Provides that bond anticipation notes issued during calendar years 2006 and 2007 may not extend more than seven years beyond the original date of issuance of such bond notes.
Ayes (8): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Oppenheimer, Klein
TITLE OF BILL: An act to amend the local finance law, in relation to bond anticipation notes issued during the calendar years 2006 and 2007
PURPOSE OR GENERAL IDEA OF BILL: This legislation extends the rollover period for bond anticipation notes issued during calendar 2006 and 2007 to not more than seven years beyond the original date of issue.
SUMMARY OF SPECIFIC PROVISIONS: Section 1 of the bill amends subparagraph 2 of paragraph b of Section 23.00 of the Local Finance Law as amended by Chapter 386 of the Laws of 2010 to extend the rollover period from 2004 and 2005 to 2006 and 2007.
Section 2 of the bill is the effective date.
JUSTIFICATION: Currently, except for bond anticipation notes issued in 2004 or 2005, local governments are authorized to extend or rollover bond anticipation notes for only up to 5 years. At the end of the period, the bond anticipation notes must be retired or converted into long-term debt. This legislation, by extending the rollover period for bond anticipation notes issued during calendar 2006 and 2007, will provide municipalities the option of renewing the notes at a later date to shop around for a better rate for the long-term, thereby lowering costs to the municipality.
LEGISLATIVE HISTORY: New Bill- 2012
FISCAL IMPLICATIONS: None. May result in cost savings to localities.
EFFECTIVE DATE: This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 6634 IN SENATE March 7, 2012 ___________Introduced by Sen. STEWART-COUSINS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the local finance law, in relation to bond anticipation notes issued during the calendar years 2006 and 2007 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subparagraph 2 of paragraph b of section 23.00 of the local finance law, as amended by chapter 386 of the laws of 2010, is amended to read as follows: 2. renewals of bond anticipation notes issued originally during calen- dar year two thousand
[four]SIX or two thousand [five]SEVEN may not extend more than seven years beyond the original date of issue of such bond anticipation notes. S 2. This act shall take effect immediately.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14896-01-2