Permanently requires that the first installment of serial bonds mature not later than two years after the date of such bonds; provides that principal installments remaining unpaid on 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 determined by the finance board of a municipality, school district or corporation at the time of the issuance thereof; repeals provisions that permanently eliminate the requirement that municipalities provide from current funds an amount equal to at least 5% of the estimated cost of each capital improvement (excluding from such cost state or federal grant funding and certain benefited area assessments) prior to the issuance of bonds or bond anticipation notes to finance such capital improvement.
STATE OF NEW YORK
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273
2025-2026 Regular Sessions
IN SENATE(Prefiled)
January 8, 2025
___________
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 167 of the laws of 2024, 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-seven, 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 167 of the laws of 2024, is amended to read as follows:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00872-01-5
S. 273 2
1 b. If such bonds or notes are payable in installments, the install-
2 ments remaining unpaid may be called for redemption [only (i) in the
3 inverse order of their maturity or, (ii) in equal proportionate amounts;
4 provided, however, that for bonds issued during the one-year period
5 commencing July first, nineteen hundred eighty-eight, and for bonds
6 issued during the one-year period commencing July first, nineteen
7 hundred eighty-nine, and for bonds issued during the one-year period
8 commencing July first, nineteen hundred ninety, and for bonds issued
9 during the three-year period commencing July first, nineteen hundred
10 ninety-one, and for bonds issued during the period from July first,
11 nineteen hundred ninety-four up until and including July fifteenth,
12 nineteen hundred ninety-seven and for bonds issued during the period
13 from July fifteenth, nineteen hundred ninety-seven up until and includ-
14 ing July fifteenth, two thousand, and for bonds issued during the period
15 from July fifteenth, two thousand up until and including July fifteenth,
16 two thousand three, and for bonds issued during the period from July
17 fifteenth, two thousand three up until and including July fifteenth, two
18 thousand six, and for bonds issued during the period from July
19 fifteenth, two thousand six up until and including July fifteenth, two
20 thousand nine, and for bonds issued during the period from July
21 fifteenth, two thousand six up until and including July fifteenth, two
22 thousand twelve, and for bonds issued during the period from July
23 fifteenth, two thousand nine up until and including July fifteenth, two
24 thousand fifteen, and for bonds issued during the period from July
25 fifteenth, two thousand fifteen up until and including July fifteenth,
26 two thousand eighteen, and for bonds issued during the period from July
27 fifteenth, two thousand eighteen up until and including July fifteenth,
28 two thousand twenty-one, and for bonds issued during the period from
29 July fifteenth, two thousand twenty-one up until and including July
30 fifteenth, two thousand twenty-four, and for bonds issued during the
31 period from July fifteenth, two thousand twenty-four up until and
32 including July fifteenth, two thousand twenty-seven, installments
33 remaining unpaid on such bonds may be called for redemption] prior to
34 their date of maturity in such amounts, at such times in such manner and
35 pursuant to such terms as may be determined by the finance board of a
36 municipality, school district or district corporation at the time of the
37 issuance thereof. Whenever any bonds or notes are called for redemption
38 prior to the date of their maturity, interest shall cease to be paid
39 thereon after the date for redemption set forth in such call for redemp-
40 tion. [The sum to be paid to redeem any unpaid installment prior to its
41 maturity, exclusive of the interest accruing on such installment to the
42 date of redemption, shall in no event be in excess of the lesser amount
43 of either (i) the par value of such installment plus one-half of one per
44 centum of such par value for each calendar year or part thereof elapsing
45 between the date for redemption set forth in such call for redemption
46 and the date of maturity of such installment, provided, however, that
47 such amount shall not exceed one hundred five per centum of such par
48 value, or (ii) the par value of such installment plus the total of all
49 unpaid interest on such installment which would have accrued from the
50 date of redemption to the date of maturity thereof had such installment
51 not been redeemed prior to maturity, except that bonds sold to the state
52 of New York municipal bond bank agency, which are subject to call as
53 hereinbefore authorized, may provide for the payment of a redemption
54 premium not to exceed five per centum of the par value of the bonds to
55 be called, payable on the date of the redemption thereof; provided,
56 however, that for bonds issued during the one-year period commencing
S. 273 3
1 July first, nineteen hundred eighty-eight, and for bonds issued during
2 the one-year period commencing July first, nineteen hundred eighty-nine,
3 and for bonds issued during the one-year period commencing July first,
4 nineteen hundred ninety, and for bonds issued during the three-year
5 period commencing July first, nineteen hundred ninety-one, and for bonds
6 issued during the period from July first, nineteen hundred ninety-four
7 up until and including July fifteenth, nineteen hundred ninety-seven,
8 and for bonds issued during the period from July fifteenth, nineteen
9 hundred ninety-seven up until and including July fifteenth, two thou-
10 sand, and for bonds issued during the period from July fifteenth, two
11 thousand up until and including July fifteenth, two thousand three, and
12 for bonds issued during the period from July fifteenth, two thousand
13 three up until and including July fifteenth, two thousand six, and for
14 bonds issued during the period from July fifteenth, two thousand six up
15 until and including July fifteenth, two thousand nine, and for bonds
16 issued during the period from July fifteenth, two thousand nine up until
17 and including July fifteenth, two thousand twelve, and for bonds issued
18 during the period from July fifteenth, two thousand twelve up until and
19 including July fifteenth, two thousand fifteen, and for bonds issued
20 during the period from July fifteenth, two thousand fifteen up until and
21 including July fifteenth, two thousand eighteen, and for bonds issued
22 during the period from July fifteenth, two thousand eighteen up until
23 and including July fifteenth, two thousand twenty-one, and for bonds
24 issued during the period from July fifteenth, two thousand twenty-one up
25 until and including July fifteenth, two thousand twenty-four, and for
26 bonds issued during the period from July fifteenth, two thousand twen-
27 ty-four up until and including July fifteenth, two thousand twenty-sev-
28 en, a] A municipality, school district, or district corporation may
29 provide for redemption of such bonds prior to the date of their maturity
30 at a price or prices as may be as determined by the issuer of such bonds
31 or notes at the time of the issuance thereof.
32 § 3. Section 107.00 of the local finance law is REPEALED.
33 § 4. This act shall take effect immediately.
