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A06258 Summary:

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A06258 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6258
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                     March 18, 2015
                                       ___________
 
        Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
          Committee on Local Governments
 
        AN ACT to amend the local finance law and chapter 419  of  the  laws  of
          1991,  amending  the  local  finance  law  and  other laws relating to
          providing relief to local governments for  certain  mandated  programs
          and  services, in relation to local government borrowing practices and
          mandate relief
 
          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 91 of the  laws  of  2012,  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  [fifteen]  eighteen,  the  first installment shall mature not later than
    10  two years after the date of such bonds or two years after  the  date  of
    11  the 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 91 of the laws of 2012, is amended to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09182-01-5
        A. 6258                             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, installments remaining unpaid on such bonds may
    27  be called for redemption  prior  to  their  date  of  maturity  in  such
    28  amounts,  at such times in such manner and pursuant to such terms as may
    29  be determined by the finance board of a municipality, school district or
    30  district corporation at the time of the issuance thereof.  Whenever  any
    31  bonds  or  notes  are  called  for redemption prior to the date of their
    32  maturity, interest shall cease to be paid thereon  after  the  date  for
    33  redemption  set forth in such call for redemption. The sum to be paid to
    34  redeem any unpaid installment prior to its maturity,  exclusive  of  the
    35  interest  accruing  on such installment to the date of redemption, shall
    36  in no event be in excess of the lesser amount  of  either  (i)  the  par
    37  value  of  such  installment plus one-half of one per centum of such par
    38  value for each calendar year or part thereof elapsing between  the  date
    39  for  redemption  set  forth  in such call for redemption and the date of
    40  maturity of such installment, provided, however, that such amount  shall
    41  not  exceed  one  hundred five per centum of such par value, or (ii) the
    42  par value of such installment plus the total of all unpaid  interest  on
    43  such installment which would have accrued from the date of redemption to
    44  the  date  of  maturity  thereof  had such installment not been redeemed
    45  prior to maturity, except that bonds sold  to  the  state  of  New  York
    46  municipal  bond  bank  agency, which are subject to call as hereinbefore
    47  authorized, may provide for the payment of a redemption premium  not  to
    48  exceed five per centum of the par value of the bonds to be called, paya-
    49  ble  on  the date of the redemption thereof; provided, however, that for
    50  bonds issued during the one-year period commencing July first,  nineteen
    51  hundred  eighty-eight,  and  for bonds issued during the one-year period
    52  commencing July first,  nineteen  hundred  eighty-nine,  and  for  bonds
    53  issued  during  the  one-year  period  commencing  July  first, nineteen
    54  hundred ninety, and  for  bonds  issued  during  the  three-year  period
    55  commencing July first, nineteen hundred ninety-one, and for bonds issued
    56  during the period from July first, nineteen hundred ninety-four up until
        A. 6258                             3
 
     1  and  including  July  fifteenth,  nineteen hundred ninety-seven, and for
     2  bonds issued during the period from  July  fifteenth,  nineteen  hundred
     3  ninety-seven  up  until  and including July fifteenth, two thousand, and
     4  for  bonds issued during the period from July fifteenth, two thousand up
     5  until and including July fifteenth, two thousand three,  and  for  bonds
     6  issued  during  the  period  from  July fifteenth, two thousand three up
     7  until and including July fifteenth, two  thousand  six,  and  for  bonds
     8  issued  during the period from July fifteenth, two thousand six up until
     9  and including July fifteenth, two thousand nine, and  for  bonds  issued
    10  during  the  period  from July fifteenth, two thousand nine up until and
    11  including July fifteenth, two thousand  twelve,  and  for  bonds  issued
    12  during  the period from July fifteenth, two thousand twelve up until and
    13  including July fifteenth, two thousand fifteen,  and  for  bonds  issued
    14  during the period from July fifteenth, two thousand fifteen up until and
    15  including  July fifteenth, two thousand eighteen, a municipality, school
    16  district, or district corporation may provide  for  redemption  of  such
    17  bonds prior to the date of their maturity at a price or prices as may be
    18  as  determined  by  the issuer of such bonds or notes at the time of the
    19  issuance thereof.
    20    § 3. The opening paragraph of paragraph a  of  section  54.90  of  the
    21  local  finance  law,  as  amended  by chapter 91 of the laws of 2012, is
    22  amended to read as follows:
    23    Whenever in the judgment of the finance board the interest of a  muni-
    24  cipality  would  be  served thereby, the municipality may issue bonds or
    25  notes, on or before July fifteenth,  two  thousand  [fifteen]  eighteen,
    26  with  interest rates that vary in accordance with a formula or procedure
    27  and are subject to a maximum rate of interest set forth or  referred  to
    28  in  the  bonds  or  notes  and may provide the holders thereof with such
    29  rights to require the municipality or other  persons  to  purchase  such
    30  bonds or notes or renewals thereof from the proceeds of the resale ther-
    31  eof  or  otherwise from time to time prior to the final maturity of such
    32  bonds or notes as the finance board may determine and  the  municipality
    33  may resell, at any time prior to final maturity, any such bonds or notes
    34  acquired  as a result of the exercise of such rights; provided, however,
    35  that at no time shall the total principal  amount  of  bonds  and  notes
    36  issued  pursuant  to  this paragraph (other than bonds and notes bearing
    37  interest at rates and for periods of time that are  specified  at  issu-
    38  ance)  exceed  ten  percent of the limit prescribed by section 104.00 of
    39  this article.
    40    § 4. Subdivision 9 of paragraph d  of  section  107.00  of  the  local
    41  finance law, as amended by chapter 91 of the laws of 2012, is amended to
    42  read as follows:
    43    9.  Notwithstanding  any  other provision of law, the financing by any
    44  municipality, prior to July fifteenth, two thousand [fifteen]  eighteen,
    45  of  any  object  or  purpose  which  has a period of probable usefulness
    46  determined by law, by the issuance of any bonds and notes, including (i)
    47  the issuance of bonds or notes, to redeem notes  previously  issued  for
    48  the  object  or purpose for which the bonds or notes are being issued or
    49  (ii) the issuance of bonds to refund bonds  previously  issued  for  the
    50  object or purpose for which bonds are being issued.
    51    §  5. Subdivision (a) and (e) of section 81 of chapter 413 of the laws
    52  of 1991, amending the local finance  law  and  other  laws  relating  to
    53  providing  relief to local governments for certain mandated programs and
    54  services, as amended by chapter 91 of the laws of 2012, are  amended  to
    55  read as follows:
        A. 6258                             4
 
     1    (a) section six, sixteen and seventeen of this act shall expire and be
     2  deemed  repealed  on  and after July 15, [2015] 2018, and upon such date
     3  the amendments made to the provisions of the local finance law  by  such
     4  sections  shall  also  expire and such provisions shall revert to and be
     5  read  as  set out in law on the date immediately preceding the effective
     6  date of such sections six, sixteen and seventeen of this act;
     7    (e) subdivision (b) of section thirty-five of this  act  shall  expire
     8  and be deemed repealed on and after July 15, [2015] 2018;
     9    § 6. This act shall take effect immediately.