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S06786 Summary:

S06786 Actions:

S06786 Floor Votes:

S06786 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:
 
     1    Section 1. Legislative Findings. (a) It is hereby found and determined
     2  that  the  town board of the town of Campbell, in the county of Steuben,
     3  undertook the following described actions in relation to  the  formation
     4  of Water District No. 2 within said town and the issuance of bond antic-
     5  ipation  notes  to  finance  the  improvements  included  in  said water
     6  district:
     7    (1) By an order adopted on September 14, 2009,  and  recorded  in  the
     8  office  of the Steuben County Clerk on November 11, 2009 in book 2262 at
     9  page 87, as amended and corrected by an amended order adopted on  Novem-
    10  ber  8,  2010, and recorded in the office of the Steuben County Clerk on
    11  November 16, 2010 in book 2311 at page 288, pursuant to  article  12  of

    12  the  town  law, said town board approved the establishment of said Water
    13  District No. 2 and the construction of the improvements to  be  included
    14  in said water district at a maximum cost not to exceed $225,080.00.
    15    (2)  Pursuant to a resolution adopted by said town board on August 10,
    16  2009, said town issued its note, dated September 4, 2009 in the  princi-
    17  pal  amount  of  $225,080  maturing  on September 4, 2010 to finance the
    18  improvements to be included as part of said Water District No. 2.  Ther-
    19  eafter, pursuant to a bond resolution adopted  by  said  town  board  on
    20  September  13,  2010  and  a certificate of the Supervisor of said town,
    21  dated September 20, 2010, said note was refinanced by the issuance of  a
    22  bond  anticipation note dated September 20, 2010 in the principal amount
    23  of $225,080 maturing on September 20, 2011. Thereafter,  pursuant  to  a

    24  resolution  adopted  by  said  town  board  on  September 12, 2011 and a
    25  certificate of the supervisor of said town dated September 20,  2011,  a
    26  principal payment of $10,000 was made on said bond anticipation note and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13695-01-4
        S. 6786                             2
 
     1  said  note  was  renewed  by the issuance of a renewal bond anticipation
     2  note dated September 20, 2011  in  the  principal  amount  of  $215,080,
     3  maturing on September 20, 2012. Thereafter, pursuant to a certificate of
     4  the  supervisor  of  said  town  dated  September  20, 2012, a principal
     5  payment of $10,080 was made on said renewal bond anticipation  note  and

     6  said  note  was  again  renewed by the issuance of a renewal bond antic-
     7  ipation note dated  September  20,  2012  in  the  principal  amount  of
     8  $205,000  maturing  on  September  20,  2013.  Thereafter, pursuant to a
     9  certificate of the supervisor of said town dated September 20,  2013,  a
    10  principal  payment  of $5,000 was made on said renewal bond anticipation
    11  note and said note was again renewed by the issuance of a  renewal  bond
    12  anticipation  note  dated  September 20, 2013 in the principal amount of
    13  $200,000, maturing on September 19, 2014.
    14    (b) It is hereby further found and determined that the  note  and  the
    15  bond  anticipation  notes  described  in subdivision (a) of this section
    16  were not issued in compliance with  the  applicable  provisions  of  the
    17  local finance law, in that: (i) the initial note dated September 4, 2009

    18  was  issued  prior to the date that said Water District No. 2 was estab-
    19  lished by the town board of said town of Campbell pursuant to the  order
    20  dated  September 14, 2009, as amended and corrected by the amended order
    21  dated November 8, 2010, and as such, under section 10.00  of  the  local
    22  finance  law,  said  town  did  not  have the authority to contract such
    23  indebtness; (ii) said note dated September 4, 2009 was issued  prior  to
    24  the  adoption  by  said  town board a bond resolution in accordance with
    25  sections 31.00 and 32.00 of the local finance law; (iii) said note dated
    26  September 4, 2009 was not renewed until after September 4, 2010 maturity
    27  date thereof; and (iv) a portion of the principal amount  of  said  bond
    28  anticipation  notes  was  not  redeemed  from  a  source  other than the
    29  proceeds of bonds within two years of the date of issuance of  the  said

    30  note  dated  September 4, 2009, and further portions of said bond antic-
    31  ipation notes were not redeemed by September 4 of each subsequent  year,
    32  as required by section 23.00 of the local finance law.
    33    § 2. Notwithstanding the defects described in section one of this act,
    34  the  bond  anticipation notes and renewals thereof issued by the Town of
    35  Campbell, as described in section one of this act, and  all  resolution,
    36  acts  and  proceedings heretofore adopted or taken by the town board and
    37  the supervisor of said town in relation thereto, are  hereby  validated,
    38  ratified and confirmed. Subject to the adoption by the town board of the
    39  town  of  Campbell  of  an  amending  bond resolution in accordance with
    40  sections 31.00 and 32.00 of the local finance law determining  that  the
    41  period  of  probable  usefulness  of the object or purpose for which the

    42  said bond anticipation notes were issued is 40 years, said town is here-
    43  by authorized to hereinafter issue bonds or  renewal  bond  anticipation
    44  notes  in  the aggregate principal amount of $195,000 for the purpose of
    45  refinancing the outstanding bond anticipation note issued for the object
    46  or purpose described in section one, provided that, notwithstanding  the
    47  provisions of paragraph (b-1) of section 23.00 of the local finance law,
    48  a  portion  of  any such renewal bond application notes hereafter issued
    49  shall be redeemed from a source other than the  proceeds  of  bonds  not
    50  later  than  September  19, 2015 and each September 19 thereafter for so
    51  long as any such renewal bond anticipation notes remain outstanding; and
    52  provided further that, in the event that the renewal  bond  anticipation
    53  note,  dated  September 20, 2013 described in paragraph 2 of subdivision

    54  (a) of section one of this act has, prior to the effective date of  this
    55  act,  been  amended to extend the maturity date thereof, been renewed by
    56  another renewal bond anticipation note, or been redeemed in  full,  said
        S. 6786                             3
 
     1  town,  following  enactment  of  this  act,  shall  have  the authority,
     2  notwithstanding any such extension, renewal or redemption, to issue  the
     3  bonds  or renewal bond anticipation notes authorized by this section for
     4  the  purpose  of  refinancing such extended or renewed bond anticipation
     5  note for the  purpose  of  reborrowing  the  principal  amount  of  such
     6  redeemed  bond  anticipation  note  up  to  the maximum principal amount
     7  authorized by this section.
     8    § 3. Except as otherwise set forth in this act,  the  bonds  and  bond

     9  anticipation  notes,  and  renewals thereof, issued pursuant to this act
    10  shall be issued in accordance with the provisions of the  local  finance
    11  law.
    12    §  4. If any clause, sentence, subdivision, paragraph, section or part
    13  of this act be adjudged by any court of competent  jurisdiction,  to  be
    14  invalid,  such  judgment  shall  not  affect,  impair  or invalidate the
    15  remainder thereof, but shall be confined in its operation to the clause,
    16  sentence, subdivision,  paragraph,  section  or  part  thereof  directly
    17  involved  in  the  controversy  in  which  such judgment shall have been
    18  rendered.
    19    § 5. This act shall take effect immediately.