Bill S6786-2013

Makes certain findings and determinations with respect to bond anticipation notes issued by the town of Campbell, county of Steuben

Makes certain findings and determinations with respect to bond anticipation notes issued by the town of Campbell, county of Steuben, validating such notes, and authorizing the issuance of obligations of such with respect thereto.

Details

Actions

  • Aug 11, 2014: SIGNED CHAP.306
  • Aug 1, 2014: DELIVERED TO GOVERNOR
  • Jun 19, 2014: returned to senate
  • Jun 19, 2014: passed assembly
  • Jun 19, 2014: home rule request
  • Jun 19, 2014: ordered to third reading rules cal.467
  • Jun 19, 2014: substituted for a9092
  • Jun 10, 2014: referred to local governments
  • Jun 10, 2014: DELIVERED TO ASSEMBLY
  • Jun 10, 2014: PASSED SENATE
  • Jun 10, 2014: HOME RULE REQUEST
  • Jun 3, 2014: ORDERED TO THIRD READING CAL.1119
  • Jun 3, 2014: REPORTED AND COMMITTED TO RULES
  • Mar 11, 2014: REFERRED TO LOCAL GOVERNMENT

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 3, 2014
Ayes (23): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Stewart-Cousins, Breslin, Dilan, Hassell-Thompson, Krueger, Montgomery, Parker, Perkins
Ayes W/R (1): Gianaris
Excused (1): Espaillat

Memo

BILL NUMBER:S6786

TITLE OF BILL: An act in relation to making certain findings and determinations with respect to bond anticipation notes issued by the town of Campbell, county of Steuben, validating such notes, and authorizing the issuance of obligations of such with respect thereto

PURPOSE: This bill will legalize and validate certain minor technical violations of the Local Finance Law by the town of Campbell, County of Steuben in connection with the issuances of bond anticipation notes to finance the formation of Water District No. 2 within the town of Campbell thereby validating certain bond anticipation notes and authorizing the town to issue further bond anticipation notes and/or bonds in order to finance the project and the improvements of such project.

SUMMARY OF PROVISIONS:

Section 1 of the bill sets forth, as Legislative findings, the pertinent history of the initial establishment proceedings for Water District No. 2 and the notes and bonds issued to finance the improvements. Among the steps taken by the town board in 2009 through 2013, to establish such water district, the notes and bonds were not issued in compliance with the applicable provisions of the local finance law.

Section 2 of the bill ratifies all actions of, and proceedings taken by the town board in connection of such water district and such notes and bonds.

Section 3 sets forth the provisions that the bonds, anticipation notes and renewals are to be issued in accordance with the provisions of the local finance law.

Section 4 of the bill sets forth the provisions in the event any section or part of this act shall be deemed invalid by any court of competent jurisdiction.

JUSTIFICATION: In 2009 the initial note and the bond anticipation notes were not issued in compliance with the provisions of the local finance law, therefore this bill would enable the Town of Campbell to issue bonds or renewal bond anticipation notes for the purpose of refinancing the outstanding bond anticipation notes to finance improvements in Water District 2.

FISCAL IMPLICATIONS: None to State

EFFECTIVE DATE: Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 6786 IN SENATE March 11, 2014 ___________
Introduced by Sen. O'MARA -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT in relation to making certain findings and determinations with respect to bond anticipation notes issued by the town of Campbell, county of Steuben, validating such notes, and authorizing the issuance of obligations of such with respect thereto THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Legislative Findings. (a) It is hereby found and determined that the town board of the town of Campbell, in the county of Steuben, undertook the following described actions in relation to the formation of Water District No. 2 within said town and the issuance of bond antic- ipation notes to finance the improvements included in said water district: (1) By an order adopted on September 14, 2009, and recorded in the office of the Steuben County Clerk on November 11, 2009 in book 2262 at page 87, as amended and corrected by an amended order adopted on Novem- ber 8, 2010, and recorded in the office of the Steuben County Clerk on November 16, 2010 in book 2311 at page 288, pursuant to article 12 of the town law, said town board approved the establishment of said Water District No. 2 and the construction of the improvements to be included in said water district at a maximum cost not to exceed $225,080.00. (2) Pursuant to a resolution adopted by said town board on August 10, 2009, said town issued its note, dated September 4, 2009 in the princi- pal amount of $225,080 maturing on September 4, 2010 to finance the improvements to be included as part of said Water District No. 2. Ther- eafter, pursuant to a bond resolution adopted by said town board on September 13, 2010 and a certificate of the Supervisor of said town, dated September 20, 2010, said note was refinanced by the issuance of a bond anticipation note dated September 20, 2010 in the principal amount of $225,080 maturing on September 20, 2011. Thereafter, pursuant to a resolution adopted by said town board on September 12, 2011 and a certificate of the supervisor of said town dated September 20, 2011, a principal payment of $10,000 was made on said bond anticipation note and
said note was renewed by the issuance of a renewal bond anticipation note dated September 20, 2011 in the principal amount of $215,080, maturing on September 20, 2012. Thereafter, pursuant to a certificate of the supervisor of said town dated September 20, 2012, a principal payment of $10,080 was made on said renewal bond anticipation note and said note was again renewed by the issuance of a renewal bond antic- ipation note dated September 20, 2012 in the principal amount of $205,000 maturing on September 20, 2013. Thereafter, pursuant to a certificate of the supervisor of said town dated September 20, 2013, a principal payment of $5,000 was made on said renewal bond anticipation note and said note was again renewed by the issuance of a renewal bond anticipation note dated September 20, 2013 in the principal amount of $200,000, maturing on September 19, 2014. (b) It is hereby further found and determined that the note and the bond anticipation notes described in subdivision (a) of this section were not issued in compliance with the applicable provisions of the local finance law, in that: (i) the initial note dated September 4, 2009 was issued prior to the date that said Water District No. 2 was estab- lished by the town board of said town of Campbell pursuant to the order dated September 14, 2009, as amended and corrected by the amended order dated November 8, 2010, and as such, under section 10.00 of the local finance law, said town did not have the authority to contract such indebtness; (ii) said note dated September 4, 2009 was issued prior to the adoption by said town board a bond resolution in accordance with sections 31.00 and 32.00 of the local finance law; (iii) said note dated September 4, 2009 was not renewed until after September 4, 2010 maturity date thereof; and (iv) a portion of the principal amount of said bond anticipation notes was not redeemed from a source other than the proceeds of bonds within two years of the date of issuance of the said note dated September 4, 2009, and further portions of said bond antic- ipation notes were not redeemed by September 4 of each subsequent year, as required by section 23.00 of the local finance law. S 2. Notwithstanding the defects described in section one of this act, the bond anticipation notes and renewals thereof issued by the Town of Campbell, as described in section one of this act, and all resolution, acts and proceedings heretofore adopted or taken by the town board and the supervisor of said town in relation thereto, are hereby validated, ratified and confirmed. Subject to the adoption by the town board of the town of Campbell of an amending bond resolution in accordance with sections 31.00 and 32.00 of the local finance law determining that the period of probable usefulness of the object or purpose for which the said bond anticipation notes were issued is 40 years, said town is here- by authorized to hereinafter issue bonds or renewal bond anticipation notes in the aggregate principal amount of $195,000 for the purpose of refinancing the outstanding bond anticipation note issued for the object or purpose described in section one, provided that, notwithstanding the provisions of paragraph (b-1) of section 23.00 of the local finance law, a portion of any such renewal bond application notes hereafter issued shall be redeemed from a source other than the proceeds of bonds not later than September 19, 2015 and each September 19 thereafter for so long as any such renewal bond anticipation notes remain outstanding; and provided further that, in the event that the renewal bond anticipation note, dated September 20, 2013 described in paragraph 2 of subdivision (a) of section one of this act has, prior to the effective date of this act, been amended to extend the maturity date thereof, been renewed by another renewal bond anticipation note, or been redeemed in full, said
town, following enactment of this act, shall have the authority, notwithstanding any such extension, renewal or redemption, to issue the bonds or renewal bond anticipation notes authorized by this section for the purpose of refinancing such extended or renewed bond anticipation note for the purpose of reborrowing the principal amount of such redeemed bond anticipation note up to the maximum principal amount authorized by this section. S 3. Except as otherwise set forth in this act, the bonds and bond anticipation notes, and renewals thereof, issued pursuant to this act shall be issued in accordance with the provisions of the local finance law. S 4. If any clause, sentence, subdivision, paragraph, section 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 thereof, 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 5. This act shall take effect immediately.

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