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S06947 Summary:

S06947 Actions:

S06947 Floor Votes:

S06947 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6947
 
                    IN SENATE
 
                                      April 7, 2014
                                       ___________
 
        Introduced  by  Sen.  LITTLE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government
 
        AN ACT making certain findings and determinations with respect  to  bond
          anticipation  notes  and  serial bonds issued by the village of White-
          hall, in the town of Whitehall and county of Washington, and  validat-
          ing and legalizing such notes and bonds
 

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Legislative findings. It is  hereby  found  and  determined
     2  that  pursuant to a bond resolution dated April 5, 2001, as amended by a
     3  bond resolution dated April 7,  2005,  the  board  of  trustees  of  the
     4  village of Whitehall, in the town of Whitehall and county of Washington,
     5  authorized  the  issuance of serial bonds of the village in an aggregate
     6  principal amount not to exceed $2,772,792, and bond  anticipation  notes
     7  in  anticipation  of the sale of such bonds, to finance the construction
     8  of certain improvements to such village's sewer system in order to bring
     9  it into compliance with a stipulation agreement between the village  and
    10  the  department  of environmental conservation; that in order to finance

    11  the cost of the capital improvements authorized by said bond resolution,
    12  as so amended: (i) on November 3, 2000, the village issued a bond antic-
    13  ipation note in the principal amount of $450,000, maturing  on  November
    14  2,  2001;  (ii)  on  November  2, 2001, the village issued a bond antic-
    15  ipation note in the principal amount of $450,000, maturing  on  November
    16  1,  2002, to renew in full the bond anticipation note maturing on Novem-
    17  ber 2, 2001; (iii) on June 6, 2002, the village  issued  a  bond  antic-
    18  ipation  note in the principal amount of $1,970,234, maturing on June 6,
    19  2005, to refinance the balance of the bond anticipation note maturing on
    20  November 1, 2002  and  to  finance  additional  costs  of  said  capital
    21  improvements;  (iv)  on  November  1, 2002, the village made a principal
    22  payment of $11,100 on the bond anticipation note  maturing  on  June  6,

    23  2005;  (v)  on November 4, 2003, the village made a principal payment of
    24  $11,200 on the bond anticipation note maturing on June 6, 2005; (vi)  on
    25  November 4, 2004, the village made a principal payment of $11,300 on the
    26  bond  anticipation  note  maturing on June 6, 2005; and (vii) on June 2,
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14590-01-4
        S. 6947                             2
 
     1  2005, the village issued serial bonds in the aggregate principal  amount
     2  of  $1,155,748,  maturing on November 1, in the years 2005 through 2034,
     3  to refinance the balance of the bond anticipation note maturing on  June
     4  6, 2005; that pursuant to bond resolutions dated January 25, 2005, Janu-

     5  ary  26,  2006, July 6, 2006 and November 6, 2006, the board of trustees
     6  of such village authorized the issuance of serial bonds of  the  village
     7  in  an  aggregate  principal  amount  not to exceed $9,997,000, and bond
     8  anticipation notes in anticipation of the sale of such bonds, to finance
     9  the construction of certain improvements to the village's  water  system
    10  in  order  to  bring  it  into  compliance  with a stipulation agreement
    11  between such village and the department of  health;  that  in  order  to
    12  finance  the  cost  of  the capital improvements authorized by said bond
    13  resolutions: (a) on February 24, 2005, the village issued a bond  antic-
    14  ipation  note  in the principal amount of $200,000, maturing on February
    15  23, 2006; (b) on February 23, 2006, the village  issued  a  bond  antic-
    16  ipation  note  in the principal amount of $300,000, maturing on February

    17  22, 2007, to renew in full the bond anticipation note maturing on Febru-
    18  ary 23, 2006 and to finance additional costs of  said  capital  improve-
    19  ments;  (c) on May 17, 2006, the village issued a bond anticipation note
    20  in the principal amount of $100,000, maturing on May 16,  2007;  (d)  on
    21  August  10,  2006,  the  village  issued a bond anticipation note in the
    22  principal amount of $500,000, maturing on August 9, 2007; (e) on  Decem-
    23  ber  7, 2006, the village issued a bond anticipation note in the princi-
    24  pal amount of $1,500,000, maturing on December 6, 2007; (f) on  February
    25  22,  2007,  the  village  made a principal payment of $5,000 on the bond
    26  anticipation note maturing on such date and issued a  bond  anticipation
    27  note in the principal amount of $295,000, maturing on February 21, 2008,
    28  to  renew  the  balance  of  such note; (g) on May 16, 2007, the village

    29  issued a bond anticipation note in the  principal  amount  of  $100,000,
    30  maturing  on  May  15, 2008, to renew in full the bond anticipation note
    31  maturing on May 16, 2007; (h) on June 28, 2007,  the  village  issued  a
    32  bond anticipation note in the amount of $7,462,287, maturing on June 28,
    33  2010,  to  refinance the balance of the bond anticipation notes maturing
    34  on August 9, 2007, December 6, 2007, February 21, 2008 and May 15,  2008
    35  and  to  finance  additional  costs of said capital improvements; (i) on
    36  February 21, 2008, the village made a principal payment of $7,500 on the
    37  bond anticipation note maturing on June 28, 2010; (j)  on  February  20,
    38  2009, the village made a principal payment of $10,500 on the bond antic-
    39  ipation  note  maturing  on June 28, 2010; (k) on February 18, 2010, the
    40  village made a principal payment of $10,500  on  the  bond  anticipation

    41  note maturing on June 28, 2010; (l) on June 25, 2010, the village made a
    42  principal  payment of $210,402 on the bond anticipation note maturing on
    43  June 28, 2010; (m) on July 13, 2010, pursuant to chapter 170 of the laws
    44  of 2010, the bond anticipation notes  and  renewals  thereof  previously
    45  issued  by  the village to finance the cost of said capital improvements
    46  and authorized the village to issue bonds or bond  anticipation  renewal
    47  notes  in  the  aggregate  principal amount of $7,768,500 to finance the
    48  cost of said capital improvements; and (n) on September  28,  2010,  the
    49  village  issued serial bonds in the form of a statutory installment bond
    50  in the principal amount of $7,753,098, maturing on February 18, 2040, to
    51  refinance the balance of the bond anticipation note maturing on June 28,
    52  2010 and to finance additional costs of said capital improvements;  that

    53  the  principal  payment  of  $210,402  made on June 25, 2010 on the bond
    54  anticipation note maturing on June  28,  2010,  issued  to  finance  the
    55  construction  of  said  water  system  improvements,  was  made from the
    56  proceeds of the bond anticipation note maturing on June 6, 2005,  issued
        S. 6947                             3
 
     1  to finance the construction of said sewer system improvements; that said
     2  principal  payment  was not in compliance with the applicable provisions
     3  of the local finance law because the proceeds of obligations  authorized
     4  pursuant to a bond resolution are required by the provisions of sections
     5  32.00,  165.00  and  169.00 of the local finance law to be expended only
     6  for the object or purpose for which such obligations were issued;  that,
     7  further,  said principal payment was not in compliance with the applica-

     8  ble provisions of the local finance law because it  was  made  from  the
     9  proceeds of said bond anticipation note and not from a source other than
    10  the  proceeds  of  said  bond  anticipation  note  as  required  by  the
    11  provisions of sections 21.00, 23.00 and 169.00 of the local finance law.
    12    § 2. Notwithstanding the defects described in section one of this act,
    13  the bond anticipation notes and renewals thereof and  the  serial  bonds
    14  issued  by the village of Whitehall, as described in section one of this
    15  act, and all resolutions, acts and proceedings adopted or taken  by  the
    16  board of trustees and the treasurer of such village in relation thereto,
    17  are hereby validated, ratified and confirmed.
    18    §  3. If any clause, sentence, subdivision, paragraph, section or part
    19  of this act be adjudged by any court of  competent  jurisdiction  to  be

    20  invalid,  and after exhaustion of all further judicial review, the judg-
    21  ment shall not affect, impair or invalidate the  remainder  thereof  but
    22  shall be confined in its operation to the clause, sentence, subdivision,
    23  paragraph,  section or part of this act directly involved in the contro-
    24  versy in which the judgment shall have been rendered.
    25    § 4. This act shall take effect immediately.