of the redemption thereof; 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 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
 
       A. 10610                            3
 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, a  municipality,  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.
 

S  3.  The  opening  paragraph  of paragraph a of section 54.90 of the
 local finance law, as amended by chapter 186 of the  laws  of  2009,  is
 amended to read as follows:

 Whenever  in the judgment of the finance board the interest of a muni
 cipality would be served thereby, the municipality may  issue  bonds  or
 notes,  on or before July fifteenth, two thousand [twelve] FIFTEEN, with
 interest rates that vary in accordance with a formula or  procedure  and
 are  subject  to  a maximum rate of interest set forth or referred to in
 the bonds or notes and may provide the holders thereof with such  rights
 to  require  the municipality or other persons to purchase such bonds or
 notes or renewals thereof from the proceeds of  the  resale  thereof  or
 otherwise from time to time prior to the final maturity of such bonds or
 notes  as  the  finance  board  may  determine  and the municipality may
 resell, at any time prior to final maturity, any  such  bonds  or  notes
 acquired  as a result of the exercise of such rights; provided, however,
 that at no time shall the total principal  amount  of  bonds  and  notes
 issued  pursuant  to  this paragraph (other than bonds and notes bearing
 interest at rates and for periods of time that are  specified  at  issu
 ance)  exceed  ten  percent of the limit prescribed by section 104.00 of
 this article.
 

S 4. Subdivision 9 of paragraph d  of  section  107.00  of  the  local
 finance  law,  as amended by chapter 186 of the laws of 2009, is amended
 to read as follows:

 9. Notwithstanding any other provision of law, the  financing  by  any
 municipality, prior to July fifteenth, two thousand [twelve] FIFTEEN, of
 any  object  or purpose which has a period of probable usefulness deter
 mined by law, by the issuance of any bonds and notes, including (i)  the
 issuance  of  bonds  or notes, to redeem notes previously issued for the
 object or purpose for which the bonds or notes are being issued or  (ii)
 the  issuance  of bonds to refund bonds previously issued for the object
 or purpose for which bonds are being issued.
 

S 5. Subdivisions (a) and (e) of section 81 of chapter 413 of the laws
 of 1991, amending the local finance  law  and  other  laws  relating  to
 providing  relief to local governments for certain mandated programs and
 services, as amended by chapter 186 of the laws of 2009, are amended  to
 read as follows:

 (a) section six, sixteen and seventeen of this act shall expire and be
 deemed  repealed  on  and after July 15, [2012] 2015, and upon such date
 the amendments made to the provisions of the local finance law  by  such
 sections  shall  also  expire and such provisions shall revert to and be
 read as set out in law on the date immediately preceding  the  effective
 date of such sections six, sixteen and seventeen of this act;
 (e)  subdivision  (b)  of section thirty-five of this act shall expire
 and be deemed repealed on and after July 15, [2012] 2015;
 

S 6. This act shall take effect immediately.

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