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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4709
2025-2026 Regular Sessions
IN ASSEMBLY
February 4, 2025
___________
Introduced by M. of A. JONES -- read once and referred to the Committee
on Local Governments
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:
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.
LBD00872-01-5
A. 4709 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, and for bonds issued during the
29 period from July fifteenth, two thousand twenty-four up until and
30 including July fifteenth, two thousand twenty-seven, installments
31 remaining unpaid on such bonds may be called for redemption] prior to
32 their date of maturity in such amounts, at such times in such manner and
33 pursuant to such terms as may be determined by the finance board of a
34 municipality, school district or district corporation at the time of the
35 issuance thereof. Whenever any bonds or notes are called for redemption
36 prior to the date of their maturity, interest shall cease to be paid
37 thereon after the date for redemption set forth in such call for redemp-
38 tion. [The sum to be paid to redeem any unpaid installment prior to its
39 maturity, exclusive of the interest accruing on such installment to the
40 date of redemption, shall in no event be in excess of the lesser amount
41 of either (i) the par value of such installment plus one-half of one per
42 centum of such par value for each calendar year or part thereof elapsing
43 between the date for redemption set forth in such call for redemption
44 and the date of maturity of such installment, provided, however, that
45 such amount shall not exceed one hundred five per centum of such par
46 value, or (ii) the par value of such installment plus the total of all
47 unpaid interest on such installment which would have accrued from the
48 date of redemption to the date of maturity thereof had such installment
49 not been redeemed prior to maturity, except that bonds sold to the state
50 of New York municipal bond bank agency, which are subject to call as
51 hereinbefore authorized, may provide for the payment of a redemption
52 premium not to exceed five per centum of the par value of the bonds to
53 be called, payable on the date of the redemption thereof; provided,
54 however, that for bonds issued during the one-year period commencing
55 July first, nineteen hundred eighty-eight, and for bonds issued during
56 the one-year period commencing July first, nineteen hundred eighty-nine,
A. 4709 3
1 and for bonds issued during the one-year period commencing July first,
2 nineteen hundred ninety, and for bonds issued during the three-year
3 period commencing July first, nineteen hundred ninety-one, and for bonds
4 issued during the period from July first, nineteen hundred ninety-four
5 up until and including July fifteenth, nineteen hundred ninety-seven,
6 and for bonds issued during the period from July fifteenth, nineteen
7 hundred ninety-seven up until and including July fifteenth, two thou-
8 sand, and for bonds issued during the period from July fifteenth, two
9 thousand up until and including July fifteenth, two thousand three, and
10 for bonds issued during the period from July fifteenth, two thousand
11 three up until and including July fifteenth, two thousand six, and for
12 bonds issued during the period from July fifteenth, two thousand six up
13 until and including July fifteenth, two thousand nine, and for bonds
14 issued during the period from July fifteenth, two thousand nine up until
15 and including July fifteenth, two thousand twelve, and for bonds issued
16 during the period from July fifteenth, two thousand twelve up until and
17 including July fifteenth, two thousand fifteen, and for bonds issued
18 during the period from July fifteenth, two thousand fifteen up until and
19 including July fifteenth, two thousand eighteen, and for bonds issued
20 during the period from July fifteenth, two thousand eighteen up until
21 and including July fifteenth, two thousand twenty-one, and for bonds
22 issued during the period from July fifteenth, two thousand twenty-one up
23 until and including July fifteenth, two thousand twenty-four, and for
24 bonds issued during the period from July fifteenth, two thousand twen-
25 ty-four up until and including July fifteenth, two thousand twenty-sev-
26 en, a] A municipality, school district, or district corporation may
27 provide for redemption of such bonds prior to the date of their maturity
28 at a price or prices as may be as determined by the issuer of such bonds
29 or notes at the time of the issuance thereof.
30 § 3. Section 107.00 of the local finance law is REPEALED.
31 § 4. This act shall take effect immediately.
