STATE OF NEW YORK ________________________________________________________________________ 5656 2023-2024 Regular Sessions IN SENATE March 10, 2023 ___________ Introduced by Sen. MARTINEZ -- 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 installments of certain bonds; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Paragraph b of section 21.00 of the local finance law, as 2 amended by chapter 121 of the laws of 2021, is amended to read as 3 follows: 4 b. Serial bonds shall mature in annual installments. The first 5 installment shall mature not later than [eighteen months after the date 6 of such bonds or two years after the date of the first bond anticipation 7 note or notes issued in anticipation of such bonds, whichever is the 8 earlier, provided, however, that until July fifteenth, two thousand 9 twenty-four, the first installment shall mature not later than] two 10 years after the date of such bonds or two years after the date of the 11 first bond anticipation note or notes issued in anticipation of such 12 bonds, whichever is the earlier. However, if bond anticipation notes are 13 issued in anticipation of bonds and if a portion of such notes or the 14 renewals thereof are redeemed from a source other than the proceeds of 15 such bonds within two years from the date of the first such note or 16 notes and a further portion thereof shall be so redeemed prior to the 17 termination of each twelve months' period succeeding the date such 18 original portion was so redeemed, the first installment of such bonds 19 may, in the alternative, be made to mature not later than five years 20 from the date of the first such note or notes. 21 § 2. Paragraph b of section 53.00 of the local finance law, as amended 22 by chapter 121 of the laws of 2021, is amended to read as follows: 23 b. If such bonds or notes are payable in installments, the install- 24 ments remaining unpaid may be called for redemption [only (i) in the EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05691-01-3
S. 5656 2 1 inverse order of their maturity or, (ii) in equal proportionate amounts; 2 provided, however, that for bonds issued during the one-year period 3 commencing July first, nineteen hundred eighty-eight, and for bonds 4 issued during the one-year period commencing July first, nineteen 5 hundred eighty-nine, and for bonds issued during the one-year period 6 commencing July first, nineteen hundred ninety, and for bonds issued 7 during the three-year period commencing July first, nineteen hundred 8 ninety-one, and for bonds issued during the period from July first, 9 nineteen hundred ninety-four up until and including July fifteenth, 10 nineteen hundred ninety-seven and for bonds issued during the period 11 from July fifteenth, nineteen hundred ninety-seven up until and includ- 12 ing July fifteenth, two thousand, and for bonds issued during the period 13 from July fifteenth, two thousand up until and including July fifteenth, 14 two thousand three, and for bonds issued during the period from July 15 fifteenth, two thousand three up until and including July fifteenth, two 16 thousand six, and for bonds issued during the period from July 17 fifteenth, two thousand six up until and including July fifteenth, two 18 thousand nine, and for bonds issued during the period from July 19 fifteenth, two thousand six up until and including July fifteenth, two 20 thousand twelve, and for bonds issued during the period from July 21 fifteenth, two thousand nine up until and including July fifteenth, two 22 thousand fifteen, and for bonds issued during the period from July 23 fifteenth, two thousand fifteen up until and including July fifteenth, 24 two thousand eighteen, and for bonds issued during the period from July 25 fifteenth, two thousand eighteen up until and including July fifteenth, 26 two thousand twenty-one, and for bonds issued during the period from 27 July fifteenth, two thousand twenty-one up until and including July 28 fifteenth, two thousand twenty-four, installments remaining unpaid on 29 such bonds may be called for redemption] prior to their date of maturity 30 in such amounts, at such times in such manner and pursuant to such terms 31 as may be determined by the finance board of a municipality, school 32 district or district corporation at the time of the issuance thereof. 33 Whenever any bonds or notes are called for redemption prior to the date 34 of their maturity, interest shall cease to be paid thereon after the 35 date for redemption set forth in such call for redemption. [The sum to 36 be paid to redeem any unpaid installment prior to its maturity, exclu- 37 sive of the interest accruing on such installment to the date of redemp- 38 tion, shall in no event be in excess of the lesser amount of either (i) 39 the par value of such installment plus one-half of one per centum of 40 such par value for each calendar year or part thereof elapsing between 41 the date for redemption set forth in such call for redemption and the 42 date of maturity of such installment, provided, however, that such 43 amount shall not exceed one hundred five per centum of such par value, 44 or (ii) the par value of such installment plus the total of all unpaid 45 interest on such installment which would have accrued from the date of 46 redemption to the date of maturity thereof had such installment not been 47 redeemed prior to maturity, except that bonds sold to the state of New 48 York municipal bond bank agency, which are subject to call as hereinbe- 49 fore authorized, may provide for the payment of a redemption premium not 50 to exceed five per centum of the par value of the bonds to be called, 51 payable on the date of the redemption thereof; provided, however, that 52 for bonds issued during the one-year period commencing July first, nine- 53 teen hundred eighty-eight, and for bonds issued during the one-year 54 period commencing July first, nineteen hundred eighty-nine, and for 55 bonds issued during the one-year period commencing July first, nineteen 56 hundred ninety, and for bonds issued during the three-year period
S. 5656 3 1 commencing July first, nineteen hundred ninety-one, and for bonds issued 2 during the period from July first, nineteen hundred ninety-four up until 3 and including July fifteenth, nineteen hundred ninety-seven, and for 4 bonds issued during the period from July fifteenth, nineteen hundred 5 ninety-seven up until and including July fifteenth, two thousand, and 6 for bonds issued during the period from July fifteenth, two thousand up 7 until and including July fifteenth, two thousand three, and for bonds 8 issued during the period from July fifteenth, two thousand three up 9 until and including July fifteenth, two thousand six, and for bonds 10 issued during the period from July fifteenth, two thousand six up until 11 and including July fifteenth, two thousand nine, and for bonds issued 12 during the period from July fifteenth, two thousand nine up until and 13 including July fifteenth, two thousand twelve, and for bonds issued 14 during the period from July fifteenth, two thousand twelve up until and 15 including July fifteenth, two thousand fifteen, and for bonds issued 16 during the period from July fifteenth, two thousand fifteen up until and 17 including July fifteenth, two thousand eighteen, and for bonds issued 18 during the period from July fifteenth, two thousand eighteen up until 19 and including July fifteenth, two thousand twenty-one, and for bonds 20 issued during the period from July fifteenth, two thousand twenty-one up 21 until and including July fifteenth, two thousand twenty-four, a] A muni- 22 cipality, school district, or district corporation may provide for 23 redemption of such bonds prior to the date of their maturity at a price 24 or prices as may be as determined by the issuer of such bonds or notes 25 at the time of the issuance thereof. 26 § 3. Section 107.00 of the local finance law is REPEALED. 27 § 4. This act shall take effect immediately.