S2781-2011 Actions

• Apr 13, 2011: SIGNED CHAP.15
• Apr 1, 2011: DELIVERED TO GOVERNOR
• Mar 16, 2011: returned to senate
• Mar 16, 2011: passed assembly
• Mar 16, 2011: home rule request
• Mar 16, 2011: ordered to third reading cal.115
• Mar 16, 2011: substituted for a4074
• Feb 28, 2011: referred to ways and means
• Feb 28, 2011: DELIVERED TO ASSEMBLY
• Feb 28, 2011: PASSED SENATE
• Feb 28, 2011: HOME RULE REQUEST
• Feb 15, 2011: ADVANCED TO THIRD READING
• Feb 14, 2011: 2ND REPORT CAL.
• Feb 8, 2011: 1ST REPORT CAL.79
• Feb 1, 2011: REFERRED TO LOCAL GOVERNMENT

S2781-2011 Meetings

S2781-2011 Calendars

S2781-2011 Votes

S2781-2011 Memo

BILL NUMBER:S2781               REVISED 02/03/11

TITLE OF BILL:
An act
to legalize, validate, ratify and confirm certain actions taken by the
village of Black River, in the county of Jefferson, with respect to
refunding its low interest loans through the United States department of
agriculture and the New York state environmental facilities corporation

PURPOSE:
This bill will correct an error made by the village of Black River
when they exceeded their maximum bond authorization on their United
States Department of Agriculture (USDA) and their New York State
Environmental Facilities Corporation (EFC) bonds used in financing
their capital project for improvement of facilities of the village
wastewater collection and treatment system.

SUMMARY OF PROVISIONS:
Section 1. Outlines the history of the USDA and EFC capital bonds the
village of Black River issued to fund their village wastewater
collection and treatment system.

Section 2. Provides explanation for the village of Black River
exceeding its maximum project authorization and outlines their
payment history.

Section 3. Provides the amounts are legalized, validated, and ratified
despite the village of Black River exceeding their maximum bond
authorization.

Section 4. Provides forgiveness of the underpayments outlined in
section 2.

Section 5. Provides that these bonds shall be deemed to have been
issued in accordance with provisions of the local finance law.

Section 6. Provides standard protections in the event that a court
invalidates any part of this act it does not invalidate the entire act.

Section 7. This act shall take effect immediately.

JUSTIFICATION:
On March 7, 2005 the Village of Black River in Jefferson County duly
adopted a bond resolution authorizing the issuance of a $5 million
maximum serial bond in anticipation of financing the costs of a
capital improvement project for the improvement of the facilities of
the village wastewater collection and treatment system. The village
at that time accidentally bonded in excess of their limit when they
obtained Phase I and Phase II of the funding through both the USDA
and EFC. Though the village owed the full $1.27 million in 2008, they
did make regular principal payments until the entire amount was
refunded to the EFC in year 2010, bringing them under the bond limit.

This bill is critical to the village of Black River which is unable to
afford the project without these bond notes. When enacted, this bill


assures the bond notes are issued in accordance with the provisions
of the local finance law.

LEGISLATIVE HISTORY:
New Bill.

FISCAL IMPLICATIONS:
None to the state. Significant cost savings will be realized by the
village of Black River.

EFFECTIVE DATE:
This act shall take effect immediately.

S2781-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 S. 2781                                                  A. 4074
 2011-2012 Regular Sessions
 SENATE - ASSEMBLY
 February 1, 2011
 
 IN SENATE -- Introduced by Sen. RITCHIE -- read twice and ordered print
 ed, and when printed to be committed to the Committee on Local Govern
 ment
 IN  ASSEMBLY -- Introduced by M. of A. RUSSELL, BLANKENBUSH -- read once
 and referred to the Committee on Local Governments
 

AN ACT to legalize, validate, ratify and confirm certain  actions  taken
 by  the  village  of  Black  River,  in  the county of Jefferson, with
 respect to refunding its low interest loans through the United  States
 department of agriculture and the New York state environmental facili
 ties corporation
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. It is hereby found and determined that: (i) the village  of
 Black River, county of Jefferson, duly adopted on March 28, 2005, a bond
 resolution  authorizing issuance of a maximum of $5,000,000.00 of serial
 bonds in anticipation of financing the costs of  a  capital  improvement
 project   for  improvement  of  facilities  of  the  village  wastewater
 collection and treatment system; (ii) pursuant to such bond  resolution,
 said  village  obtained  financing  from the United States Department of
 Agriculture ("USDA") in the amount  of  $1,271,000.00  in  low  interest
 loans  on  June  26,  2008,  and  a $500,000.00 grant for Phase I of the
 project on May 21, 2009; (iii) pursuant to such  bond  resolution,  said
 village  obtained  grant financing of $500,000.00 and $100,000.00 in low
 interest loans from the USDA for Phase II of the project; (iv)  pursuant
 to such bond resolution, said village also obtained short term financing
 through  the New York State Environmental Facilities Corporation ("EFC")
 on May 8, 2008 in the amount of  $2,916,900.00;  (v)  the  village  also
 obtained  financing  for  the project totaling $950,586.48 from contrib
 utions from Merit Corporation, the town of LeRoy, the  town  of  Rutland
 and  a municipal contribution from the village of Black River; (vi) said
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06908-03-1
 
       S. 2781                             2                            A. 4074
 village returned the USDA proceeds  of  $1,271,000.00  to  EFC  in  2010
 instead  of  2008,  as  it was required to do under the terms of the EFC
 short-term financing; (vii)  said  village  now  wishes  to  refund  the
 remaining  financing  at a zero percent (0%) interest rate with the EFC,
 however, said village has exceeded  the  maximum  project  authorization
 with the funding that it received from both the USDA and the EFC.
 

S  2.  It is hereby further found and determined that: (i) the village
 of Black River,  county  of  Jefferson,  exceeded  its  maximum  project
 authorization  pursuant to section 32.00 of the local finance law during
 a period from 2008 to 2010 where the money  received  on  the  long-term
 USDA funding of $1,271,000.00 was outstanding at the same time as it was
 part  of the short-term financing from EFC during which time the maximum
 amount of financing that was outstanding on  the  project  exceeded  the
 maximum  project cost authorization of the $5,000,000.00 bond resolution
 dated March 28, 2005; (ii) the village made principal  payments  on  the
 EFC  short-term  financing bond anticipation note of $80,451.00 in 2008,
 $19,491.75 in 2009, and $19,000.00 in 2010;  (iii)  sections  21.00  and
 23.00 of the local finance law state that no annual installment of bonds
 or  bond  anticipation  notes shall be more than fifty per centum of the
 smallest prior installment; (iv) the village's underpayment on  the  EFC
 note  in  2009 and 2010 renders it incapable of amortizing any long-term
 conversion of the short-term EFC financing to comply with the  aforesaid
 fifty  per  centum requirements of sections 21.00 and 23.00 of the local
 finance law.
 

S 3. Notwithstanding the defects described in section one of this act,
 to the extent that the village of Black  River  exceeded  their  maximum
 project  authorization, such amounts are hereby legalized, validated and
 ratified.
 

S 4. Notwithstanding the defects described in section two of this act,
 to the extent that the village of Black River underpaid the principal of
 the note, such underpayment is hereby forgiven and the village shall  be
 authorized to pay the deficient amount during the balance of the life of
 the loan.
 

S  5.  Except as otherwise provided in this act, the bond notes issued
 under authority of the bond resolutions described in section one of this
 act shall  be  deemed  to  have  been  issued  in  accordance  with  the
 provisions of the local finance law.
 

S  6.  If any clause, sentence, subdivision, paragraph or part of this
 act be adjudged by any court of competent jurisdiction  to  be  invalid,
 such judgment shall not affect, impair or invalidate the remainder ther
 eof,  but  shall  be  confined in its operation to the clause, sentence,
 subdivision, paragraph, section or part thereof directly involved in the
 controversy in which such judgment shall have been rendered.
 

S 7. This act shall take effect immediately.

*By contributing or voting you agree to the Terms of Participation and Privacy Policy and verify you are over 13.

Discuss!