NY-LFN Local Finance Law NY

Short title. This act shall be known and may be cited as the

"Local Finance Law."

Definitions. As used in this chapter:

1. The term "municipality" shall mean a county, city, town or village.

2. The term "school district" shall mean any school district, except

the school districts of the cities of New York, Buffalo, Rochester,

Syracuse and Yonkers.

2-a. The term "city school district" shall mean the city school

district of a city having less than one hundred twenty-five thousand

inhabitants, according to the latest federal census.

2-b. The term "school district in a city" shall mean any school

district which is coterminous with, or partly within, or wholly within,

a city having less than one hundred twenty-five thousand inhabitants,

according to the latest federal census.

2-c. The term "board of cooperative educational services" shall mean

any board of cooperative educational services, as defined in section

nineteen hundred fifty of the education law, and such board shall,

solely for the purpose of contracting indebtedness pursuant to section

25.00 of this chapter, be deemed to be a school district.

3. The term "district corporation" shall mean

(a) A fire district

(b) A river improvement, river regulating or drainage district

established by or under the supervision of the department of

conservation, or

(c) Any other territorial division of the state, other than a

municipality or a school district, which as of December thirty-first,

nineteen hundred thirty-eight, possessed the power to

(1) Contract indebtedness in its own name, and

(2) Levy taxes or benefit assessments upon real estate or require the

levy of such taxes or assessments.

4. The term "finance board" shall mean

(a) In the case of counties, the board of supervisors.

(b) In the case of cities:

(1) The board of estimate, board of estimate and apportionment or

board of estimate and contract in any city in which, as of the effective

date of this chapter, such body had the power to authorize the issuance

of bonds or notes without the approval, in any case, of the council,

common council or board of aldermen.

(2) The council, common council or board of aldermen in any city in

which, as of the effective date of this chapter, such body had the power

to authorize the issuance of bonds or notes without the approval, in any

case, of the board of estimate or board of estimate and apportionment or

board of estimate and contract.

(3) The council, common council or board of aldermen and the board of

estimate, board of estimate and apportionment or board of estimate and

contract, in any city in which, as of the effective date of this

chapter, the council, common council or board of aldermen had the power

to authorize the issuance of all bonds or notes or bonds or notes for

certain objects or purposes only with the approval of the board of

estimate, board of estimate and apportionment or board of estimate and

contract. In such a city, action by the finance board shall be initiated

by the council, common council or board of aldermen.

(c) In the case of towns, the town board.

(d) In the case of villages, the village board.

(e) In the case of school districts, the board of education or board

of trustees; in the case of common school districts having one trustee,

such trustee.

(f) In the case of district corporations, the governing board or body,

except that in the case of river regulating districts the action of the

governing board or body thereof shall be subject to the approval of the

water power and control commission in relation to the authorization,

term, form and contents of bonds and capital notes.

Nothing contained in this subdivision shall be construed to affect the

power of (a) the executive of a county to veto the acts of the board of

supervisors or (b) the executive of a city to veto the acts of the

council, common council or board of aldermen, or of the board of

estimate, board of estimate and apportionment or board of estimate and

contract, when such bodies are acting alone or jointly or (c) the

executive of a village to veto the acts of the board of trustees.

5. The term "chief fiscal officer" shall mean:

(a) (1) In the case of counties operating under (1) an alternative

form of county government or charter enacted as a state statute or

adopted under the alternative county government law or by local law, or

(2) the optional county government law, the official designated in such

statute, consolidated law or local law as the chief fiscal officer, or,

if no such designation is made therein, the official possessing powers

and duties similar to those of a county treasurer under the county law

as shall be designated by local law.

(2) In the case of counties not included in subparagraph (1) of this

paragraph, the treasurer, except that, in the case of such counties

having a comptroller, it shall mean the comptroller.

(b) In the case of cities, the comptroller; if a city does not have a

comptroller, the treasurer; if a city has neither a comptroller nor a

treasurer, such official possessing powers and duties similar to those

of a city treasurer as the finance board shall, by resolution,

designate. A certified copy of such designation shall be filed with the

state comptroller and shall be a public record.

(c) In the case of towns, the town supervisor; if a town has more than

one supervisor, the presiding supervisor.

(d) In the case of villages, the village treasurer.

(e) In the case of school districts, the chairman or president of the

school board; in the case of common school districts having a sole

trustee, such trustee.

(f) In the case of fire districts, the district treasurer; in the case

of other district corporations, such official as the finance board

shall, by resolution, designate. A certified copy of such designation

shall be filed with the state comptroller and shall be a public record.

5-a. The term "chief executive officer" shall mean:

(a) In the case of counties, the chairman of the board of supervisors,

except that in those counties having a county administrator, director,

executive, manager or president, it shall mean such latter officer.

(b) In the case of cities, the mayor, except that in those cities

having a city manager, it shall mean such city manager.

(c) In the case of towns, the supervisor or presiding supervisor.

(d) In the case of villages, the mayor, except that in those villages

having a president or manager, it shall mean such latter officer.

(e) In the case of school districts, the chairman or president of the

school board; in the case of common school districts having a sole

trustee, such trustee.

(f) In the case of fire districts, the chairman of the board of

commissioners; in the case of other district corporations, the chairman

of the board of commissioners or other comparable officer of the finance

board of such district corporation.

6. The term "obligations" shall mean bonds or notes.

7. The term "average assessed valuation" shall mean the average

assessed valuation of the real property within a municipality, school

district or fire district subject to taxation for any purpose by such

municipality, school district or fire district as determined by

averaging the assessed valuation of such real property in the last

completed assessment roll and the four preceding assessment rolls of

such municipality, school district or fire district. If less than five

assessment rolls have been prepared for a municipality, school district

or fire district, the average assessed valuation shall be determined by

averaging the assessed valuation in the last completed assessment roll

and all the preceding assessment rolls of such municipality, school

district or fire district. For the purpose of contracting indebtedness

or for the purpose of preparing debt statements, the assessment rolls

referred to in this subdivision shall mean such assessment rolls as

completed, verified and filed by the assessors.

7-a. The term "average full valuation" shall mean the valuation of

taxable real estate of a municipality or of a school district in a city

which is derived by dividing the assessed valuations of taxable real

estate on the last completed and the four preceding assessment rolls by

the equalization rates established by the authorized state officer or

agency for such rolls or, in the case of school districts, by the city

and town rates so established for the rolls on which the school district

rolls were based. In a county the average full valuation of taxable real

estate thereof shall be derived by dividing the assessed valuations of

taxable real estate on the last completed and four preceding assessment

rolls of the cities and towns therein by the equalization rates

established for such rolls; provided, however, in a county having a

county department of assessment the state equalization rates established

for the cities and towns therein on the basis of the county roll shall

be applied to the appropriate portions of the county roll. The sum of

the quotients thus obtained shall be divided by five. In such

computations the last completed assessment roll shall be the latest roll

for which a state equalization rate shall have been established, or in

the case of school districts the last completed assessment roll thereof

shall be the latest school district roll for all parts of which the

equalization rates to be applied thereto shall have been established. In

addition to the foregoing, where real estate on the assessment roll is

partially exempt under the provisions of title two-a of article four of

the real property tax law, an assessment roll shall not be deemed to be

completed until a railroad ceiling, or, if a railroad ceiling has not

been certificated, an estimated railroad ceiling established in

accordance with the provisions of such title shall have been applied

thereto.

Where, after the creation of a new municipality or school district in

a city, or after a consolidated school district shall have been created

by the consolidation of a school district in a city and one or more

other school districts.

1. There is no completed assessment roll or rolls of the municipality

or school district as so created, the average full valuation of taxable

real estate thereof shall be determined from the last completed

assessment roll or rolls upon which the real estate included in the

municipality or school district was assessed for city, town or school

district purposes, as the case may be, or

2. There are assessment rolls of the municipality or school district

as so created which have been completed for at least one year but less

than five years, the average full valuation of the taxable real estate

of the municipality or school district shall be determined from the last

completed assessment roll or rolls and the preceding assessment roll or

rolls, if any, of the municipality or district, which were completed

after such creation.

Where, after the boundaries of a municipality or school district in a

city shall have been altered so that real estate subject to taxation for

municipal or school district purposes, as the case may be, shall have

been thereby added to or subtracted from the area of the municipality or

school district,

1. There is no completed assessment roll of the municipality or school

district as so altered, the average full valuation of the taxable real

estate of the municipality or school district shall be determined from

the last completed assessment roll or rolls and the four preceding

assessment rolls upon which the real estate included in the municipality

or school district after such alteration was assessed prior to such

alteration for city, town or school district purposes, as the case may

be, or

2. There are assessment rolls of the municipality or school district

as so altered which have been completed for at least one year but less

than five years, the average full valuation of taxable real estate of

the municipality or school district shall be determined from the last

completed assessment roll or rolls and the four preceding assessment

rolls upon which the real estate included in the municipality or school

district after such alteration was assessed prior to such alteration for

city, town or school district purposes, as the case may be.

For the purpose of contracting indebtedness or for the purpose of

preparing debt statements, the assessment rolls referred to in this

subdivision shall mean such assessment rolls as completed, verified and

filed by the assessors.

8. The terms "real property" or "real estate" shall mean such terms as

defined in section two of the tax law, as amended from time to time.

9. The term "capital improvement" shall mean:

(a) Any physical public betterment or improvement or any preliminary

studies and surveys relative thereto, or

(b) Land or rights in land, or

(c) Any furnishings, machinery, apparatus or equipment for any

physical betterment or improvement when such betterment or improvement

is first constructed or acquired, or

(d) Any combination of items (a), (b) and (c).

10. The term "annual budget" shall mean the annual budget or estimate,

as finally adopted, of a municipality, school district or district

corporation which is required by law to adopt an annual budget or

estimate of the expenditures to be made during a current or ensuing

fiscal year for the general support or for the expenses of the

government of such municipality, school district or district corporation

during such fiscal year.

11. The term "budgetary appropriation" shall mean an appropriation for

a specific object or purpose in the annual budget as finally adopted or

in the annual ordinance, resolution or local law of a municipality,

school district or district corporation making appropriations for the

general support or expenses of the government thereof, which

appropriation is to be paid from taxes or assessments or from other

current revenues or from the proceeds of notes issued in anticipation of

the collection of such taxes, assessments or other current revenues.

12. The term "voting strength" shall mean the aggregate number of

votes which all the members of the finance board are entitled to cast.

If the finance board consists of more than one body, the term shall

mean, in relation to each body, the aggregate number of votes which all

the members of such body are entitled to cast.

13. The term "housing authority" shall mean an "authority" as that

term is defined in section three of the public housing law, as amended

from time to time.

14. The term "local share of safety net assistance" shall mean that

term as defined in section ninety-three of the social services law, as

amended from time to time.

15. The terms "solvent fund or system" or "solvent," in referring to a

pension or retirement system or fund, shall mean a pension or retirement

system or fund which is on an actuarial reserve basis with current

payments to the reserve adequate to provide for all current accruing

liabilities.

16. The term "assessment" shall mean any charge based in whole or in

part on benefits (other than real estate taxes, water or sewer charges,

rents or rates) against a parcel of real property for any capital

improvement, for any work or service, for operation and maintenance, or

for debt service.

17. The term "resolution" shall mean resolution, act or ordinance.

18. The term "renewal" as applied to a note, shall mean a note the

date of payment of which has been extended or a note issued for the

purpose of securing money for the redemption of an outstanding note. The

proceeds of such renewal note shall be applied only to the redemption of

the note for the renewal of which it was issued.

19. The term "fiscal year" shall mean the fiscal year provided by law

for a municipality, school district or district corporation, or if no

fiscal year is so provided, such fiscal year as shall be determined by

resolution of the finance board of such municipality, school district or

district corporation. A statement of such determination shall be filed

with the state comptroller and shall be a public record.

20. The term "class," as applied to the terms "objects or purposes",

"capital improvements" or "equipment", shall mean an unspecified number

of items, the description of which is contained in a single subdivision,

other than subdivision thirty-five of paragraph a of section 11.00 of

this chapter, notwithstanding the fact that such subdivision may be

drafted in the singular number.

21. The term "full valuation", when used in relation to real property

subject to taxation by a school district, shall mean the valuation which

is derived by dividing the appropriate portions of the assessed

valuation of the real property concerned, as shown by the last completed

assessment roll of the school district, by the city and town

equalization rates established by the authorized state officer or agency

for the rolls on which such school district roll was based. Where, in

the case of a newly created school district, there is no completed

assessment roll of such school district in existence, full valuation

shall be determined from the last completed assessment roll or rolls

upon which the real property included within the district was assessed

for school purposes prior to such creation. In such computations the

last completed assessment roll shall be the latest roll for all parts of

which the equalization rates to be applied thereto shall have been

established. In addition to the foregoing, where real estate on the

assessment roll is partially exempt under the provisions of title two-a

of article four of the real property tax law, an assessment roll shall

not be deemed to be completed until a railroad ceiling, or, if a

railroad ceiling has not been certificated, an estimated railroad

ceiling established in accordance with the provisions of such title

shall have been applied thereto.

21-a. The term "full valuation", when used in relation to real

property subject to taxation by a fire district, shall mean the

valuation which is derived by dividing the assessed valuation of the

real property concerned, as shown by the last completed assessment roll

for the fire district, by the town equalization rate established by the

authorized state officer or agency for such roll. Where, in the case of

a newly-created fire district, there is no completed assessment roll for

such fire district, full valuation shall be determined from the last

completed assessment roll upon which the real property included within

the district was assessed for town purposes prior to such creation.

Where, after the boundaries of a fire district shall have been changed

so that real property subject to taxation for fire district purposes

shall have been thereby added to or subtracted from the area of the fire

district, there is no completed assessment roll for the fire district as

so changed, full valuation shall be determined from the last completed

assessment roll upon which the real property included in the fire

district after such change was assessed prior to such change for town or

fire district purposes, as the case may be. For the purpose of

contracting indebtedness or for the purpose of preparing debt

statements, the assessment rolls referred to in this subdivision shall

mean such assessment rolls as completed, verified and filed by the

assessors. Where two or more fire districts consolidate to form one fire

district the consolidated fire district, for the purpose of this

subdivision, shall not be deemed a newly-created fire district, but

shall be deemed an existing fire district and its full valuation shall

be determined accordingly.

22. The term "specific" as applied to the terms "object or purpose",

"capital improvement" or "equipment" shall mean a single item, or a

specified number of items, the description of which is contained in a

single subdivision of paragraph a of section 11.00 of this chapter.

23. Urban renewal. The term "urban renewal" shall mean that term as

defined in the general municipal law.

24. The term "financially responsible party" shall mean a person or

persons other than the issuer, as determined by the finance board, or in

the case of the city of New York, the mayor and the comptroller, to have

sufficient net worth and liquidity to (a) purchase and pay for on a

timely basis, under the terms of an agreement with the issuer, all of

the bonds and notes which may be tendered for repurchase or redemption

pursuant to the terms of the bonds or notes by the holders thereof, or

(b) advance funds on a timely basis on behalf of a municipality, school

district or district corporation to pay bonds, notes or other evidences

of indebtedness of such public body on their date or dates of maturity

or redemption.

25. The term "governing body" of a municipality or school district

shall mean the finance board or its duly authorized designee pursuant to

section 56.00 of this chapter.

26. The term "interest" shall mean any payments, however designated,

for the use of borrowed money. Interest shall include, but not be

limited to, accretions to the value of bonds, notes or other obligations

in amounts projected as of their dates of issuance, capital appreciation

to bonds, notes or other obligations in amounts projected as of their

dates of issuance and any similar payments whether scheduled to be made

periodically or at the maturity or prior redemption of bonds, notes or

other obligations.

27. The term "face value at maturity" shall mean all interest,

principal and other payments due to the holders of bonds, notes or other

obligations at their maturity or prior redemption, provided however,

that current interest on bonds, notes or other obligations on which

interest is payable at least annually shall be excluded.

Power of municipalities, school districts and district

corporations to contract indebtedness. In addition to the power to

contract indebtedness pursuant to sections 24.00, 25.00, 25.10, 29.00

and 29.20 of this article, a municipality, school district or district

corporation shall have the power to contract indebtedness respectively

for any municipal, school district or district corporation object or

purpose set forth in paragraph a of section 11.00 of this title, or for

a class of such objects or purposes when authorized under the provisions

of section 31.00 of this article, if it is authorized by law to expend

money for or to accomplish such object or purpose; provided, however,

that it shall not be able to contract indebtedness to a greater extent

than it is authorized by law to spend money for such object or purpose

or class of such objects or purposes and provided also that this section

shall not relieve any such unit of government of any duty imposed by law

to include in its annual budget or tax levy or otherwise to pay from

current funds all or part of any expenditure that it may make for such

object or purpose or class of such objects or purposes.

Municipalities and school districts authorized to incur debt

to liquidate operating deficits; requirements and procedures; period of

probable usefulness. In the case of a municipality or school district

that is authorized by a special or general law to incur debt to

liquidate an operating deficit:

a. no bonds to fund the liquidation of such a deficit may be issued

unless and until the state comptroller shall first review and confirm

the existence of the deficit, as well as certify the amount of the

deficit. As soon as practicable after the effective date of the law

authorizing the incurrence of debt to fund the deficit, but in no event

prior to the close of the then current fiscal year of the municipality

in the case of a projected deficit, the municipality or school district

shall prepare a report detailing the amount and cause of the deficit and

submit to the state comptroller such report, together with the

municipality's or school district's independent audit report for its

last completed fiscal year, if any such audit report has been or is to

be prepared, and such other information as the state comptroller may

deem necessary. Within thirty days after receiving all necessary reports

and information, the state comptroller shall:

1. perform such reviews as may be necessary;

2. confirm the existence and certify the amount of the deficit; and

3. provide notification to the finance board of the municipality or

school district as to the existence and amount of any such deficit.

b. bonds to liquidate such deficit may not be issued in an amount

exceeding the amount of such deficit as certified by the state

comptroller. If the municipality or school district issues bond

anticipation notes for the purpose of liquidating such deficit prior to

a determination by the state comptroller pursuant to paragraph a of this

section in an amount in excess of the amount of such deficit as

confirmed by the state comptroller, the municipality or school district

shall, from funds other than proceeds of bonds or bond anticipation

notes, either redeem such bond anticipation notes in the amount by which

the amount of such bond anticipation notes exceeds the amount of such

deficit as confirmed by the comptroller or deposit a sum equal to the

amount by which such bond anticipation notes exceed the amount of such

deficit as confirmed by the comptroller into a reserve fund for the

payment of bonded indebtedness that shall be established pursuant to

section six-h of the general municipal law.

c. for each fiscal year occurring during the time deficit bonds or

bond anticipation notes issued in anticipation of the sale of such bonds

are outstanding, up to and including the last fiscal year during which

such debt or debt issued to refund such debt is outstanding, the chief

fiscal officer of the municipality or school district on whose behalf

such deficit bonds or notes have been issued shall monitor budgets of

the municipality or school district and for each budget, prepare a

quarterly report of summarized budget data depicting overall trends of

actual revenues and budget expenditures for the entire budget rather

than individual line items. Such reports shall compare revenue estimates

and appropriations as set forth in such budget with the actual revenues

and expenditures made to date. All quarterly reports shall be

accompanied by a recommendation by the chief executive officer of the

municipality or school district setting forth any remedial action

necessary to resolve any unfavorable budget variance including the

overestimation of revenues and the underestimation of appropriations,

and shall be completed within thirty days of the end of each quarter.

The chief fiscal officer shall also prepare, as part of such report, a

quarterly trial balance of general ledger accounts. The above quarterly

budgetary reports and quarterly trial balances shall be prepared in

accordance with generally accepted accounting principles. These reports

shall be submitted to the governing board and chief executive officer of

such municipality or school district, the state director of the budget,

the state comptroller, the chair of the assembly ways and means

committee, the chair of the senate finance committee and, in the case of

a school district, the commissioner of education.

d. beginning with the fiscal year during which the municipality or

school district is authorized to incur debt to finance the deficit, to

and including the last fiscal year during which such debt or any debt

incurred to refund such debt is outstanding, the chief executive officer

or other individual or individuals responsible for the preparation of

the tentative budget, or in the case of a town, the preliminary budget,

shall submit the tentative or preliminary budget for the next succeeding

fiscal year to the state comptroller and, in the case of a school

district, also to the commissioner of education, no later than thirty

days before the date scheduled for the governing board's vote on the

adoption of the final budget or the last date on which the budget may be

finally adopted, whichever is sooner. The state comptroller and, in the

case of a school district, the commissioner of education, shall examine

such proposed budget and make such recommendations as deemed appropriate

thereon to the municipality or school district prior to the adoption of

the budget, but no later than ten days before the date scheduled for the

governing board's vote on the adoption of the final budget or the last

date on which the budget must be adopted, whichever is sooner. Such

recommendations shall be made after examination into the estimates of

revenues and expenditures of such municipality or school district. The

governing board of the municipality or school district, no later than

five days prior to the adoption of the budget, shall review any such

recommendations and may make adjustments to its proposed budget

consistent with any recommendations made by the state comptroller and,

in the case of a school district, by the commissioner of education. Any

recommendations that the board rejects shall be explained in writing to

the state comptroller and, in the case of recommendations made by the

commissioner of education, to the commissioner. The action or inaction

of the state comptroller or the commissioner of education under this

section shall not be construed to affect the legal validity of any

budget of the municipality or school district nor to affect the powers

or duties of the municipality or school district with respect to the

local budget process, provided, however, that the municipality or school

district may not issue bonds for any object or purpose unless and until

adjustments to its proposed budget consistent with any recommendations

made by the state comptroller and, in the case of a school district, by

the commissioner of education, are made, or any such recommendations

that are rejected have been explained in writing to the state

comptroller and, in the case of school districts, the commissioner of

education.

e. beginning with the fiscal year during which the municipality or

school district is authorized to incur debt to finance the deficit, to

and including the last fiscal year during which such debt or any debt

incurred to refund such debt is outstanding, the chief executive officer

or other officer or officers responsible for the preparation of the

tentative budget, or in the case of a town, the preliminary budget, of

the municipality or school district, within thirty days after the final

adoption of the budget for the next succeeding fiscal year, shall

prepare a three-year financial plan covering the next succeeding fiscal

year and the two fiscal years thereafter. The financial plan shall, at a

minimum, contain projected employment levels, projected annual

expenditures for personal service, fringe benefits, non-personal

services and debt service; appropriate reserve fund amounts; estimated

annual revenues including projection of property tax rates, the value of

the taxable real property and resulting tax levy, annual growth in sales

tax and non-property tax revenues; and the proposed use of one-time

revenue sources. Copies of the financial plan shall be provided to the

chief executive and chief fiscal officers of the municipality or school

district, the state director of the budget, the state comptroller, the

chair of the assembly ways and means committee and the chair of the

senate finance committee. This financial plan requirement shall not

apply to the extent a municipality or school district is subject to a

different multi-year financial plan requirement under state law.

f. beginning with the fiscal year during which the municipality or

school district is authorized to incur debt to finance the deficit, to

and including the last fiscal year during which such debt or any debt

incurred to refund such debt is outstanding, the chief fiscal officer of

the municipality or school district shall notify the state comptroller

at least fifteen days prior to the issuance of any bonds or notes or

entering to any installment purchase contract and the state comptroller

may review and make recommendations regarding the affordability to the

municipality or school district of any such proposed issuance or

contract.

g. to facilitate the marketing of bonds authorized pursuant to law to

be issued to fund a deficit, the municipality or school district may,

notwithstanding any limitation on the private sales of bonds provided by

law and subject to the approval of the state comptroller of the terms

and conditions of such sales:

1. arrange for the underwriting of such bonds at private sale through

negotiated fees or by sale of such bonds to an underwriter at a price

less than the sum of par value of, and the accrued interest on, such

obligations; or

2. arrange for the private sale of such bonds through negotiated

agreement, with compensation for such sales to be provided by negotiated

agreement and/or negotiated fee, if required. The cost of such

underwriting or private placement shall be deemed a preliminary cost for

purposes of section 11.00 of this title.

h. the financing of a deficit, when authorized by a special or general

law as hereinbefore described, is hereby declared to be an object or

purpose of the municipality or school district for which indebtedness

may be incurred, the period of probable usefulness of which is

determined to be ten years, computed from the date of such bonds or the

date of the first bond anticipation note issued in anticipation of the

sale of such bonds, whichever is earlier.

i. except as provided in this section or in the general or special law

authorizing the incurrence of debt to finance the deficit, all

proceedings in connection with the issuance of such debt shall be had

and taken in accordance with the provisions of this chapter, provided,

however, that any resolution or resolutions authorizing the issuance of

such bonds shall not be subject to either a mandatory or permissive

referendum. To the extent the provisions of this section are

inconsistent with any general, special or local law concerning budget

procedures, this section shall apply and any budget schedule set forth

in any such law shall be modified to conform with this section.

Periods of probable usefulness. a. A municipality, school

district or district corporation may not contract indebtedness for any

object or purpose for a period longer than the period of probable

usefulness set forth below for such object or purpose, provided,

however, that for purposes of selling bonds or notes evidencing

indebtedness contracted for any two or more objects or purposes, or any

combination thereof, for which the periods of probable usefulness as

determined pursuant to this section are not all the same, such

indebtedness may be contracted for a period no longer than the weighted

average period of probable usefulness of the objects or purposes. Unless

the context requires otherwise, whenever the phrase "period of probable

usefulness" is used in this chapter, it shall include weighted average

period of probable usefulness. For purposes of this chapter,

indebtedness contracted for an object or purpose (or class of objects or

purposes) shall be deemed to be contracted for no longer than the period

of probable usefulness of such object or purpose (or class of objects or

purposes) irrespective of whether such indebtedness is combined with

indebtedness contracted for other objects or purposes (or classes of

objects or purposes) for purpose of sale and the combined indebtedness

is contracted for the weighted average period of probable usefulness of

all of the objects or purposes (or classes of objects or purposes) for

which it is contracted. Weighted average period of probable usefulness

shall be determined by the governing body by computing the sum of the

products derived from multiplying the dollar value of the portion of the

proceeds of the indebtedness expected to be received for each object or

purpose (or class of objects or purposes) by the period of probable

usefulness, or, if less, the maximum authorized maturity of indebtedness

to be contracted for such object or purpose (or class of objects or

purposes), as determined by the bond resolution authorizing such

indebtedness, and dividing the resulting sum by the dollar value of the

proceeds expected to be received by the municipality, school district or

district corporation from the combined indebtedness. Preliminary costs

of surveys, maps, plans, estimates, and hearings in connection with a

capital improvement, and costs incidental to such improvement, including

but not limited to legal fees, printing or engraving, publication of

notices, taking of title, apportionment of costs, and interest during

construction, shall be deemed part of the cost of the object or purpose

in connection with which they are incurred. Where a municipality is

authorized by law to pay to the state or a county all or part of the

cost of a capital improvement, the period of probable usefulness

determined in this paragraph for a like capital improvement shall be the

period of probable usefulness for the municipality's share of the cost

of such capital improvement. The period of probable usefulness of each

such object or purpose is hereby determined to be as follows:

1. Water systems. The acquisition, construction or reconstruction of

or addition to a water supply or distribution system, whether or not

including buildings, land or rights in land, original furnishings,

equipment, machinery or apparatus, or the replacement of such equipment,

machinery or apparatus, forty years, except for the city of New York;

for the city of New York, fifty years, as authorized by section two of

article eight of the state constitution; the replacement of such

furnishings, fifteen years.

2. River regulating reservoirs. The construction, reconstruction or

addition to a reservoir for the regulation of the flow of a stream or

river, whether or not including buildings appurtenant or incidental

thereto, land or rights in land, original furnishings, equipment,

machinery or apparatus, or the replacement of such equipment, machinery

or apparatus, forty years; the replacement of such furnishings, fifteen

years.

3. Waterway improvement and drainage. The construction,

reconstruction, major repairs, alteration, extension or enlargement of

the necessary works of all kinds for the improvement of waterways and

for drainage or additions thereto, whether or not including buildings

appurtenant or incidental thereto, lands or rights in lands, original

furnishings, equipment, machinery or apparatus, or the replacement of

such equipment, machinery or apparatus, thirty years; the replacement of

such furnishings, fifteen years; such dredging, minor repairs or

cleaning out as are necessary from time to time for the preservation and

restoration to their original condition of such improvements, not

involving original construction, reconstruction, major repairs,

alteration, extension or enlargement of such works, ten years. The terms

"major repairs" and "minor repairs" as used in this subdivision shall

apply only to improvements described in articles six and eight of the

conservation law and shall be construed as defined in such article.

4. Sewer systems. The acquisition, construction or reconstruction of

or addition to a sewer system (either sanitary or surface drainage or

both), whether or not including purification or disposal plants or

buildings, land or rights in land, or original furnishings, equipment,

machinery or apparatus, forty years; the replacement of such equipment,

machinery or apparatus, thirty years; the replacement of such

furnishings, ten years.

The sealing of sewer lines by injection under pressure of polymers or

other similar materials, substances or chemicals into open pipe joints

or other leakage points in a sewer system (either sanitary or surface

drainage or both), including inspection and testing procedures

incidental thereto, fifteen years.

5. Electric light and power systems, gas plants or natural gas

producing facilities. The acquisition, construction or reconstruction of

or addition to an electric light and power plant or distribution system,

a gas plant or distribution system or a natural gas producing facility,

whether or not including buildings, land or rights in land, original

furnishings, equipment, machinery or apparatus, or the replacement of

such equipment, machinery or apparatus, thirty years; the replacement of

such furnishing, ten years.

6. Solid waste management-resource recovery facilities. The

acquisition, construction, reconstruction, design, operation, or

maintenance of a solid waste management-resource recovery facility, as

defined in paragraph (b) of subdivision one of section one hundred

twenty-w of the general municipal law, whether or not including

buildings, original furnishings, equipment, machinery or apparatus, or

the replacement thereof, twenty-five years, except in the case of

vehicles or other moveable equipment, ten years.

6-a. Refuse disposal areas. The original improvement of a refuse

disposal area designed for location of a sanitary landfill installation

whether or not including filling, drainage, fences, roadways and

buildings appurtenant or incidental thereto, and original furnishings,

equipment, machinery, or apparatus, twenty years.

6-b. Refuse disposal area; abandonment. The costs incidental to the

abandonment of a refuse disposal area including but not limited to legal

fees, printing, engraving and publication of legal notices, engineering

costs including filling, drainage, fences, roadways and buildings

appurtenant or incidental thereto, not to exceed twenty years.

6-c. Refuse disposal area; cleanup pursuant to a consent agreement or

judicial or administrative order. Notwithstanding the provisions of

subdivision six-b of this paragraph or paragraph b of this section, when

the cleanup of a refuse disposal area in the town of North Hempstead is

pursuant to a consent agreement entered into with a federal or state

governmental agency or authority or a judicial or an administrative

order, the costs incidental to such cleanup, including but not limited

to legal fees, printing, engraving and publication of legal notices,

engineering costs including filling, drainage, fences, roadways and

buildings appurtenant or incidental thereto, not to exceed thirty years.

6-d. Hazardous waste sites in the city of Utica. Remediation of

hazardous waste sites in the city of Utica pursuant to a consent

agreement entered into with a federal or state governmental agency or

authority or a judicial or administrative order, including costs

incidental thereto, including but not limited to legal fees, printing,

engraving and publication of legal notices, engineering costs, including

filling, drainage, fences, roadways and buildings appurtenant or

incidental thereto, twenty years.

* 6-e. Remediation of hazardous substance and hazardous waste sites in

the city of Buffalo. Investigation, remediation and removal costs

incurred in relation to hazardous substance sites in the city of Buffalo

pursuant to, environmental restoration project agreements entered into

with the state of New York pursuant to title five of article fifty-six

of the environmental conservation law, or remediation of hazardous waste

sites in the city of Buffalo pursuant to a consent agreement entered

into with a federal or state governmental agency or authority or

pursuant to a federal or state judicial or administrative order,

including costs incidental thereto, including but not limited to legal

fees, printing, engraving and publication of legal notices, engineering

and remedial design, filling, drainage, fencing, roadways, and buildings

appurtenant or incidental thereto, twenty years.

* NB There are 2 sub 6-e's of par a

* 6-e. Remediation of hazardous substance and hazardous waste sites in

the city of Rochester. Investigation, remediation and removal costs

incurred in relation to hazardous substance sites in the city of

Rochester pursuant to environmental restoration project agreements

entered into with the state of New York pursuant to title five of

article fifty-six of the environmental conservation law, or remediation

of hazardous waste sites in the city of Rochester pursuant to a consent

agreement entered into with a federal or state governmental agency or

authority or pursuant to a federal or state judicial or administrative

order, including costs incidental thereto, including but not limited to

legal fees, printing, engraving and publication of legal notices,

engineering and remedial design, filling, drainage, fencing, roadways,

and buildings appurtenant or incidental thereto, twenty years.

* NB There are 2 sub 6-e's of par a

7. Docks. The acquisition, construction or reconstruction of or

addition to docks, piers or wharf property, twenty years, except for the

city of New York; for the city of New York: the construction of docks,

piers or wharves, whether or not including the acquisition of land in

connection therewith, fifty years, and on or after January first,

nineteen hundred fifty, forty years, as authorized by section two of

article eight of the state constitution; the acquisition or

reconstruction of or addition to docks, piers or wharf property, whether

or not including land or rights in land, forty years.

8. Rapid transit railroads and mass transit capital program. The

acquisition or construction of a rapid transit railroad, whether or not

including the acquisition of land or original furnishings, equipment,

machinery or apparatus other than rolling stock, or the replacement of

such equipment, machinery or apparatus, forty years; the reconstruction

of or addition to a rapid transit railroad, forty years; the acquisition

of rolling stock for a rapid transit railroad, thirty years; the

replacement of such furnishings, fifteen years.

9. Street railroads. The acquisition, construction or reconstruction

of or addition to a street railroad (as that term is defined in section

two of the public service law, as amended from time to time) other than

a rapid transit railroad, whether or not including the franchises

thereof or original furnishings, equipment, machinery or apparatus, or

the replacement of such equipment, machinery or apparatus, ten years;

the replacement of such furnishings, five years.

10. Bridges, tunnels, viaducts and underpasses. The acquisition,

construction or reconstruction of or addition to a bridge, tunnel,

viaduct or underpass, whether or not including the acquisition of land

or rights in land, and whether or not including retaining walls or

approaches thereto, of stone, concrete, or steel or of a combination of

two or more of these materials, if the estimated cost of the

improvement, as set forth in the resolution authorizing the issuance of

obligations therefor is in excess of five million dollars, forty years;

if the estimated cost of the improvement, as set forth in the resolution

authorizing the issuance of obligations therefor is five million dollars

or less, twenty years, except land or rights in land; land or rights in

land for such an improvement, thirty years; painting as may be necessary

from time to time for the preservation and restoration of a bridge, ten

years.

11. Buildings. The acquisition or construction of buildings not

included in any other subdivision hereof, whether or not including

grading or improvement of the site, original furnishings, equipment,

machinery or apparatus required for the purposes for which such

buildings are to be used, as follows:

(a) Class "A" (fireproof and certain fire resistant) buildings.

(1) Buildings, the walls of which are constructed of brick, stone,

concrete, metal or other incombustible material, and in which there are

no wooden beams or lintels, except wood glue laminated structural

members, and in which the floors, roofs, stairhalls, and other means of

vertical communication between floors and their enclosures are built

entirely of brick, stone, metal or other incombustible materials, and in

which no woodwork or other inflammable material is used in any of the

rough partitions, floor or ceiling structures, or

(2) Buildings, not more than one story above the ground, the outer

walls of which are constructed of brick, stone, concrete, metal, stucco

or other fire-resisting material and which are to be used as school

houses by school districts wholly outside of a city, thirty years.

(b) Class "B" (fire-resistant) buildings. Buildings, the outer walls

of which are constructed of brick, stone, concrete, metal, stucco or

other fire-resisting material, twenty-five years.

(c) Class "C" buildings. Buildings which are neither class "A" nor

class "B", as defined in items (a) and (b) above, including any such

building which is rebuilt or altered so that it, together with any

addition or vertical or other extension, is not fire-proof or

fire-resisting, as thus defined, fifteen years.

12. Additions to or conversion of buildings. (a) (1) The construction

of an addition or additions to or the reconstruction of a class "A"

building, whether or not such construction or reconstruction includes

grading or improvement of the site, twenty-five years, except as

hereinafter provided; the conversion of a class "B" or class "C"

building into a class "A" building, whether or not such conversion

includes grading or improvement of the site, twenty-five years. If

indebtedness has been contracted or is to be contracted with a maximum

maturity of over twenty-five years, but not to exceed thirty years, to

finance the cost of acquisition or construction of a class "A" building

and if more than twenty-five annual installments of principal on the

indebtedness evidenced or to be evidenced by bonds or notes have not

matured, then the foregoing twenty-five year period of probable

usefulness for the construction of an addition to such class "A"

building shall be increased by the number of years over twenty-five as

there are unmatured annual installments of principal on such

indebtedness which has been or is to be contracted for the class "A"

building; provided that such addition is to be constructed to meet the

construction standards of the class "A" building to which it is an

addition. The maximum maturity of such indebtedness for the class "A"

building shall be measured from the date of the bonds or from the date

of the first bond anticipation note issued in anticipation of such

bonds, whichever is the earlier.

(2) The construction of an addition or additions to or the

reconstruction of a class "B" building or the conversion of a class "C"

building into a class "B" building, whether or not such construction,

reconstruction or conversion includes grading or improvement of the

site, fifteen years.

(3) The construction of an addition or additions to or the

reconstruction of a class "C" building, whether or not such construction

or reconstruction includes grading or improvement of the site, ten

years.

(b) The periods of probable usefulness set forth in item (a) above

shall include original furnishings, equipment, machinery or apparatus

required for the purposes for which such additions to such buildings or

for which such reconstructed or converted buildings are to be used.

(c) A building which is to be attached to an existing building or

buildings shall be deemed to be a new building and not an addition if

the probable useful life thereof is not dependent upon the useful life

of such existing building or buildings.

(d) The terms "class 'A' building," "class 'B' building" and "class

'C' building," as used in this subdivision, shall mean such buildings as

they are described in subdivision eleven of this paragraph.

12-a. Demolition and repair of buildings. The demolishing or repair of

any (a) privately owned building or structure that poses a significant

threat to public health or safety, five years, or (b) municipally owned

structure or building, or any building or structure owned by a school

district or district corporation, whenever the same is no longer of any

use or value or has become dangerous or detrimental to human life,

health or safety, ten years.

13. Certain building alterations. The installation or reconstruction

of a lighting, plumbing, ventilating, elevator or power plant or system

in a building when not in connection with the original construction or

the reconstruction of such building, in a class "A" or "B" building, ten

years; in a class "C" building, five years. The installation or

reconstruction of a heating system in a building when not in connection

with the original construction or the reconstruction of such building in

a class "A", "B" or "C" building, fifteen years. The terms "class 'A'

building," "class 'B' building" and "class 'C' building," as used in

this subdivision, shall mean such buildings as they are described in

subdivision eleven of this paragraph.

14. Airport construction and airport improvements. Except as provided

in subdivisions fifteen and sixteen of this paragraph, the construction,

reconstruction or extension of an airport or airport improvement,

whether or not including buildings other than hangars, ten years.

14-a. Airport construction and improvement of the East Hampton

Airport. The construction, reconstruction, or extension of the East

Hampton Airport, whether or not including buildings, hangars, runways,

taxi-strips, paved areas, perimeter fencing, grading, filling, drainage

or other site work, thirty years; the acquisition and installation of an

above ground aircraft fuel farm at the East Hampton Airport, including

connecting pipes, valves, meters, pumps, concrete spill containment

facility, and appurtenant facilities, twenty-five years.

14-b. Airport construction and improvement of the Ithaca Tompkins

International Airport. The construction, reconstruction, or extension of

the Ithaca Tompkins International Airport, whether or not including

buildings, hangars, runways, taxi-strips, paved areas, perimeter

fencing, grading, filling, drainage or other site work, thirty-years;

the acquisition and installation of an above ground aircraft fuel farm

at the Ithaca Tompkins International Airport, including connecting

pipes, valves, meters, pumps, concrete spill containment facilities, and

appurtenant facilities, twenty-five years.

15. Construction and equipment of airport structures, runways,

taxi-strips and other paved areas. Except as provided in subdivision

seventeen of this paragraph, the construction and equipment of any

permanent fire-proof airport structure, at an airport having an area

greater than one thousand acres, if the estimated cost of such structure

is in excess of one million dollars, and the construction and equipment

of runways, taxi-strips or paved areas, except such as may be opened for

use by the general public, on such airport, thirty years.

16. Dredging, filling, grading and drainage of airport property. The

dredging, filling, drainage and grading of real property acquired for or

used as an airport, having an area greater than one thousand acres,

thirty years.

17. Airport hangars. The construction or purchase of an airport hangar

if the estimated cost thereof as set forth in the resolution authorizing

the issuance of obligations therefor is one million dollars or less and

the hangar is not a class "A" building, fifteen years; if the estimated

cost thereof is one million dollars or less and the hangar is a class

"A" building, twenty years; if the estimated cost thereof is in excess

of one million dollars, twenty-five years. The term class "A" building,

as used in this subdivision, shall mean any such building as described

in subdivision eleven of this paragraph.

18. Land acquisition and development for airport purposes. The

acquisition of land in connection with the establishment, maintenance or

operation of an airport having an area greater than one thousand acres,

forty years.

18-a. The acquisition and installation of an above ground aircraft

fuel farm at the Greater Rochester International Airport, including

connecting pipes, valves, meters, pumps, concrete spill containment

facility, and appurtenant facilities, twenty-five years.

19. Parks, playgrounds and recreational areas. The original

improvement or embellishment of:

(a) A new park, playground or recreational area of not less than fifty

acres, twenty years;

(b) An addition of not less than twenty-five acres to an existing

park, playground or recreational area, including the improvement or

embellishment, if any, of such existing park, playground or recreational

area, twenty years;

(c) Any other park, playground or recreational area, fifteen years.

20. Highways, roads, streets, parkways and parking areas. The

construction, reconstruction, widening or resurfacing of a highway,

road, street, parkway or parking area, whether or not including

sidewalks, curbs, gutters, drainage, landscaping, grading or improving

the rights of way, or the elimination of any grade crossing (exclusive

of bridges therefor) or improvements in connection therewith, if:

(a) pavement of sand and gravel, water bound macadam or penetration

process with single surface treatment, five years;

(b) flexible pavement not specified in (a) or (c), ten years;

(c) flexible pavement with penetration macadam or plant mix bottom

course and heavy duty, bituminous concrete wearing surface, fifteen

years;

(d) rigid base (portland cement concrete) pavement with: sheet

asphalt, bituminous concrete, granite block or asphalt block wearing

surface, fifteen years;

(e) rigid pavement, namely reinforced portland cement concrete,

fifteen years;

(f) parking areas regardless of kind of pavement, ten years.

20-a. County parkways. The construction, reconstruction, widening,

straightening or improvement of a county parkway, meaning a restricted

landscaped area traversed by a multiple-lane thoroughfare limited as to

vehicular traffic, and owned and operated by a county, including all

bridges, tunnels, overpasses, underpasses, interchanges, entrance

plazas, approaches, toll houses, service areas, restaurants, service

stations, service facilities, communications facilities and

administration, storage, and other buildings which such county may deem

necessary for the operation of such parkway, and all property, rights,

easements and interests which may be acquired by such county in

connection therewith, thirty-five years.

21. Land acquisition. (a) The acquisition of land or permanent rights

in land not provided for in any other subdivision hereof, thirty years;

(b) The financing of the acquisition of land, permanent rights in land

or temporary easements in land incidental to a capital improvement,

inclusive of any administrative or other expenditures arising therefrom

or related thereto, if such acquisition and expenditures are financed

from a fund into which are paid the proceeds of the sale of bonds or

bond anticipation notes issued in anticipation of such bonds and out of

which the cost of such acquisition and such expenditures are paid,

thirty years.

22. Dredging and construction of dikes and bulkheads. The dredging and

making navigable of creeks, streams, bays, harbors and inlets, whether

or not including the construction, reconstruction of or addition to a

dike, bulkhead, dam, sea wall, jetty or similar device for navigation

purposes or to prevent the encroachment of or damage from flood or storm

waters:

(a) Construction work of steel, stone or concrete, thirty years.

(b) Construction work of wood or partly of wood, twenty years.

(c) Dredging alone, five years.

23. Sewer and water connections. The construction or reconstruction of

a sewer, water or other service connection from the service main in a

highway, road, street or parkway to the curb or property line, when such

improvement is not a part of the construction, reconstruction or

addition to a water distribution or sewer system, ten years.

24. Curbs, sidewalks and gutters. The construction or reconstruction

of a curb, sidewalk or gutter of brick, stone or concrete, not included

in any other subdivision hereof, ten years.

25. Police and fire alarm systems and signal systems. The purchase or

installation of a fire or police alarm, telegraph or telephone system or

any other system of communication or transmission, or additions thereto,

ten years.

26. Fire, police and ferry boats. The acquisition of a fire or police

boat, propelled by mechanical power, ten years. The acquisition of a

ferry boat, propelled by mechanical power, thirty-five years.

27. Fire-fighting vehicles and apparatus. The purchase of a motor

vehicle used for fighting fires, other than a passenger vehicle having a

seating capacity of less than ten persons, whether or not including

apparatus used in connection with such motor vehicle, or the purchase of

such apparatus alone, if the estimated cost thereof, as set forth in the

resolution authorizing the issuance of obligations therefor, is five

thousand dollars or less, five years; if the estimated cost thereof is

in excess of five thousand dollars, ten years; if the estimated cost

thereof is in excess of fifty thousand dollars, twenty years.

27-a. Ambulances. The purchase of a motor vehicle which is specially

designed for use for the treatment, care or transport of sick or injured

persons, whether or not including equipment or furnishings used in

connection with such a vehicle, ten years, or the purchase of original

equipment or furnishings for such a vehicle or the replacement of

equipment or furnishings for such a vehicle, five years.

27-b. Police emergency response vehicles. Notwithstanding the

provisions of subdivision seventy-seven of this paragraph, the purchase

of a motor vehicle that is specially designed for use for law

enforcement purposes, including but not limited to responding to 911

calls or transporting persons under arrest or in police custody, and

that is equipped with emergency vehicle lights and a police siren, five

years.

28. Machinery and apparatus for construction and maintenance. The

purchase of machinery or apparatus to be used for constructing,

reconstructing, repairing, maintaining or removing the snow and ice

from, any physical public betterment or improvement, other than

machinery or apparatus which is to be permanently attached to or to form

a part of any such betterment or improvement, five years if the cost is

fifteen thousand dollars or less; ten years if the cost is over fifteen

thousand dollars, but less than thirty thousand dollars; fifteen years

if the cost is thirty thousand dollars or over.

29. Motor vehicles. The purchase of a motor vehicle, five years. The

term "motor vehicle," as used in this subdivision, shall mean a vehicle

propelled by any power other than muscular power, except

(a) a passenger vehicle, other than a school bus, having a seating

capacity of less than ten persons,

(b) a vehicle used for fighting fires,

(c) a motor cycle, traction engine, and electric truck with small

wheels used in warehouses and railroad stations and a vehicle which runs

only upon rails or tracks,

(d) machinery or apparatus for which a period of probable usefulness

has been determined by subdivision twenty-eight of this paragraph,

(e) a vehicle which is specially designed for use for the treatment,

care or transport of sick or injured persons,

(f) a zero-emission school bus as defined in section three thousand

six hundred thirty-eight of the education law, and

(g) a vehicle that is specially designed for use for law enforcement

purposes and that is equipped with emergency vehicle lights and a police

siren.

29-a. Transit motor vehicles. The purchase of municipally owned

omnibus or similar surface transit motor vehicles, ten years; and the

purchase of zero-emission school buses owned by a school district

defined pursuant to paragraph two of section 2.00 of this chapter, a

city school district with a population of more than one hundred

twenty-five thousand inhabitants, or board of cooperative educational

services, eight years.

30. Water meters. The purchase or installation of a water meter,

twenty years; the replacement of such water meter, twenty years.

Provided, however, that if such purchase or installation is incidental

to and in connection with the acquisition, construction or

reconstruction of or addition to a water supply or distribution system,

such purchase or installation of such water meter shall have the same

period of probably usefulness as may be determined for such acquisition,

construction or reconstruction of or addition to such system.

31. Voting machines. The purchase of a voting machine, ten years.

32. Equipment, machinery, apparatus or furnishings. The acquisition of

original equipment, machinery, apparatus or furnishings for any physical

public betterment or improvement or required for the purposes for which

the physical public betterment or improvement is to be used, not

included in any other subdivision hereof, five years; the replacement of

such equipment, machinery, apparatus or furnishings, whether or not the

original acquisition thereof is included in any other subdivision

hereof, five years, unless a longer period for the replacement thereof

is prescribed in another subdivision hereof, in which case such other

subdivision shall be applicable.

33. Judgments, claims, awards and determinations.

(a) The payment of (1) A judgment or a compromised or settled claim

against a municipality, school district or district corporation, or

(2) An award or sum payable by a municipality, school district or

district corporation pursuant to a determination by a court, or an

officer, body or agency acting in an administrative or quasi-judicial

capacity, five years, except as hereafter provided in this subdivision.

(b) The payment of any such judgment, claim, award or sum set forth in

subdivision (a) above or any combination of such judgment or judgments,

claim or claims, award or awards, or sum or sums, falling due in a

single fiscal year, amounting to more than one per centum of the average

assessed valuation of such municipality, school district or district

corporation, ten years.

(c) The payment of any such judgment, claim, award or sum set forth in

subparagraph (a) of this subdivision or any combination of such judgment

or judgments, claim or claims, award or awards, or sum or sums, falling

due in a single fiscal year, amounting to more than two per centum of

the average assessed valuation of such municipality, school district or

district corporation, fifteen years.

(d) Nothing in this subdivision shall be construed to prevent the

payment of any such judgment, claim, award or sum for a capital

improvement or equipment out of the proceeds of bonds issued for the

financing of such capital improvement or equipment, or out of the

proceeds of bond anticipation notes issued in anticipation of such

bonds, except, however, that the payment of all or part of a judgment,

claim, award or sum for a capital improvement (other than the

acquisition of land or rights in land) or equipment, in excess of the

amount authorized to be expended for such capital improvement or

equipment shall be subject to the periods of probable usefulness of this

subdivision and except further, that item (b) of this subdivision shall

not apply to a judgment, claim, award or sum for a capital improvement

or equipment which, pursuant to this section, has a period of probable

usefulness of five years or less.

* 33-a. Judgments, compromised claims or settled claims resulting from

court orders on proceedings brought pursuant to article seven of the

real property tax law. Notwithstanding the provisions of subdivision

thirty-three of this paragraph, the payment in a single fiscal year of

judgments, compromised claims or settled claims against a municipality,

school district or district corporation resulting from court orders on

proceedings brought pursuant to article seven of the real property tax

law.

(a) Where the accumulated tax refunds to be paid by the municipal

corporation liable therefore as a result of such court orders are more

than one per centum but less than three per centum of that portion of

the real property tax levy of such municipal corporation to be levied

for its municipal purposes for the year in which payment is to be made,

ten years; or

(b) Where the accumulated tax refunds to be paid by the municipal

corporation liable therefore as a result of such court orders are more

than three per centum but less than five per centum of that portion of

the real property tax levy of such municipal corporation to be levied

for its municipal purposes for the year in which payment is to be made,

fifteen years; or

(c) Where the accumulated tax refunds to be paid by the municipal

corporation liable therefore as a result of such court orders are more

than five per centum of that portion of the real property tax levy of

such municipal corporation to be levied for its municipal purposes for

the year in which payment is to be made, twenty years.

* NB Expires June 15, 2028

33-a-1. Judgments, compromised claims, or settled claims resulting

from section two hundred fourteen-g of the civil practice law and rules.

Notwithstanding the provisions of subdivision thirty-three of this

section, the payment of judgments, compromised claims, or settled claims

against a school district, board of cooperative educational services, or

school district created by special act of the legislature, resulting

from court orders on proceedings brought pursuant to section two hundred

fourteen-g of the civil practice law and rules, up to thirty years.

33-b. Real property tax refunds and credits. Payments of exemptions,

refunds, or credits for real property tax, sewer and water rents, rates

and charges and all other real property taxes to be made by a

municipality, school district or district corporation as a result of

participating in the Superstorm Sandy assessment relief act, ten years.

33-c. Real property tax refunds and credits. Payments of exemptions,

refunds, or credits for real property tax, sewer and water rents, rates

and charges and all other real property taxes to be made by a

municipality, school district or district corporation as a result of

participating in the Mohawk Valley and Niagara county assessment relief

act, ten years.

33-d. Real property tax refunds and credits. Payments of exemptions,

refunds, or credits for real property tax, sewer and water rents, rates

and charges and all other real property taxes to be made by a

municipality, school district or district corporation as a result of

participating in the Lake Ontario and connected waterways assessment

relief act, ten years.

34. Certain assessable improvements. The financing of the construction

of any physical public betterment or improvement, whether or not

including the acquisition of land or rights in land therefor, the cost

of which is determined or required by ordinance, resolution or local law

to be paid completely by assessments upon the property benefited or

partially by assessments upon the property benefited and the balance by

assessments

(a) Upon the municipality or a subdivision or subdivisions thereof, or

(b) Upon the municipality and a subdivision or subdivisions thereof,

if such betterment or improvement is financed through a special fund

into which the proceeds of the sale of bonds and the assessments

collected are paid and out of which the cost of such betterment or

improvement is paid and such bonds are redeemed, whether or not interest

thereon is paid from such fund, twelve years. This subdivision shall

apply only to betterments or improvements financed from such fund.

Betterments or improvements which are paid for in whole or in part by

assessments but which are not financed from such funds shall have the

same period of probable usefulness as if they were paid for completely

by ad valorem real estate taxes.

35. Unspecified betterments and improvements. The acquisition,

construction or reconstruction of or addition to any physical public

betterment or improvement not included in any other subdivision hereof,

five years; if the useful life of a physical public betterment or

improvement classified as a capital asset under generally accepted

accounting principles for municipalities has been determined to be at

least ten years by an appropriate engineering, architectural or other

professional, ten years; if the useful life of a physical public

betterment or improvement classified as a capital asset under generally

accepted accounting principles for municipalities has been determined to

be at least fifteen years by an appropriate engineering, architectural

or other professional, fifteen years.

36. Tax and revenue anticipation. The temporary financing in

anticipation of:

(a) The collection of real property taxes and assessments levied or to

be levied, five years.

(b) The receipt of moneys from the state, or a local subdivision

thereof, or the United States government, except the receipt of moneys

described in subparagraph d of this subdivision, three years.

(c) The collection of sewer or water rents, rates or charges, or taxes

other than real property taxes or the receipt of revenues from

municipally owned and operated electric light and power plants or

distribution systems or other utility plants or distribution systems,

three years.

(d) The receipt of moneys (1) from the sale of real property, or any

interest therein, acquired for or incidental to an urban renewal

project; or (2) from the United States government pursuant to title one

of the housing act of nineteen hundred forty-nine, as amended; or (3)

from the state of New York pursuant to the general municipal law, five

years.

37. Tax lien foreclosure expenditures. The financing of

(a) The protection of tax liens owned by a municipality, at a judicial

sale of the real property affected by such tax liens in an action for

the foreclosure of the tax liens of any other municipality on such real

property, or

(b) The cost of the foreclosure of tax liens owned by a municipality,

to an extent not exceeding fifty per centum of the amount of such tax

liens owned by such municipality and provided further that there are not

outstanding any notes, certificates or other evidences of indebtedness

issued in anticipation of the levy or collection of taxes represented by

such tax liens, five years.

38. Change of county fiscal year. In a county which, pursuant to the

provisions of the county law, changes its fiscal year, the financing of

the payment of obligations and other expenses of such county falling due

during the period between the close of the former fiscal year and the

beginning of the new fiscal year, five years.

39. Change of village fiscal year. In a village which, pursuant to the

village law, changes its fiscal year, the finacing of the payment of

obligations falling due during the period between the last day of the

former fiscal year and the commencement of the new year and the other

expenses of such village during such period, five years.

40. Miscellaneous expenditures. Any object or purpose set forth in

section 29.00 or 29.20 of this article, if such object or purpose is to

be financed by the issuance of budget notes or deficiency notes, three

years.

41. Housing. The effectuating of any of the purposes of the public

housing law, other than making loans to limited profit housing companies

pursuant to article two of the private housing finance law, and other

than making loans to owners of existing multiple dwellings, fifty years;

bonds issued by a housing authority pursuant to section forty-one of the

public housing law and guaranteed by a municipality pursuant to section

ninety-five of the public housing law, five years, in addition to the

foregoing period of fifty years, for the temporary financing of a

project prior to the permanent financing thereof; evidences of

indebtedness issued to the state pursuant to paragraph c of section

20.00 of this chapter, three years, in addition to the foregoing period

of fifty years for the temporary financing of a project prior to the

permanent financing thereof; loans to limited profit housing companies

pursuant to article two of the private housing finance law, fifty-five

years; loans or grants to owners of existing private or multiple

dwellings, non-residential property, or vacant land pursuant to the

provisions of article eight, article eight-A, article eight-B, article

eleven or article fifteen of the private housing finance law, or loans

for the construction of multiple dwellings pursuant to article eleven of

the private housing finance law, or loans or grants for the

pre-development costs or construction of private or multiple dwellings

pursuant to article twenty-two of the private housing finance law,

thirty years.

41-a. The effectuating of any urban renewal program or part thereto

pursuant to the general municipal law, fifty years. Nothing herein

contained, however, shall prevent the application of the period of

probable usefulness prescribed in any other subdivision of this section

for any object or purpose constituting a separable part of an urban

renewal program.

41-b. The effectuating of any of the purposes of section thirty-six-a

of the private housing finance law, other than making loans to limited

profit housing companies, forty-years. Nothing herein contained,

however, shall prevent the application of the period of probable

usefulness prescribed in any other subdivision of this section for any

object or purpose constituting a separable part of a project within the

scope of section thirty-six-a of the private housing finance law.

41-d. Urban development action area projects. The making of loans or

grants to the owners of existing private or multiple dwellings, pursuant

to article sixteen of the general municipal law, thirty years; site

preparation undertaken by a municipality pursuant to article sixteen of

the general municipal law, thirty years; loans or grants for the purpose

of projects undertaken pursuant to article three-A of the private

housing finance law, thirty years; improvements associated with the

construction or rehabilitation of private or multiple dwellings,

pursuant to article sixteen of the general municipal law, thirty years.

41-e. Housing New York program act. The carrying out, financing or

refinancing by the city of New York, by loans or otherwise, of programs

and activities designed to achieve the purposes set forth in the opening

paragraph and paragraphs (a) through (f) of subdivision two of section

four of section one of chapter thirty-two of the laws of nineteen

hundred eighty-six, as amended, such section one constituting the

housing New York program act, thirty years.

42. Pension and retirement systems. The establishment of a pension or

retirement system or fund on a solvent basis, twenty years.

* 42-a. Volunteer ambulance workers' service award program. The

financing of prior service contributions authorized pursuant to

subdivision two of section two hundred nineteen-f of the general

municipal law by the sponsor of a service award program, including

financing by a town on behalf of an ambulance district, or a town on

behalf of a fire protection district which contracts with an ambulance

service which is not organized pursuant to section two hundred nine-b of

the general municipal law, five years.

* NB There are 2 sub 42-a's of par a

* 42-a. Defined benefit service award programs for volunteer ambulance

workers. The financing of contributions to a service award program

attributable to years of ambulance service rendered during the five

years immediately preceding the adoption of the program, including

financing by a town on behalf of an ambulance district, or a town on

behalf of a fire protection district which contracts with an ambulance

service which is not organized pursuant to section two hundred nine-b of

the general municipal law, five years.

* NB There are 2 sub 42-a's of par a

43. Plans for post-war projects. The preparation of preliminary plans

and detailed plans and specifications for a capital improvement which

may be undertaken after the termination of the war, including test

borings or other extraordinary expenditures related thereto, state aid

for which shall have been approved by the temporary state post-war

public works planning commission pursuant to law, three years.

44. Tax maps. The original establishment and original preparation of

tax maps and assessment maps which are not incidental to any other

object or purpose specified in this paragraph, ten years; the original

preparation of county-wide tax maps in accordance with the requirements

of article fifteen-a of the real property tax law, including the

compensation of cities, towns and villages for existing maps used in the

preparation thereof, ten years.

45. Lot and block system of property registration. The original

establishment and original preparation of a lot and block system of

recording or registering the titles of real property, including the

preparation of maps, surveys or plans incidental thereto, ten years.

46. Ferry terminals. The acquisition, construction, or reconstruction

of or addition to ferry terminals, whether or not including the

acquisition of land or rights in land, in connection therewith, twenty

years.

47. Ferry boats. The acquisition of a system of ferry boat

transportation, whether or not including franchises thereof, and

including the acquisition, construction or reconstruction of ferry boats

propelled by mechanical power, ten years.

48. Maps, assessments, determination of enhancements and

apportionments of cost. In the case of river improvement or drainage

improvement districts established by or under the supervision of the

department of conservation, the original preparation of maps of the

district, original assessments, determination of enhancements and

apportionments of cost, surveys and studies in connection therewith, all

of which matters are not incidental to any other object or purpose

specified in this paragraph, five years.

49. Appraisals for equalization purposes. The expenses incurred by a

county for the employment of experts to appraise the value of real

property within the county to assist the board of supervisors or

commissioner of equalization in the county in determining just ratios

for the equalization of assessed valuations of real property in the

several tax districts of the county, five years.

50. Parking meters. The purchase and installation of parking meters,

five years.

51 Planning for sewer systems or sewage treatment works. The

preparation of preliminary plans and detailed plans, specifications and

estimate for a sewer system or sewage treatment works, including the

test borings or other extraordinary expenditures related hereto, state

aid for which shall have been approved by the department of health

pursuant to law, three years. If the cost of such preliminary plans and

detailed plans, specifications and estimate, however, is to be financed

as part of the cost of a sewer system or sewage treatment works in

connection with which they are prepared, then and in such event they

shall have the same period of probable usefulness as may be determined

for the construction or reconstruction of or addition to such such sewer

system or sewage treatment works.

52. Equipment used in connection with preparation of assessment rolls,

tax billing and receipting, and accounting and tabulating equipment. The

purchase of equipment or machinery in connection with preparation of

assessment rolls, tax billing and receipting, and accounting and

tabulating equipment, not included in any other subdivision hereof, five

years.

53. Appraisals of real property for assessment. The expense incurred

by a municipality in the employment of experts to appraise the value of

real property within the municipality to assist in the assessment

thereof for purposes of taxation, including a "revaluation" or "update",

as such terms are defined in the real property tax law, five years.

53-a. Installation of computer assisted system for the preparation and

maintenance of assessment and tax rolls including computer assisted tax

accounting system. The expense incurred by a municipality in the

installation of a computer assisted system for the preparation and

maintenance of assessment and tax rolls, and the installation of a

computer assisted tax accounting system, including data collection,

computer hardware and software, ten years.

54. Golf courses. The construction or acquisition of a golf course,

whether or not including buildings appurtenant or incidental thereto,

land or rights in land, original furnishings and equipment and the

improvement of such land for use as a golf course, twenty years; the

construction of an addition or additions to or reconstruction of a golf

course, whether or not including buildings appurtenant or incidental

thereto or the installation of water sprinkling systems or electric

illuminating systems and appurtenances thereto in an existing golf

course fifteen years.

55. Boardwalks. The acquisition, construction or reconstruction of, or

additions to a boardwalk adjacent to the Atlantic Ocean, a lake, bay,

river or other large body of water, which walk is constructed of wood or

more durable materials on heavy piling and is at least twenty feet in

width, ten years.

56. Fire safety and prevention programs. The financing of a program

for fire safety and fire prevention in relation to one or more buildings

by any municipality or school district, including one or more of the

following: the installation, construction or reconstruction of a

sprinkler system, fire alarm system, fire escape, fire tower, fire door,

illuminated exit sign, or of any other improvement or system in a

building to eliminate fire hazards or to provide for the safety of

persons and property in the event of fire therein, or the acquisition of

fire extinguishers or other equipment for such purposes, if the

estimated aggregate cost thereof, as set forth in the resolution

authorizing the issuance of obligations therefor, is less than ten

thousand dollars, five years; if the estimated aggregate cost thereof is

ten thousand dollars or more, ten years; provided, however, that if a

different period for the installation, construction, reconstruction or

acquisition of any item or class of items of the improvement or

equipment included in such program is prescribed in another subdivision

hereof, such other subdivision shall be applicable to such item or class

of items when the expenditure therefor is not to be financed as a fire

safety and fire prevention program pursuant to the provisions of this

subdivision.

* 57. Tree rehabilitation and replacement programs. The financing of a

program for the rehabilitation and replacement of ornamental shade trees

within the limits of a municipality, including as a part of any such

program the acquisition, growing, planting, preservation, removal,

disposal and replacement of trees, five years.

* NB There are 3 sub 57's of par a

* 57. Hydraulic and mechanical dredges. Dredges, both hydraulic and

mechanical, used in dredging creeks, streams, bays, harbors and inlets

and the construction of dikes, bulkheads, dams, sea walls and jettys,

fifteen years.

* NB There are 3 sub 57's of par a

* 57. Workmen's compensation self-insurance plans. (a) Payments

required of a municipality, school district or district corporation upon

entry to or withdrawal from a county self-insurance plan, five years,

except that if the amount of such payment exceeds one per centum of the

average assessed valuation of such municipality, school district or

district corporation, ten years.

(b) The amount of an apportionment payable by a participating

municipality or fire district upon changing to a county self-insurance

plan in accordance with the transition provisions of section

seventy-five of the workmen's compensation law, five years, except that

if the amount of such payment exceeds one per centum of the average

assessed valuation of such municipality or district corporation, ten

years.

* NB There are 3 sub 57's of par a

58. Steam plants or distribution systems. The acquisition,

construction or reconstruction of or addition to a steam plant or

distribution system, whether or not including buildings, land or rights

in land, original furnishings, equipment, machinery or apparatus, or the

replacement of such equipment, machinery or apparatus, thirty years; the

replacement of such furnishings, ten years.

58-a. Hot water heating plants or distribution systems. The

acquisition, construction or reconstruction of or addition to a hot

water heating plant or distribution system, whether or not including

buildings, land or rights in land, original furnishings, equipment,

machinery or apparatus, or the replacement of such equipment, machinery

or apparatus, thirty years; the replacement of such furnishings, ten

years.

59. Retroactive social security coverage. Where an irrevocable

election is made to finance all or part of the employer's share of the

cost of retroactive coverage provided to employees under the federal

old-age and survivors insurance system pursuant to section one hundred

thirty-eight-a of the retirement and social security law and where an

insufficient or no provision is or has been made in the annual budget

for such cost, provided no part of such share has been or is financed by

the issuance of budget notes, three years.

60. Current social security coverage. All or part of the employer's

share of the cost of current coverage provided to employees under the

federal old-age and survivors insurance system pursuant to the

retirement and social security law, for the period January first,

nineteen hundred fifty-eight to June thirtieth, nineteen hundred

fifty-nine, not exceeding seventeen million dollars, three years.

61. Artificial swimming pools. The construction of artificial swimming

pools, twenty years. The reconstruction of artificial swimming pools,

fifteen years.

* 62. Skiing developments. The construction of a skiing development,

including: ski lifts and other original facilities, equipment and

furnishings; buildings appurtenant or incidental thereto; access roads

and parking areas; land or rights of land, and the improvement of such

land for use as a skiing development; twenty years.

* NB There are 2 sub 62's of par a

* 62. a. Planning for future capital improvements. The preparation

pursuant to section ninety-nine-d of the general municipal law of

surveys, preliminary plans and detailed plans, specifications and

estimates necessary for planning for a capital improvement which it is

contemplated might be undertaken in the future, five years. If the cost

of such surveys, preliminary plans and detailed plans, specifications

and estimates, however, is to be financed as part of the cost of the

capital improvement in connection with which they are prepared, then and

in such event they shall have the same period of probable usefulness as

may be determined for such capital improvement.

b. In the event that any such capital improvement is financed in whole

or in part pursuant to this chapter after the commencement of the

financing of the cost of any such surveys, preliminary plans and

detailed plans, specifications and estimates, and if the period of five

years shall not have elapsed since the date of issuance of the first

obligation or obligations for such surveys, preliminary plans and

detailed plans, specifications and estimates, then the period of

probable usefulness for such surveys, preliminary plans and detailed

plans, specifications and estimates, may be increased so that the period

of probable usefulness thereof shall be equal to the period of probable

usefulness of the capital improvement for which the financing of such

surveys, preliminary plans and detailed plans, specifications and

estimates was originally commenced less the period of time which shall

have elapsed from the date of issuance of the first obligation or

obligations therefor to the date of issuance of the first obligation or

obligations for such capital improvement.

* NB There are 2 sub 62's of par a

* 63. System of permanent personal registration of voters. The

original establishment and original preparation of a system of permanent

personal registration of voters including the purchase of equipment and

recording material required in connection therewith, ten years.

* NB There are 2 sub 63's of par a

* 63. Placing of fill. The placing of earth, rocks, gravel or

hydraulic fill on land acquired for a public purpose in connection with

the improvement thereof, including acquisition and transportation,

thirty years.

* NB There are 2 sub 63's of par a

64. Comprehensive master plans. The preparation of a comprehensive

master plan for the development of the entire area of the municipality,

five years.

66. Equipment for county police district or department. The purchase

of equipment, machinery, apparatus or furnishings from any town or

village incident to the creation or establishment of a county police

department or district which includes such town or village, five years.

70. State office building projects in certain cities. The construction

of one or more office buildings and the construction, reconstruction or

provision of other public improvements and appurtenances pursuant to

section twenty-e of the general city law, whether or not including

demolition, grading or improvement of site, original furnishings,

equipment, machinery or apparatus required for the purposes for which

such buildings, public improvements and appurtenances are to be used,

forty years; the acquisition of land or permanent rights in land

pursuant to such section of the general city law, forty years.

* 71. State office building projects in certain counties. The

construction of one or more office buildings and the construction,

reconstruction or provision of other public improvements and

appurtenances pursuant to section eight hundred fifty of the county law,

whether or not including demolition, grading or improvement of site,

original furnishings, equipment, machinery or apparatus required for the

purposes for which such buildings, public improvements and appurtenances

are to be used, forty years; the acquisition of land or permanent rights

in land pursuant to such section of the county law, forty years.

* NB There are 2 sub 71's of par a

* 71. Special population census. The expenses incurred by a county,

city, town, or village to conduct a special population census supervised

by the United States bureau of the census pursuant to a contract made

pursuant to section twenty of the general municipal law, three years.

* NB There are 2 sub 71's of par a

* 72. Records preservation. The cost of the establishment of a system

for the preservation of public records by microfilm reproduction or

digital image technology, including the original preparation of

microfilm negatives, the conversion of paper records or microfilm

negatives to digital images, and the purchase of original equipment and

apparatus required for viewing, copying and storage purposes, five

years.

* NB There are 3 sub 72's of par a

* 72. Traffic signals, traffic signal systems, traffic signs and

traffic sign supports.

(a) The purchase of traffic signals and traffic signal systems, twenty

years.

(b) The purchase of traffic signs and traffic sign supports, ten

years.

* NB There are 3 sub 72's of par a

* 72. Codification of laws, ordinances, codes, resolutions, rules or

regulations. The initial cost of codifying or recodifying the laws,

ordinances, codes, resolutions, rules or regulations of or applicable to

a municipality, including the fees and expenses of experts, legal

advertising costs, and the initial cost of printing or otherwise

reproducing copies of any such codification or recodification for

municipal use and to make copies available to the public, but not

including the salaries and expenses of officers and regular employees of

the municipality, three years.

* NB There are 3 sub 72's of par a

73. Job and business opportunity expansion programs of municipalities.

The planning and effectuation of any program, activity or project by a

municipality, either directly by the municipality or by contract or by

any other lawful means, to create, improve or expand job or business

opportunities or job or business training, or both, for persons in the

municipality as to whom such opportunities or training are lacking or

inadequate, so as to enable such persons to earn enough to maintain a

decent standard of living, thirty years. Nothing herein contained

however shall prevent the application of the period of probable

usefulness prescribed in any other subdivision of this section for any

object or purpose constituting a separable part of such program,

activity or project.

74. Equipment for off-track, pari-mutuel betting. In the case of any

municipality in which the conduct of off-track, pari-mutuel betting on

horse races is authorized by law, the purchase by such municipality of

equipment, machinery, apparatus or furnishings incident to the conduct

of such betting, including equipment, machinery, apparatus or

furnishings for use in the establishment or operation of off-track

betting offices, facilities or premises, or in providing communications

and transmission systems and facilities in connection therewith, ten

years.

75. Loans for hospital construction. The making of loans of money or

credit to or in aid of any eligible corporation or association for the

purpose of providing hospital or other facilities for the prevention,

diagnosis or treatment of human disease, pain, injury, disability,

deformity or physical condition, and for facilities incidental or

appurtenant thereto, as may be authorized by law pursuant to section

seven of article seventeen of the state constitution, thirty years.

76. Exterior cleaning and beautification of public buildings and

monuments owned by a municipality, ten years.

* 77. Passenger vehicle other than a school bus. The purchase of a

passenger vehicle, other than a school bus, having a seating capacity of

less than ten persons, when purchased to replace a similar vehicle

previously in service for three years or more, or in the case of a

police or fire vehicle, in service for one year or more, three years.

* NB There are 2 sub 77's of par a

* 77. In the city of New York a comprehensive program of renovation or

improvement of transit facilities or the water supply system or a public

or school building or playground or of a public park and of the

lighting, plumbing, ventilating and communication systems in such

building, playground or park, five years. Nothing herein contained,

however, shall prevent the application of the period of probable

usefulness prescribed in any other subdivision of this section for any

object or purpose constituting a separable part of such program.

* NB There are 2 sub 77's of par a

* 78. Payments by the city of New York to the housing finance agency.

Any payment of monies by the city of New York to the New York state

housing finance agency or any bank or trust company organized under the

laws of the state of New York or national banking association doing

business in the state of New York or any person, firm or corporation

which holds such monies for payment to such agency, if such monies,

together with the income earned thereon, are used to make, or discharge

such ctiy's obligation to make, in whole or in part, payments which such

city is required to make to such agency in each of three or more

consecutive fiscal years of such city under a lease, sublease or other

agreement with respect to a health facility constructed, acquired,

reconstructed, rehabilitated or improved by the health and mental

hygiene facilities improvement corporation, three years.

* NB There are 2 sub 78's of par a

* 78. Payments by the city of New York. Any payment of moneys by the

city of New York to the lessor or sublessor of real property leased or

subleased for any public or municipal purpose or any bank or trust

company organized under the laws of the state of New York or national

banking association doing business in the state of New York or any

person, firm or corporation which holds such moneys for payment to such

lessor or sublessor, if such moneys, together with the income earned

thereon, are used to make, or discharge such city's obligation to make,

in whole or in part, payments which are required to be made to such

lessor or sublessor in each of three or more consecutive fiscal years of

such city under a lease or sublease with respect to such real property,

three years.

* NB There are 2 sub 78's of par a

79. The effectuation of any program to pay benefits and provide other

social and technical assistance to residential tenants eligible for

public assistance whose relocation is necessitated by a condition

dangerous to life or health, five years. Nothing herein contained,

however, shall prevent the application of the period of probable

usefulness prescribed in any other subdivision of this paragraph for any

object or purpose constituting a separable part of such program.

80. Pedestrian malls. The construction or reconstruction of or

addition to a pedestrian mall, whether or not including land or rights

in land or the construction or acquisition of public improvements and

appurtenances required for the purpose for which such pedestrian mall

will be used, twenty years; the replacement of such public improvements

and appurtenances, ten years. The term "pedestrian mall", as used in

this subdivision, shall mean a public thoroughfare designed as a

promenade for pedestrians from which motorized vehicles are to be

restricted or prohibited.

81. Computer assisted integrated financial management and accounting

system. (a) The expenses incurred by a municipality, for the

acquistition and installation of a new computer assisted integrated

financial management and accounting system, including computer hardware,

ten years.

(b) Computer software incidental to the acquisition and installation

of a new computer assisted integrated financial management and

accounting system, five years.

82. Computer-aided police emergency dispatch systems in the county of

Nassau. (a) The expenses incurred by a municipality in the county of

Nassau for the acquisition and installation of a new computer-aided

police dispatch system, including computer hardware, ten years.

(b) The expenses incurred by a municipality in the county of Nassau

for the acquisition of computer software incidental to the acquisition

and installation of a new computer-aided police dispatch system, five

years.

83. Certain liability insurance. Payments, other than annual insurance

premiums, required by a county, town, city, village, district

corporation (as defined in paragraph three of section 2.00 of this

chapter), school district, city school district, or school district in a

city, as a subscriber of a municipal reciprocal insurer formed under

article sixty-one of the insurance law, five years, except where such

payments amount to more than one percent of the full equalized valuation

of such public entity, ten years.

84. Educational facilities. The acquisition, construction,

reconstruction, improvement, rehabilitation, repair, furnishing or

equipping of, or other provision for educational facilities, as defined

in section twenty-five hundred ninety-a of the education law, or the

implementation of the five-year educational facilities capital plan of

the board of education of the city school district of the city of New

York, thirty years.

85. Payment of amortized amounts for retirement contributions. Payment

of the amortized amounts outstanding pursuant to section seventeen-a and

section three hundred seventeen-a of the retirement and social security

law and section five hundred twenty-one of the education law, including

the refinancing of such amounts as authorized by paragraph n of

subdivision two of such section five hundred twenty-one, the period of

time then remaining for the amortization of amounts under such statutes;

provided, however, no indebtedness shall be issued if the remaining

amortization period is less than five years.

85-a. Payments for the separation incentive program adopted in

nineteen hundred ninety-five by the enlarged city school district of the

city of Middletown, Orange county pursuant to an agreement between the

district's various collective bargaining groups and the enlarged city

school district of Middletown, five years.

85-b. Two thousand four--two thousand five retirement contributions.

Payments made by participating employers to the New York state and local

employees' retirement system and the New York state and local police and

fire retirement system for the two thousand four-two thousand five

fiscal year of the retirement systems, but only up to a maximum of the

"amount eligible for amortization" pursuant to section seventeen-b or

three hundred seventeen-b of the retirement and social security law, ten

years; provided, however, that in no event shall the amount of such

debt, when added to any amounts amortized pursuant to section

seventeen-b or three hundred seventeen-b of the retirement and social

security law, exceed the "amount eligible for amortization" as defined

in section seventeen-b or three hundred seventeen-b of the retirement

and social security law.

85-c. Two thousand five--two thousand six retirement contributions.

Payments made by participating employers to the New York state and local

employees' retirement system and the New York state and local police and

fire retirement system for the two thousand five--two thousand six

fiscal year of the retirement systems, but only up to a maximum of the

"amount eligible for amortization" pursuant to section seventeen-c or

three hundred seventeen-c of the retirement and social security law, ten

years; provided, however, that in no event shall the amount of such

debt, when added to any amounts amortized pursuant to section

seventeen-c or three hundred seventeen-c of the retirement and social

security law, exceed the "amount eligible for amortization" as defined

in section seventeen-c or three hundred seventeen-c of the retirement

and social security law.

85-d. Two thousand six--two thousand seven retirement contributions.

Payments made by participating employers to the New York state and local

employees' retirement system and the New York state and local police and

fire retirement system for the two thousand six--two thousand seven

fiscal year of the retirement systems, but only up to a maximum of the

"amount eligible for amortization" pursuant to section seventeen-d or

three hundred seventeen-d of the retirement and social security law, ten

years; provided, however, that in no event shall the amount of such

debt, when added to any amounts amortized pursuant to section

seventeen-d or three hundred seventeen-d of the retirement and social

security law, exceed the "amount eligible for amortization" as defined

in section seventeen-d or three hundred seventeen-d of the retirement

and social security law.

85-e. Payments by the city of Long Beach to or for the benefit of

employees upon separation from employment, as have been or may be

approved by the city and including, but not limited to, cash payment for

separation incentives, voluntary early retirement incentive programs

and/or payment of the monetary value of accrued and accumulated but

unused and unpaid sick leave, personal leave, holiday leave, vacation

time, time allowances granted in lieu of overtime compensation, premiums

or contributions with respect to health, dental and vision care

insurance plans for the fiscal year in which such separation occurs, and

any other forms of payment required to be paid to or for the benefit of

such employees in connection with the separation from employment, five

years.

* 86. Soft-body armor and semi-automatic pistols in municipalities,

for use by police departments of such municipalities. (a) The expenses

incurred by municipalities for the acquisition of soft-body armor of

such municipalities, five years.

(b) The expenses incurred by municipalities for the acquisition of

semi-automatic pistols, five years.

* NB There are 2 sub 86's of par a

* 86. Soft-body armor and semi-automatic pistols in the cities of Long

Beach and Glen Cove, Nassau county, for use by police departments of

such cities. (a) The expenses incurred by the city of Long Beach or the

city of Glen Cove in the county of Nassau for the acquisition of

soft-body armor, five years.

(b) The expenses incurred by the city of Long Beach or the city of

Glen Cove in the county of Nassau for the acquisition of semi-automatic

pistols, five years.

* NB There are 2 sub 86's of par a

* 88. Criminal justice information system in the county of Suffolk.

The expenses incurred by the county of Suffolk for the acquisition and

installation of a criminal justice information system, including

computer hardware and software, reconstruction of county buildings and

facilities required in connection with such installation and furnishings

and equipment to be used in connection with such system, ten years.

* NB There are 2 sub 88's of par a

* 88. Underground liquid fuel tanks. (a) the acquisition and

installation of tanks for the storage of liquid fuel at ambient

pressure, including connected pipes, valves, meters, pumps, leak

detection equipment and vent alarms and the construction of groundwater

monitoring wells, fifteen years;

(b) the excavation, emptying or disposal of such existing tanks or

their contents, ten years.

* NB There are 2 sub 88's of par a

89. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least five years, five years.

90. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least ten years, ten years.

91. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least fifteen years, fifteen years.

92. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least twenty years, twenty years.

93. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least twenty-five years, twenty-five years.

94. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least thirty years, thirty years.

95. Payment by Suffolk county for the retirement incentive programs

adopted in nineteen hundred ninety-five in accordance with the

provisions of chapter twelve of the laws of nineteen hundred ninety-five

and in nineteen hundred ninety-seven in accordance with the provisions

of chapter forty-one of the laws of nineteen hundred ninety-seven, and

payment by Suffolk county for past service payments pursuant to any

special retirement plan for sheriffs, undersheriffs and deputy sheriffs

in accordance with the provisions of chapter one hundred sixty-five of

the laws of nineteen hundred ninety-five, the time remaining as the

payment period under such statutes.

96. Payment by the village of Rockville Centre, in the county of

Nassau, of contributions to the New York state and local police and fire

retirement system to provide additional pension benefits, pursuant to

section three hundred eighty-four-e of the retirement and social

security law, to police officers employed by such village, ten years.

97. Educational facilities. The acquisition, construction,

reconstruction, improvement, rehabilitation, repair, furnishing or

equipping of a school construction project eligible for the

apportionment of aid pursuant to subdivision six of section thirty-six

hundred two of the education law, thirty years.

98. Communication and computer equipment directly related to the

receipt of wireless 911 calls and the dispatch of emergency services in

response to such call, including costs associated with the local

government cellular emergency 911 program authorized pursuant to section

sixteen hundred eighty-nine-g of the public authorities law, ten years.

* 99. Payment for a retirement incentive program adopted in accordance

with the provisions of part A of chapter sixty-nine of the laws of two

thousand two and payment for any outstanding obligations for any

retirement incentive program adopted in accordance with any legislation

prior to such date, five years.

* NB There are 2 sub 99's of par a

* 99. Payment by the city of Albany, in the county of Albany, of

contributions to the New York state and local police and fire retirement

system to reopen the optional twenty year retirement plan to certain

firefighters in the city of Albany and to provide additional pension

benefits, pursuant to section three hundred eighty-four-e of the

retirement and social security law, to firefighters employed by such

city, twenty years.

* NB There are 2 sub 99's of par a

* 100. Certain retirement prior service contributions. Contributions

to the New York state and local police and fire retirement system for

benefits provided pursuant to section three hundred eighty-four-e of the

retirement and social security law that are attributable to service

rendered prior to the adoption of such section, and which are being

amortized over ten years or less, the lesser of ten years or the period

of time remaining to pay such contributions to such retirement system.

* NB There are 2 sub 100's of par a

* 100. Payment by the Ridge Road fire district, in the county of

Monroe, of contributions to the New York state and local police and fire

retirement system to provide additional pension benefits, pursuant to

section three hundred eighty-four-e of the retirement and social

security law, to all eligible firefighters employed by such fire

district, five years.

* NB There are 2 sub 100's of par a

* 101. Payment of certain negotiated benefits by the village of

Haverstraw. Payment of negotiated benefits pursuant to collective

bargaining agreements to retiring or transferring village police

officers in connection with the disbanding of the village of Haverstraw

police department, five years, except that if the amount of such

payments in any fiscal year exceeds one per centum of the average

assessed valuation of such village, ten years.

* NB There are 2 sb 101's

* 101. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least thirty-five years, thirty-five years.

* NB There are 2 sb 101's

102. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least forty years, forty years.

103. One or more objects or purposes for which a period of probable

usefulness has been determined under any other subdivision of this

paragraph to be at least fifty years, fifty years.

* 104. Payments of a targeted retirement program by the county of

Rockland incentive payments by the county of Rockland with respect to a

targeted retirement program for current employees, ten years.

* NB There are 2 sb 104's

* 104. Payments by the county of Nassau to employees upon separation

from employment, as may be approved by the county and including, but not

limited to, cash payment for separation incentives and/or payment of the

monetary value of accrued and accumulated but unused and unpaid sick

leave, personal leave, holiday leave, vacation time, time allowances

granted in lieu of overtime compensation and any other forms of payment

required to be paid to such employees upon separation from employment,

ten years.

* NB There are 2 sb 104's

* 105. Payments by the town of East Hampton, county of Suffolk to

employees upon separation from employment, as may be approved by the

town and including, but not limited to, cash payment for separation

incentives and/or payment of the monetary value of accrued and

accumulated but unused and unpaid sick leave, personal leave, holiday

leave, vacation time, time allowances granted in lieu of overtime

compensation and any other forms of payment required to be paid to such

employees upon separation from employment, ten years.

* NB There are 2 sb 105's

* 105. Payments by the town of Stony Point to or for the benefit of

employees upon separation from employment, as may be approved by the

town and including, but not limited to, cash payment for separation

incentives and/or payment of the monetary value of accrued and

accumulated but unused and unpaid sick leave, personal leave, holiday

leave, vacation time, time allowances granted in lieu of overtime

compensation, premiums or contributions with respect to health, dental

and vision care insurance plans for the fiscal year in which such

separation occurs, and any other forms of payment required to be paid to

or for the benefit of such employees in connection with the separation

from employment, ten years.

* NB There are 2 sb 105's

* 106. Payments by the town of Southampton to or for the benefit of

employees upon separation from employment, as may be approved by the

town and including, but not limited to, cash payment for separation

incentives and/or payment of the monetary value of accrued and

accumulated but unused and unpaid sick leave, personal leave, holiday

leave, vacation time, time allowances granted in lieu of overtime

compensation, premiums or contributions with respect to health, dental

and vision care insurance plans for the fiscal year in which such

separation occurs, and any other forms of payment required to be paid to

or for the benefit of such employees in connection with the separation

from employment, ten years.

* NB There are 4 sb 106's

* 106. Payments by the village of Lynbrook, in the county of Nassau,

made on or after April first, two thousand eleven, to employees upon

separation from employment, as may be approved by such village and

including, but not limited to, cash payment for separation incentives

and/or payment of the monetary value of accrued and accumulated but

unused and unpaid sick leave, personal leave, holiday leave, vacation

time, time allowances granted in lieu of overtime compensation and any

other forms of payment required to be paid to such employees upon

separation from employment, ten years.

* NB There are 4 sb 106's

* 106. Payments by the town of Oyster Bay to employees upon separation

from employment, as may be approved by the town and including, but not

limited to, such payments, cash payment for separation incentives and/or

payment of the monetary value of accrued and accumulated but unused and

unpaid sick leave, vacation time, and any other forms of payment

required to be paid to such employees upon separation from employment,

ten years.

* NB There are 4 sb 106's

* 106. Any payments by the city of Glen Cove made after January first,

two thousand twelve to employees upon separation from employment, as may

be approved by the city and including, but not limited to, cash payment

for separation incentives and/or payment of the monetary value of

accrued and accumulated but unused and unpaid sick leave, personal

leave, holiday leave, vacation time, time allowances granted in lieu of

overtime compensation and any other forms of payment required to be paid

to such employees upon separation from employment, ten years.

* NB There are 4 sb 106's

107. Payment by the city of Elmira, county of Chemung, of the past

service cost due to the New York state and local police and fire

retirement system to provide additional pension benefits pursuant to

sections three hundred seventy-five-i and three hundred seventy-five-j

of the retirement and social security law to eligible firefighters

employed by the city of Elmira, ten years.

* 108. Payments by the town of Hempstead, county of Nassau, to

employees upon separation from employment, as may be approved by the

town and including, but not limited to, such payments, cash payment for

separation incentives and/or payment of the monetary value of accrued

and accumulated but unused and unpaid sick leave, vacation time, and any

other forms of payment required to be paid to such employees upon

separation from employment, ten years.

* NB There are 2 sb 108's

* 108. Intangible assets. The acquisition or development of an

intangible asset that is classified as a capital asset under generally

accepted accounting principles for municipalities and that has been

determined to have a useful life of at least five years by an

appropriate engineering or other professional, five years.

* NB There are 2 sb 108's

* 109. Lead service line replacement programs established by a

municipality, school district or district corporation, including, but

not limited to programs that inventory, design and replace publicly

owned and privately owned lead service lines within an established water

system, thirty years. As used in this subdivision, "lead service line"

means a service line made in whole or in part of lead, which connects a

water main to a building inlet. A lead service line may be owned by the

water system, a property owner, or both. A lead gooseneck, pigtail, or

connector shall be eligible for replacement regardless of the service

line material to which a lead gooseneck, pigtail, or connector is

attached. Gooseneck, pigtail, or connector means a short section of

piping, typically not exceeding two feet, which can be bent and used for

connections between rigid service piping. A galvanized iron or steel

service line is considered a lead service line if it ever was or is

currently downstream of any lead service line or service line of unknown

material.

* NB There are 2 sb 109's

* 109. For acquisition, construction, or replacement of broadband and

related telecommunications infrastructure pursuant to section

ninety-nine-y of the general municipal law, ten years.

* NB There are 2 sb 109's

110. Septic systems. The acquisition, construction, or reconstruction

of or addition to septic systems funded by programs established by the

county of Suffolk, twenty-five years.

b. The finance board or other body or official designated by law shall

have the power to determine, prior to the contracting of an indebtedness

for any object or purpose specified in paragraph a of this section, or a

class thereof, the period of probable usefulness thereof, but the period

so determined shall in no event exceed the period determined by this

section. In those municipalities in which the finance board has such

power, the finance board may, by resolution, delegate such power to such

other body or official as it may designate, in which event such body or

official shall exercise such power until the finance board, by

resolution, shall elect to reassume the same. If a body other than the

finance board makes such determination it shall do so by resolution and

it shall file a certified copy thereof with the finance board. If an

official makes such determination he shall do so by a certificate

properly dated and signed by him, and he shall file such certificate

with the finance board.

c. The agency exercising the power to determine the period of probable

usefulness, pursuant to paragraph b above, shall also determine which

subdivision of paragraph a of this section applies to such object or

purpose, or class thereof. If the indebtedness which is to be contracted

for such object or purpose, or class thereof, is to be evidenced by

obligations, such determination shall become conclusive upon the sale of

such obligations. If a body other than the finance board makes such

determination it shall do so by resolution and it shall file a certified

copy thereof with the finance board. If an official makes such

determination he shall do so by a certificate properly dated and signed

by him, and he shall file such certificate with the finance board.

Indebtedness relative to municipal cooperative activities. a.

Legislative intent. The provisions of title one-A of article two of this

chapter are intended to effectuate the provisions of sections one and

two-a of article eight of the constitution, as in force and effect on

January first, nineteen hundred sixty, in relation to indebtedness

contracted, either jointly or severally, for (a) a joint service

described in section one of such article eight and (b) a joint water,

sewage or drainage project described in paragraphs B, D and F of section

two-a of such article eight.

b. Definitions. As used in this title:

1. The term "municipal corporation" means a county outside the city of

New York, a city, a town, a village, or a school district.

2. The term "municipality" means a county outside the city of New

York, a city, a town or a village.

3. The term "district," unless a specific type of district is referred

to, means a county or town improvement district for which the county or

town or towns in which such district is located is or are required to

pledge its or their faith and credit for the payment of the principal of

and interest on all indebtedness to be contracted for the purposes of

such district.

4. The term "joint service" means a municipal facility, service,

activity or undertaking described in section one of article eight of the

constitution, but shall not include any object or purpose the

indebtedness for which would be subject to the limitations of paragraph

a of section 150.00 of this chapter.

5. The term "joint water, sewage or drainage project" means a joint

project to provide for a common supply of water, the common conveyance,

treatment and disposal of sewage or a common drainage system, as

described in paragraphs B, D and F of section two-a of article eight of

the constitution.

6. The term "joint indebtedness" means indebtedness contracted for or

in relation to a joint service or a joint water, sewage or drainage

project and for which the joint faith and credit of the municipal

corporations or municipalities would be pledged for the payment thereof.

Such term also shall include (a) indebtedness on account of the

acquisition of real property the title to which has vested in the

municipal corporations or municipalities, or the title to which they

have agreed to accept pursuant to a contract therefor, and for which

payment has not been made, (b) indebtedness arising from contracts and

(c) involuntary indebtedness incurred in relation to a joint service or

a joint water, sewage or drainage project and for which the municipal

corporations or municipalities are jointly liable, where, from the

context of this title, it is evident that indebtedness on account of

real property liabilities, contract liabilities and involuntary

indebtedness are intended to be included within the meaning of the term.

7. The term "several indebtedness" means indebtedness contracted for

or in relation to a joint service or a joint water, sewage or drainage

project and for which the faith and credit of a single municipal

corporation or municipality would be pledged for the payment thereof.

Such term also shall include (a) indebtedness on account of the

acquisition of real property the title to which has vested in a

municipal corporation or municipality, or in the participating municipal

corporations or municipalities, or the title to which it has, or they

have, agreed to accept pursuant to a contract therefor, and for which

payment has not been made, (b) indebtedness arising from contracts and

(c) involuntary indebtedness incurred in relation to a joint service or

a joint water, sewage or drainage project and for which a municipal

corporation or a municipality is not jointly liable, where, from the

context of this title, it is evident that indebtedness on account of

real property liabilities, contract liabilities and involuntary

indebtedness are intended to be included within the meaning of the term.

c. Power to contract indebtedness; joint services and joint projects.

1. Municipal corporations. Two or more municipal corporations which

have agreed to provide a joint service, either directly or on behalf of

a district, pursuant to article five-G of the general municipal law, or

pursuant to any other law enacted by the legislature, may contract

either joint indebtedness or several indebtedness to provide for such

joint service. Such indebtedness shall not be contracted, however,

unless there is an applicable period of probable usefulness prescribed

in paragraph a of section 11.00 of this chapter under which each of the

participating municipal corporations, acting separately, either directly

or on behalf of a district, could have issued obligations pursuant to

this chapter.

2. Municipalities. Two or more municipalities which, either directly

or on behalf of a district, have agreed to provide a joint water, sewage

or drainage project pursuant to any law enacted by the legislature may

contract either joint indebtedness or several indebtedness to provide

for such joint project. Such indebtedness shall not be contracted,

however, unless there is an applicable period of probable usefulness

prescribed in paragraph a of section 11.00 of this chapter under which

each of the participating municipalities, acting separately, either

directly or on behalf of a district, could have issued obligations

pursuant to this chapter.

3. General provisions. (a) The financing of a joint service or a joint

water, sewer or drainage project may include but shall not be limited to

(1) the acquisition of land and permanent and temporary rights in land,

(2) the original furnishings, equipment, machinery or apparatus for a

physical public betterment or improvement or required for the purposes

for which the public betterment or improvement is to be used, and the

replacement of such furnishings, equipment, machinery or apparatus, (3)

the acquisition, construction, reconstruction, conversion or

alterations, of, or additions to, buildings, (4) the acquisition of

motor vehicles, machinery or apparatus to be used in the work of

constructing, reconstructing, converting, altering, or adding to,

repairing or maintaining a physical public betterment or removing the

snow and ice therefrom, (5) appraisals of real property by experts to

assist in the assessment thereof for taxation, (6) the payment of

judgments, claims, awards or sums described in and subject to the

limitations of subdivision thirty-three of paragraph a of section 11.00

and required to be paid because of such joint service or joint water,

sewage or drainage project, (7) the temporary financing in anticipation

of the collection of taxes, assessments, rents, rates or charges or the

receipt of money as provided in subdivision thirty-six of paragraph a of

section 11.00, (8) the financing of the protection of tax liens and

foreclosure costs described in and subject to the limitations of

subdivision thirty-seven of paragraph a of section 11.00 and (9) the

temporary financing of miscellaneous expenditures by the issuance of

budget notes as provided in subdivision forty of paragraph a of section

11.00.

(b) A municipal corporation shall not contract indebtedness for a

joint service, and a municipality shall not contract indebtedness for a

joint water, sewage or drainage project, to a greater extent than it is

authorized by law to spend money for any such service or project and

provided also that this section shall not relieve any such unit of

government of any duty imposed by law to include in its annual budget or

tax levy or otherwise to pay from current funds all or part of any

expenditure that it may make for any such service or project.

(c) Where the agreement between the municipal corporations or

municipalities in relation to any joint service or any joint water,

sewage or drainage project does not provide that the indebtedness which

is to be contracted is to be joint indebtedness, the amounts of

indebtedness which are to be contracted severally by the parties to the

agreement shall be in the proportions specified in the agreement. Where

the agreement does not provide how the indebtedness shall be contracted,

and the parties cannot otherwise agree, the indebtedness shall be

contracted as joint indebtedness.

(d) Any involuntary indebtedness which is incurred because of a joint

service or joint water, sewage or drainage project shall, until

satisfied, be deemed the joint indebtedness of the parties to the

agreement. The payment of any such indebtedness, however, may be

financed by the issuance of obligations severally by such parties for

specific proportions of the amount thereof according to the terms of the

agreement. Where the agreement does not provide how such involuntary

indebtedness shall be financed, and the parties cannot otherwise agree,

the obligations issued to finance the payment thereof shall be joint

indebtedness.

(e) Where joint indebtedness is contracted pursuant to the provisions

of this section the participating municipal corporations or

municipalities, by joint action of their finance boards or their chief

fiscal officers, as the case may be, may issue obligations pursuant to

the provisions of this chapter in the same manner as a single county,

city, town, village or school district and shall pledge the joint faith

and credit of the issuers for the payment of all such indebtedness.

(f) Notwithstanding any other provision of this title, or of any other

provision of law, in relation to (1) the allocation and apportionment of

joint indebtedness for the purpose of determining the debt-contracting

power of a municipal corporation or municipality or (2) the exclusion of

any such joint indebtedness in determining the debt-contracting power of

a municipal corporation or municipality, the liability of the

participating municipal corporations or municipalities for the payment

of the principal of an interest on such joint indebtedness shall be a

joint liability of the participating municipal corporations or

municipalities.

(g) Where there has been a pledge of the faith and credit of any

municipal corporation or municipality pursuant to section 100.00 of this

chapter for the payment of any several indebtedness, or of any joint

indebtedness, in relation to a joint service or a joint water, sewage or

drainage project, provisions shall be made annually by appropriation for

the payment of the interest thereon and of the amounts required for the

redemption thereof in compliance with the provisions of section two of

article eight of the constitution. If at any time the respective

appropriating authorities of any such municipal corporation or

municipality shall fail to make such appropriations, a sufficient sum

shall be set apart from the first revenues thereafter received and shall

be applied to such purposes. The chief fiscal officer of any such

participating municipal corporation or municipality may be required to

set apart and apply such revenues as aforesaid at the suit of any holder

of obligations issued for any such indebtedness. All laws requiring the

withholding of state aid in the event of the default in the payment of

the principal of and interest on indebtedness shall be applicable in the

event of a default in the payment of the principal of and interest on

any such several indebtedness or joint indebtedness.

(h) The powers which may be exercised by a finance board in relation

to such joint indebtedness or several indebtedness shall include, but

shall not be limited to, the following:

1. Determining the period of probable usefulness for any object or

purpose or class thereof.

2. Determining the subdivision of paragraph a of section 11.00 of this

chapter which applies to any object or purpose or class thereof.

3. Authorizing the issuance of bonds and the issuance and renewal of

bond anticipation notes, capital notes, tax anticipation notes, revenue

anticipation notes and budget notes subject to the provisions of this

section and sections 21.00, 23.00, 24.00, 25.00, 28.00, 29.00, 30.00,

31.00, 32.00, 33.00, 33.10, 34.00, 35.00, 36.00, 37.00, 38.10, 39.00,

40.00 and 41.10 of this chapter.

4. Prescribing the terms, form and contents of obligations, the place

of payment thereof, and providing for the sale, execution, issuance and

delivery and cancellation thereof subject to the provisions of this

section and sections 50.00, 51.00, 52.00, 53.00, 54.00, 55.00, 55.10,

56.00, 57.00, 58.00, 59.00, 60.00, 61.00, 62.00, 62.10, 63.00 and 63.10

of this chapter, except as otherwise provided in subparagraph (u) of

this subdivision.

5. Entering into contracts with a bank or trust company for the place

of payment of obligations and for the purpose of having a bank or trust

company act as paying agent or as registration agent subject to the

provisions of this section and sections 54.00 and 70.00 of this chapter.

6. Adopting the procedure specified in sections 80.00 and 81.00 of

this chapter which would be requisite to making sections 82.00, 83.00

and 84.00 of this chapter applicable.

7. Repealing or revoking resolutions or certificates authorizing the

issuance of obligations, subject, however, to the provisions of section

41.00 of this chapter.

8. Refunding of capital notes pursuant to the provisions of section

91.00 of this chapter, except that the provisions of paragraph b of

section 107.00 of this chapter shall not be applicable in any such

refunding of joint indebtedness or several indebtedness.

9. Reissuing obligations in place of lost, destroyed, partially

destroyed or defaced obligations pursuant to section 104.00 of this

chapter.

10. Depositing and investing the proceeds of obligations subject to

the provisions of section 165.00 of this chapter.

11. Authorizing the temporary use of funds pursuant to section 165.10

of this chapter.

(i) The finance boards of the participating municipal corporations or

municipalities shall provide that the place of payment of bonds or notes

constituting joint indebtedness shall be in the office of an appropriate

officer of one of the participating municipal corporations or

municipalities if a contract is not made with a bank or trust company as

the place of payment as provided in section 54.00 of this chapter.

(j) The finance boards of the participating municipal corporations or

municipalities shall designate an appropriate officer of one of the

participating municipal corporations or municipalities as registration

agent in relation to any bonds or notes constituting joint indebtedness

if a contract is not entered into with a bank or trust company to act as

registration agent as provided in section 70.00 of this chapter. The

officer so designated shall perform all of the duties and keep all of

the records in relation to such joint indebtedness required by sections

70.00, 71.00, 72.00, 73.00, 74.00, 75.00 and paragraph d of section

164.00 of this chapter.

(k) The finance board of the participating municipal corporations or

municipalities shall designate an appropriate officer of one of the

participating municipal corporations or municipalities to keep the

record of any bonds or notes constituting joint indebtedness as required

by section 163.00 of this chapter.

(l) Notwithstanding any other provisions of this section, if any power

of a finance board of any participating municipal corporation or

municipality may be delegated to its chief fiscal officer or to any

other official or body under any section of this chapter, such chief

fiscal officer or other official or body may exercise the powers so

delegated in relation to matters to which this title and other

provisions of this chapter apply.

(m) Notwithstanding any other provisions of this section, where any

power may be delegated to the chief fiscal officers of the participating

municipal corporations or municipalities pursuant to this section, the

finance boards of the participating municipal corporations or

municipalities may agree that any such power may be delegated to and

exercised by one of such chief fiscal officers.

(n) Where any action is taken in relation to joint indebtedness for

which the joint faith and credit of the participating municipal

corporations or municipalities would be pledged, or in relation to

obligations issued pursuant to this chapter, the finance boards of each

of the participating municipal corporations or municipalities must

separately authorize such action to be taken, except as otherwise

provided in subparagraphs (l) and (m) of this subdivision. Such separate

authorization by each such finance board shall be subject to the

provisions of this chapter, and of local laws enacted pursuant to this

chapter, which would be applicable in the event that the object or

purpose in relation to which action is being taken was the object or

purpose solely of the county, city, town, village or school district

which the finance board represents.

(o) Where the fiscal years of the participating municipal corporations

or municipalities are not the same and where joint indebtedness is to be

or has been contracted by the issuance or renewal of tax anticipation

notes, revenue anticipation notes, capital notes and budget notes or any

action is required to be taken in, or limitation is applicable in

connection with, a "fiscal year," the finance boards of such

participants may determine that the "fiscal year" for such purposes

shall be the same as the fiscal year of one of the participants.

(p) Notwithstanding the provisions of section 31.00 of this chapter,

any school district which is a participating municipal corporation in

relation to a joint service may, in connection with such joint service,

adopt one or more bond resolutions or capital note resolutions

authorizing the issuance of bonds or capital notes as several

indebtedness, or may participate in the adoption of any such resolution

authorizing the issuance of bonds or capital notes as joint

indebtedness, for a class of objects or purposes for which objects or

purposes serial bonds may be issued, subject, however, to the applicable

provisions of section 37.00 of this chapter.

(q) A bond resolution, a capital note resolution or a budget note

resolution adopted in compliance with the provisions of sections 32.00

and 40.00 of this chapter for a joint service or a joint water, sewage

or drainage project shall state the total amount of the indebtedness

which is to be contracted severally by the issuance of bonds, capital

notes or budget notes by each of the participating municipal

corporations or municipalities for the object or purpose or class

thereof set forth in the resolution, or, if joint indebtedness is to be

contracted, any such resolution shall set forth the total amount of the

joint indebtedness which is to be contracted and the amounts which it is

estimated will be allocated and apportioned to each of the participating

municipal corporations or municipalities for the purpose of ascertaining

their debt-contracting powers.

(r) Notices to be published in relation to a mandatory or permissive

referendum pursuant to sections 33.10, 35.00, 36.00 and 37.00 of this

chapter, and notices required to be published in connection with the

voting of a special tax or a tax to be collected in installments as a

condition precedent to the adoption of a bond resolution for a joint

service or joint water, sewage or drainage project, shall state the

total amount of the indebtedness which is to be contracted severally by

the issuance of bonds and capital notes by each of the participating

municipal corporations or municipalities for the object or purpose or

class thereof for which it is proposed that bonds or capital notes will

be issued, or, if joint indebtedness is to be contracted, any such

notice shall set forth the total amount of the joint indebtedness which

is to be contracted and the amounts which it is estimated will be

allocated and apportioned to each of the participating municipal

corporations or municipalities for the purpose of ascertaining their

debt-contracting powers.

(s) The notice required to be published in an official newspaper

pursuant to section 81.00 of this chapter shall, where joint

indebtedness is to be incurred, be published in the official newspaper

or newspapers of each of the participating municipal corporations or

municipalities or if there be no such newspaper or newspapers, then in

one or more newspapers having general circulation in such municipal

corporations or municipalities as the finance boards shall designate,

except that where any newspaper is the official newspaper of all of the

participating municipal corporations or municipalities or is the only

newspaper designated by the finance boards as a newspaper having general

circulation in all of the participating municipal corporations or

municipalities only one notice need be published in any such newspaper.

(t) If bonds which would constitute several indebtedness are sold at

private sale pursuant to the provisions of paragraph b of section 63.00

of this chapter, the amount of such bonds shall be included in any

computation of the total amount of bonds which may be sold at private

sale in any fiscal year of the issuer.

(u) Bonds which would constitute joint indebtedness may be sold at

private sale pursuant to and, except as hereinafter provided, subject to

the provisions of paragraph b of section 63.00 of this chapter. The

total amount of such bonds which may be so sold at private sale in any

calendar year shall not exceed one million dollars. The limitation of

paragraph b of section 63.00 in relation to the total amount of bonds

which may be sold at private sale in any fiscal year of the issuer shall

not be applicable to bonds sold pursuant to this subparagraph. The

amount of any bonds sold pursuant to this subparagraph shall not be

included in computing the total amount of bonds not constituting joint

indebtedness which could be sold at private sale in any fiscal year of

the issuer pursuant to paragraph b of section 63.00.

(v) The provisions of paragraph b of section 107.00 of this chapter in

relation to down payment shall not apply in relation to any joint

service or joint water, sewage or drainage project which is to be

financed in whole or in part by the issuance of obligations constituting

joint indebtedness or several indebtedness of the participating

municipal corporations or municipalities.

(w) The limitations on the amount of budget notes which may be issued

in any fiscal year and which are set forth in subdivisions two and three

of paragraph a of section 29.00 of this chapter and in paragraph i of

such section shall not be applicable to budget notes issued for the

purposes permitted by such subdivisions two and three of paragraph a and

such paragraph i of section 29.00 and in relation to a joint service or

a joint water, sewage or drainage project. Such budget notes issued for

such purposes shall not affect the power of a county, city, town,

village or school district to issue budget notes for other purposes

under such provisions of section 29.00 of this chapter.

(x) The provisions of sections 160.00, 160.10, 161.00, 162.00, 165.00,

166.00, 167.00, 170.00 and 180.00 of this chapter relating to action by

the finance board, delegation of powers and duties, negotiability of

obligations, tax exemption, use of proceeds, inclusive of premiums, from

the sale of obligations, legal actions and appeals, powers to adopt

local laws and liberal construction, and all other pertinent provisions

of this chapter essential to effectuate the objects and purposes of this

title, shall be applicable in relation to the indebtedness and financing

of a joint service or a joint water, sewage or drainage project, except

as otherwise expressly provided in this title.

Allocation of indebtedness. a. Several indebtedness and joint

indebtedness contracted or incurred for a joint service or a joint

water, sewage or drainage project shall be included as gross

indebtedness in the debt statement of the municipal corporation or

municipality which has contracted or incurred such indebtedness, except

that such indebtedness contracted or incurred by a school district,

other than a school district in a city, shall not be included unless it

is evidenced by bonds or bond anticipation notes or is included as

indebtedness of a merged or annexed school district pursuant to section

121.00 of this chapter.

b. The amount of joint indebtedness which is to be included as gross

indebtedness in the debt statement of a participating municipal

corporation or municipality shall not exceed the amount of such

indebtedness allocated and apportioned to such municipal corporation in

the bond resolution or note resolution authorizing such indebtedness to

be contracted. In the case of other joint indebtedness for such a joint

service or joint water, sewage or drainage project arising out of real

property liabilities and contract liabilities, the amount thereof to be

included as gross indebtedness in a debt statement of a participating

municipal corporation or municipality shall not exceed the amount of

such indebtedness required to be allocated and apportioned to such

municipal corporation in the agreement of the participating municipal

corporations in relation to such joint service. Where the agreement does

not provide for any such allocation and apportionment, or in the case of

involuntary joint indebtedness, the amount to be allocated and

apportioned to a participating municipal corporation or municipality

shall be in the same proportion as the full valuation of the real estate

subject to taxation or assessment for such joint service or joint water,

sewage or drainage project by such municipal corporation or municipality

bears to the full valuation of the real estate subject to taxation or

assessment by all of the participating municipal corporations or

municipalities for such joint service or project. Full valuations shall

be determined by applying to the latest assessed valuation the

appropriate state equalization rate established on the same period price

level. Where such rate has not been established on the same period price

level for all participants, application may be made to the commissioner

of taxation and finance for the establishment of a special rate or rates

as so required and the commissioner shall have power to establish the

same, which special rate or rates shall then be used. The amounts of

joint indebtedness so allocated and apportioned shall not exceed in the

aggregate the total amount of such joint indebtedness.

c. The agreement between the participating municipal corporations and

municipalities may provide for apportionment and allocation of joint

indebtedness on a ratio of full valuations of real property or on a

basis of the amount of services rendered or to be rendered, or benefits

received or conferred or to be received or conferred, or on any other

equitable basis.

d. Any allocation and apportionment of joint indebtedness which has

been contracted or incurred or which is proposed to be contracted or

incurred shall be conclusive if made or approved by the state

comptroller. The application to the state comptroller for any such

allocation and apportionment may be made on behalf of the participating

municipal corporations or municipalities by the finance boards thereof

acting jointly or by the chief fiscal officers thereof acting jointly

upon the direction of such finance boards, or by the finance board of

any such participating municipal corporation or municipality or the

chief fiscal officer thereof upon the direction of such finance board.

The application shall be verified by the finance board or boards or by

the chief fiscal officer or officers making the application. It shall be

in such form and shall contain such information as shall be prescribed

by the state comptroller. If the application is not made by the finance

boards or by the chief fiscal officers of all of the participating

municipal corporations or municipalities, written notice of such

application shall be given to the chief fiscal officer of any other

participating municipal corporation or municipality prior to the filing

of the application with the state comptroller.

e. If the application to the state comptroller is for the allocation

or apportionment of existing or proposed indebtedness exceeding one

hundred thousand dollars in amount, then within five days after the

filing of such application with the state comptroller, the chief fiscal

officer or chief fiscal officers of the applicant or applicants shall

cause a notice to be published that such application has been filed with

the state comptroller. Such notice shall be published in accordance with

the provisions of paragraph c of section 15.20 of this chapter. The

notice also shall contain a description of the existing or proposed

indebtedness sought to be allocated and apportioned and the nature of

the joint service or joint water, sewage or drainage project in relation

to which such existing or proposed indebtedness is to be contracted or

incurred. Proof of publication of such notice shall be filed in the

office of the state comptroller. A copy of the application and of all

data and information which will be submitted to the state comptroller in

support of such application shall be filed in the office or offices of

such chief fiscal officer or chief fiscal officers and shall be public

records.

f. After the filing of the application, the state comptroller shall

review the facts set forth therein. Notwithstanding the provisions of

paragraph e of this section, the state comptroller may require notice of

the application to be published in any such proceeding. The state

comptroller shall have power to examine the accounts and records of the

municipal corporations or municipalities with respect to the joint

service or joint water, sewage or drainage project concerning which the

application is made. He may also require the chief fiscal officer and

other public officers, boards and agencies of the municipal corporations

or municipalities involved to furnish such additional data and

information in their possession as he deems necessary to enable him to

make his determination.

g. The state comptroller shall issue a written certificate setting

forth his determination as to how such existing or proposed indebtedness

should be allocated and apportioned. The certificate of the state

comptroller shall not be issued until ten days after the filing of such

application or proof of publication of the notice of such application,

whichever date is the later, and the certificate shall be issued within

forty-five days after such filing. The certificate of the state

comptroller shall be executed under his hand and seal. Such certificate

shall be filed in the department of audit and control and duplicate

certificates shall be executed under the hand and seal of the state

comptroller and filed in the offices of the chief fiscal officers of

each of the participating municipal corporations or municipalities.

Limitations on amount of local indebtedness; exclusions of

certain indebtedness. a. The provisions of section 104.00 of this

chapter shall be applicable in relation to the powers of counties,

cities, towns, villages and school districts in cities to contract

indebtedness, and the powers of other school districts to issue bonds

and bond anticipation notes, in connection with a joint service or joint

water, sewage or drainage project; provided, however, that the amount of

the joint indebtedness of any such municipal corporation or municipality

therefor shall not exceed the amount allocated and apportioned as

provided in or pursuant to the provisions of section 15.10 of this

chapter.

b. In ascertaining the power of a county, city, town or village to

contract indebtedness, there shall be excluded any joint indebtedness

and any several indebtedness contracted to provide for the supply of

water. Any such indebtedness for such purpose shall not be excluded in

ascertaining the power of any school district to contract indebtedness.

The provisions of paragraph c of this section shall not apply to

indebtedness contracted to provide for the supply of water.

c. In ascertaining the power of a county, city, town or village to

contract indebtedness there shall be excluded any joint indebtedness or

several indebtedness contracted or proposed to be contracted for a joint

service, other than a joint sewage or drainage project, to the extent

permitted by paragraph C of section five of article eight of the

constitution, as implemented by section 123.00 of this chapter. The

provisions of this paragraph shall not be deemed to affect or impair any

other existing exclusions of indebtedness granted by any other provision

of this chapter or the constitution. Any such municipal corporation, or

all of such municipal corporations, participating in a joint service,

other than a joint sewage or drainage project, may apply to the state

comptroller for a conclusive determination of the amount or amounts of

any such indebtedness contracted or proposed to be contracted for such

joint service to be excluded pursuant to the provisions of section

123.00 of this chapter. The provisions of such section, other than

subdivision two of paragraph b thereof, shall be applicable in relation

to any such application, and the procedural provisions thereof shall be

liberally construed to effectuate the provisions of paragraph C of

section five of article eight of the constitution. Where there is a

joint application and the fiscal years of the municipal corporations are

not the same, the term "preceding fiscal year," as used in section

123.00, shall, for the purposes of this section, mean "preceding year."

If an application is not made jointly by all of the chief fiscal

officers of the participating municipal corporations, written notice of

such application shall be given, prior to the filing of the application

with the state comptroller, to the chief fiscal officer of each

participating municipal corporation not joining in such application. In

the case of a joint application the notice required to be published

under the provisions of paragraph h of section 123.00 shall be published

in the official newspaper or newspapers of each of the participating

municipal corporations, or if there be no such newspaper or newspapers,

then in one or more newspapers having general circulation in such

municipal corporations as the finance boards shall designate, except

that where any newspaper is the official newspaper of all of the

participating municipal corporations, or is the only newspaper

designated by the finance boards as a newspaper having general

circulation in all of the participating municipal corporations, only one

notice need be published in any such newspaper. Where there is a joint

application in relation to a joint service which has been in operation

for one year, and the fiscal years of the municipal corporations are not

the same, the certificate of the state comptroller shall be effective

only until the first day of the fourth month following the close of the

year of operation described in the application.

d. In ascertaining the power of a municipality to contract

indebtedness there shall be excluded all or any part of the joint

indebtedness or several indebtedness contracted or proposed to be

contracted for a joint sewage or drainage project the amount or amounts

of which shall be determined conclusively by the state comptroller in

the same manner as provided in paragraph c of this section, except that,

in any proceeding under this paragraph, any requirement that the

improvement, or part thereof, or service shall have yielded net revenue

during the preceding fiscal year or preceding year in a sum equal to

twenty-five per centum or more of the amount required in such year for

the payment of the interest on an amortization of, or payment of,

indebtedness, as set forth in subdivisions one and three of paragraph b

and in subdivision two of paragraph c of section 123.00, shall not be

applicable.

Debt statements. a. The state comptroller, in the performance

of his duties pursuant to section 141.00 of this chapter, shall cause

debt statements of municipal corporations and municipalities to be

prepared in such manner as will reflect (1) the gross amounts of any

several indebtedness and joint indebtedness contracted or incurred by a

participating municipal corporation or municipality in relation to a

joint service or joint water, sewage or drainage project, (2) the

amounts of any such several indebtedness, and the amounts of any such

joint indebtedness allocated and apportioned to any participating

municipal corporation or municipality, which are to be included as gross

indebtedness in a debt statement prepared in accordance with the

provisions of title ten of article two of this chapter, and (3) the

amounts of any such several indebtedness or joint indebtedness which

under or pursuant to any provision of this chapter may be excluded in

ascertaining the debt-contracting margin of the participating municipal

corporation or municipality.

b. The provisions of section 109.00 and of title ten of article two of

this chapter which are consistent with the provisions of title one-A of

such article shall be applicable in relation to the debt statements of a

municipal corporation or municipality which is a participant in a joint

service or joint water, sewage or drainage project.

Additional limitations. a. Indebtedness shall not be

contracted or incurred pursuant to this title for any object or purpose

which is intended to effectuate any of the purposes of article eighteen

of the state constitution as implemented by the public housing law or

any other law including this chapter.

b. The following provisions of this chapter shall not be applicable in

relation to indebtedness contracted or incurred in relation to a joint

service or a joint water, sewage or drainage project: Paragraph c of

section 20.00, and sections 28.10, 90.00 and 92.00.

Types of obligations which may be issued. a. Bonds, notes or

other evidences of indebtedness authorized to be issued by

municipalities, school districts or district corporations for any object

or purpose shall hereafter be of the following nature and kind only and

shall be denominated respectively as follows:

1. Serial bonds.

2. Sinking fund bonds or corporate stock.

3. Bond anticipation notes.

4. Tax anticipation notes.

5. Revenue anticipation notes.

6. Capital notes.

7. Budget notes.

8. Urban renewal notes.

9. Deferred payment notes.

* 10. Land installment purchase obligations.

* NB Repealed July 31, 2031

11. Lease, sublease or other agreements entered into pursuant to

subparagraph two of paragraph b of subdivision thirty-eight of section

sixteen hundred eighty of the public authorities law.

12. Deficiency notes.

b. Nothing contained in this section shall be construed to prevent the

prepayment of taxes to a municipality, school district or district

corporation and the furnishing of a non-negotiable receipt of such

prepayment whether or not interest is to be paid on the moneys so

prepaid.

c. Nothing contained in this chapter shall prevent a municipality from

issuing evidences of indebtedness to the state of New York or to the

United States of America with respect to a project or projects

undertaken by such municipality pursuant to any general law to

effectuate any of the purposes of article eighteen of the state

constitution.

d. Nothing contained in this section shall be construed to prevent a

municipality from issuing evidence of indebtedness or entering into

installment contracts to purchase equipment, machinery and apparatus

pursuant to section one hundred nine-b of the general municipal law.

Serial bonds. a. Any municipality, school district or district

corporation may issue serial bonds for any object or purpose having a

period of probable usefulness set forth in paragraph a of section 11.00

of this chapter and for which object or purpose it may contract

indebtedness pursuant to section 10.00 of this chapter; provided,

however, that serial bonds shall not be issued by such municipality,

school district or district corporation (1) in those cases in which

provision is made in sections 24.00 and 25.00 of this chapter for the

issuance of tax anticipation notes and revenue anticipation notes to be

issued in anticipation of the collection or receipt of taxes, revenues

or assessments, as the case may be, or (2) in those cases in which

provision is made in section 29.00 of this chapter for the issuance of

budget notes other than paragraph n of such section, or (3) in those

cases in which budget notes have been issued under such paragraph n; and

further provided, however, that nothing contained herein shall prohibit

the issuance of serial bonds by such municipality, school district or

district corporation for the object or purpose specified in subdivision

sixty of paragraph a of section 11.00 of this chapter.

b. Serial bonds shall mature in annual installments. The first

installment shall mature not later than eighteen months after the date

of such bonds or two years after the date of the first bond anticipation

note or notes issued in anticipation of such bonds, whichever is the

earlier, provided, however, that until July fifteenth, two thousand

twenty-seven, the first installment shall mature not later than two

years after the date of such bonds or two years after the date of the

first bond anticipation note or notes issued in anticipation of such

bonds, whichever is the earlier. However, if bond anticipation notes are

issued in anticipation of bonds and if a portion of such notes or the

renewals thereof are redeemed from a source other than the proceeds of

such bonds within two years from the date of the first such note or

notes and a further portion thereof shall be so redeemed prior to the

termination of each twelve months' period succeeding the date such

original portion was so redeemed, the first installment of such bonds

may, in the alternative, be made to mature not later than five years

from the date of the first such note or notes.

b-1. Notwithstanding the provisions of paragraph b of this section, if

bond anticipation notes are issued in anticipation of bonds for

assessable improvements and if a portion of such notes or the renewals

thereof are redeemed from a source other than the proceeds of such bonds

within two years from the date of the first such note or notes and a

further portion thereof shall be so redeemed prior to the termination of

each twelve months' period succeeding the date such original portion was

so redeemed, the first installment of such bonds shall mature not later

than twelve months from the last preceding date such portion is so

redeemed.

c. The last installment of serial bonds shall mature not later than

the expiration of the period of probable usefulness of the object or

purpose for which such bonds are issued, as computed from the date of

such bonds or, if bond anticipation notes shall have been issued in

anticipation thereof, as computed from the date of the earliest note or

notes so issued.

d. No annual installment of serial bonds shall be more than fifty per

centum in excess of the smallest prior installment. For the purpose of

the preceding sentence, bond anticipation notes, which are redeemed from

a source other than the proceeds of bonds, shall be deemed to be serial

bonds. Notwithstanding the foregoing, the finance board of any

municipality, school district or district corporation may determine to

issue bonds and provide for substantially level or declining annual debt

service. The determination of whether annual debt service is

substantially level or declining shall not take into account the first

twelve months after issuance to the extent that no provision is to be

made for the payment of principal during such period. If a municipality,

school district or district corporation determines to issue bonds with a

substantially level or declining annual debt service schedule, then the

aggregate amount of debt service payable in each year shall not exceed

the lowest aggregate amount of debt service payable in any prior year by

more than the greater of five percent or ten thousand dollars. For

purposes of this paragraph, debt service shall include all of the

following scheduled to become due: principal, redemption price, sinking

fund installments or contributions, and interest. For purposes of

determining whether debt service is substantially level or declining on

bonds issued with a variable rate of interest pursuant to section 54.90

of this article, the finance board shall estimate the average rate of

interest at which fixed interest rate bonds of the same maturities would

be sold and amortize principal based upon such interest rate assumption.

The estimate by the finance board of such interest rate shall be deemed

final and conclusive. If the finance board of the municipality, school

district or district corporation determines that interest on such bonds

shall be compounded and payable at maturity or prior redemption, such

bonds may be issued only where such finance board has determined to

issue the bonds pursuant to a substantially level or declining annual

debt service schedule unless accrued interest is contributed at least

annually to a sinking fund in accordance with section two of article

VIII of the constitution and the procedures of section 22.10 of this

title. A municipality, school district or district corporation providing

for substantially level or declining debt service may provide for

contracting such indebtedness as serial bonds, as sinking fund bonds, as

term bonds, or as any combination thereof. Term bonds may be issued

under the authority of this paragraph with a stated maturity and a

schedule of mandatory redemptions prior thereto, providing (with other

bonds of the same issue, if any) for substantially level or declining

debt service.

e. Serial bonds shall be redeemed by an annual appropriation.

f. Notwithstanding the provisions of paragraphs b and d of this

section:

1. The first installment of serial bonds issued for the purpose of

providing moneys out of which to make loans to or in aid of

limited-profit housing companies pursuant to article two of the private

housing finance law, or loans to owners of existing multiple dwellings

pursuant to article eight of the private housing finance law, or issued

for the purpose of providing moneys for the effectuating of any urban

renewal program or part thereof pursuant to the general municipal law,

may mature not later than five years after the date of issuance of such

bonds or six years after the date of issuance of the first bond

anticipation note or notes issued in anticipation of such bonds,

whichever is earlier; provided, however, that if the bond anticipation

notes or renewals thereof issued in anticipation of such serial bonds

extend more than five years beyond the original date of such issue,

pursuant to the provisions of paragraph b of section 23.00 of this

chapter, the first installment of such serial bonds may mature not later

than such number of years after the date of issuance of such bonds or

such number of years plus one after the original date of issuance of

such notes, whichever is earlier; and

2. The annual installments of serial bonds issued for such purpose and

for the purpose of providing moneys out of which to make loans to owners

of existing multiple dwellings pursuant to article eight of the private

housing finance law may be computed in such manner that the total of

principal and interest required to be paid in each year beginning with

the year in which the first installment is due, will be approximately

equal to the total of principal and interest required to be paid in each

succeeding year of the period for which such bonds were issued.

Sinking fund bonds of the city of New York. a. The city of New

York may issue sinking fund bonds pursuant to this section for the

following purposes:

1. The supply of water,

2. The acquisition, construction or equipment of rapid transit

railroads, or

3. The construction of docks,

including the acquisition of land in connection with any of such

purposes.

b. Sinking fund bonds issued by the city of New York pursuant to this

section shall mature at a date not later than the expiration of the

period of probable usefulness of the object or purpose for which they

are authorized to be issued, as computed from the date of such bonds or,

if bond anticipation notes shall have been issued in anticipation

thereof, from the date of the earliest note or notes so issued. Sinking

fund bonds may be referred to as "corporate stock" or as "term bonds".

c. Sinking fund bonds heretofore or hereafter issued by the city of

New York pursuant to this section shall be redeemable from the sinking

funds provided therefor pursuant to the New York city charter and the

administrative code of the city of New York.

d. The provisions of this section shall not be construed to prohibit

the city of New York from issuing sinking fund bonds pursuant to section

22.10 of this chapter for any of the purposes for which sinking fund

bonds may be issued pursuant to such section.

Sinking fund bonds of municipalities and school districts. a.

Any municipality or school district may issue sinking fund bonds for any

object or purpose for which serial bonds may be issued.

b. Sinking fund bonds shall mature at a date not later than the

expiration of the period of probable usefulness of the object or purpose

for which they are authorized to be issued, as computed from the date of

such bonds or, if bond anticipation notes shall have been issued in

anticipation thereof, from the date of the earliest note or notes so

issued; provided, however, that such bonds shall not mature at a date

that is later than fifty years from the date of such bonds or, if bond

anticipation notes shall have been issued in anticipation thereof, from

the date of the earliest note or notes so issued. Sinking fund bonds may

be referred to as "term bonds".

c. Sinking fund bonds shall be redeemed through annual contributions

to sinking funds established by the municipality or school district

issuing such sinking fund bonds. Each annual contribution shall be at

least equal to the amount required, if any, to enable the sinking fund

to redeem, on the date of the contribution, the same amount of

indebtedness as would have been paid and then be payable if such

indebtedness had been financed entirely by the issuance of serial bonds,

except, if an issue of sinking fund bonds is combined for sale with an

issue of serial bonds, for the same object or purpose, then the amount

of each such annual contribution shall be at least equal to the amount

required, if any, to enable the sinking fund to redeem, on the date of

each such annual contribution, (i) the amount which would be required to

be paid annually if such indebtedness had been issued entirely as serial

bonds, less (ii) the amount of indebtedness, if any, to be paid during

such year on the portion of such indebtedness actually issued as serial

bonds. There shall be established within a sinking fund established by

a municipality or school district an account for the amortization and

redemption of each issue of sinking fund bonds issued by such

municipality or school district. At the time of the issuance of sinking

fund bonds, the municipality or school district issuing such bonds shall

establish and deliver to the state comptroller a schedule setting forth

the amount required to be on deposit in the account established for the

redemption of such bonds for each year following the year of issuance of

such bonds until the year in which all the bonds of such issue are to be

redeemed. Each account shall be maintained at or above the amount

required to be on deposit pursuant to such schedule less the principal

amount of sinking fund bonds acquired pursuant to subparagraph (e) of

subdivision four of paragraph d of this section or purchased by or on

behalf of the municipality or school district and thereupon cancelled or

paid or for payment of which funds have been duly transferred to the

fiscal agent of the municipality or school district that issued the

bonds redeemable from such account. Not less than fifteen days nor more

than thirty days prior to the date on which the annual contribution

shall be made, the municipality or school district shall calculate the

amount expected to be on deposit in the sinking fund on such date and

shall certify such amount to the state comptroller. The municipality or

school district shall annually appropriate for deposit in the sinking

fund an amount equal to the difference between the amount required to be

on deposit in the sinking fund in accordance with the provisions of this

paragraph and the amount on deposit therein on the date the annual

contribution is to be made.

d. Sinking funds shall be maintained and managed by the state

comptroller pursuant to the provisions set forth below:

1. (a) Moneys deposited and retained in each account in the sinking

funds to be maintained and managed by the state comptroller shall vest

immediately in the state comptroller in trust for the benefit of the

holders of the bonds for which such account was established. Payments

and transfers from the sinking funds and the accounts therein shall not

be subject to appropriation by the legislature. The state comptroller

shall have custody of the securities and other assets in the sinking

funds; provided, however, that, subject to the rights of the owners of

the bonds, the state comptroller may contract with a bank or trust

company for the maintenance, management and custody of the sinking

funds. Such bank or trust company shall have an office and be authorized

to do business in the state and shall maintain a combined capital and

surplus of not less than seventy-five million dollars or shall be the

wholly-owned subsidiary of a corporation which maintains a combined

capital and surplus of not less than seventy-five million dollars.

(b) In performing his duties hereunder, the state comptroller shall

have no obligation to follow the directions of any bondholder or group

of bondholders nor to take any action on behalf of the bondholders,

including, without limitation, the obligation to take any action against

the municipality or the school district for nonpayment of an annual

contribution. The state comptroller shall be required to perform only

such duties as are set forth in this section and no implied covenants or

obligations shall be read into this section. The state comptroller shall

not be liable for any error of judgment made in good faith nor for any

action taken or omitted to be taken by him in good faith. The state

comptroller makes no representations as to the validity or sufficiency

of the bonds redeemable with amounts on deposit in the sinking funds,

and shall not be accountable for the use or application of the proceeds

of such bonds or of any excess in the sinking funds. The municipalities

and school districts shall deliver to the state comptroller such

certificates and documents as he shall by regulation or otherwise

request. A determination made or action taken by the state comptroller

under this section shall be final unless it is shown that such

determination or action was arbitrary and capricious or an abuse of

discretion.

(c) In connection with any claim, demand, suit, or judgment against

the state comptroller in connection with the exercise or performance of

any of his powers or duties under this section, the state comptroller

shall be entitled to representation by private counsel of his choice in

any civil judicial proceeding whenever the attorney general determines

based upon his investigation and review of the facts and circumstances

of the case that representation by the attorney general would be

inappropriate. The attorney general shall notify the state comptroller

in writing of such determination. The provisions of this subparagraph

shall be in addition to and shall not supplant the indemnification or

other benefits conferred upon the state comptroller by section seventeen

of the public officers law or otherwise, or any further indemnification

or other benefits that may be hereafter conferred by any such law. The

provisions of this subparagraph shall inure only to the state

comptroller, shall not enlarge or diminish the rights of any other

party, and shall not impair, limit or modify the rights and obligations

of any insurer under any policy of insurance.

2. As soon as practicable after a municipality or school district on

whose behalf the state comptroller is maintaining and managing a sinking

fund notifies the state comptroller of its intention to redeem sinking

fund bonds redeemable from an account in such sinking fund prior to or

at maturity, the state comptroller shall transfer the requested funds in

accordance with the instructions of such municipality or school

district.

3. Subject to the provisions of subdivision six of this paragraph, the

state comptroller shall, as soon as practicable following the request of

the municipality or school district, (i) transfer to such municipality

or school district any amounts in any account in the sinking fund held

on its behalf determined by the municipality or school district and

certified by it to the state comptroller to be over and above the amount

required to be maintained in such account pursuant to paragraph c of

this section or (ii) transfer or credit the excess in one account to

another account within a sinking fund established by such municipality

or school district. Such request shall not be made more than once in

any twelve month period.

4. (a) Moneys in any sinking fund shall be invested in any of the

following:

(i) Direct obligations of the United States of America or obligations

the principal of and interest on which are unconditionally guaranteed by

the United States of America.

(ii) Certificates of deposit issued by commercial banks or trust

companies maintaining their principal place of business in this state

which maintain, or the corporations of which they are wholly-owned

subsidiaries maintain, a combined capital and surplus of not less than

seventy-five million dollars; provided that any such investment in

certificates of deposit shall be secured by direct obligations of the

United States of America or the state or by obligations the principal of

and interest on which are unconditionally guaranteed by the United

States of America or the state in a principal amount with a fair market

value at least equal at all times to the principal amount at maturity of

such certificates of deposit, and provided further that such collateral

securities shall be physically delivered by the bank or trust company

issuing the certificate of deposit to the state comptroller or to a bank

or trust company designated pursuant to section sixty-five of the state

finance law as his agent (which designated bank or trust company shall

not be an issuer of certificates of deposit for the purposes of this

section) unless such collateral securities are issued in book-entry

form, in which case the state comptroller shall take such other action

as may be necessary to obtain title to or a perfected security interest

in such collateral securities.

(iii) With the consent of the municipality or school district on whose

behalf a sinking fund is held, securities of or guaranteed by the state

of New York or obligations of political subdivisions and public benefit

corporations thereof, other than obligations of such municipality or

school district.

(iv) Deposit accounts (other than certificates of deposit) at the

banks or trust companies described in subdivision one of this paragraph;

provided that the amounts on deposit in such accounts are secured at all

times by direct obligations of the United States of America or the state

or by obligations the principal of and interest on which are

unconditionally guaranteed by the United States of America or the state

in an amount with a fair market value at least equal at all times to the

amount of such deposits; and provided further that such collateral

securities shall be physically delivered for retention to the state

comptroller or a bank or trust company designated pursuant to section

sixty-five of the state finance law as his agent (which designated bank

or trust company shall not be the bank or trust company at which such

account is located) unless such collateral securities are issued in

book-entry form, in which case the state comptroller shall take such

other action as may be necessary to obtain title to or a perfected

security interest in such collateral securities.

(b) For purposes of making any investment of amounts pursuant to this

section, the state comptroller may consolidate moneys in any sinking

fund or account in a sinking fund with moneys in any other sinking fund

or account in the same or any other sinking fund and may transfer an

interest in an investment from one sinking fund or account to another

without liquidating the investment, but only if all such investments are

authorized or consented to for such sinking funds, and all such

investments shall be credited on a pro-rata basis to the appropriate

sinking funds and accounts. The allocable amount of income or interest

earned and gains realized in excess of losses suffered due to the

investment of amounts on deposit in any account in a sinking fund shall

be deposited upon receipt in such account. All investments made pursuant

to this section shall mature or be redeemable at the option of the

holder thereof on such dates and in such amounts as may be necessary to

pay principal of any sinking fund bonds when due, whether at maturity or

by redemption prior to maturity.

(c) Each municipality and school district shall provide the state

comptroller with information and opinions of counsel necessary to insure

that the municipality or school district complies with any restrictions

imposed by applicable federal law on the yield payable on investments in

a sinking fund. In order to comply with such yield restrictions, the

state comptroller shall, at the direction of the municipality or school

district, invest the amounts on deposit in any account of a sinking fund

of such municipality or school district in obligations described in

clause (iii) of subparagraph (a) of subdivision four of this paragraph,

the interest on which is exempt from federal income taxes. The state

comptroller is authorized to promulgate rules and regulations as he

deems appropriate to implement the provisions of this paragraph.

(d) The state comptroller may engage the services of such consultants

and counsel as he may deem necessary to assist in performing the

functions required to be performed by him under this section.

(e) The state comptroller shall, at the instruction of any

municipality or school district on whose behalf the state comptroller is

maintaining and managing a sinking fund, use his best efforts to apply

funds in any account within such sinking fund to purchase bonds

redeemable from such account.

5. The principal amount of sinking fund bonds required to be redeemed

on any date by payment from a sinking fund shall be reduced by the

principal amount of any such sinking fund bond which has been purchased

or redeemed and cancelled and not theretofore applied as a credit

against such requirement.

6. The state comptroller shall be reimbursed annually by March

fifteenth of each year for the fees and expenses of custodians of

securities in a sinking fund, fees and expenses of custodians of

collateral securities for investments in a sinking fund, fees of banks

and trust companies designated pursuant to subdivision one of this

paragraph, fees and expenses of counsel other than the attorney general,

fees and expenses of consultants, direct personnel costs of the

department of audit and control and other similar costs and related

expenses of maintaining and managing the sinking funds during the year

ending the preceding December thirty-first by the municipalities or

school districts issuing the bonds redeemable therefrom. Notwithstanding

the foregoing, the fees and expenses of consultants retained by the

comptroller shall be reimbursed by any such municipality or school

district only with its express consent. In the event that the state

comptroller shall not have been reimbursed as provided above, then the

state comptroller shall deduct the amount of the required reimbursement

from any excess on deposit in a sinking fund; provided, however, that in

no event shall the state comptroller use assets of the sinking funds

other than the excess therein for such reimbursement. The state

comptroller may establish such accounts in the state special revenue

fund as are necessary to provide for the receipt and disposition of such

payments as may be received from municipalities and school districts

pursuant to this subdivision; provided that payments and transfers from

such accounts shall be made pursuant to an appropriation provided by

law.

7. (a) The state comptroller shall adopt such regulations as he deems

appropriate to implement the provisions of this section, which may

include, but shall not be limited to, regulations establishing:

(A) The rights and responsibilities of the state comptroller in

maintaining and managing the sinking funds hereunder, which rights and

responsibilities may include, among others, that:

(i) the state comptroller undertakes to perform such duties and only

such duties as are specifically set forth in the statute, the

regulations or any agreement with the municipality or school district

and no implied covenants or obligations shall be read into the statute,

the regulations or into any agreement with the municipality or school

district against the state comptroller;

(ii) the state comptroller may conclusively rely, as to the truth of

the statements and the correctness of the opinions expressed therein,

upon certificates or opinions furnished to the state comptroller and

conforming to the requirements of the statute, the regulations and any

agreement with the municipality or school district; but in the case of

any such certificates or opinions which are specifically required to be

furnished to the state comptroller pursuant to paragraph c of this

section, the state comptroller shall be under a duty to examine the

contents of the same to determine whether or not they conform to the

requirements of the statute, the regulations and any agreement with the

municipality or school district;

(iii) the state comptroller shall not be liable for any error of

judgment made in good faith by him;

(iv) the state comptroller shall not be liable with respect to any

action taken or omitted to be taken by him in good faith in accordance

with the direction of the municipality or school district;

(v) the state comptroller may rely, and shall be protected in acting

or refraining from acting in reliance, upon any resolution, certificate,

statement, instrument, opinion, report, notice, request, direction,

consent, order, bond, debenture or other paper or document believed by

him to be genuine and to have been signed or presented by the proper

party or parties;

(vi) any request or direction of the municipality or school district

shall be sufficiently evidenced by a certificate signed by an authorized

official of the municipality or school district and any resolution of

the governing body of the municipality or school district may be

sufficiently evidenced by a copy of such resolution certified by the

appropriate official of the municipality or school district;

(vii) whenever the state comptroller shall deem it desirable that a

matter be proved or established prior to taking, suffering or omitting

any action, the state comptroller (unless other evidence be specifically

prescribed) may, in the absence of bad faith on his part, rely upon a

certificate signed by an authorized official of the municipality or

school district;

(viii) the state comptroller may consult with counsel, including the

attorney general, and the written advice of such counsel shall be full

and complete authorization and protection in respect of any action

taken, suffered or omitted by it in good faith and in reliance thereon;

(ix) the state comptroller shall not be bound to make any

investigation into the facts or matters stated in any resolution,

certificate, statement, instrument, opinion, report, notice, request,

direction, consent, order, bond or other paper or document, but the

state comptroller, in his discretion, may make such further inquiry or

investigation into such facts or matters as he may see fit, and, if the

state comptroller shall determine to make such further inquiry or

investigation, he shall be entitled to examine the books, records and

premises of the municipality or school district, personally or by agent

or attorney;

(B) Procedures for determining the value of investments in the sinking

funds and of the collateral securities securing such investments;

(C) Procedures for determining and allocating administrative expenses

related to maintaining and managing the sinking funds and the payment

thereof;

(D) Procedures for determining the amount of excesses in a sinking

fund and when withdrawals of excesses in a sinking fund may occur, for

transferring moneys from a sinking fund to redeem sinking fund bonds and

for directing the purchase of sinking fund bonds, including the

frequency with which such actions may be taken;

(E) The form and substance of reports, certificates and other material

to be delivered by the municipality or the school district to the state

comptroller;

(F) Standards for the qualification of consultants to the state

comptroller;

(G) Procedures for securing amounts on deposit in the sinking funds;

(H) Procedures for distributing the amount on deposit in a sinking

fund if such amount is insufficient to pay any bonds when due; and

(I) Procedures for the disposition of a sinking fund upon defeasance

of the sinking fund bonds, if defeasance other than by payment or

purchase by sinking fund moneys is legally permissible.

(b) Each municipality and school district is authorized to enter into

agreements with the state comptroller and the state comptroller is

authorized to enter into agreements with one or more municipality or

school district setting forth, with respect to the sinking funds and

each account therein, the dates on which annual contributions to such

accounts shall be made, the dates on which withdrawals from such

accounts may be made, the dates on which excesses in such accounts shall

be calculated, any limitations on the price to be paid for the purchase

of bonds pursuant to subparagraph (e) of subdivision four of this

paragraph and such other matters as the state comptroller and the

municipality or school district shall deem appropriate. Such agreements

shall be subject to approval only by the chief fiscal officer and the

finance board of the municipality or school district.

8. Nothing in this section shall be construed to prevent or apply to

the issuance of sinking fund bonds by the city of New York pursuant to

the authorization contained in section 22.00 of this chapter; provided,

however, that in the event the city of New York issues sinking fund

bonds pursuant to the authorization contained in this section, all of

the provisions of this section shall apply.

9. Failure to comply with any provision of this section shall not

affect the validity of any sinking fund bonds.

10. The comptroller shall annually prepare a report with respect to

the maintenance and management of sinking funds authorized by this

section. Such report, with respect to each municipality and school

district issuing sinking fund bonds pursuant to this section, shall

include, but not be limited to, a summary statement of the cash and

bonds invested in sinking funds, earnings thereon and disbursements

therefrom, and fees charged including information pertaining to the

allocation of the costs of the department of audit and control of

managing and maintaining such funds. Such report may also include any

other matter which the comptroller deems advisable. Such report shall be

delivered not later than May thirtieth to the governor, the temporary

president of the senate, the speaker of the assembly, the chairman of

the senate finance committee, the chairman of the assembly ways and

means committee and the chief fiscal officer of each such municipality

and school district.

Bond anticipation notes. a. Bond anticipation notes may be

issued by any municipality, school district or district corporation in

anticipation of the sale of bonds. Such notes may be issued whenever

bonds have been authorized and the proceeds of such notes shall be

expended only for the same object or purpose, or class thereof for which

the proceeds of such bonds may be expended.

b. Such notes shall mature at such time as the issuer may determine

and may be renewed from time to time, provided, that in no event shall

such notes or the renewals thereof extend more than two years beyond

such original date of issue unless a portion of such notes or the

renewals thereof shall be redeemed from a source other than the proceeds

of bonds within two years from such original date of issue and unless a

further portion thereof shall be so redeemed prior to the termination of

each twelve months' period succeeding the date such original portion was

so redeemed, if any of such notes, as renewed, are still outstanding at

the termination of each such period, but such notes or the renewals

thereof shall not extend more than five years beyond such original date

of issue. Such redemption shall be consistent with the amortization

requirements of article eight of the state constitution and section

21.00 of this title. If the finance board has determined to provide for

substantially level or declining debt service on the bonds in

anticipation of which such notes are authorized to be issued, such notes

shall be redeemed in an amount at least equal in each year to the annual

installment which would be paid in such year if such notes were serial

bonds issued at a five percent rate of interest for the remaining period

of probable usefulness of the object or purpose for which issued, or, if

less, the remaining portion of the maximum authorized maturity of such

bonds, and all annual debt service payments were equal over the life of

such bonds. In any event, bond anticipation notes shall not be renewed

after the receipt of the proceeds from the sale of the bonds in

anticipation of which such notes were issued. Notwithstanding the

provisions of this paragraph: 1. bond anticipation notes issued in

anticipation of the receipt of the proceeds of the sale of bonds for the

purpose of providing moneys out of which to make loans to limited profit

housing companies pursuant to article two of the private housing finance

law, or loans to owners of existing multiple dwellings pursuant to

article eight of the private housing finance law, or for the purpose of

providing moneys for the effectuating of any urban renewal program or

part thereof pursuant to the general municipal law, or the renewals of

such notes, may extend not more than five years beyond the original date

of issue of such notes; and 2. renewals of bond anticipation notes

issued originally during calendar years two thousand fifteen through two

thousand twenty-one, inclusive may not extend more than seven years

beyond the original date of issue of such bond anticipation notes.

b-1. Notwithstanding the provisions of paragraph b of section 21.00 of

this title and the provisions of paragraph b of this section any bond

anticipation notes issued in anticipation of bonds for an assessable

improvement may be renewed from time to time for a period not exceeding

one year for each such renewal, and without limitation as to the number

of such renewals, provided that such notes, as renewed, shall not extend

beyond the expiration of the period of probable usefulness of the object

or purpose for which issued, as computed from the date of the first note

or notes so issued, and provided further that such notes, as renewed,

shall not extend more than two years from the date of the first note or

notes so issued unless a portion thereof shall be redeemed from a source

other than the proceeds of such bonds within two years from the date of

the first note or notes so issued and unless a further portion thereof

shall be so redeemed prior to the termination of each twelve months'

period succeeding the date such original portion was so redeemed, if any

of such notes, as renewed, are still outstanding at the termination of

each such period. Annual principal installments on notes issued pursuant

to this paragraph shall be computed in accordance with the provisions of

paragraph b of this section. Every bond anticipation note resolution and

certificate authorizing any such renewal note, in addition to the

statements and provisions required by section 38.10 of this chapter,

shall contain a statement indicating that such note is issued in

anticipation of bonds for an assessment improvement.

c. Bond anticipation notes shall not be issued in an amount which

shall exceed the par value of the bonds in anticipation of which they

are to be issued.

d. 1. Bond anticipation notes shall be redeemed from the proceeds of

the sale of the bonds in anticipation of which they were issued.

However, if such bonds are not sold, then such bond anticipation notes

shall be redeemed:

(a) From any unencumbered balance in any fund which may be applied to

the payment thereof, or

(b) By a budgetary appropriation.

2. Notwithstanding the provisions of subdivision one of this

paragraph, bond anticipation notes may be redeemed, in whole or in part,

prior to the sale of the bonds in anticipation of which such notes were

issued, from any moneys which lawfully may be applied to the payment of

such notes.

Tax anticipation notes.

a. 1. Tax anticipation notes may be issued by any municipality, school

district or district corporation, other than a fire district,

(a) During a fiscal year in anticipation of the collection of taxes or

assessments levied for such fiscal year,

(b) Within ten days prior to the commencement of a fiscal year or,

where the fiscal year of the issuer is a calendar year, within thirty

days prior to the commencement of a fiscal year, in anticipation of the

collection of taxes or assessments levied for such fiscal year,

(c) During a fiscal year in anticipation of the collection of taxes or

assessments to be levied in such fiscal year,

(d) Within ten days prior to the commencement of a fiscal year or,

where the fiscal year of the issuer is a calendar year, within thirty

days prior to the commencement of a fiscal year, in anticipation of the

collection of taxes or assessments to be levied in such fiscal year, or

(e) During any fiscal year in anticipation of the collection of taxes

or assessments levied for any of the four preceding fiscal years.

The term "assessments" as used in this paragraph means assessments

levied or to be levied for operation, maintenance or debt service.

2. Prior to the adoption of its annual budget any municipality, school

district or district corporation which adopts an annual budget after the

commencement of its fiscal year shall not issue such notes pursuant to

items (c) or (d) of subdivision one of this paragraph in excess of the

combined amounts of:

(a) The amount necessary for the payment of the principal of and

interest on any indebtedness to become due during the first four months

of its current fiscal year, and

(b) Thirty-five per centum of the difference between the amount of its

annual budget for the preceding fiscal year and the amount provided

therein for the payment of the principal of and interest on

indebtedness.

3. In no event shall any municipality, school district or district

corporation reduce the amount to be raised by taxes or assessments in

its annual budget or other determination of taxes or assessments to be

raised to an amount less than the amount of the outstanding notes which

have been issued pursuant to items (c) and (d) of subdivision one of

this paragraph.

4. In the case of such notes issued pursuant to items (a), (b) and (e)

of subdivision one of this paragraph, such notes shall not be issued in

an amount in excess of the amount of the taxes or assessments levied for

a fiscal year which is uncollected at the time of such borrowing less:

(a) The amount of the outstanding tax anticipation notes issued in

anticipation of the collection of such taxes or assessments, and

(b) The amount, if any, included in the annual budget for such fiscal

year or in the levy of taxes or assessments for such fiscal year to

offset, in whole or in part, an anticipated deficiency in the collection

before the end of such fiscal year of the taxes or assessments levied

for such fiscal year.

5. The proceeds of notes issued pursuant to items (c) and (d) of

subdivision one of this paragraph shall be used only for the purposes

for which the taxes or assessments are to be levied or for the

redemption of notes in renewal of which they were issued. The proceeds

of notes issued pursuant to items (a), (b) and (e) of subdivision one of

this paragraph shall be used only for the purposes for which the taxes

or assessments were levied or for the redemption of notes in renewal of

which they were issued, provided, however, that the proceeds of such

notes may be used for other lawful purposes if the purposes for which

the taxes or assessments were levied have been satisfied and there are

no unpaid claims arising therefrom or appropriate provision has already

been made for the payment of such unpaid claims.

6. Tax anticipation notes issued pursuant to this paragraph shall

mature within one year from the date of their issuance and may be

renewed from time to time, but each renewal shall be for a period not to

exceed one year. Such notes or the renewals thereof shall be retired

within five years after their date of original issue and in any event

not later than five years after the close of the fiscal year for which

were levied the taxes or assessments in anticipation of the collection

of which such notes were issued; provided, however, that such notes

issued pursuant to items (b) and (d) of subdivision one of this

paragraph, or the renewals thereof, shall not extend beyond the close of

the fourth fiscal year succeeding that in which the original notes were

issued.

b. A municipality may issue tax anticipation notes in anticipation of

the collection of the unpaid taxes or assessments of another

municipality, a school district or a district corporation provided (1)

such unpaid taxes or assessments are returned or certified to it,

pursuant to law, and (2) such unpaid taxes or assessments are to be

collected by or on behalf of the municipality to which such return or

certification is made, and (3) such return or certification be accepted

by such municipality. If a municipality is required by law to pay over

to another municipality, a school district or district corporation all

or part of the taxes or assessments of such other municipality, school

district or district corporation, such municipality may issue tax

anticipation notes in anticipation of the collection of such unpaid

taxes or assessments in order to make such payment. Notes issued

pursuant to this paragraph shall mature within a period not to exceed

one year from the date of their issuance and may be renewed from time to

time, but each renewal shall be for a period not to exceed one year and

in no event shall such notes or the renewals thereof extend beyond the

close of the fourth fiscal year succeeding the fiscal year for which

such taxes or assessments were levied. The proceeds of such notes shall

be used as required by law, or for the redemption of notes in renewal of

which they were issued.

c. If any tax district which is required by law to pay over to the

county treasurer on or before October fifteenth of any calendar year the

full amount of county or county district taxes or assessments due for

such calendar year fails or neglects to pay to the treasurer of such

county on or before such date the full amount of such taxes or

assessments due for such calendar year, the county may issue tax

anticipation notes in its own name to the amount of such deficiency.

Such notes shall mature on or before June first of the next calendar

year after such default and may be renewed from time to time but no

renewal shall extend beyond eighteen months from the date of issue of

the original note. Provision shall be made for the payment of the

principal of and interest on said tax anticipation notes in the manner

provided by section ninety-six of the tax law. The proceeds of such

notes shall be used only for the purposes for which such taxes or

assessments were levied or for the redemption of notes in renewal of

which they were issued.

c-1. Any fire district in a town in the county of Westchester in which

real estate taxes and assessments become payable on April first in each

year may issue tax anticipation notes during any fiscal year prior to

June first in such year in anticipation of the collection of taxes or

assessments levied for such fire district for such year. Notes issued

pursuant to the provisions of this paragraph shall mature on or before

June first next following the date of their issuance and shall be

redeemed from the taxes or assessments in anticipation of the collection

of which such notes were issued. Such notes shall not be issued in an

amount in excess of the difference between the amount of the fire

district taxes or assessments remaining uncollected at the time of such

borrowing and the amount of tax anticipation notes issued in

anticipation of the collection of such taxes or assessments. Whenever

the amount of tax anticipation notes issued pursuant to this paragraph

shall equal the amount of such taxes or assessments remaining

uncollected, all of such taxes or assessments, as thereafter collected,

shall be set aside in a special bank account to be used only for the

payment of such notes as they become due. The proceeds of such notes

shall be used only for the purposes for which such taxes or assessment

were levied.

c-2. Any fire district in any town other than a town in the county of

Westchester may issue tax anticipation notes at any time during the

first three months of its fiscal year in anticipation of the collection

of real estate taxes levied for such fire district for such fiscal year.

Notes issued pursuant to the provisions of this paragraph shall mature

on or before the fifteenth day of April next following the date of their

issuance and shall be redeemed from the taxes in anticipation of the

collection of which such notes were issued. Such notes shall not be

issued in an amount in excess of the difference between the amount of

the fire district taxes remaining uncollected at the time of such

borrowing and the amount of tax anticipation notes issued in

anticipation of the collection of such taxes. Whenever the amount of tax

anticipation notes issued pursuant to this paragraph shall equal the

amount of such taxes remaining uncollected, all of such taxes, as

thereafter collected, shall be set aside in a special bank account to be

used only for the payment of such notes as they become due. The proceeds

of such notes shall be used only for the purposes for which such taxes

were levied. For the purpose of this paragraph such real estate taxes

shall be deemed to be uncollected until the fire district receives cash

therefor from the public officer required to pay such taxes to the fire

district.

d. 1. In the case of a newly created municipality, school district or

district corporation, or in the case of any such unit of government

which has elected a finance board for the first time, tax anticipation

notes may be issued, prior to the first levy of taxes or assessments,

for the necessary expenses incidental to its incorporation or creation

and the other necessary expenses incurred or to be incurred prior to

such levy. In the case of a municipality or school district, such notes

shall not be issued in an amount in excess of two per centum of the

assessed valuation of the taxable property therein as shown upon the

last preceding assessment roll of any unit of government in which such

property was evaluated. If, however, any part of such property was

evaluated in the assessment roll of more than one unit of government its

value, for the purposes of this section, shall be the lowest value

assigned to it by any such assessment roll. In the case of a fire

district, such notes shall not be issued in an amount exceeding

one-twelfth of the amount of taxes which the fire district may raise

annually without adopting a proposition pursuant to the provisions of

the town law for each calendar month intervening between the date of the

creation of the district and the first day of the fiscal year of the

district for which an annual budget can be adopted, plus an amount not

exceeding the actual and necessary expenses incidental to its creation.

The phrase "the amount of taxes which the fire district may raise

annually without adopting a proposition pursuant to the provisions of

the town law," as used herein, shall mean two thousand dollars, except

that in fire districts having a full valuation in excess of one million

dollars it shall mean two thousand dollars plus one mill for each dollar

of full valuation of the taxable real property of the fire district in

excess of the first million dollars of full valuation of such taxable

real property. In the case of any district corporation, other than a

fire district, such notes shall not be issued in an amount in excess of

one mill of the assessed valuation of the taxable property therein as

shown upon the last preceding assessment roll of any unit of government

in which such property was evaluated in addition to the necessary

expenses incidental to incorporation. If, however, any part of such

property was evaluated in the assessment roll of more than one unit of

government, its value for the purpose of this section shall be the

lowest value assigned to it by any such assessment roll.

2. In the case of the establishment of any improvement district of a

county or of a town, which is to be financed by taxes or assessments

levied upon an ad valorem or benefit basis, or in the case of the

consolidation of special improvement districts, prior to the first levy

in which such taxes or assessments are to be levied for such district or

consolidated district the county or town, as the case may be, may issue

tax anticipation notes for the necessary expenses incidental to the

creation of such district or consolidation of such districts, and the

other necessary expenses incurred or to be incurred for such district or

consolidated district prior to such levy.

3. An appropriation for the redemption of notes issued pursuant to

this paragraph shall be included in the first levy of taxes or

assessments of or for such municipality, school district, district

corporation or improvement district. Such notes shall mature within one

year from their date of issue and may be renewed from time to time, but

each renewal shall be for a period not to exceed one year and in no

event shall such notes or the renewals thereof extend beyond the close

of the second fiscal year succeeding the fiscal year in which such notes

were issued. The proceeds of such notes shall be used only to pay such

necessary expenses incidental to such incorporation or creation and such

other necessary expenses incurred or to be incurred prior to any such

levy or for the redemption of notes in renewal of which they were

issued.

e. Whenever the amount of tax anticipation notes issued pursuant to

paragraphs a, b and d of this section in anticipation of the collection

of the taxes or assessments levied or to be levied for a fiscal year

shall equal the amount of such taxes or assessments remaining

uncollected less the amount, if any, included in the annual budget for

such fiscal year or in the levy of taxes or assessments for such fiscal

year to offset, in whole or in part, an anticipated deficiency in the

collection before the end of such fiscal year of the taxes or

assessments levied for such fiscal year, all of such uncollected taxes

or assessments, as thereafter collected, shall be set aside in a special

bank account to be used only for the payment of such notes as they

become due, unless other provision is made pursuant to law for the

redemption of such notes. Any municipality, school district or district

corporation may make budgetary appropriations for the redemption of such

notes whether or not required or otherwise authorized by law to do so.

In the event such an appropriation is made, such municipality, school

district or district corporation shall not be required to pay into the

special account the proceeds of the taxes or assessments against which

such notes were issued but such proceeds may be used in the manner

provided by law or if there is no provision of law pertaining to the use

of such proceeds, such proceeds shall be treated as surplus moneys for

the fiscal year in which they are collected. This paragraph shall not

apply to notes issued pursuant to paragraph c of this section.

f. 1. Where a tax anticipation note issued pursuant to paragraphs a, b

or d of this section is to be renewed by the issuance of a renewal note,

and the taxes or assessments in anticipation of which it was issued have

been levied for a fiscal year, but remain uncollected, such renewal note

shall not be issued for an amount in excess of the amount of such taxes

or assessments remaining uncollected at the time of such renewal, less:

(a) The amount of any other outstanding tax anticipation notes issued

in anticipation of the collection of such taxes or assessments, and

(b) The amount, if any, included in the annual budget for such fiscal

year or in the levy of taxes or assessments for such fiscal year to

offset, in whole or in part, an anticipated deficiency in the collection

before the end of such fiscal year of the taxes or assessments levied

for such fiscal year.

In no event shall such a renewal note be issued for an amount in excess

of the original amount of the note in renewal of which it is to be

issued.

2. Where a tax anticipation note issued pursuant to paragraphs a or d

of this section is to be renewed, and the taxes or assessments in

anticipation of which it was issued have not been levied, such renewal

note shall not be issued for an amount in excess of the original amount

of the note in renewal of which it is to be issued.

3. Where a tax anticipation note issued pursuant to paragraph c of

this section is to be renewed, such renewal note shall not be issued in

an amount in excess of the difference between the original amount of

such note to be renewed, less the amount of moneys received and applied

or to be applied to the payment of such note.

g. Tax anticipation notes may be issued by any municipality during any

fiscal year thereof:

1. In anticipation of the collection of assessments levied for such

fiscal year, or to be levied in such fiscal year, to pay the cost of

capital improvements, if such assessments are to be collected in one

installment; provided, however, that if such assessments have been

levied, such notes shall not be issued in an amount in excess of the

difference between the amount of such assessments remaining uncollected

at the time of such borrowing and the amount of outstanding tax

anticipation notes issued in anticipation of the collection of such

assessments.

2. In anticipation of the collection of an installment of assessments

levied for a capital improvement, if such assessments are to be

collected in several annual installments and such installment becomes

due and payable during such fiscal year; provided, however, that such

notes shall not be issued in an amount in excess of the difference

between the amount of such installment remaining uncollected at the time

of such borrowing and the amount of outstanding tax anticipation notes

issued in anticipation of the collection of such installment.

3. The proceeds of tax anticipation notes issued pursuant to this

paragraph shall be used only for the purposes for which such assessments

were levied or are to be levied or for the redemption of notes in

renewal of which they were issued.

4. Tax anticipation notes issued pursuant to this paragraph shall

mature within one year from the date of their issuance and may be

renewed from time to time but each renewal shall be for a period not to

exceed one year and in no event shall such notes or the renewals thereof

extend beyond the close of the second fiscal year succeeding the fiscal

year in which such notes were issued.

5. Whenever the amount of tax anticipation notes issued pursuant to

this paragraph in anticipation of the collection of assessments or an

installment thereof levied for a capital improvement equals the amount

of such assessments or such installment remaining uncollected, all of

such assessments or such installment, as thereafter collected, shall be

set aside in a special bank account to be used only for the payment of

such notes as they become due, unless other provision is made, pursuant

to law, for the redemption of such notes. Any municipality may make

budgetary appropriations for the redemption of such notes whether or not

required or otherwise authorized by law to do so. In the event such an

appropriation is made, such municipality shall not be required to pay

into the special account the proceeds of the assessments, or the

installment thereof, against which such notes were issued but such

proceeds may be used in the manner provided by law or if there is no

provision of law pertaining to the use of such proceeds, such proceeds

shall be treated as surplus moneys for the fiscal year in which they are

collected.

6. (a) Where a tax anticipation note issued pursuant to this paragraph

is to be renewed by the issuance of a renewal note, and the assessments

or installment thereof in anticipation of which it was issued have been

levied, but remain uncollected, such renewal note shall not be issued

for an amount in excess of the amount of such assessments or installment

thereof remaining uncollected at the time of such renewal, less the

amount of any other outstanding tax anticipation notes issued in

anticipation of the collection of such assessments or installment

thereof; but in no event shall such a renewal note be issued for an

amount in excess of the original amount of the note in renewal of which

it is to be issued.

(b) Where a tax anticipation note issued pursuant to this paragraph is

to be renewed, and the assessments or installment thereof in

anticipation of which it was issued have not been levied, such renewal

note shall not be issued for an amount in excess of the original amount

of the note in renewal of which it is to be issued.

h. Tax anticipation notes may be issued by any municipality during any

fiscal year thereof in anticipation of the levy or distribution of

assessments for work or services if the expenditures for such work or

services are financed from a fund into which are paid the proceeds of

such notes and if such assessments are required to be collected in one

installment and included in the tax roll for the fiscal year succeeding

the fiscal year in which such notes were issued or in the tax roll for

the second succeeding fiscal year. Any such municipality shall pay the

proceeds of such assessments into any such fund. Notes issued pursuant

to the provisions of this paragraph shall mature within one year from

the date of their issuance and may be renewed from time to time but each

renewal shall be for a period not to exceed one year and in no event

shall such notes or the renewals thereof extend beyond the close of the

second fiscal year succeeding the fiscal year in which such notes were

issued. No such renewal note shall be issued for an amount in excess of

the original amount of the note in renewal of which it was issued.

i. For the purpose of this section, taxes or assessments shall be

deemed to be uncollected and not received by a municipality, school

district or district corporation until cash is paid to such

municipality, school district or district corporation for such taxes or

assessments and such taxes or assessments are cancelled or the title to

such taxes or assessments is transferred by such municipality, school

district or district corporation, or until real property has been sold

for such taxes or assessments and has been acquired by such

municipality, school district or district corporation and such

municipality, school district or district corporation has realized cash

by the sale of such real property. For the purpose of this section the

term "taxes" or the term "assessments" shall not include interest or

penalties upon uncollected taxes or assessments.

j. Notwithstanding any provision of any other law, general or special,

a central high school district may issue tax anticipation notes in

accordance with and subject to the provisions of this section applicable

to a school district; provided, however, that the aggregate amount of

taxes in anticipation of which a central high school district may issue

tax anticipation notes shall not exceed the sum of the taxes levied or

to be levied for central high school district purposes in each school

district included within the central high school district and, provided

further, that no such school district included within the central high

school district shall be authorized to issue tax anticipation notes in

anticipation of taxes levied or to be levied therein for central high

school district purposes.

Tax receivable notes. The city of New York may issue tax

anticipation notes which are tax receivable notes. As used in this

section, the term "tax receivable notes" shall mean tax anticipation

notes issued pursuant to section 24.00 of this title, which shall, upon

maturity, at the election of the holder thereof if so provided in such

notes, be receivable at full face value and in lieu of cash in payment

of any tax of the city of New York, any installment of estimated tax of

the city of New York, or any interest or penalties thereon, as shall be

designated by the comptroller of the city of New York at the time such

tax receivable notes are issued. Tax receivable notes received in

payment of any such tax or installment of estimated tax or interest or

penalties shall be cancelled by the officer receiving the same, as of

the date of their receipt.

Tax receivable notes for the city of Yonkers. a. The city of

Yonkers may issue tax anticipation notes which are tax receivable notes.

As used in this section, the term "tax receivable notes" shall mean tax

anticipation notes issued pursuant to section 24.00 of this title, which

shall, upon maturity, at the election of the holder thereof if so

provided in such notes, be receivable at full face value of principal

and interest to the date of maturity and in lieu of cash in payment of

any tax or installment or portion thereof of the city of Yonkers or any

installment or portion thereof of estimated tax of said city or any

interest or penalties thereon as shall be designated by the comptroller

of the city of Yonkers at the time such tax receivable notes are issued.

Tax receivable notes received in payment of any such tax or installment

of estimated tax or interest or penalties shall be cancelled by the

officer receiving the same, as of the date of maturity. At the time of

registration in the name of the taxpayer or at the time of payment in

lieu of cash by any holder, the taxpayer or holder or any duly

authorized agent or attorney thereof shall state in writing in a space

provided on the reverse side of the note the taxes to be paid and the

amounts thereof, and shall acknowledge such statement before a notary

public, commissioner of deeds or officer of any bank or trust company

located and authorized to do business in the state of New York. Upon the

acknowledgment of such statement on such note or notes and the delivery

thereof to the office of the comptroller of the city of Yonkers, the

taxes included in such statement shall be satisfied and extinguished to

the extent of the face value of principal and interest to maturity of

such note or notes. The term "tax" as used in this section shall mean

and include all ad valorem taxes or assessments or special benefit

assessments on real property, all sales, compensating use, or other

taxes levied for the municipal purposes of the city of Yonkers. Tax

receivable notes registered in the name of the mortgagor of real

property may be accepted by or on behalf of the mortgagee of such real

property in lieu of cash as payment of real property taxes of the city

of Yonkers, and thereafter the mortgagee may use such note in payment of

the real property taxes due from such mortgagor to the city of Yonkers.

b. Tax receivable notes shall be authorized by a "tax receivable note

resolution" adopted by the city council and such notes and said

resolution shall be subject to the provisions of this chapter applicable

to tax anticipation notes except as otherwise provided by law.

c. Such notes may be sold at public or private sale at such interest

rate as the city council of the city of Yonkers shall determine. Such

notes may be signed by the facsimile signature of the comptroller and

the seal of said city may be imprinted or otherwise reproduced on such

notes and attested by the manual signatures of the city clerk or any

deputy city clerks appointed by the city council for such purpose.

d. Notwithstanding the provisions of section 24.00 of this title, or

of any other law, general, special or local, tax receivable notes may be

issued by the city of Yonkers during the emergency period established by

the financial emergency act for the city of Yonkers, up to one hundred

twenty days prior to the commencement of the fiscal year in which the

real property taxes or assessments, in anticipation of which such tax

receivable notes are to be issued, are to be received or collected and

such notes or any renewals thereof may extend to the end of such fiscal

year.

Revenue anticipation notes. a. As used in this section:

1. The term "taxes" shall mean taxes other than real estate taxes.

2. The terms "rents," "rates" or "charges" shall mean sewer or water

rents, rates or charges.

3. The term "moneys" shall mean moneys to be received from the state,

the United States government or from the county as a portion of the

distribution of the county sales and compensating use tax, and for

special act public school districts enumerated in chapter five hundred

sixty-six of the laws of nineteen hundred sixty-seven, as amended, shall

also mean tuition payments to be received from public school districts

and social services districts.

4. The term "other income" shall mean income derived from electric

light and power plants or distribution systems, or other utility plants

or distribution systems, or any other type of income producing

facilities or operations owned and operated by a municipality or a

district corporation.

5. The term "revenue" includes taxes, rents, rates, charges, moneys

and other income.

b. (1) Revenue anticipation notes may be issued by any municipality,

school district or district corporation in anticipation of: the

collection or receipt of revenue, provided that each such note shall be

issued only against a specific type of revenue, or for the purpose of

renewing a previously issued revenue anticipation note.

(2) Notwithstanding the provisions of paragraph one of this

subdivision, revenue anticipation notes may be issued by the city of New

York for revenues receivable from state and federal governments on an

overall basis, rather than by specific sources of revenue.

c. 1. Revenue anticipation notes may be issued during any fiscal year

in which such taxes, rents, rates or charges or other income in

anticipation of which such notes are issued become due and payable or

such moneys become due; however, such notes may be issued by a school

district in anticipation of moneys to be received in a fiscal year

during the two weeks prior to the commencement of such fiscal year.

2. In addition to the powers granted by subparagraph one of this

paragraph c or by any other provision of this section, the city of New

York may issue revenue anticipation notes in anticipation of a specific

type of revenue, as defined in this sub-paragraph two, which is to be

received or collected by such city in the fiscal year of such city

commencing after the fiscal year during which such notes are issued, in

an amount not exceeding the portion of such specific type of revenue

estimated by the mayor of such city to be attributable to or based upon

transactions or activities occurring during the months of April, May and

June of the fiscal year during which such notes are issued, less the

amount of such portion of such specific type of revenue so estimated by

the mayor, which has actually been received or collected at the time of

the issuance of such notes and the amount of any outstanding revenue

anticipation notes issued against such portion of such specific type of

revenue so estimated by the mayor. The proceeds of notes issued pursuant

to this sub-paragraph two may be applied to any purposes or expenditures

of the fiscal year of such city during which such notes are issued,

including payment into the general fund of such city for use during such

fiscal year, or for the redemption of notes in renewal of which such

notes were issued. The provisions of paragraph d of this section shall

not apply to revenue anticipation notes issued pursuant to this

subparagraph two. As used in this subparagraph two, the term "revenue"

shall mean any taxes, rents, rates, charges, moneys or other income as

defined in paragraph a of this section, imposed, charged or received by

such city pursuant to any state or local law heretofore or hereafter

enacted and attributable to or based upon transactions or activities

occurring in the months of April, May and June of a fiscal year during

which revenue anticipation notes are issued by such city pursuant to

this subparagraph two and which is to be received or collected by such

city in the fiscal year commencing after such April, May and June, and

shall include, but not be limited to: (a) taxes imposed under titles G,

M, N, V of chapter forty-six of the administrative code of the city of

New York with respect to which returns are required to be filed in

accordance with the provisions of subdivision (e) of section twelve

hundred fifty-one of the tax law; (b) taxes imposed under titles P and Q

of chapter forty-six of such code with respect to which returns are

required to be filed on or before the twenty-fifth day of July, nineteen

hundred sixty-five for the calendar month of June, nineteen hundred

sixty-five; (c) taxes imposed by such city pursuant to chapter two

hundred fifty-seven of the laws of nineteen hundred sixty-three as

heretofore or hereafter amended or supplemented; (d) taxes imposed by

such city by local laws adopted or amended after April eleventh,

nineteen hundred sixty-five, pursuant to article twenty-nine of the tax

law as heretofore or hereafter amended or supplemented; (e) taxes

payable into the general fund of the city of New York pursuant to

section two hundred sixty-one of the tax law as heretofore or hereafter

amended or supplemented; (f) charges for the supply of water by such

city in accordance with meter rates and minimum charges for such supply

of water measured by meter, payable as prescribed by section 415

(1)-17.0 of the administrative code of the city of New York as

heretofore or hereafter amended or supplemented; (g) the amounts payable

to such city pursuant to subdivision two of section one hundred twelve-a

of the highway law as heretofore or hereafter amended or supplemented;

(h) the amounts payable into the general fund of such city pursuant to

section eighty-nine of the state finance law as heretofore or hereafter

amended or supplemented; and (i) taxes imposed by such city pursuant to

chapter two hundred thirty-five of the laws of nineteen hundred

fifty-two as heretofore or hereafter amended.

d. The total amount of revenue anticipation notes which a

municipality, school district or district corporation may issue in

anticipation of the collection or receipt of a specific type of revenue

shall be determined in the following manner:

1. In a municipality, school district or district corporation in which

an annual budget is prepared and adopted for a fiscal year prior to the

commencement thereof, such amount shall be

(a) The amount of such specific type of revenue as estimated in the

annual budget of such municipality, school district or district

corporation for such fiscal year, or the amount of such specific type of

revenue recognized for the fiscal year preceding that for which such

budget is to be or has been adopted, whichever amount is the smaller,

less

(b) The amount of such specific type of revenue so estimated in such

budget which has actually been received or collected at the time of the

issuance of such notes, and the amount of any outstanding revenue

anticipation notes issued against such specific type of revenue for the

fiscal year for which such notes are to be issued. For such a

municipality, school district or district corporation, the term

"estimated amount" as used in paragraph g of this section shall mean the

smaller amount determined in item (a) of this subdivision prior to the

deductions required by this item.

The provisions of this subdivision shall not be applicable (1) where a

specific type of revenue has not been estimated in such budget and in

that case such amount shall be the amount of such revenue as is

estimated by the chief fiscal officer to be recognized for the fiscal

year for which such budget has been adopted, or (2) where a specific

type of revenue has not been recognized for the entire fiscal year

preceding that for which such budget has been adopted and in that case

such amount shall be the amount, if any, of the specific type of revenue

as estimated in the annual budget, less, in either case, the amount of

such specific type of revenue which has actually been received or

collected at the time of the issuance of such notes, and the amount of

any outstanding revenue anticipation notes issued against such specific

type of revenue for the fiscal year for which such notes are to be

issued.

2. In a municipality, school district or district corporation in which

an annual budget is not prepared or in which an annual budget is

prepared for a fiscal year but is adopted subsequent to the commencement

thereof, such amount shall be

(a) The amount of such specific type of revenue recognized for the

fiscal year next preceding the fiscal year for which such notes are to

be issued, or the amount of such specific type of revenue recognized for

the second fiscal year preceding the fiscal year for which such notes

are to be issued, whichever amount is the smaller, less

(b) The amount of such specific type of revenue for the fiscal year

for which such notes are to be issued, which has actually been received

or collected at the time of the issuance of such notes, and the amount

of any outstanding revenue anticipation notes issued against such

specific type of revenue for the fiscal year for which such notes are to

be issued. For such a municipality, school district or district

corporation, the term "estimated amount" as used in paragraph g of this

section shall mean the smaller amount determined in item (a) of this

subdivision prior to the deductions required by this item.

The provisions of this subdivision shall not be applicable where a

specific type of revenue has not been recognized for the entire fiscal

year next preceding the fiscal year for which such budget is to be or

has been adopted and in that case such amount shall be the amount of

such revenue as is estimated in such budget or, if there is no such

estimate, then the amount of such revenue as is estimated by the chief

fiscal officer to be recognized for the fiscal year for which such

budget is to be adopted, less the amount of such specific type of

revenue for the fiscal year for which such budget is to be or has been

adopted which has actually been collected or received at the time of the

issuance of such notes, and the amount of any outstanding revenue

anticipation notes issued against such specific type of revenue.

* 3. Notwithstanding the provisions of subdivisions one and two of

this paragraph, if the restrictions imposed therein upon the amount for

which revenue anticipation notes may be issued against any specific type

of revenue in any fiscal year shall cause undue hardship upon any

municipality, school district or district corporation, any such

municipality, school district or district corporation may apply to the

state comptroller for authority to issue such notes in an amount not in

excess of the amount of such specific type of revenue as estimated in

the annual budget of, or contemplated to be collected or received by,

any municipality, school district or district corporation for or during

the fiscal year in which such taxes, rents, rates, charges or other

income shall become due and payable or such moneys become due. Such

application shall be in writing and shall be signed and verified by the

chief fiscal officer of the municipality, school district or district

corporation. The state comptroller shall prescribe the procedure in any

such proceeding and the information to be furnished to him necessary to

make such determination. The state comptroller shall have power in any

such proceeding to determine if such restrictions have caused, or will

cause, an undue hardship upon any such municipality, school district or

district corporation, and, if he so determines, then he shall have power

to authorize any such municipality, school district or district

corporation to issue such notes in an amount not in excess of the

limitation hereinabove expressed in this subdivision, and such

determination and authorization by the state comptroller shall be

conclusive as to the amount of such notes which may be issued against

any such specific type of revenue.

* NB There are 2 subdivision 3's of paragraph d

* 3. Notwithstanding any other provisions of this paragraph d in the

city of New York such amount shall be

(a) The amount of such specific type of revenue consisting of revenue

other than moneys, as is estimated in the annual budget of such city to

be collected or received in the fiscal year for which such budget has

been adopted, and the amount of such specific type of revenue consisting

of moneys as is estimated in the annual budget of such city to be due in

the fiscal year for which such budget has been adopted, less

(b) The amount of such specific type of revenue so estimated in such

budget which has actually been received or collected at the time of the

issuance of such notes, and the amount of any outstanding revenue

anticipation notes issued against such specific type of revenue for the

fiscal year in which such taxes, rents, rates, charges or other income

become due and payable or in which such moneys become due. For the city

of New York, the term "estimated amount" as used in paragraph g of this

section shall mean the amount determined in item (a) of this

subparagraph three prior to the deduction required by item (b) of this

subparagraph three.

The provisions of this subparagraph three shall not be applicable

where a specific type of revenue has not been estimated in such budget

and in that case such amount shall be the amount of such specific type

of revenue consisting of revenue other than moneys, as is estimated by

the mayor to be collected or received in the fiscal year for which such

budget has been adopted, and the amount of such specific type of revenue

consisting of moneys as is estimated by the mayor to be due in the

fiscal year for which such budget has been adopted, less the amount of

such specific type of revenue which has actually been received or

collected at the time of the issuance of such notes, and the amount of

any outstanding revenue anticipation notes issued against such specific

types of revenue for the fiscal year in which such taxes, rents, rates,

charges or other income become due and payable or in which such moneys

become due.

* NB There are 2 subdivision 3's of paragraph d

4. Whenever this paragraph requires a determination or estimate of the

amount of a specific type of revenue recognized or to be recognized for

a fiscal year, such determination or estimate shall be made in

conformance with the basis of accounting used by the municipality,

school district or district corporation to prepare the most recent

annual financial report filed pursuant to section thirty of the general

municipal law.

d-2. The provisions of paragraph d of this section shall not be

applicable to revenue anticipation notes issued in anticipation of the

receipt of moneys from the federal government pursuant to title one of

the housing act of nineteen hundred forty-nine, as amended.

e. The proceeds of revenue anticipation notes shall be used only for

the purpose of (1) meeting expenditures payable from the type of revenue

in anticipation of which such notes were issued, or (2) for the

redemption of notes in renewal of which such notes were issued.

f. Revenue anticipation notes shall mature within one year and may be

renewed from time to time, but each renewal shall be for a period not

exceeding one year and in no event shall such notes, or the renewals

thereof, extend beyond the close of the second fiscal year succeeding

the fiscal year in which such notes were issued. Such notes shall not be

renewed in an amount in excess of the difference between the amount of

the uncollected or unreceived revenue in anticipation of which they were

issued and the amount of any other outstanding revenue anticipation

notes issued in anticipation of the collection or receipt of such

revenue.

g. Whenever the amount of revenue anticipation notes issued for a

fiscal year against a specific type of revenue shall equal the estimated

amount of such specific type of revenue in anticipation of the

collection or receipt of which such notes shall have been issued, less

the amount of such revenue actually received or collected, all of such

revenue, as thereafter received or collected, shall be set aside in a

special bank account to be used only for the payment of such revenue

anticipation notes as they become due. Any municipality, school district

or district corporation may make budgetary appropriations for the

redemption of revenue anticipation notes whether or not required or

otherwise authorized by law to do so. In the event such an appropriation

is made, such municipality, school district or district corporation

shall not be required to pay into the special account the proceeds of

the specific type of revenue against which such notes were issued but

such proceeds may be used in the manner provided by law or if there is

no provision of law pertaining to the use of such proceeds, such

proceeds shall be treated as surplus moneys for the fiscal year in which

they are collected.

h. Notwithstanding the provisions of paragraph b of this section any

municipality, school district or district corporation may issue a single

revenue anticipation note in anticipation of the collection or receipt

of any number of, or all, specific types of revenue, providing that the

amount of indebtedness to be contracted against each specific type of

revenue shall be stated in the resolution or certificate authorizing the

issuance of such note, and such amount shall not exceed the respective

amounts of indebtedness which could be contracted against each specific

type of revenue under any other paragraph of this section. The proceeds

of any such single revenue anticipation note shall be severable

according to the specific types of revenue against which indebtedness

has been therein contracted and shall be treated in the same manner as

the proceeds of separate revenue anticipation notes, each of which was

issued against a specific type of revenue, would have been applied. Any

municipality, school district or district corporation which issues any

such single revenue anticipation note shall comply with the provisions

of paragraph g of this section, except that for the purposes of such

paragraph (1) any such single revenue anticipation note shall be treated

as a group of separate revenue anticipation notes, each issued against a

specific type of revenue, and (2) the amount issued against each

specific type of revenue shall be the amount stated in the resolution or

certificate authorizing the issuance of any such single revenue

anticipation note. The municipality, school district or district

corporation shall keep proper records which will show at all times the

unpaid balances due on any such single revenue anticipation note

according to the types of revenue against which such note was issued.

i. (a) A board of cooperative educational services may issue revenue

anticipation notes, as authorized by paragraph g of subdivision four of

section nineteen hundred fifty of the education law, in anticipation of

money to be received from the state, the United States government, and

from its component school districts for services or for administrative

and clerical expenses.

(b) For the purposes of this subdivision i, and for the purposes of

sections 30.00 and 39.00 and titles four, five, six and twelve of this

chapter, the board of cooperative educational services shall be the

finance board, its president shall be its chief fiscal officer, and its

fiscal year shall be the fiscal year of its component school districts;

provided, further, that the provision of section 162.00 of this chapter

shall be applicable to revenue anticipation notes issued under this

subdivision.

j. 1. The provisions of this paragraph shall apply only to revenue

anticipation notes, including renewals thereof, issued by the city of

Buffalo during its fiscal years ending June thirtieth, in each of the

years nineteen hundred eighty-four, nineteen hundred eighty-five,

nineteen hundred eighty-six, nineteen hundred eighty-seven, and nineteen

hundred eighty-eight, in anticipation of the receipt of state aid and

local assistance, and only to such issues of revenue anticipation notes

as to which the certificate described in subdivision three of this

paragraph is filed.

2. Each issue of revenue anticipation notes shall be issued only in

anticipation of the receipt of a specific type or types of state aid and

local assistance, provided that the amount of indebtedness to be

contracted for each such specific type of state aid and local assistance

shall be stated in the proceedings authorizing the issuance of such

notes. Except as provided in subdivision eight of this paragraph,

revenue anticipation notes shall be payable only at the office of a bank

or trust company designated as the paying agent thereof in accordance

with this chapter. Revenue anticipation notes, including renewals

thereof, shall mature not later than the last day of the fiscal year of

such city in which such notes were originally issued. The proceedings

authorizing revenue anticipation notes may include provisions, which

shall constitute a covenant by such city with the purchasers and holders

and owners from time to time of such notes, limiting the power of the

city to authorize and issue additional notes during the then current

fiscal year of such city in anticipation of the same specific type or

types of state aid and local assistance as the notes authorized by such

proceedings.

3. Prior to the delivery of each issue of revenue anticipation notes,

the chief fiscal officer of such city shall file with the state

comptroller a certificate setting forth with respect to such issue (i)

the principal amount, (ii) the date of issue, (iii) the maturity date,

(iv) the interest rate or rates, (v) if interest shall be payable

otherwise than at maturity, the date or dates for the payment thereof,

(vi) the name and address of the paying agent, (vii) the name and

address of each purchaser, or if a purchaser shall be a syndicate or

similar account, the name and address of each managing underwriter of

such syndicate or similar account, (viii) the amount payable on each

principal payment date and interest payment date, (ix) a description of

the type or types of state aid and local assistance in anticipation of

which such revenue anticipation notes are being issued and, if more than

one type of state aid and local assistance is involved, the amount of

indebtedness being contracted against each specific type of state aid

and local assistance, and (x) a schedule setting forth the total amount

of each such type or types of state aid or local assistance anticipated

to be received, and the expected date or dates of anticipated receipt of

such state aid or local assistance.

Such certificate shall be accompanied by a statement executed by the

chief fiscal officer of such city certifying that, with respect to any

specific type or types of state aid or local assistance referred to

therein which is not required by law to be paid by the state on a fixed

date or dates, the city of Buffalo will effectuate procedures by which

any claim or request on which such payment is conditioned will be timely

submitted so that payment can be made by the state in accordance with

the schedule contained in such certificate as item (x). Such statement

shall also contain a certification that the amounts and times of

payments of state aid and local assistance contained in such schedule

have been estimated by the use of reasonable and appropriate data and

methods of estimation, all in accordance with applicable law.

4. All revenue anticipation notes, in addition to a pledge of the

faith and credit of such city for the payment thereof, shall contain a

recital to the effect that they are entitled to the benefits of the

provisions of this paragraph.

5. Commencing on the date not less than five days prior to and on each

day thereafter up to and including any principal and/or interest payment

date referred to in the certificate filed by the chief fiscal officer of

the city with the state comptroller pursuant to subdivision three of

this paragraph, the state comptroller shall pay to such paying agent

from moneys as provided in subdivision six of this paragraph the amount

required to pay in full the principal and/or interest due on such

payment date as set forth in such certificate. Moneys so paid shall pass

immediately from the state and vest in such paying agent in trust for

the benefit of the holders of the revenue anticipation notes to which

such certificate relates. No other person having any claim of any kind

in tort, contract or otherwise against such city shall have any right to

or claim against the moneys held by such paying agent, and such moneys

shall not be subject to any order, judgment, lien, execution,

attachment, setoff or counterclaim by any such other person. Such moneys

shall be held by such paying agent in a separate trust account and shall

be applied only to the payment of the principal and/or interest due on

such revenue anticipation notes, provided, however, that the contract by

and between such city and such paying agent may provide for (i) the

investment by such paying agent of such moneys in direct obligations of

or in obligations guaranteed by the United States of America, provided

such obligations shall be payable or redeemable at the option of the

holder within such time as the proceeds shall be needed to pay such

principal and/or interest due on such revenue anticipation notes, and

(ii) the use by such paying agent of such moneys for the purchase of

direct obligations of or obligations guaranteed by the United States of

America under one or more repurchase agreements with any bank or trust

company having its principal office in the state of New York, provided

that any such repurchase agreement shall provide for the repurchase of

such obligations within such time as such moneys are needed to pay the

principal and/or interest due on such revenue anticipation notes at a

repurchase price at least sufficient to make the amount so invested

available for the payment of principal and/or interest due on such

revenue anticipation notes, and provided, further, that, at the time of

such purchase, the market value of such obligations shall be at least

equal to one hundred two per centum of the amount so invested. No person

having any claim of any kind in tort, contract or otherwise against such

city shall have any right to or claim against any moneys of the state

appropriated by the state and in anticipation of which such notes have

been issued, other than a claim for payment by the holders of such

notes, and such moneys shall not be subject to any order, judgment,

lien, execution, attachment, setoff or counterclaim by any such person;

provided, however, that nothing contained in this paragraph shall be

construed to limit, impair, impede or otherwise adversely affect in any

manner the rights or remedies of the purchasers and holders and owners

of any bonds or notes of the state or any agency, instrumentality,

public benefit corporation or political subdivision thereof, including

the city of Buffalo, under which such purchasers and holders and owners

have any right of payment of such bonds or notes by recourse to state

aid or local assistance moneys held by the state and with respect to

which the state has covenanted with such purchasers and holders and

owners that it will not repeal, revoke or rescind any provision of law

or amend or modify the same so as to limit, impair or impede any such

rights or remedies. Notwithstanding any provision of law to the

contrary, no instrument relating to any transaction authorized or

contemplated by this paragraph need be filed under the provisions of the

uniform commercial code.

6. Commencing on the day when the state comptroller determines that

the principal and interest due or to come due on the outstanding revenue

anticipation notes issued for a fiscal year against a specific type or

types of state aid or local assistance pursuant to this paragraph shall

equal ninety percent of the amount of such specific type of state aid or

local assistance as set forth on the schedule included in the

certificate filed with him pursuant to subdivision three of this

paragraph remaining to be paid to such city on or prior to any principal

and/or interest payment date, the state comptroller shall deduct and

withhold from the amount appropriated for each such specific type of

state aid and local assistance otherwise payable to such city an amount

sufficient to pay, when due, the principal of and interest on all such

revenue anticipation notes issued and then outstanding in anticipation

thereof. Amounts so deducted and withheld shall be transferred and

credited by the state comptroller to the account established for such

specific state aid or local assistance in the state aid and local

assistance revenue withholding fund established pursuant to section

ninety-two-l of the state finance law, at such time as any payment of

each such specific type of state aid or local assistance is scheduled,

by law or otherwise, to be made to such city. In each case, the payments

required to be made by the state comptroller pursuant to subdivision

five of this paragraph shall be made from amounts on deposit in the

accounts established for each such specific type of state aid and local

assistance in the state aid and local assistance revenue withholding

fund. Whenever any issue of revenue anticipation notes has been issued

in anticipation of more than one specific type of state aid and local

assistance as authorized by subdivision two of this paragraph, each such

payment shall be made from each separate account according to the

principal amount of indebtedness contracted against each specific type

of state aid and local assistance.

7. The state of New York hereby covenants with the holders from time

to time of revenue anticipation notes issued by such city that it will

not repeal, rescind or revoke the provisions of this paragraph or the

provisions of section ninety-two-l of the state finance law or amend or

modify the same as to limit, impair or impede the rights and remedies

granted hereby to such holders, provided, however, that nothing in this

paragraph contained shall be deemed or construed as giving or pledging

the credit of the state or as requiring the state to continue the

payment of any specific type or types of state aid or local assistance

to such city or as limiting or prohibiting the state from repealing or

amending any law heretofore or hereafter enacted relating to state aid

and local assistance to such city, the manner and time of payment or

apportionment thereof, or the amount thereof, nor shall such revenue

anticipation notes be a debt of the state and the state shall not be

liable thereon.

8. Notwithstanding any other provision of this paragraph, at the

expiration of one hundred eighty days after the maturity date of any

issue of revenue anticipation notes issued hereunder, the amounts held

by the paying agent thereof for the payment of the principal of and

interest on the notes of such issue which have not been presented for

payment shall be paid over and remitted by such paying agent to such

city and thereafter the holders of such notes shall look only to such

city for such payment.

9. All other provisions of this chapter not inconsistent with the

provisions of this paragraph shall continue to apply to the

authorization and issuance of revenue anticipation notes by such city.

k. 1. A special act public school district may issue revenue

anticipation notes or obtain letters of credit in anticipation of moneys

to be received from the state, the United States government and from

public school districts or social services districts which place

students in the special act public school district.

2. For the purposes of this paragraph, and for the purposes of

sections 30.00 and 39.00 and titles four, five, six and twelve of this

article, the board of education shall be the finance board and its

president shall be its chief fiscal officer; provided, further, that

section 162.00 of this article shall be applicable to revenue

anticipation notes issued under this paragraph.

Urban renewal notes. a. To effectuate the purposes of article

eighteen of the state constitution and article fifteen of the general

municipal law, any municipality which has authorized an urban renewal

project may issue urban renewal notes, from time to time, in

anticipation of the receipt of moneys for such project, or any part

thereof, from (1) the sale of real property, or any interest therein,

acquired for or incidental to such project; or (2) the United States

government pursuant to title one of the housing act of nineteen hundred

forty-nine, as amended; or (3) the state of New York pursuant to the

general municipal law; or from any or all such sources. Such notes may

be issued in anticipation of the receipt of such moneys whether or not

such moneys are to be received or to become due and payable during the

fiscal year in which such notes are issued.

b. Such notes shall mature within one year from the date of their

issue and may be renewed from time to time, but each renewal shall be

for a period not exceeding one year, provided that no such notes or any

renewals thereof, issued in anticipation of the receipt of moneys for an

urban renewal project, shall extend more than seven years beyond the

date of the first such note or notes issued in connection with such

project. In any event, urban renewal notes shall not be renewed after

the receipt of the moneys in anticipation of which such notes were

issued.

c. Where, prior to the effective date of this section, a municipality

has issued a revenue anticipation note in anticipation of the receipt,

of any such moneys, such note, or any renewal thereof, may be renewed,

in whole or in part, by the issuance of an urban renewal note subject to

the limitations of this section. In such event, the seven-year period

specified in paragraph b of this section shall be computed from the date

of issue of the original revenue anticipation note, and such urban

renewal note shall be deemed a renewal note for the purposes of this

chapter.

d. Urban renewal notes shall be redeemed from the moneys in

anticipation of the receipt of which they were issued. However, if such

moneys are not received or are not received in an amount sufficient to

redeem such notes in full, such notes, to the extent such moneys are not

sufficient, shall be redeemed:

1. From any unincumbered balance in any fund which may be applied to

the payment thereof;

2. By a budgetary appropriation; or

3. By the proceeds of the sale of serial bonds issued pursuant to

section 93.00 of this chapter for the purpose of refunding such notes.

e. The total amount of urban renewal notes which a municipality may

issue for any urban renewal project in anticipation of the receipt of

any such moneys shall not exceed the total estimated cost of such

project as stated in the certificate of the chief fiscal officer of the

municipality approved and filed as hereinafter provided less (a) the

total amount of any and all advances, loans and grants made by the

federal government or by the state of New York to such municipality in

aid of such project prior to and including the date of the issuance of

any such note or notes; (b) the amount of any local grants-in-aid made

or to be made for such project; and (c) the amount of the proceeds of

the sale of any real property acquired for or incidental to such project

actually received by such municipality prior to and including the date

of the issuance of any such note or notes.

Such certificate of the chief fiscal officer of the municipality shall

be in such form and shall contain such information as shall be

prescribed by the state comptroller and shall be filed not more than

fifteen nor less than three days before the sale of any such note or

notes in the office of the state comptroller with the approval thereof

of the commissioner of housing endorsed thereon.

f. All such moneys in anticipation of which any urban renewal note or

notes shall have been issued, as thereafter received or collected, shall

be set aside in a special bank account to be used only for the payment

of such urban renewal notes as they become due. Any municipality may

make budgetary appropriations for the redemption of urban renewal notes

whether or not required or otherwise authorized by law to do so. In the

event such an appropriation is made, such municipality shall not be

required to pay into such special account so much of such moneys as

shall equal the amount of such appropriation but any moneys not so paid

into such special account may be used in the manner provided by law or,

if there is no provision of law pertaining to the use of such moneys,

they shall be treated as surplus moneys for the fiscal year in which

they are collected.

Temporary alternative methods of financing snow and ice

removal expenses. a. Definitions. 1. With respect to any municipality

which has a calendar fiscal year which commenced on the first day of

January, two thousand two, the terms "extraordinary expenses for snow

and ice removal" and "such extraordinary expenses", as used in this

section, shall mean the expenses incurred for the removal of snow and

ice from the public thoroughfares and public places of such municipality

during any month in such year up to and including June two thousand

three, in excess of the normal expenses which would have been incurred

for such purposes during such period, as determined by the finance board

of such municipality. In making any such determination, the finance

board shall not include as a part of such extraordinary expenses the

salaries and wages of regular employees, except for overtime work and

work on Sundays and holidays.

2. With respect to any municipality which has a fiscal year which

commenced in the year two thousand two on or after the first day of

March in such year, the terms "extraordinary expenses for snow and ice

removal" and "such extraordinary expenses", as used in this section,

shall mean the expenses incurred for the removal of snow and ice from

the public thoroughfares and public places of such municipality during

such fiscal year, in excess of the amounts appropriated for such

purposes in the annual budget for such fiscal year, or, if no such

appropriations were made, then in excess of the average of all

expenditures for such purposes during each of the five preceding fiscal

years, as determined by the finance board of such municipality.

b. The financing of snow and ice removal expenses by the issuance of

serial bonds. 1. The finance board of a municipality which has a fiscal

year which commenced on the first day of January, two thousand two, may

authorize the issuance of serial bonds in the two thousand three fiscal

year to provide for the payment of all or part of the extraordinary

expenses of snow and ice removal incurred during any month in the year

two thousand two up to and including June two thousand three, to

reimburse any fund or account of the municipality from which monies to

pay such extraordinary expenses have been advanced or to replenish any

fund or account of the municipality from which such extraordinary

expenses have been paid, or any combination of such purposes,

notwithstanding that there may have been lack of statutory authority for

any such advance or payment from such fund or account. The period of

probable usefulness of such objects or purposes shall be five years. Any

such serial bonds shall have a maximum maturity of over two years, but

the date of final maturity of any such issue shall not extend beyond the

first day of March in the year two thousand eight as to counties and

towns and shall not extend beyond the thirty-first day of December, two

thousand eight, as to other municipalities.

2. The finance board of a municipality which has a fiscal year which

commenced in the year two thousand two on or after the first day of

March in such year may authorize the issuance of serial bonds in such

fiscal year, or in its next succeeding fiscal year, to provide for the

payment of all or part of the extraordinary expenses of snow and ice

removal incurred in such fiscal year, to reimburse any fund or account

of the municipality from which monies to pay such extraordinary expenses

have been advanced or to replenish any fund or account of the

municipality from which such extraordinary expenses have been paid, or

any combination of such purposes, notwithstanding that there may have

been lack of statutory authority for any such advance or payment from

such fund or account. The period of probable usefulness of such objects

or purposes shall be five years. Any such serial bonds shall have a

maximum maturity of over two years, but the date of final maturity of

any such issue shall not extend beyond the thirty-first day of December,

two thousand seven.

3. Notwithstanding the foregoing provisions of subdivisions one and

two of this paragraph, serial bonds may not be authorized to be issued

for the purpose of financing any portion of such extraordinary expenses

described in such subdivisions which heretofore have been or hereafter

shall be financed by the issuance of budget notes or for the purpose of

redeeming any such notes.

4. Except as provided in this section, such serial bonds and any bond

anticipation notes in anticipation thereof, shall be authorized, sold

and issued in the manner provided by this chapter. Any bond anticipation

notes issued in anticipation of such bonds shall, for the purpose of

determining the power of the issuer to contract indebtedness and to

raise taxes upon real estate, be deemed to be serial bonds of an issue

having a maximum maturity of more than two years as described in

subdivision A of section five and in section ten of article eight of the

state constitution and for the purposes of (1) paragraph one-a of

section 136.00 of this chapter, (2) section two hundred thirty-three of

the county law, (3) any general or special law applicable to counties,

cities and villages which relates to the raising of taxes on real estate

to provide for the payment of the interest on and the principal of

indebtedness, and (4) all laws relating to the financial reports, debt

statements and real estate tax margin computations of such

municipalities. The chief fiscal officer of any municipality issuing or

renewing such bond anticipation notes shall immediately after the

issuance or renewal thereof notify the state comptroller of such

issuance or renewal. The state comptroller may prescribe the form of any

such notice and shall furnish such forms to municipalities for the

purpose of making any such report.

5. Capital notes may not be issued to finance any object or purpose

for which serial bonds are authorized to be issued pursuant to this

paragraph. The provisions of this paragraph shall not affect the power

of any municipality described in paragraph a of this section to finance

all or part of any such extraordinary expenses pursuant to the

provisions of section 29.00 of this title and paragraph c of this

section.

6. Section 104.10 of this chapter shall not be applicable in relation

to, or as the result of, the adoption of a bond resolution authorizing

the issuance of serial bonds pursuant to this paragraph. The provisions

of section 10.00, paragraph a of section 21.00 and any other section of

this chapter, or the provisions of any general, special or local law,

which would restrict, limit or prohibit the issuance of such bonds

(except those enacted to conform with the state constitution) are, to

the extent that this section is utilized by a municipality, suspended

and made ineffective in so far as necessary to effectuate the purposes

of this section; provided, however, that this paragraph shall not apply

to a city having a population of over one million inhabitants, if the

legislature at the request of such city enacts a law at the one hundred

eighty-fourth annual session of the legislature amending the

administrative code of such city in relation to facilitating payment of

certain unusual snow and ice removal expenses of the city incurred in

its current fiscal year nineteen hundred sixty--nineteen hundred

sixty-one.

c. The financing of snow and ice removal expenses by the issuance of

budget notes. 1. If any municipality described in paragraph a of this

section has heretofore issued budget notes pursuant to the provisions of

subdivision two of paragraph a of section 29.00 of this title to provide

for the payment of extraordinary expenses of snow and ice removal, as

defined in this section, the finance board, by resolution, may determine

that such notes shall be deemed to have been issued pursuant to the

provisions of subdivision one of paragraph a of such section and that

such notes so issued shall not thereafter be considered in determining

the power of such municipality to issue budget notes pursuant to such

subdivision two.

2. If any municipality described in paragraph a of this section has

heretofore issued budget notes pursuant to the provisions of subdivision

one or two of paragraph a, or paragraph b, of section 29.00 of this

title, to provide for the payment of extraordinary expenses of snow and

ice removal, as defined in this section, the finance board may determine

that the provisions of paragraph j of such section shall not be

applicable in relation to the maturity of such notes and (a) that such

notes shall mature in equal annual installments in two different fiscal

years, but the final maturity of such notes shall not extend beyond the

close of the second fiscal year immediately succeeding the year of their

issue, or (b) if the fiscal procedures applicable to such municipality

will enable the necessary budgetary appropriations for debt service to

be made and such appropriations to become available, that such notes

shall mature in three equal annual installments in three different

fiscal years, but the final maturity of any such notes shall not exceed

three years in accordance with the provisions of paragraph a of section

11.00 of this chapter which prescribes a period of probable usefulness

of three years for objects or purposes financed by the issuance of

budget notes. Such budget notes which mature in three equal annual

installments, as aforesaid, shall, for the purpose of determining the

power of the issuer to contract indebtedness and to raise taxes on real

estate, be deemed to be serial bonds of an issue having a maximum

maturity of more than two years as described in subdivision A of section

five and in section ten of article eight of the state constitution and

for the purposes of (1) paragraph one-a of section 136.00 of this

chapter, (2) section two hundred thirty-three of the county law, (3) any

general or special law applicable to counties, cities and villages which

relates to the raising of taxes on real estate to provide for the

payment of the interest on and the principal of indebtedness, and (4)

all laws relating to financial reports, debt statements and real estate

tax margin computations of such municipalities. If the finance board

determines that such budget notes shall mature in three equal annual

installments, as aforesaid, the chief fiscal officer of such

municipality immediately after the adoption of the resolution making

such determination shall file a copy of the resolution with the state

comptroller and shall immediately after the issuance or renewal of such

notes notify the state comptroller of such issuance or renewal. The

state comptroller may prescribe the form of any such notice and shall

furnish such forms to municipalities for the purpose of making any such

report.

3. Notwithstanding any of the provisions of section 29.00 of this

title, the finance board of a municipality described in paragraph a of

this section may authorize the issuance of budget notes pursuant to

subdivision one of paragraph a, or paragraph b, of such section 29.00 to

provide for the payment of all or part of the extraordinary expenses of

snow and ice removal, as defined in this section, to reimburse any fund

or account of the municipality from which monies to pay such

extraordinary expenses have been advanced or to replenish any fund or

account of the municipality from which such extraordinary expenses have

been paid, or any combination of such purposes, notwithstanding that

there may have been lack of statutory authority for any such advance or

payment from such fund or account. The finance board may determine that

such notes may mature in the manner provided in paragraph j of section

29.00, or, if the fiscal procedures applicable to such municipality will

enable the necessary budgetary appropriations for debt service to be

made and such appropriations to become available, that such notes shall

mature in two equal annual installments in two different fiscal years,

but the final maturity of such notes shall not extend beyond the close

of the second fiscal year immediately succeeding the year of their

issue.

4. If a municipality which had a calendar fiscal year which commenced

on the first day of January, two thousand two, issued budget notes in

such year pursuant to the provisions of section 29.00 of this title to

finance the payment of expenses of removal of snow and ice in such

fiscal year and if such budget notes, under the provisions of paragraph

j of such section, could not be renewed after the close of its fiscal

year which would end in the year two thousand three, then and in such

event the finance board of such municipality may determine that the

provisions of paragraph j of such section shall not be applicable in

relation to the maturity of such notes and that such notes shall mature

in equal annual installments in the years two thousand three and two

thousand four.

5. If a municipality which had a calendar fiscal year which commenced

on the first day of January, two thousand two, authorized the issuance

of budget notes in such year pursuant to the provisions of section 29.00

of this chapter to finance the payment of expenses of removal of snow

and ice in such year and if such notes were not issued in the year two

thousand two, but were or are to be issued in the year two thousand

three, and if such budget notes, under the provisions of paragraph j of

such section, could not be renewed after the close of its fiscal year

which would end in the year two thousand four, then and in any such

event the finance board of such municipality may determine that the

provisions of paragraph j of such section shall not be applicable in

relation to the maturity of such notes and that such notes shall mature

in equal annual installments in the years two thousand four and two

thousand five.

6. Any resolution of a finance board of a municipality making a

determination pursuant to subdivision one, two, three, four or five of

this paragraph may be adopted by a majority vote of the finance board,

notwithstanding the provisions of paragraph d of section 40.00 of this

chapter.

7. The provisions of subdivision four of paragraph c of section 40.00

and of any other section of this chapter and the provisions of any

general, special or local law which would restrict, limit or prohibit

the renewal of budget notes as provided in this paragraph (except those

enacted to conform with the state constitution) are, to the extent that

this section is utilized by a municipality, suspended and made

ineffective in so far as necessary to effectuate the objects and

purposes of this section.

d. Separability. If any clause, sentence, subdivision, paragraph, or

part of this section be adjudged by any court of competent jurisdiction

to be invalid, such judgment shall not affect, impair or invalidate the

remainder thereof, but shall be confined in its operation to the clause,

sentence, subdivision, paragraph, or part thereof directly involved in

the controversy in which such judgment shall have been rendered.

Temporary alternative methods of financing storm relief

expenses. a. Definitions. As used in this section, the terms

"extraordinary expenses of storm relief" and "such extraordinary

expenses" shall mean expenses incurred by a municipality, school

district or district corporation before the first day of January, two

thousand fourteen, for storm relief projects necessitated by damage

caused by the storm commonly known as Sandy on or shortly after October

twenty-ninth, two thousand twelve. The term "storm relief projects"

shall mean the repair or reconstruction of public thoroughfares,

buildings, places, and projects of such municipality, school district or

district corporation, in excess of the normal expenses which would have

been incurred for such purposes during such periods as determined by the

finance board of such municipality, school district or district

corporation. In making any such determination, the finance board shall

not include as a part of such extraordinary expenses the salaries and

wages of regular employees, except for overtime work and work on Sundays

and holidays. Such extraordinary expenses may include any interest

payments on revenue anticipation notes issued in anticipation of the

receipt of moneys from the state or federal government on account of

such storm pursuant to any state or federal disaster relief act.

b. The financing of storm relief expenses by the issuance of serial

bonds.

1. The finance board of a municipality, school district or district

corporation may authorize the issuance of serial bonds on or before

December thirty-first two thousand thirteen to provide for the payment

of all or part of the extraordinary expenses of storm relief, to

reimburse any fund or account of the issuer from which moneys to pay

such extraordinary expenses have been advanced or to replenish any fund

or account of the issuer from which such extraordinary expenses have

been paid, or any combination of such purposes, notwithstanding that

there may have been lack of statutory authority for any such advance or

payment from such fund or account. The period of probable usefulness of

such objects or purposes shall be five years. Any such serial bonds

shall have a maximum maturity of over two years, but the date of final

maturity of any such issue shall not extend beyond the thirty-first day

of December, two thousand eighteen.

2. No provision of subdivision one of this paragraph shall be deemed

to prohibit the issuance of serial bonds for the purpose of financing

any portion of such extraordinary expenses described in such subdivision

which heretofore have been or hereafter shall be financed by the

issuance of budget notes or for the purpose of redeeming any such notes.

3. Except as provided in this section, such serial bonds and any bond

anticipation notes in anticipation thereof, shall be authorized, sold

and issued in the manner provided by this chapter. Any bond anticipation

notes issued in anticipation of such bonds shall, for the purpose of

determining the power of the issuer to contract indebtedness and to

raise taxes upon real estate, be deemed to be serial bonds of an issue

having a maximum maturity of more than two years as described in

paragraph A of section five and in section ten of article eight of the

state constitution and for the purposes of (1) subdivision one-a of

section 136.00 of this chapter, (2) section two hundred thirty-three of

the county law, (3) section 5-514 of the village law, (4) any general or

special law applicable to counties, cities, villages, school districts

or district corporations which relates to the raising of taxes on real

estate to provide for the payment of the interest on and the principal

of indebtedness, and (5) all laws relating to the financial reports,

debt statements and real estate tax margin computations of such

municipalities, school districts or district corporations. The chief

fiscal officer of any municipality, school district or district

corporation issuing or renewing such bond anticipation notes shall

immediately after the issuance or renewal thereof notify the state

comptroller of such issuance or renewal. The state comptroller may

prescribe the form of any such notice and shall furnish such forms to

municipalities, school districts and district corporations for the

purpose of making any such report.

4. Capital notes may not be issued to finance any object or purpose

for which serial bonds are authorized to be issued pursuant to this

paragraph. The provisions of this paragraph shall not affect the power

of any municipality, school district or district corporation described

in paragraph a of this section to finance all or part of any such

extraordinary expenses pursuant to the provisions of section 29.00 of

this chapter and paragraph c of this section.

5. Section 104.10 of this chapter shall not be applicable in relation

to, or as the result of, the adoption of a bond resolution authorizing

the issuance of serial bonds pursuant to this paragraph. The provisions

of section 10.00, paragraph a of section 21.00 and any other section of

this chapter, or the provisions of any general, special or local law,

which would restrict, limit or prohibit the issuance of such bonds

(except those enacted to conform with the state constitution) are, to

the extent that this section is utilized by a municipality, school

district or district corporation, suspended and made ineffective insofar

as necessary to effectuate the purposes of this section.

c. The financing of storm relief expenses by the issuance of budget

notes. 1. If any municipality or school district described in paragraph

a of this section has heretofore issued budget notes pursuant to the

provisions of subdivision two or three of paragraph a of section 29.00

of this chapter to provide for the payment of extraordinary expenses of

storm relief, the finance board, by resolution, may determine that such

notes shall be deemed to have been issued pursuant to the provisions of

subdivision one of paragraph a of such section and that such notes so

issued shall not thereafter be considered in determining the power of

such municipality or school district to issue budget notes pursuant to

such subdivision two or three.

2. If any municipality, school district or district corporation

described in paragraph a of this section has heretofore issued budget

notes pursuant to the provisions of subdivision one, two or three of

paragraph a, or paragraph b, of section 29.00 of this chapter, to

provide for the payment of extraordinary expenses of storm relief, the

finance board may determine that the provisions of paragraph j of such

section shall not be applicable in relation to the maturity of such

notes and (a) that such notes shall mature in equal annual installments

in two different fiscal years, but the final maturity of such notes

shall not extend beyond the close of the second fiscal year immediately

succeeding the year of their issue, or (b) if the fiscal procedures

applicable to such municipality, school district or district corporation

will enable the necessary budgetary appropriations for debt service to

be made and such appropriations to become available, that such notes

shall mature in three equal annual installments in three different

fiscal years, but the final maturity of any such notes shall not exceed

three years in accordance with the provisions of paragraph a of section

11.00 of this chapter which prescribes a period of probable usefulness

of three years for objects or purposes financed by the issuance of

budget notes. Such budget notes which mature in three equal annual

installments, as aforesaid, shall, for the purpose of determining the

power of the issuer to contract indebtedness and to raise taxes on real

estate, be deemed to be serial bonds of an issue having a maximum

maturity of more than two years as described in paragraph A of section

five and in section ten of article eight of the state constitution and

for the purposes of (1) paragraph one-a of section 136.00 of this

chapter, (2) section two hundred thirty-three of the county law, (3)

section 5-514 of the village law, (4) any general or special law

applicable to counties, cities, villages, school districts or district

corporations which relates to the raising of taxes on real estate to

provide for the payment of the interest on and the principal of

indebtedness, and (5) all laws relating to financial reports, debt

statements and real estate tax margin computations of such

municipalities, school districts or district corporations. If the

finance board determines that such budget notes shall mature in three

equal annual installments, as aforesaid, the chief fiscal officer of

such municipality, school district or district corporation immediately

after the adoption of the resolution making such determination shall

file a copy of the resolution with the state comptroller and shall

immediately after the issuance or renewal of such notes notify the state

comptroller of such issuance or renewal. The state comptroller may

prescribe the form of any such notice and shall furnish such forms to

municipalities, school districts or district corporations for the

purpose of making any such report.

3. Notwithstanding any of the provisions of section 29.00 of this

chapter, the finance board of a municipality or a school district

described in paragraph a of this section may authorize the issuance of

budget notes pursuant to subdivision one of paragraph a, or, in the case

of a municipality, paragraph b of such section 29.00 of this chapter to

provide for the payment of all or part of the extraordinary expenses of

storm relief, to reimburse any fund or account of the municipality or

school district from which moneys to pay such extraordinary expenses

have been advanced or to replenish any fund or account of the

municipality or school district from which such extraordinary expenses

have been paid, or any combination of such purposes, notwithstanding

that there may have been lack of statutory authority for any such

advance or payment from such fund or account. The finance board may

determine that such notes may mature in the manner provided in paragraph

j of section 29.00 of this chapter, or, if the fiscal procedures

applicable to such municipality or school district will enable the

necessary budgetary appropriations for debt service to be made and such

appropriations to become available, that such notes shall mature in two

equal annual installments in two different fiscal years, but the final

maturity of such notes shall not extend beyond the close of the second

fiscal year immediately succeeding the year of their issue.

4. The provisions of subdivision four of paragraph c of section 40.00

of this chapter and of any other section of this chapter and the

provisions of any general, special or local law which would restrict,

limit or prohibit the renewal of budget notes as provided in this

paragraph (except those enacted to conform with the state constitution),

are, to the extent that this section is utilized by a municipality,

school district or district corporation, suspended and made ineffective

insofar as necessary to effectuate the objects and purposes of this

section.

d. Separability. If any clause, sentence, subdivision, paragraph, or

part of this section be adjudged by any court of competent jurisdiction

to be invalid, such judgment shall not affect, impair or invalidate the

remainder thereof, but shall be confined in its operation to the clause,

sentence, subdivision, paragraph, or part thereof directly involved in

the controversy in which such judgment shall have been rendered.

Capital notes. a. Any municipality, school district or

district corporation may issue capital notes to finance all or part of

the cost of any object or purpose for which serial or sinking fund bonds

may be issued. Such capital notes may be renewed from time to time but

such notes, including the renewals thereof, shall mature not later than

the last day of the second fiscal year succeeding the fiscal year in

which such notes are issued. However, an installment of not less than

fifty per centum of the amount of such notes shall mature in the first

fiscal year succeeding the fiscal year in which such notes are issued,

unless such notes are authorized and issued during a fiscal year at a

time subsequent to the date of the adoption of the annual budget for the

next succeeding fiscal year.

b. Capital notes shall be redeemed out of the taxes or assessments

levied or to be levied for the fiscal year in which they mature or out

of other revenues of that fiscal year legally available for that

purpose.

Budget notes. a. 1. Any municipality or district corporation,

other than a fire district, may issue budget notes during any fiscal

year for any unforeseeable public emergency during such year such as

epidemic, conflagration, riot, storm, flood, earthquake or other unusual

peril to the lives and property of the citizens of such unit of

government in such amount as the finance board shall determine to be

necessary, but no municipality may issue such notes for emergencies in

behalf of any local improvement district. Any school district may issue

budget notes during any fiscal year to provide temporary school

buildings or facilities in such year when such buildings or facilities

are necessitated because of an unforeseeable public emergency during

such year such as epidemic, conflagration, riot, storm, flood,

earthquake or other unusual circumstance preventing the use in whole or

in part, of the buildings or other facilities used by such school

district.

2. Any municipality or district corporation which adopts an annual

budget may issue budget notes during any fiscal year for expenditures

for which an insufficient or no provision is made in the annual budget

for such fiscal year in an amount not to exceed five per centum of the

amount of such annual budget.

Notwithstanding the foregoing limitation, any fire district may issue

budget notes pursuant to this subdivision in the amount of at least one

thousand dollars. In addition, any county which adopts an annual budget

may issue budget notes pursuant to this subdivision without limitation

as to amount for necessary expenditures for the apprehension and

prosecution of persons charged with the commission of crime and for

which an insufficient or no provision has been made in the annual budget

for such fiscal year. If, however, any such municipality or district

corporation may issue budget notes for any such expenditures pursuant to

the provisions of any other paragraph of this section, such municipality

or district corporation shall not issue budget notes for any such

expenditures pursuant to this subdivision. Any town, and any county, in

computing "the amount of the annual budget" for the purposes of this

subdivision shall not include any amounts which are to be paid in the

first instance from improvement district assessments.

3. A school district may issue budget notes during the last nine

months of any fiscal year for expenditures for which an insufficient or

no provision is made in the annual budget for such fiscal year in an

amount not to exceed five per centum of such annual budget. The

foregoing limitation shall not be applicable in any case in which a

budget note resolution has been adopted by the finance board of a school

district and has been approved by a majority of the qualified voters of

the school district present and voting at any annual or special meeting

of the school district held pursuant to the provisions of the education

law during the last nine months of such fiscal year. The notice for any

such meeting, in addition to complying with applicable provisions of the

education law, must state that such budget note resolution will be

submitted for approval by the voters at such meeting; the purpose for

which moneys are proposed to be borrowed under such resolution; the

total amount proposed to be borrowed, and the fiscal year in which taxes

are required to be levied for the payment of the budget note proposed to

be issued. The vote at any such meeting on such proposition shall be by

ballot, or ascertained by taking and recording the ayes and noes of such

qualified voters attending and voting at such meeting.

3-a. Notwithstanding any other provisions of this section, where a

school district can demonstrate to the satisfaction of the commissioner

of education extenuating circumstances that a waiver is warranted for

the adoption of a budget note resolution by its finance board, upon

certification by the chief executive officer to the commissioner of

education, in such form as the commissioner of education shall determine

pursuant to guidelines developed, for the purpose of making additional

accruals requirements in the two thousand four--two thousand five or two

thousand five--two thousand six school years associated with changes in

accounting methodologies for liabilities for employer and employee

contributions due and payable to a public retirement system that will

result in a tax increase to the residents of the district in the

following school year, a school district may issue budget notes during

the last nine months of the school year in which such resolution is

adopted, or during the first three months of the following school year,

in an amount not to exceed the amount of such additional accruals for

public pension liabilities. The limitation on the amount of budget notes

contained in subdivision three of this paragraph shall not be applicable

to notes issued pursuant to this section and the amount of budget notes

issued pursuant to this section shall not be included in the computation

of such limitation.

4. Any fire district may issue budget notes for expenditures for

necessary repairs to any fire-fighting apparatus, fire-fighting vehicles

or other motorized equipment of such fire district which has been

damaged as the result of an accident; but only to the extent that

budgetary appropriations for such purpose and the proceeds of insurance

received on account of such damage and on hand at the time the repairs

are completed are insufficient to pay for such damage. Unless a

budgetary appropriation for the payment of such notes is in existence at

the time the proceeds of any such insurance are received, such proceeds

shall be used only for the payment of such notes.

5. Any municipality or fire district may issue budget notes during any

fiscal year to provide for the payment in such fiscal year of the cost

of insurance secured to indemnify against liability for benefits payable

under the volunteer firefighters' benefit law and for which cost an

insufficient or no provision was made in the annual budget of the

municipality or fire district for such fiscal year. The aggregate amount

of any such notes which may be issued for such purpose in a fiscal year

commencing after December thirty-first, nineteen hundred sixty-five,

shall not exceed the sum by which the actual cost of such insurance to

be paid in the fiscal year in which such notes are issued exceeds the

actual cost of such insurance in the fiscal year prior to the fiscal

year in which such notes are issued; provided, however, that this

limitation shall not apply in a case where the municipality or fire

district has not incurred any such cost in the fiscal year prior to that

in which such notes are issued.

6. Any fire district may issue budget notes for expenditures for water

supply and in relation to fire hydrant maintenance and rental costs; but

only to the extent that budgetary appropriations for such purpose under

subdivision twelve of section one hundred seventy-six of the town law

are insufficient to pay increased charges which the public service

commission has authorized and the fire district is required to pay in

the fiscal year in which the budget note is issued for such maintenance

or rental.

7. Any fire district which elects to become liable for payments in

lieu of contributions pursuant to section five hundred sixty-five of the

labor law and is required by the commissioner of labor to pay into the

unemployment insurance fund an amount equal to the amount of benefits

paid to claimants and charged to such fire district's account may issue

budget notes for such expenditures for the amount required to be so paid

in the fiscal year in which the budget note is issued, but only to the

extent that budgetary appropriations for such purpose are insufficient

to pay such claim.

8. Any county, city, village, town, town on behalf of an ambulance

district, or town on behalf of a fire protection district which

contracts with an ambulance service which is not organized pursuant to

section two hundred nine-b of the general municipal law, may issue

budget notes during the first fiscal year in which it is required to pay

contributions to the volunteer ambulance workers' service award program,

but only to the extent that budgetary appropriations for such purpose

are insufficient to pay such contributions.

b. Any municipality which adopts an annual budget may issue budget

notes during any fiscal year for either or both the following purposes:

1. The payment of the expenses for the removal of snow and ice,

exclusive of salaries and wages of regular employees except for overtime

work and work on Sundays and holidays, or

2. The payment of the expenses for the demolition of unsafe buildings,

to the extent that an insufficient provision shall have been made

therefor in the annual budget for such fiscal year, if such municipality

is required by statute, local law or ordinance to include in its annual

budget for such fiscal year and each fiscal year thereafter either (a)

an amount equal to at least the average of all expenditures for such

purpose during each of the five preceding fiscal years for each purpose

for which such budget notes are to be issued, or (b) such amount as is

prescribed in the schedule set forth below, for each purpose for which

such budget notes are to be issued:

1. For such fiscal year, an amount equal to at least one-fifth of the

average of all expenditures for such purpose during each of the five

preceding fiscal years.

2. For the first fiscal year succeeding such fiscal year, an amount

equal to at least two-fifths of the average of all expenditures for such

purpose during each of the five preceding fiscal years.

3. For the second fiscal year succeeding such fiscal year, an amount

equal to at least three-fifths of the average of all expenditures for

such purpose during each of the five preceding fiscal years.

4. For the third fiscal year succeeding such fiscal year, an amount

equal to at least four-fifths of the average of all expenditures for

such purpose during each of the five preceding years.

5. For the fourth fiscal year succeeding such fiscal year and for each

succeeding fiscal year thereafter, an amount equal to at least the

average of all expenditures for such purpose during each of the five

preceding fiscal years.

Any city, any county and any village having a population of five

thousand or more, as determined pursuant to the latest available federal

census, may adopt a local law or ordinance, and any other municipality

may adopt an ordinance requiring the inclusions of such amounts set

forth in the above schedule for either of or both such purposes in its

annual budget.

c. Any city which is required pursuant to law to include annually in

its annual budget an amount for:

1. Judgments which may be obtained against the city and which may

become due and payable during the fiscal year for which the budget is

adopted,

2. Claims which may be settled or compromised and become payable

during such fiscal year, and

3. The repaving of streets

may issue budget notes for any of such purposes during a fiscal year if

the amount included in the annual budget for such fiscal year is

insufficient therefor.

d. Any municipality, school district or district corporation which is

required by law to include in its annual budget the amount of judgments

or compromised or settled claims which are outstanding at the time such

budget is prepared, may issue budget notes for the payment of any such

judgment or claim. Such notes may be issued at any time prior to the

earliest time at which tax anticipation notes may be issued by such

municipality, school district or district corporation pursuant to

section 24.00 of this chapter in anticipation of the levy or collection

of taxes for such budget. If such notes are issued in a fiscal year

prior to the preparation of an annual budget during such fiscal year, an

appropriation for their redemption shall be included in such next budget

when it is prepared. If such notes are issued after an appropriation has

been included in an annual budget for the payment of the judgments or

claims for which the notes are issued, such notes shall be redeemed from

such appropriation. Such budget notes may be renewed from time to time,

but such notes including renewals thereof shall mature not later than

the close of the fiscal year for which such annual budget is adopted.

e. Any city, county or town, during any fiscal year or, in the case of

the city of New York, within ninety days after the close of such fiscal

year, for which it shall make a supplemental, deficiency or additional

appropriation for one or more purposes authorized by or under the

provisions of the social services law, including the administration

thereof, may issue budget notes for the amount of the local share of the

cost thereof.

e-1. If any town has made an appropriation in its annual budget for

any fiscal year for its share of the cost of an approved project under

article eight-A of the highway law, and the appropriation is

insufficient, the town may issue budget notes in such fiscal year to

finance such share in an amount not to exceed fifty per centum of the

town's share of the cost of such project. Budget notes may not be issued

under any other paragraph of this section to finance any portion of the

town's share of the cost of an approved project under such article

eight-A of the highway law.

f. If any municipality which is authorized or required by law to

include in its annual budget an estimate of the amount of state, county

district and other county taxes to be levied on the real property within

such municipality for or during the fiscal year for which such budget is

adopted, underestimates the amount that is actually levied, such

municipality may issue budget notes for the payment of all or part of

such deficiency.

g. If any portion of the taxes or assessments levied by a

municipality, school district or district corporation in any fiscal year

are cancelled prior to the collection thereof pursuant to a

determination by a court in an action or proceeding brought by the

taxpayer, or, in the case of a school district with the written approval

and consent of the commissioner of education under section thirty-five

hundred twelve of the education law, such municipality, school district

or district corporation may issue budget notes in the fiscal year in

which any such cancellation occurs in an amount not in excess of the

amount of taxes or assessments so cancelled. The proceeds of such notes

shall be used only for the purposes for which such taxes or assessments

so cancelled were levied, or for the redemption of tax anticipation

notes which had been issued in anticipation of the collection of the

taxes or assessments so cancelled and for the redemption of which notes

no other provision has been made, or for the redemption of budget notes

in renewal of which they were issued.

h. Any county which does not adopt an annual budget may issue budget

notes during any fiscal year to pay accounts, claims, demands or charges

which may be directed to be paid pursuant to the provisions of any law

in an amount not in excess of the total amount of such accounts, claims,

demands or charges directed to be paid in such fiscal year and for which

an insufficient or no provision was made in the estimate upon which the

tax levy for such fiscal year was based. No county shall issue budget

notes pursuant to this paragraph on or after January first, nineteen

hundred fifty-one; provided that budget notes issued prior to such date

pursuant to this paragraph may be renewed as provided in paragraph j of

this section.

i. Any town on behalf of a town improvement district situated therein,

or any county on behalf of a county improvement district situated

therein, may issue budget notes during any fiscal year for expenditures

for which an insufficient or no provision is made in the annual estimate

for such improvement district as finally adopted for such fiscal year in

an amount not to exceed five per centum of the amount of such annual

estimate.

j. Except as otherwise provided in paragraph d of this section, budget

notes may be renewed from time to time but such notes, including the

renewals thereof, shall mature not later than the close of the fiscal

year succeeding the fiscal year in which such notes are issued. However,

such notes, including the renewals thereof, may mature not later than

the close of the second fiscal year succeeding the fiscal year in which

such notes are issued, when authorized and issued during a fiscal year

at a time subsequent to the date of the adoption of the annual budget

for the next succeeding fiscal year, by a municipality, school district

or district corporation in which the total amount of taxes or

assessments levied for a fiscal year is determined pursuant to an annual

budget adopted during the fiscal year preceding such fiscal year.

k. Budget notes shall be redeemed out of the taxes or assessments

levied or to be levied for the fiscal year in which they mature or out

of other revenues of that fiscal year legally available for that

purpose.

l. Notwithstanding the provisions of any general, special or local

law, any municipality, school district or district corporation, which

has the power to issue budget notes under this section, shall to the

same extent have the power to appropriate and expend money received from

the proceeds of the sale of budget notes for the purposes for which such

notes are issued.

m. Notwithstanding the provisions of this section or any other law, no

city shall issue budget notes for the purpose of providing funds for the

payment pursuant to section thirty-six-a of the rapid transit law, or

otherwise, of the amounts which the board of transportation or any other

agency of such city determines or estimates, claims (including claims

reduced to judgment) or certifies to the board of estimate or other

analogous local authority of such city, as the sum by which the revenues

derived from operation of any railroad, as defined in section two of the

rapid transit law, fail or will fail to provide for any costs and

expenses of operation and maintenance of such railroad for any period or

periods commencing on or after July first, nineteen hundred fifty-three.

For the purpose of this paragraph, such costs and expenses shall also

include the payments or contributions paid or payable by the board of

transportation or the city during such period to any employees' pension

or retirement system on account of membership therein of officers and

employees of such board of transportation.

n. Notwithstanding any other provision of this section, except where

any obligations other than budget notes are or have been issued for the

object or purpose described in subdivision fifty-nine of paragraph a of

section 11.00 of this chapter, budget notes may be issued by a

municipality, school district or district corporation, or by a county on

behalf of a county improvement district situated therein or by a town on

behalf of a town improvement district situated therein, pursuant to an

irrevocable election to finance all or part of the employer's share of

the cost of retroactive coverage provided to its employees under the

federal old-age and survivors insurance system pursuant to section one

hundred thirty-eight-a of the retirement and social security law where

an insufficient or no provision is or has been made in the annual budget

for such cost.

o. Notwithstanding any other provision of this section, if any city in

this state having a population of one million or more includes in its

annual budget for the fiscal year nineteen hundred seventy-one--nineteen

hundred seventy-two an estimate in an amount not to exceed one hundred

million dollars of additional revenues available to it as a result of a

federal program of general or special revenue sharing or any similar

program or any combination of such programs which relieves a financial

burden which would otherwise require expenditure from city tax receipts

in such amount for the fiscal year, and if that estimate should exceed

the amount of such revenue that actually becomes available to it, such

city may issue during the last quarter of such fiscal year budget notes

which shall have a maximum maturity of not more than one year for the

payment of all or part of the amount of such overestimate, upon a

determination by the state budget director of the amount of such

overestimate.

* § 29.10 Issuance of land installment purchase obligations. 1. A

municipality is hereby authorized and empowered to issue land

installment purchase obligations for the purpose of financing the

acquisition of interests or rights in real property for which the

municipality has contracted, pursuant to section two hundred forty-seven

of the general municipal law, together with the preliminary and

incidental costs of such acquisition. Such obligations shall be

authorized by a statement made in a bond resolution authorizing the

issuance of bonds to finance such acquisition. Such statement shall

provide that all or a portion of the indebtedness for such purpose may

be issued in the form of a land installment purchase obligation. Any

portion of the estimated maximum cost of the object or purpose for which

the issuance of bonds has been authorized that is not financed with the

issuance of a land installment purchase obligation may be financed

through the issuance of bonds or bond anticipation notes.

2. Each land installment purchase obligation shall state the dates of

commencement and maturity, which shall establish a term no longer than

the period of probable usefulness of the interests or rights to be

acquired. Each land installment purchase obligation shall provide that

the municipality shall be vested with title and ownership of such

interests or rights and shall be entitled to possession of the interests

or rights to be acquired. A land installment purchase obligation may

include such other terms related to the acquisition or possession of

such interests or rights as may be necessary or convenient.

3. Payments under a land installment purchase obligation shall be in

semi-annual or annual installments, as provided in the land installment

purchase obligation, commencing within one year of the start of the

term, provided that only one such installment scheduled in any fiscal

year of a municipality may contain a principal component. The interest

and principal components of each installment shall be identified therein

and shall be made at the same times and in the same amounts as would be

permitted if the land installment purchase obligation were issued in the

form of a serial bond or a sinking fund bond, provided that if the

municipality elects to schedule such payments at the same times and in

the same amounts as would be permitted if the land installment purchase

agreement were a sinking fund bond, section 22.10 of this chapter shall

apply, and the owner of such land installment purchase agreement shall

be considered a bondholder for purposes of said section, provided,

however, that no such owner shall have any lien, trust or other interest

in moneys held by the state comptroller until the scheduled installment

date on which such amounts are to be paid. The first such installment

shall be sufficient to pay interest on the land installment purchase

obligation accruing prior to the date of the installment.

4. The obligation to make installment payments under a land

installment purchase obligation shall be a faith and credit obligation

of the issuer thereof and shall constitute indebtedness under this

chapter to the same extent as if issued in the form of bond bearing

interest in the amount of the interest component of each such

installment.

5. Any municipality may negotiate the terms of a land installment

purchase obligation with the owner of such interests or rights and the

finance board may delegate the power to set the terms of and sell such

land installment purchase obligation to such owner to the chief

financial officer, provided that any such delegation pursuant to this

sentence shall not include the power to negotiate the price of land

which is the subject of such land installment purchase obligation.

Before executing any such agreement, the finance board of the

municipality shall adopt a resolution determining such agreement is in

the prudent financial interest of the municipality and stating the basis

of that determination.

6. A land installment purchase obligation issued by a municipality

shall be restricted from transfer and may not be the subject of

certificates of participation, unless explicitly agreed to by the

parties.

7. The interest paid pursuant to a land installment purchase

obligation shall be exempt from taxation for municipal and state

purposes. Section 161.00 of this chapter shall not apply to land

installment purchase obligations.

* NB Repealed July 31, 2031

Deficiency notes. a. Any municipality, school district or

district corporation may issue deficiency notes during any fiscal year

to finance a deficiency in any fund or funds arising from revenues being

less than the amount estimated in the budget for such current fiscal

year. Such notes may be issued in such amount as the finance board shall

determine to be necessary, but not to exceed five per centum of the

amount of the annual budget of such municipality, school district or

district corporation.

b. Deficiency notes may be renewed from time to time, but such notes,

including the renewals thereof, shall mature not later than the close of

the fiscal year succeeding the fiscal year in which such notes are

issued. However, such notes, including the renewals thereof, may mature

not later than the close of the second fiscal year succeeding the fiscal

year in which such notes are issued, when authorized and issued during a

fiscal year at a time subsequent to the date of the adoption of the

annual budget for the next succeeding fiscal year, by a municipality,

school district or district corporation in which the total amount of

taxes or assessments levied for a fiscal year is determined pursuant to

an annual budget adopted during the fiscal year preceding such fiscal

year.

c. Deficiency notes shall be redeemed out of the taxes or assessments

levied or to be levied for the fiscal year in which they mature or out

of other revenues of that fiscal year legally available for that

purpose.

d. Notwithstanding the provisions of any general, special or local

law, any municipality, school district or district corporation, which

has the power to issue deficiency notes under this section, shall to the

same extent have the power to appropriate and expend money received from

the proceeds of the sale of deficiency notes for the purposes of the

fund or funds for which such notes are issued.

e. The proceeds of such notes shall be used only to finance a

deficiency in any fund or funds arising from revenues being less than

the amount estimated in the budget for the current fiscal year or, in

the event all or a portion of the proceeds are not expended for that

purpose, the amount not so expended shall be used only for the payment

of principal of and interest on such notes. In determining whether all

or any portion of the proceeds of deficiency notes remained unexpended

at the close of a fiscal year, the moneys in such fund or funds other

than the proceeds of such notes shall be deemed to be expended prior to

the proceeds of such notes.

f. Any municipality, school district or district corporation which

shall renew deficiency notes pursuant to the provisions of paragraph b

of this section, or which shall issue deficiency notes in two or more

successive fiscal years, shall be subject to the requirements of

paragraphs c, d, e and f of section 10.10 of this article for three

years commencing with the fiscal year in which such notes were renewed

or each second successive fiscal year in which such notes were issued.

Agency authorizing issuance of obligations. a. The finance

board shall have the power to authorize the issuance of bonds and notes.

However, the finance board may, by resolution, delegate such power in

relation to bond anticipation notes, tax anticipation notes, revenue

anticipation notes or urban renewal notes or the renewals thereof, to

the chief fiscal officer, in which event the chief fiscal officer shall

exercise such power until the finance board, by resolution, shall elect

to reassume the same.

b. Whenever the power to authorize the issuance of any of such notes,

or the renewals thereof, has been delegated to the chief fiscal officer,

no such note, or such renewal note, authorized by such officer pursuant

to such power shall be issued unless such officer shall have first filed

with the finance board a certificate authorizing the issuance of such

note, or such renewal note. Such certificate shall contain in substance

at least the same statements and provisions as a finance board would be

required to incorporate in a resolution adopted by it in compliance with

section 38.10 or section 39.00 of this chapter and, in addition, a

statement that the power delegated to such officer to issue such note,

or such renewal note, is in full force and effect and has not been

modified, amended or revoked. Such certificate shall be properly dated

and signed by the chief fiscal officer and the same shall be a public

record. The failure to have first filed such certificate with the

finance board as hereinbefore provided shall not invalidate the issuance

of any such note.

c. In such instances in which the chief fiscal officer exercises such

power, the same shall be exercised subject to such terms and conditions,

not inconsistent with the provisions of this chapter, as the finance

board may prescribe.

Bond resolution and capital note resolution. a. The issuance

of bonds shall be authorized by a "bond resolution." The issuance of

capital notes or renewals thereof shall be authorized by "a capital note

resolution." However, if capital notes are to be issued for the same

object or purpose for which bonds are to be issued, the issuance of such

capital notes may be authorized by the bond resolution authorizing the

issuance of such bonds.

b. Any municipality, school district or district corporation may adopt

one or more bond resolutions or capital note resolutions authorizing the

issuance of bonds or capital notes for a specific object or purpose, for

which object or purpose serial bonds may be issued. In addition thereto

any municipality or school district may adopt one or more bond

resolutions or capital note resolutions authorizing the issuance of

bonds or capital notes for any class of objects or purposes, for which

objects or purposes serial bonds may be issued.

c. The issuance of obligations for a capital improvement and for the

acquisition of land or permanent rights in land for such improvement may

be authorized by the same bond resolution or capital note resolution,

notwithstanding the fact that the subdivision of paragraph a of section

11.00 of this chapter which sets forth the period of probable usefulness

for such capital improvement does not include therein the acquisition of

land or permanent rights in land for such improvement.

d. The issuance of bonds or capital notes for two or more specific

objects or purposes or two or more classes of objects or purposes may be

authorized by the same bond resolution or capital note resolution,

notwithstanding the fact that such specific objects or purposes or

classes of objects or purposes are described in separate subdivisions of

paragraph a of section 11.00 of this chapter, provided:

1. The maximum period of probable usefulness is five years or less, as

determined by paragraph a of such section 11.00 or pursuant to paragraph

b of such section, or

2. The bond resolution or the capital note resolution, as the case may

be, is not subject to either mandatory or permissive referendum.

Bond resolution and capital note resolution; form and

contents. Every bond resolution or capital note resolution shall be

properly dated and shall bear a title indicating the type or types of

obligations to which it relates, and shall contain, in substance, at

least the following provisions:

1. A statement of the specific object or purpose or the class of

objects or purposes for which the obligations to be authorized by such

resolution are to be issued. Each item of such specific object or

purpose shall be described in brief and general terms sufficient for a

reasonable identification.

2. If the obligations to be authorized are for a specific object or

purpose, a statement of the estimate of the maximum cost of each item of

such specific object or purpose. If the obligations to be authorized by

a single bond resolution or capital note resolution are for two or more

specific objects or purposes as provided by paragraph d of section 31.00

of this chapter, there shall be a statement of the estimate of the

maximum cost of each item of each specific object or purpose. If the

obligations to be authorized are for a class of objects or purposes,

there shall be a statement of the estimated maximum cost thereof. If the

obligations to be authorized by a single bond resolution or capital note

resolution are for two or more classes of objects or purposes as

provided by paragraph d of section 31.00 of this chapter, there shall be

a statement of the estimated maximum cost of each class of objects or

purposes. Such statement shall also set forth the plan for the

financing of the total cost of all of the items of such specific object

or purpose or such specific objects or purposes or of the cost of such

class or such classes of objects or purposes which shall indicate the

sources of the amounts of money which have been previously authorized to

be applied to the payment of the total cost of all of such items of such

object or purpose or such objects or purposes or of the cost of such

class or such classes of objects or purposes and the intended source or

sources, other than the proceeds of such obligations, of the balance of

the money to be so applied. Such financial plan, by virtue of its

inclusion in such resolution, shall not be deemed binding upon such

municipality, school district or district corporation.

In lieu of such a statement, the resolution may contain a recital that

such information has been set forth in a capital budget or in an

appropriation for such specific object or purpose or such objects or

purposes or for the class or classes of such objects or purposes or in a

previously adopted bond resolution or capital note resolution

authorizing the issuance of obligations for such specific object or

purpose or such specific objects or purposes, or for the class or

classes of such objects or purposes. Such recital shall specifically

refer to the most recent capital budget, appropriation, bond resolution

or capital note resolution containing such information.

3. A statement of the amount of bonds or capital notes to be issued

for such specific object or purpose or class of objects or purposes.

4. A determination of the period or periods of probable usefulness of

the specific object or purpose or class of objects or purposes for which

such bonds or capital notes are to be issued, if such determination is

made by the finance board. However, if bonds are to be issued for a

class of objects or purposes for which more than one period of probable

usefulness is prescribed pursuant to section 11.00 of this chapter and

if the determination of the period of probable usefulness therefor is to

be made by the finance board, the bond resolution authorizing the

issuance of such bonds shall

(a) Specify the kind of specific object or purpose within such class

to which the proceeds of such bonds are to be applied and the

appropriate period of probable usefulness therefor, or

(b) Specify as the period of probable usefulness of such class the

lowest period of probable usefulness assigned thereto.

5. In the case of towns or villages, a determination whether the

proposed maturity of the obligations to be authorized thereby will be in

excess of five years.

6. If current funds are required to be provided prior to the issuance

of such bonds or bond anticipation notes in anticipation of such bonds

pursuant to section 107.00 of this chapter, a statement that there has

been provided or that there will be provided prior to the issuance of

such bonds or bond anticipation notes the appropriate amount of current

funds.

Bond resolution and capital note resolution; procedure for

enactment thereof. a. Every bond resolution and capital note resolution

shall be adopted by at least a two-thirds vote of the voting strength of

the finance board, except that (1) where a bond resolution or a capital

note resolution is subject to mandatory referendum before it shall

become effective or (2) where a bond resolution provides that it shall

be submitted to a referendum in the manner authorized by or pursuant to

this chapter, a three-fifths vote shall be sufficient. A majority vote

shall be sufficient for the adoption of a resolution authorizing the

renewal of a capital note.

b. Any village having a population of five thousand or more, as

determined pursuant to the last available federal census, and any city

may hereafter adopt, in the manner provided by law, a local law

requiring public hearings on all bond resolutions and capital note

resolutions or on bond resolutions and capital note resolutions

authorizing the issuance of obligations for such purposes or amounts as

may be specified in such local law. Such a local law shall prescribe the

procedure for such public hearings.

Mandatory or permissive referenda in counties. a. Except as

otherwise provided in paragraph b of this section neither the

expenditure of money for an object or purpose for which it is proposed

to issue obligations nor a bond resolution or capital note resolution

shall be subject to a mandatory or a permissive referendum in any

county.

b. * 2. If, prior to the effective date of this chapter in any county

operating under an alternative or optional form of government, the board

of supervisors of such county is empowered to submit to a referendum at

any general or special election any act or resolution of the board

providing for the expenditure of any sum greater than two hundred fifty

thousand dollars for a permanent public improvement or improvements

whether or not obligations are to be issued for such improvement or

improvements, the finance board of such county may submit to a

referendum at any general or special election, in the manner provided in

such alternative or optional form of government, any act or resolution

providing for the expenditure of any sum greater than two hundred fifty

thousand dollars for a permanent public improvement or improvements for

which it intends to issue obligations.

* NB There are 2 sb 2's

* 2. A resolution authorizing the issuance of bonds or capital notes

by a county for the object or purpose described in subdivision

forty-nine of paragraph a of section 11.00 of the local finance law

shall be subject to a permissive referendum in the manner provided in

article three-A of the county law as amended from time to time.

* NB There are 2 sb 2's

Bond resolution may be subject to mandatory or permissive

referendum; cities. a. Except as otherwise provided in paragraph b of

this section, neither the expenditure of money for an object or purpose

for which it is proposed to issue obligations nor a bond resolution or

capital note resolution shall be subject to a mandatory or a permissive

referendum in any city.

b. Any city may adopt, in the manner provided by law, a local law

requiring that all bond resolutions, or bond resolutions authorizing the

issuance of bonds for such purposes or amounts as may be specified in

such local law, shall be subject to a mandatory or a permissive

referendum after such resolutions have been adopted by the finance

board. Such a local law shall prescribe the qualifications of the voters

at and the procedure for such a mandatory or a permissive referendum and

shall not itself be subject to a permissive or mandatory referendum. The

provisions of this paragraph shall not apply to bond resolutions

authorizing the issuance of bonds for the payment of judgments, or

compromised or settled claims against such city, or awards or sums

payable by such city pursuant to a determination by a court, or an

officer, body or agency acting in an administrative or quasi-judicial

capacity, or to provide sewage disposal or treatment facilities required

by any order of the state commissioner of health or of the water

resources commission directing compliance with standards, determinations

or orders promulgated pursuant to article twelve of the public health

law to prevent pollution of the waters of the state.

Bond resolution subject to referendum; towns. a. A bond

resolution adopted by the finance board of any town for the purpose of

financing a town highway improvement shall be subject to a permissive

referendum or such resolution may be submitted to a referendum by such

finance board on its own motion, in the manner prescribed in article

seven of the town law, as amended from time to time, if no part of the

cost of any such improvement is be paid by the county, or by the state,

as provided in the highway law or is to be levied against property

situated within any incorporated village in such town. Notwithstanding

the foregoing provisions of this paragraph, a bond resolution or

resolutions adopted by the finance board of any town authorizing the

issuance of bonds for any such town highway improvement or improvements

to the extent of not to exceed fifteen thousand dollars in the aggregate

in any fiscal year of the town shall not be subject to such permissive

referendum if the bonds have a proposed maturity of not more than five

years to be measured from the date of the bonds or from the date of the

first bond anticipation note issued in anticipation of sale of such

bonds, whichever date is the earlier. Furthermore, the foregoing

provisions of this paragraph shall not apply to a bond resolution

authorizing the issuance of bonds to finance improvements undertaken

pursuant to either section two hundred or section two hundred-a of the

town law, as amended from time to time.

b. Except as otherwise provided in paragraph a of this section,

1. A bond resolution adopted by the finance board of a town shall be

subject to a permissive referendum or such resolution may be submitted

to a referendum by such finance board on its own motion, in the manner

prescribed in article seven of the town law, as amended from time to

time.

The foregoing provisions of this paragraph b shall not apply to a bond

resolution authorizing the issuance of bonds:

(1) With a proposed maturity of not more than five years to be

measured from the date of the bonds or from the date of the first bond

anticipation note issued in anticipation of the sale of such bonds,

whichever date is the earlier.

(2) For any district or special improvement authorized by articles

three-A, twelve, twelve-A and twelve-C of the town law, as amended from

time to time, or for any such improvement authorized by any other

general or special law where the cost thereof is to be assessed upon

benefitted real property except for a bond resolution adopted by the

finance board of the Town of Oyster Bay for the purpose of financing an

original capital improvement for an existing park district in said town,

where the estimated maximum cost of such improvement shall be two

million or more.

(3) For the construction, pavement or other improvement of a street or

highway through such town, the cost of which is to be paid in part by

such town and in part by the county or state, as provided in the highway

law, as amended from time to time.

(4) For the payment of judgments, or compromised or settled claims

against such town, or awards or sums payable by such town pursuant to a

determination by a court, or an officer, body or agency acting in an

administrative or quasi-judicial capacity.

c. The expenditure of money for which it is proposed to issue

obligations shall not be subject to a permissive or mandatory referendum

in any town.

d. The provisions of paragraphs a and b of this section shall not

apply to any bond resolution which authorizes the issuance of bonds for

the reconstruction of a bridge, tunnel, viaduct or underpass or for the

reconstruction or repair of a highway, road, street, parkway or parking

area, whether or not including sidewalks, curbs, gutters, drainage,

landscaping or grading, if (1) such reconstruction or repair is

necessitated by a storm, flood, earthquake or other unforeseeable

disaster and (2) the county superintendent of highways certifies that

such work should be commenced within eight months after such disaster in

order to prevent unusual peril to the lives and property of the citizens

of the town and (3) such bond resolution has been adopted within eight

months after such disaster.

Bond resolution subject to permissive referendum; villages.

a. A bond resolution adopted by the finance board of a village shall be

subject to a permissive referendum or such resolution may be submitted

to a referendum by such finance board on its own motion, in the manner

prescribed in article nine of the village law, as amended from time to

time. The foregoing provisions of this paragraph shall not apply to a

bond resolution authorizing the issuance of bonds:

1. With a proposed maturity of not more than five years to be measured

from the date of the bonds or from the date of the first bond

anticipation note issued in anticipation of the sale of such bonds,

whichever date is the earlier.

2. For a capital improvement or equipment, of which any part of the

cost is chargeable primarily to benefited real property.

3. For the construction, pavement or other improvement of a street or

highway through such village, the cost of which is to be paid in part by

such village and in part by the county or state, as provided in the

highway law, as amended from time to time.

4. For the payment of judgments, or compromised or settled claims

against such village, or awards or sums payable by such village pursuant

to a determination by a court, or an officer, body or agency acting in

an administrative or quasi-judicial capacity.

5. To provide for the construction or reconstruction of facilities for

the conveyance, treatment and disposal of sewage required by any order

of the state commissioner of health or of the water resources commission

directing compliance with standards, determinations or orders

promulgated pursuant to article twelve of the public health law to

prevent pollution of the waters of the state.

6. To provide for construction or reconstruction of facilities for the

incineration and disposal of refuse and garbage required by any order of

the commissioner of health, the air pollution control board or county

health commissioner directing compliance with standards, determinations

or orders promulgated pursuant to article twelve-A of the public health

law or pursuant to a local law, ordinance or regulation of the governing

body of a county, which complies with at least the minimum applicable

requirements set forth in any code, rule or regulation promulgated

pursuant to article twelve-A of the public health law to prevent,

control or prohibit pollution of the air resources of the state.

b. The expenditure of money for which it is proposed to issue

obligations shall not be subject to a permissive or mandatory referendum

in any village.

Referenda on bond resolutions or capital note resolutions;

school districts. a. In a school district other than a city school

district a bond resolution or a capital note resolution shall not be

adopted by the finance board thereof unless a tax to be collected in

installments shall have been voted in the manner provided in the

education law, as amended from time to time, for the object or purpose

for which such resolution authorizes the issuance of obligations. The

foregoing provisions of this paragraph shall not apply to:

1. A bond resolution or capital note resolution adopted by the finance

board of a school district authorizing the issuance of bonds or capital

notes for the payment of all or part of a judgment, award or a

compromised or settled claim against the school district for the

acquisition of land or rights in land, to the extent that the amount of

such judgment, award or claim exceeds the amount authorized to be

expended for such acquisition of land or rights in land, provided such

excess amount does not exceed fifteen per centum of the amount so

authorized to be expended.

2. A bond resolution which authorizes the issuance of bonds pursuant

to section 92.00 of this chapter where prior to the issuance by a school

district of the bond anticipation note or notes to be refunded by such

bonds a tax to be collected in installments has been voted in the manner

provided in the education law for the object or purpose for which such

note or notes were issued.

3. A bond resolution or capital note resolution which authorizes the

issuance of bonds or capital notes for the payment of judgments, or

compromised or settled claims against such a school district, or awards

or sums payable by such a school district pursuant to a determination by

a court, or an officer, body or agency acting in an administrative or

quasi-judicial capacity.

b. In a city school district a bond resolution adopted by the finance

board thereof shall not become effective unless a proposition approving

such resolution shall have been adopted at a special or annual school

district meeting held in accordance with article forty-one and

fifty-three of the education law. The foregoing provisions of this

paragraph shall not apply to a bond resolution authorizing the issuance

of bonds:

1. For the payment of judgments, or compromised or settled claims

against such city school district, or awards or sums payable by such

city school district pursuant to a determination by a court, or an

officer, body or agency acting in an administrative or quasi-judicial

capacity; or

2. Where a tax to be collected in installments has been voted in the

manner provided in the education law, prior to July first, nineteen

hundred fifty-one, for the object or purpose for which such resolution

authorizes the issuance of bonds; or

3. Where such resolution authorizes the issuance of bonds pursuant to

section 92.00 of this chapter and prior to the issuance by a school

district of the bond anticipation note or notes to be refunded by such

bonds a tax to be collected in installments has been voted in the manner

provided in the education law for the object or purpose for which such

note or notes were issued.

Notwithstanding the foregoing provisions of this paragraph, the

finance board of a city school district may provide in any bond

resolution or capital note resolution that such resolution, shall not

become effective unless a proposition approving such resolution is

adopted at a special or annual district meeting held in accordance with

article forty-one and fifty-three of the education law.

Referenda on bond resolutions or capital note resolutions;

fire districts and other district corporations. a. A bond resolution or

a capital note resolution adopted by the finance board of a fire

district shall not become effective unless it shall have been approved

at a regular or special election of such district in the manner provided

in section one hundred and seventy-nine of the town law, as amended from

time to time.

b. 1. If, prior to the effective date of this chapter, in a district

corporation other than a fire district, the voting of a special tax or a

tax to be collected in installments for an object or purpose, at a

regular or special election or meeting, is a condition precedent to the

authorization of the issuance of obligations for such object or purpose,

a bond resolution or a capital note resolution authorizing the issuance

of bonds or capital notes for such object or purpose shall not be

adopted by the finance board unless a special tax or a tax to be

collected in installments for such object or purpose shall have been

voted at such an election or meeting in the manner provided by law.

2. If, prior to the effective date of this chapter, in a district

corporation other than a fire district, the approval of a proposition

for the expenditure of money for an object or purpose, at a regular or

special election or meeting, is a condition precedent to the

authorization of the issuance of obligations for such object or purpose,

a bond resolution or a capital note resolution authorizing the issuance

of bonds or capital notes for such object or purpose shall not be

adopted by the finance board unless a proposition for the expenditure of

money for such object or purpose shall have been approved at such an

election or meeting in the manner provided by law.

3. If, prior to the effective date of this chapter, in a district

corporation other than a fire district, the authorization of the

issuance of obligations for an object or purpose must be approved at a

regular or special election or meeting, a bond resolution or a capital

note resolution adopted by the finance board authorizing the issuance of

bonds or capital notes for such object or purpose shall not become

effective unless it shall have been so approved at such an election or

meeting in the manner provided by law.

Bond anticipation note resolution; form and contents.

Whenever the finance board shall authorize the issuance of bond

anticipation notes or renewals thereof, it shall do so by a "bond

anticipation note resolution." Each such resolution shall be properly

dated and shall bear a title which will indicate that it relates to a

bond anticipation note. Whenever a bond anticipation note has been duly

authorized by a chief fiscal officer the certificate required to be

filed by such officer pursuant to section 30.00 of this chapter shall

bear a title which will indicate that it relates to a bond anticipation

note. Every such resolution shall contain, in substance, at least the

following provisions:

1. A statement of the specific object or purpose or the class of

objects or purposes for which the obligations to be authorized by such

resolution are to be issued. Such specific object or purpose shall be

described in brief and general terms sufficient for a reasonable

identification.

2. A specific reference to the bond resolution or resolutions

authorizing the bonds in anticipation of the sale of which such notes

are to be issued.

3. A statement of the amount of bonds to be issued for such specific

object or purpose or class of objects or purposes and whether such bonds

are to be serial or sinking fund bonds.

4. A statement of the amount of such bond anticipation notes to be

issued.

5. A statement of the amount of bond anticipation notes which are

outstanding which had been previously issued in anticipation of the sale

of such bonds.

6. A statement as to whether or not such notes are renewal notes and

if they are, the date of issuance of the original notes issued in

anticipation of the sale of such bonds.

7. A statement of the period of maturity of such notes.

8. A statement indicating whether or not such notes are issued in

anticipation of bonds for an assessable improvement.

Tax anticipation note resolution, revenue anticipation note

resolution and urban renewal note resolution; form and contents. a.

Whenever the finance board shall authorize the issuance of tax

anticipation notes, revenue anticipation notes or urban renewal notes,

or the renewal of such notes, it shall do so by a "tax anticipation note

resolution", "a revenue anticipation note resolution" or an "urban

renewal note resolution", as the case may be. Each such resolution shall

be properly dated and shall bear a title which will indicate the type of

note to which it relates. Whenever any such note has been duly

authorized by a chief fiscal officer the certificate required to be

filed by such officer pursuant to section 30.00 of this chapter shall

bear a title which will indicate the type of note to which it relates.

b. A tax anticipation note resolution, revenue anticipation note

resolution or an urban renewal note resolution shall contain, in

substance, the following provisions:

1. A statement that such notes are issued in anticipation of:

(a) The collection of real estate taxes or assessments, in the case of

tax anticipation notes;

(b) The collection of revenues other than real estate taxes or

assessments, in the case of revenue anticipation notes; or

(c) The receipt of moneys from (1) the sale of real property, or any

interest therein, acquired for or incidental to an urban renewal

project; or (2) from the United States government pursuant to title one

of the federal housing act of nineteen hundred forty-nine, as amended;

or (3) from the state of New York pursuant to the general municipal law;

or from any or all such sources, in the case of urban renewal notes.

2. (a) In the case of tax anticipation notes:

(1) If such taxes or assessments were levied or are to be levied for a

fiscal year, a statement of the fiscal year for which such taxes or

assessments were levied or are to be levied, or

(2) If such notes are to be issued in anticipation of the collection

of assessments levied for a capital improvement and to be collected in a

single installment, and, if such assessments have been levied, a

statement of the date of the levy of such assessments, or

(3) If such notes are to be issued in anticipation of the collection

of an installment of assessments which are levied for a capital

improvement and which are to be collected in several installments, and,

if such installment of assessments has been levied, a statement of the

date on which such installment is due and payable.

(b) In the case of revenue anticipation notes, a statement of the

fiscal year in which such revenues are due and payable.

3. (a) In the case of tax anticipation notes, if such taxes or

assessments have been levied, a statement of the amount of such taxes or

assessments remaining uncollected against which such notes are

authorized to be issued.

(b) In the case of revenue anticipation notes, a statement of the

amount of uncollected revenues against which such notes are authorized

to be issued.

(c) In the case of urban renewal notes, a statement of (1) the total

estimated cost of the urban renewal project as stated in the certificate

of the chief fiscal officer of the municipality filed and approved in

the manner prescribed in paragraph d of section 25.10 of this chapter;

(2) the total amount of any and all advances, loans and grants made by

the United States government or by the state of New York in aid of such

project to the municipality prior to and including the date of the

issuance of any such note or notes; (3) the amount of any and all local

grants-in-aid made or to be made for such project; and (4) the total

amount of such notes outstanding for such project.

4. In the case of urban renewal notes, a statement identifying the

particular urban renewal project with respect to which such notes are to

be issued.

5. A statement of the amount of such notes to be issued.

6. A statement of the period of maturity on such notes.

7. (a) In the case of tax anticipation notes issued in anticipation of

the collection of taxes or assessments which have been levied, or the

renewals thereof, a statement that the date of maturity of such notes

shall not extend beyond the close of the applicable period provided in

section 24.00 of this chapter for the maturity of such notes.

(b) In the case of revenue anticipation notes, if such notes are to be

issued in renewal of similar notes, a statement that the date of

maturity of such notes shall not extend beyond the expiration of the

second fiscal year succeeding the fiscal year in which such original

notes were issued.

(c) In the case of urban renewal notes, a statement whether such notes

are renewal notes and, if they are, the date of issuance of the original

notes.

Budget note resolution; form and contents; authorization

thereof. a. The issuance of budget notes or renewals thereof shall be

authorized by a "budget note resolution." Each such resolution shall be

properly dated and shall bear a title which will indicate that it

relates to a budget note.

b. Any municipality, school district or district corporation may adopt

one or more budget note resolutions authorizing the issuance of budget

notes for a specific object or purpose, for which object or purpose

budget notes may be issued. In addition, any municipality may adopt one

or more budget note resolutions authorizing the issuance of budget notes

for a class of objects or purposes set forth in paragraph b, c, d or e

of section 29.00 of this chapter.

c. A budget note resolution shall contain, in substance, at least the

following provisions:

1. A statement setting forth the facts and circumstances necessitating

the issuance of such budget notes and the specific object or purpose or

the class of objects or purposes for which the budget notes to be

authorized by such resolution are to be issued and stating that there

are no other funds available with which to pay or provide for such

object or purpose or class of objects or purposes. Such circumstances

necessitating the issuance of budget notes and such specific object or

purpose shall be described in brief and general terms sufficient for a

reasonable identification.

2. A statement of the amount of budget notes to be issued for such

specific object or purpose or class of objects or purposes.

3. A statement of the period of maturity of such notes.

4. If such notes are to be issued in renewal of other notes a

statement that the date of maturity of such notes shall not extend

beyond the applicable period provided in section 29.00 of this chapter

for the maturity of such notes.

d. Every budget note resolution shall be adopted by at least a

majority vote of the voting strength of the finance board. A majority

vote shall be sufficient for the adoption of a resolution authorizing

the renewal of any budget note.

Deficiency note resolution; form and contents; authorization

thereof. a. The issuance of deficiency notes or renewals thereof shall

be authorized by a "deficiency note resolution". Each such resolution

shall be properly dated and shall bear a title which will indicate that

it relates to a deficiency note.

b. Any municipality, school district or district corporation may adopt

one or more deficiency note resolutions authorizing the issuance of

deficiency notes for the specific object or purpose of covering a

deficiency in any fund or funds arising from revenues being less than

the amount estimated in the budget for the current fiscal year of the

municipality, school district or district corporation.

c. A deficiency note resolution shall contain, in substance, at least

the following provisions:

1. a statement of the specific object or purpose for which the

deficiency notes to be authorized by such resolution are to be issued;

2. a statement of the amount of deficiency notes to be issued, the

amount and the cause of the deficiency in revenues, and that no other

source of financing is available;

3. a statement of the period of maturity of such notes; and

4. if such notes are to be issued in renewal of other notes, a

statement that the date of maturity of such notes shall not extend

beyond the applicable period provided in section 29.20 of this article

for the maturity of such notes.

d. Every deficiency note resolution shall be adopted by at least a

majority vote of the voting strength of the finance board. A two-thirds

vote of the voting strength of the finance board shall be required to

adopt a deficiency note resolution authorizing the issuance of renewal

notes or authorizing the issuance of deficiency notes in a year next

succeeding a year in which deficiency notes were issued.

Repeal of unexpended authorizations. a. The finance board of:

1. Any municipality may at any time, by resolution, repeal or revoke

in whole or in part (a) any resolution heretofore or hereafter adopted

authorizing the issuance of obligations, and (b) any certificate of a

chief fiscal officer authorizing the issuance of obligations, dated on

or after the effective date of this chapter, or

2. Any school district may, by resolution, repeal or revoke in whole

or in part (a) any resolution heretofore or hereafter adopted

authorizing the issuance of obligations, at any time after four years

have elapsed from the date of the adoption of any such resolution, and

(b) any certificate of a chief fiscal officer authorizing the issuance

of obligations, dated on or after the effective date of this chapter, at

any time after four years have elapsed from the date of any such

certificate, or

3. Any district corporation may at any time, by resolution, repeal or

revoke in whole or in part (a) any resolution heretofore or hereafter

adopted authorizing the issuance of obligations, and (b) any certificate

of a chief fiscal officer authorizing the issuance of obligations, dated

on or after the effective date of this chapter,

except to the extent that any indebtedness shall already have been

contracted or encumbrances made thereunder for the object or purpose for

which such resolution or certificate authorizes the issuance of

obligations, whether or not the voting of a special tax or a tax to be

collected in installments or the approval of a proposition for the

expenditure of money, at a regular or special election or meeting, was a

condition precedent to the adoption of such resolution or such

resolution subsequent to the adoption thereof was submitted and approved

at a regular or special election or meeting.

b. Any resolution heretofore or hereafter adopted authorizing the

issuance of obligations, or any certificate of a chief fiscal officer

authorizing the issuance of obligations, dated on or after the effective

date of this chapter, unless repealed or revoked at a prior date in the

manner provided in paragraph a of this section, shall be deemed to be

repealed ten years after the date it becomes effective, except to the

extent that any indebtedness shall already have been contracted or

encumbrances made thereunder for the object or purpose for which such

resolution or certificate authorizes the issuance of obligations.

Contents of notice of meeting or election where special tax or

tax to be collected in installments is to be voted. Where the voting of

a special tax or a tax to be collected in installments is a condition

precedent to the adoption of a bond resolution or capital note

resolution and the bonds or capital notes are to be issued to finance a

specific object or purpose, the notice of the meeting or the election at

which such tax is voted must state the estimated maximum cost of each

item of such specific object or purpose and the estimated total cost of

all of the items.

Agency prescribing terms, form and contents of obligations.

The finance board shall prescribe the terms, form and contents of bonds

and notes. However, the finance board may, by resolution, delegate to

the chief fiscal officer all or part of such power in relation to every

or any type of bond or note, in which event the chief fiscal officer

shall exercise such power until the finance board, by resolution, shall

elect to reassume the same.

Terms, form and contents of obligations. Every bond and note

shall contain a statement of at least the following:

1. The type of obligation.

2. The amount of the obligation and the total amount of the issue of

which the obligation is a part.

3. The date and maturity of the obligation.

4. If the obligation is a tax anticipation note or a revenue

anticipation note, the fiscal year for which the taxes were levied or

are to be levied or in which the revenues are to become due and payable,

as the case may be; if the obligation is a tax anticipation note to be

issued in anticipation of the levy or collection of assessments for a

fiscal year or in anticipation of the collection of an installment of an

assessment for a capital improvement, the fiscal year for which such

assessments were levied or are to be levied or in which such installment

becomes due, as the case may be.

* 5. The rate of interest or, in the case of obligations bearing a

variable rate of interest, the procedure for calculating such variable

rate of interest and the maximum rate of interest which such variable

rate notes may bear, together with the date or dates of payment thereof.

* NB Effective until July 15, 2027

* 5. The rate of interest and the date or dates of payment thereof.

* NB Effective July 15, 2027

6. The place or places of payment of principal and interest.

7. The medium of payment.

8. An irrevocable pledge of the faith and credit of the municipality,

school district or district corporation issuing the obligation for the

payment thereof.

9. If the obligation is payable to bearer, whether it may be converted

into a registered obligation; if the obligation is in registered form,

whether it may be converted into a bearer obligation.

10. If the obligation may be called for redemption prior to its date

of maturity, the terms and conditions under which such obligation may be

redeemed.

Recital of validity in obligations. Any obligation issued by a

municipality, school district or district corporation may contain on its

face a recital in substantially the following form:

"It is hereby certified and recited that all conditions, acts and

things required by the Constitution and statutes of the State of New

York to exist, to have happened and to have been performed precedent to

and in the issuance of this (Here insert type of obligation), exist,

have happened and have been performed, and that the issue of (Here

insert type of obligations) of which this is one, together with all

other indebtedness of such (Here insert name of municipality, school

district or district corporation) is within every debt and other limit

prescribed by the Constitution and laws of such State."

Obligations redeemable prior to maturity. a. The agency

prescribing the terms, form and contents of bonds may reserve to itself

the power to call in and redeem such bonds prior to the date of their

maturity. Such power may be exercised upon the giving of notice of such

call for redemption by publication at least three times in a financial

newspaper published and circulated in the city of New York and in the

official newspaper or newspapers of the municipality, school district or

district corporation, or, if there be no official newspaper, then in any

newspaper having general circulation therein which the agency shall

designate for such purpose, the first publication to be at least thirty

days prior to the date set for such redemption or, in the case of

registered bonds, by mailing or transmitting such notice to the

registered holder at least thirty days prior to such date. The agency

prescribing the terms, form and contents of notes may reserve to itself

the power to call in and redeem such notes prior to the date of their

maturity upon the giving of such notices as it shall prescribe.

b. If such bonds or notes are payable in installments, the

installments remaining unpaid may be called for redemption only (i) in

the inverse order of their maturity or, (ii) in equal proportionate

amounts; provided, however, that for bonds issued during the one-year

period commencing July first, nineteen hundred eighty-eight, and for

bonds issued during the one-year period commencing July first, nineteen

hundred eighty-nine, and for bonds issued during the one-year period

commencing July first, nineteen hundred ninety, and for bonds issued

during the three-year period commencing July first, nineteen hundred

ninety-one, and for bonds issued during the period from July first,

nineteen hundred ninety-four up until and including July fifteenth,

nineteen hundred ninety-seven and for bonds issued during the period

from July fifteenth, nineteen hundred ninety-seven up until and

including July fifteenth, two thousand, and for bonds issued during the

period from July fifteenth, two thousand up until and including July

fifteenth, two thousand three, and for bonds issued during the period

from July fifteenth, two thousand three up until and including July

fifteenth, two thousand six, and for bonds issued during the period from

July fifteenth, two thousand six up until and including July fifteenth,

two thousand nine, and for bonds issued during the period from July

fifteenth, two thousand six up until and including July fifteenth, two

thousand twelve, and for bonds issued during the period from July

fifteenth, two thousand nine up until and including July fifteenth, two

thousand fifteen, and for bonds issued during the period from July

fifteenth, two thousand fifteen up until and including July fifteenth,

two thousand eighteen, and for bonds issued during the period from July

fifteenth, two thousand eighteen up until and including July fifteenth,

two thousand twenty-one, and for bonds issued during the period from

July fifteenth, two thousand twenty-one up until and including July

fifteenth, two thousand twenty-four, and for bonds issued during the

period from July fifteenth, two thousand twenty-four up until and

including July fifteenth, two thousand twenty-seven, installments

remaining unpaid on such 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 district corporation at the time of the

issuance thereof. Whenever any bonds or notes are called for redemption

prior to the date of their maturity, interest shall cease to be paid

thereon after the date for redemption set forth in such call for

redemption. The sum to be paid to redeem any unpaid installment prior to

its maturity, exclusive of the interest accruing on such installment to

the date of redemption, shall in no event be in excess of the lesser

amount of either (i) the par value of such installment plus one-half of

one per centum of such par value for each calendar year or part thereof

elapsing between the date for redemption set forth in such call for

redemption and the date of maturity of such installment, provided,

however, that such amount shall not exceed one hundred five per centum

of such par value, or (ii) the par value of such installment plus the

total of all unpaid interest on such installment which would have

accrued from the date of redemption to the date of maturity thereof had

such installment not been redeemed prior to maturity, except that bonds

sold to the state of New York municipal bond bank agency, which are

subject to call as hereinbefore authorized, may provide for the payment

of a redemption premium not to exceed five per centum of the par value

of the bonds to be called, payable on the date of the redemption

thereof; provided, however, that for bonds issued during the one-year

period commencing July first, nineteen hundred eighty-eight, and for

bonds issued during the one-year period commencing July first, nineteen

hundred eighty-nine, and for bonds issued during the one-year period

commencing July first, nineteen hundred ninety, and for bonds issued

during the three-year period commencing July first, nineteen hundred

ninety-one, and for bonds issued during the period from July first,

nineteen hundred ninety-four up until and including July fifteenth,

nineteen hundred ninety-seven, and for bonds issued during the period

from July fifteenth, nineteen hundred ninety-seven up until and

including July fifteenth, two thousand, and for bonds issued during the

period from July fifteenth, two thousand up until and including July

fifteenth, two thousand three, and for bonds issued during the period

from July fifteenth, two thousand three up until and including July

fifteenth, two thousand six, and for bonds issued during the period from

July fifteenth, two thousand six up until and including July fifteenth,

two thousand nine, and for bonds issued during the period from July

fifteenth, two thousand nine up until and including July fifteenth, two

thousand twelve, and for bonds issued during the period from July

fifteenth, two thousand twelve up until and including July fifteenth,

two thousand fifteen, and for bonds issued during the period from July

fifteenth, two thousand fifteen up until and including July fifteenth,

two thousand eighteen, and for bonds issued during the period from July

fifteenth, two thousand eighteen up until and including July fifteenth,

two thousand twenty-one, and for bonds issued during the period from

July fifteenth, two thousand twenty-one up until and including July

fifteenth, two thousand twenty-four, and for bonds issued during the

period from July fifteenth, two thousand twenty-four up until and

including July fifteenth, two thousand twenty-seven, a municipality,

school district, or district corporation may provide for redemption of

such bonds prior to the date of their maturity at a price or prices as

may be as determined by the issuer of such bonds or notes at the time of

the issuance thereof.

Bonds and notes of the city of New York; certain provisions.

Subject to the provisions of the financial emergency act for the city of

New York but notwithstanding any other law to the contrary:

(a) To facilitate the marketing of any issue of bonds or notes of the

city of New York issued on or before June thirtieth, two thousand

twenty-seven, the mayor and comptroller of such city may, subject to the

approval of the state comptroller and the limitations on private sales

of bonds and notes, respectively, provided by law:

(i) arrange for the underwriting of its bonds or notes through

negotiated agreement or public letting, and provide for compensation for

services rendered in connection with such underwriting by negotiated fee

or by sale of such bonds or notes to an underwriter at a price of less

than the sum of par value of, and the accrued interest on, such

obligations;

(ii) arrange for the private sale of its bonds or notes through

negotiated agreement, and provide for compensation for services rendered

in connection with such sales by negotiated fee or by sale of such bonds

or notes at a price of less than the sum of par value of, and the

accrued interest on, such obligations;

(iii) provide for redemption of its bonds or notes on such date or

dates prior to the date of their maturity at a price or prices and

pursuant to such terms as may be determined by the city at the time of

the issuance thereof, notwithstanding any limitation set forth in

section 53.00 of this chapter. The cost of such underwriting or private

placement together with other costs of the issuance of obligations,

shall be deemed a part of the cost of the objects or purposes financed

by an issue of obligations.

(b) Without further approval the mayor and comptroller of the city of

New York may provide for or enter into agreements which provide for the

payment of a guarantee fee or any other amounts required by the United

States of America or any agency or instrumentality thereof in connection

with any guarantee of the payment of the principal of or interest on

bonds or notes issued by such city or the municipal assistance

corporation for the city of New York.

(c) Without further approval the mayor and comptroller of the city of

New York may provide for or enter into agreements which provide for the

payment of compensation by negotiated fee or otherwise to a financial

advisor to such city engaged pursuant to any agreement with the

secretary of the Treasury in connection with the guarantee by the United

States of America or any agency or instrumentality thereof of the

principal of or interest on bonds or notes issued by such city or the

municipal assistance corporation for the city of New York or to enhance

the city's ability to market its obligations to the public.

(d) Without further approval the mayor and the comptroller of the city

of New York may provide for or enter into agreements which provide for

the compensation by negotiated fee or otherwise of a trust company or

bank having the powers of a trust company in the state of New York to

hold, maintain and administer funds in accordance with the provisions of

section nine-a of the New York state financial emergency act for the

city of New York.

(e) Without further approval the mayor and the comptroller of the city

of New York may provide for or enter into agreements which provide for

the payment of any amount required in exchange for a commitment to

purchase bonds or notes of the city, and in addition may enter into

agreements upon such terms, including but not limited to terms governing

payment, redemption and refunding, as they deem reasonable and

appropriate to facilitate the issuance and sale of notes with an

interest rate which may vary pursuant to section 60.00 of this chapter.

Funding of capital expenditures duly appropriated in the

capital budget for the city of New York. Subject to the provisions of

the New York State Financial Emergency Act for The City of New York but

notwithstanding any other law to the contrary, to facilitate the funding

of capital expenditures duly appropriated in the capital budget for the

city of New York, the finance board of such city shall establish an

account or accounts to receive amounts duly appropriated for capital

purposes in the expense budget of such city. Any payment pursuant to

such an expense budget appropriation shall be made prior to completion

of the annual audit of the fiscal year in which such appropriation was

made. At its discretion, the finance board of such city shall apply

amounts from any such account to capital expenditures duly appropriated

in the capital budget of such city.

The moneys in any such account shall be deposited and secured in the

manner provided by section ten of the general municipal law. The finance

board or the chief fiscal officer of such municipality, if the finance

board shall delegate such duty to him, may invest the moneys in each

such fund in the manner provided in section eleven of the general

municipal law. Any interest earned or capital gains realized on the

moneys so deposited or invested shall accrue to and become part of such

account. The separate identity of such account shall be maintained,

whether its assets consist of cash or investments or both.

Costs of sales; bonds and notes of the city of Buffalo.

Subject to the provisions of chapter one hundred twenty-two of the laws

of two thousand three creating the Buffalo fiscal stability authority,

to facilitate the marketing of any issue of serial bonds or notes of the

city of Buffalo issued on or before June thirtieth, two thousand

twenty-seven, such city may, notwithstanding any limitations on private

sales of bonds provided by law, and subject to approval by the state

comptroller of the terms and conditions of such sale: (a) arrange for

the underwriting of its bonds or notes at private sale through

negotiated agreement, compensation for such underwriting to be provided

by negotiated fee or by sale of such bonds or notes to an underwriter at

a price of less than the sum of par value of, and the accrued interest

on, such obligations; or (b) arrange for the private sale of its bonds

or notes through negotiated agreement, compensation for such sales to be

provided by negotiated fee, if required. The cost of such underwriting

or private placement shall be deemed a preliminary cost for purposes of

section 11.00 of this article.

Bonds and notes of the city of Yonkers. Subject to the

provisions of the New York state financial emergency act of nineteen

hundred eighty-four for the city of Yonkers, to facilitate the marketing

of any issue of serial bonds or notes of the city of Yonkers issued on

or before June thirtieth, two thousand twenty-seven, such city may,

notwithstanding any limitations on private sales of bonds provided by

law, and subject to approval by the state comptroller of the terms and

conditions of such sale: (a) arrange for the underwriting of its bonds

or notes at private sale through negotiated agreement, compensation for

such underwriting to be provided by negotiated fee or by sale of such

bonds or notes to an underwriter at a price of less than the sum of par

value of, and the accrued interest on, such obligations; or (b) arrange

for the private sale of its bonds or notes through negotiated agreement,

compensation for such sales to be provided by negotiated fee, if

required. The cost of such underwriting or private placement shall be

deemed a preliminary cost for purposes of section 11.00 of this article.

Costs of sales; county of Erie. To facilitate the marketing of

any issue of serial bonds or notes of the county of Erie issued on or

before June thirtieth, two thousand twenty-seven such county may,

notwithstanding any limitations on private sales of bonds provided by

law, and subject to approval by the state comptroller of the terms and

conditions of such sale:

a. arrange for the underwriting of its bonds or notes at private sale

through negotiated agreement, compensation for such underwriting to be

provided by negotiated fee or by sale of such bonds or notes to an

underwriter at a price less than the sum of par value of, and the

accrued interest on, such obligations; or

b. arrange for the private sale of its bonds or notes through

negotiated agreement, compensation for such sales to be provided by

negotiated fee, if required. The cost of such underwriting or private

placement shall be deemed a preliminary cost for purposes of section

11.00 of this article.

Cost of sales; city of Utica. To facilitate the marketing of

any issue of serial bonds of the city of Utica issued on or before March

thirty-first, nineteen hundred eighty-eight, such city may,

notwithstanding any limitations on private sales of bonds provided by

law, and subject to approval by the state comptroller of the terms and

conditions of such sale:

a. arrange for the underwriting of its bonds at private sale through

negotiated agreement, compensation for such underwriting to be provided

by negotiated fee or by sale of such bonds to an underwriter at a price

of par value or at a discount not to exceed two percent, and the accrued

interest on such obligations; or

b. arrange for the private sale of its bonds through negotiated

agreement, compensation for such sales to be provided by negotiated fee,

if required. The cost of such underwriting or private placement shall be

deemed a preliminary cost for purposes of section 11.00 of this chapter.

Cost of sales; city of Niagara Falls, Niagara county. To

facilitate the marketing of any issue of bonds of the city of Niagara

Falls, Niagara county, issued on or before June thirtieth, nineteen

hundred ninety-nine, such city may, notwithstanding any limitations on

private sales of bonds provided by law and subject to approval by the

state comptroller of the terms and conditions of such sale:

a. arrange for the underwriting of its bonds at private sale through

negotiated agreement, compensation for such underwriting to be provided

by negotiated fee or by sale of such bonds to an underwriter at a price

less than the sum of par value of, and the accrued interest on, such

bonds; or

b. arrange for the private sale of its bonds through negotiated

agreement, compensation for such sale to be provided by negotiated fee,

if required.

The cost of any such underwriting or private placement shall be deemed

a preliminary cost for purposes of section 11.00 of this article.

Cost of sales; city of Lackawanna. To facilitate the

marketing of any issue of serial bonds of the city of Lackawanna

authorized to be issued pursuant to section two of the chapter of the

laws of nineteen hundred ninety which enacted this section, issued for

the purposes of complying with a court ordered assessment reduction,

such city may, on or before March first, nineteen hundred ninety-one,

notwithstanding any limitations on private sales of bonds provided by

law, and subject to approval by the state comptroller of the terms and

conditions of such sales:

a. arrange for the underwriting of its bonds at private sale through

negotiated agreement, compensation for services rendered in connection

with such underwriting to be provided by negotiated fee or by sale of

such bonds to an underwriter at a price of less than the sum of par

value of, and the accrued interest on, such obligations; or

b. arrange for the private sale of its bonds through negotiated

agreement, compensation for services rendered in connection with such

sales to be provided by negotiated fee or by sale of such bonds at a

price of less than the sum of par value of, and accrued interest on,

such obligations. The cost of such underwriting or private placement

shall be deemed a preliminary cost for purposes of section 11.00 of this

chapter.

Bonds and notes of the city of Troy. To facilitate the

marketing of any issue of serial bonds or notes of the city of Troy

issued on or before December thirty-first, nineteen hundred ninety-nine

such city may, notwithstanding any limitations on private sales of bonds

provided by law, and subject to approval by the state comptroller of the

terms and conditions of such sale (a) arrange for the underwriting of

its bonds or notes at private sale through negotiated agreement,

compensation for such underwriting to be provided by negotiated fee or

by sale of such bonds or notes to an underwriter at a price of less than

the sum of par value of, and accrued interest on, such obligation; or

(b) arrange for the private sale of its bonds or notes through

negotiated agreement, compensation for such sales to be provided by

negotiated fee, if required. The cost of such underwriting or private

placement shall be deemed a preliminary cost for purposes of section

11.00 of this chapter. Bonds or notes of the city of Troy may also be

sold at private sale to the municipal assistance corporation for the

city of Troy.

Issuance of bonds or notes with variable rates of interest. a.

Whenever in the judgment of the finance board the interest of a

municipality would be served thereby, the municipality may issue bonds

or notes, on or before July fifteenth, two thousand twenty-seven, with

interest rates that vary in accordance with a formula or procedure and

are subject to a maximum rate of interest set forth or referred to in

the bonds or notes and may provide the holders thereof with such rights

to require the municipality or other persons to purchase such bonds or

notes or renewals thereof from the proceeds of the resale thereof or

otherwise from time to time prior to the final maturity of such bonds or

notes as the finance board may determine and the municipality may

resell, at any time prior to final maturity, any such bonds or notes

acquired as a result of the exercise of such rights; provided, however,

that at no time shall the total principal amount of bonds and notes

issued pursuant to this paragraph (other than bonds and notes bearing

interest at rates and for periods of time that are specified at

issuance) exceed ten percent of the limit prescribed by section 104.00

of this article.

Notwithstanding the foregoing, the holders of bonds or notes sold

pursuant to this paragraph shall not be provided with the right to

require the municipality or other persons to repurchase the bonds or

notes prior to the final maturity thereof unless the municipality has

entered into one or more letter of credit agreements or liquidity

facility agreements for the express purpose of such sale, which

agreements the municipality is hereby authorized to enter into, and

which shall require a financially responsible party or parties to the

agreement or agreements, as defined by section 2.00 of this chapter,

other than the municipality to purchase all or any portion of such bonds

or notes tendered by the holders thereof for repurchase prior to the

final maturity of such bonds or notes until such time as the right of

the holders of such bonds or notes to require repurchase of such bonds

or notes prior to the final maturity thereof shall cease.

Notwithstanding the foregoing, whenever in the judgment of the finance

board of the city of New York the interest of such city would be served

thereby, the city of New York may without further approval issue bonds

or notes, on or before July fifteenth, two thousand twenty-seven, with

interest rates that vary in accordance with a formula or procedure and

are subject to a maximum rate of interest set forth or referred to in

the bonds or notes and may provide the holders thereof with such rights

to require the city or other persons to purchase such bonds or notes or

renewals thereof from the proceeds of the resale thereof or otherwise

from time to time prior to the final maturity of such bonds or notes as

the finance board of the city of New York may determine and the city may

resell, at any time prior to final maturity, any such bonds or notes

acquired as a result of the exercise of such rights; provided, however,

that at no time shall the total principal amount of bonds and notes

issued by the city of New York pursuant to this paragraph (other than

bonds and notes (1) bearing interest at rates and for periods of time

that are specified without reference to future events or contingencies,

or (2) described in section 136.00 of this article) exceed twenty-five

percent of the limit prescribed by section 104.00 of this article.

b. To facilitate the marketing of any issue of bonds and notes issued

pursuant to this section, such municipality may, notwithstanding any

limitation on private sale of bonds and notes provided by law, and

subject to rules promulgated by the state comptroller governing such

sales: (i) arrange for the underwriting of such bonds and notes at

private sale through negotiated agreement, compensation for such

underwriting to be provided by negotiated fee or by sale of such bonds

and notes to an underwriter at a price of less than the sum of par value

of, and accrued interest on, such obligations; or (ii) arrange for the

private sale of such bonds and notes through negotiated agreement,

compensation for such sale to be provided by negotiated fee, if

required. The cost of such underwriting or private placement shall be

deemed a preliminary cost for the purposes of section 11.00 of this

chapter.

c. The finance board of such municipality is hereby authorized and

empowered, in conformance with paragraphs c through g of section 168.00

of this chapter, to enter into such agreements as it deems reasonable

and appropriate to facilitate the issuance, sale, resale and repurchase

of such bonds and notes, including but not limited to agreements with

financially responsible third parties for the remarketing or repurchase

of such bonds and notes in accordance with terms and conditions

determined by such finance board, provided, however, that no such

agreement shall cause or have the effect of causing any annual principal

installment of an issue of serial bonds to be more than fifty per centum

in excess of the smallest prior installment unless the finance board has

determined to provide for substantially level or declining annual debt

service payments in accordance with paragraph d of section 21.00 of this

chapter, in which case no such agreement shall cause or have the effect

of causing any annual principal installment of an issue to vary from the

amounts determined by the finance board to be required to comply with

such paragraph at the time of issuance of the bonds or notes. The

finance board may, by resolution, delegate its power to contract

pursuant to this section to the chief fiscal officer, as defined in

section 2.00 of this chapter, of such public body in which event the

chief fiscal officer shall exercise such power until the finance board,

by resolution, shall elect to reassume the same. For purposes of this

section, the finance board of the city of New York shall mean the mayor

and the city comptroller.

d. 1. On or before July fifteenth, two thousand twenty-seven the mayor

and comptroller of the city of New York may:

(i) enter into interest rate exchange or similar agreements with any

person under such terms and conditions as the mayor and comptroller may

determine, including provisions as to default or early termination and

indemnification by the city or any other party thereto for loss of

benefits as a result thereof;

(ii) procure insurance, letters of credit or other credit enhancement

with respect to such agreements;

(iii) provide security for the payment or performance of its

obligations with respect to agreements described in item (i) of this

subdivision from such sources and with the same effect as is authorized

by applicable law with respect to security for its bonds, notes or other

obligations, provided, however, that any payment or performance of

obligations with respect to agreements described in item (i) of this

subdivision in connection with debt obligations which carry the full

faith and credit of the city shall be subject to appropriation; and

(iv) modify, amend, or replace such agreements.

2. For the purposes of this paragraph:

(i) "Interest rate exchange or similar agreement" shall mean a written

contract entered into in connection with the issuance of city debt, or

in connection with such city debt already outstanding, with a

counterparty to provide for an exchange of payments based upon fixed

and/or variable interest rates, and shall be for exchanges in currency

of the United States of America only.

(ii) "Excluded agreements" shall mean the total notional amount of

interest rate exchange or similar agreements entered into for the

purpose of reducing or eliminating a situation of risk or exposure under

an existing interest rate exchange or similar agreement, including, but

not limited to a counterparty downgrade, default, or other actual or

potential economic loss.

(iii) Interest rate exchange; limitations. Any interest rate exchange

or similar agreements entered into pursuant to item (i) of subdivision

one of this paragraph shall be subject to the following limitations:

(A) the counterparty thereto shall have credit ratings from at least

one nationally recognized statistical rating agency that is within the

two highest investment grade categories and ratings which are obtained

from any other nationally recognized statistical rating agencies shall

also be within the three highest investment grade categories, or the

payment obligations of the counterparty shall be unconditionally

guaranteed by an entity with such credit ratings;

(B) the written contract shall require that should the rating: (I) of

the counterparty, if its payment obligations are not unconditionally

guaranteed by another entity, or (II) of the entity unconditionally

guaranteeing its payment obligations, if so secured, fall below the

rating required by clause (A) of this item, that the obligations of such

counterparty shall be fully and continuously collateralized by direct

obligations of, or obligations the principal and interest on which are

guaranteed by, the United States of America, or any agency thereof with

a net market value of at least one hundred two percent of the net market

value of the contract to the authorized issuer and such collateral shall

be deposited with the authorized issuer or an agent thereof;

(C) the total notional amount of all interest rate exchange or similar

agreements shall not exceed an amount equal to twenty-five percent of

the limit prescribed by section 104.00 of this chapter; provided,

however, that such total notional amount shall not include any excluded

agreements;

(D) no interest rate exchange or similar agreement shall have a

maturity exceeding the maturity of related city debt; and

(E) each interest rate exchange or similar agreement shall be subject

to an independent finding that its terms and conditions reflect a fair

market value of such agreement as of the date of its execution,

regardless of whether such agreement was solicited on a competitive or

negotiated basis.

3. (i) Prior to authorizing the approval of any contract for interest

rate exchange or similar agreement pursuant to subdivision one of this

paragraph, the finance board of the city shall adopt guidelines for the

use of interest rate exchange or similar agreements which shall include,

but not be limited to the following:

(A) the conditions under which such contracts can be entered into;

(B) the methods by which such contracts are to be solicited and

procured;

(C) the form and content such contracts shall take;

(D) the aspects of risk exposure associated with such contracts;

(E) standards and procedures for counterparty selection;

(F) standards for the procurement of credit enhancement, liquidity

facilities, or the setting aside of reserves in connection with such

contracts consistent with the limitations of section 168.00 of this

chapter;

(G) provisions for collateralization or other requirements for

securing the financial interest in such contracts;

(H) the long-term implications associated with entering into such

agreements, such as costs of borrowing, historical trends, use of

capacity for variable rate bonds and related credit enhancements, and

any potential impact on the future ability to call bonds, including

opportunities to refund related debt obligations, and similar

considerations;

(I) the methods to be used to reflect such contracts in the city's

financial statements;

(J) financial monitoring and periodic assessment of such contracts by

the city; and

(K) such other matters relating thereto as the finance board shall

deem necessary and proper.

(ii) The city shall issue a quarterly report to the director of the

budget, the chairs of the senate finance committee and the assembly ways

and means committee, and the state comptroller, on or before the

fifteenth day of each month following the end of each such quarter in

which it enters into or continues to be a party to a contract for

interest rate exchange or similar agreement, which shall list all such

contracts entered into pursuant to this section and shall include, but

not be limited to, the following information for each such contract, as

applicable:

(A) a description of the contract, including a summary of the terms

and conditions, rates, maturity, the estimated market value of each

agreement, and other provisions thereof and the method of procurement;

(B) any amounts which were required to be paid and received, and any

amounts which actually were paid and received thereunder;

(C) any credit enhancement, liquidity facility or reserves associated

therewith including an accounting of all costs and expenses incurred,

whether or not in conjunction with the procurement of credit enhancement

or liquidity facilities;

(D) a description of each counterparty;

(E) an assessment of the counterparty risk, termination risk, and

other risks associated therewith; and

(F) such report shall include a copy of the guidelines required by

item (i) of this subdivision in the quarter after they are adopted or

subsequently modified.

Bearer and registered obligations. a. The agency prescribing

the terms, form and contents of bonds shall provide for the issuance of

bonds in either or both of the following forms:

1. Bonds payable to bearer with coupons attached for the payment of

interest to bearer, and such bonds may provide for their conversion into

bonds registered as to both principal and interest and not otherwise.

2. Bonds in registered form, and such bonds may provide for their

conversion into coupon bonds.

b. The agency prescribing the terms, form and contents of notes shall

provide for the issuance of notes in either or both of the following

forms:

1. Notes payable to bearer, with interest payable to bearer upon

presentation for notation of such payment thereon if periodic payment of

such interest is authorized, and such notes may provide for their

conversion into notes registered as to both principal and interest and

not otherwise.

2. Notes in registered form, and such notes may provide for their

conversion into notes payable to bearer.

Endorsements of principal payments on bonds and notes. A bond

or note shall not provide for the notation of payments of principal

thereon. Only one bond or note shall be set forth in a single instrument

and such bond or note, when paid, shall be surrendered for cancellation

or destruction in the manner provided in this chapter.

Agency selling and issuing obligations. a. The finance board

shall be vested with the powers and duties prescribed in sections 21.00,

57.00, 58.00, 59.00, 60.00, 62.00 and 63.00 of this chapter, and any

other powers or duties pertaining or incidental to the sale and issuance

of obligations. However, the finance board of any municipality, school

district or district corporation may, by resolution, delegate all or

part of such powers and duties to the chief fiscal officer or, in the

case of school districts, to the clerk of the school board, in which

event such chief fiscal officer or clerk of the school board, as the

case may be, shall exercise such powers and perform such duties until

the finance board shall, by resolution, elect to reassume the same.

b. In such instances in which the chief fiscal officer or clerk of the

school board, as the case may be, exercises such powers and performs

such duties, the same shall be exercised or performed subject to such

terms and conditions, not inconsistent with the provisions of this

chapter, as the finance board may prescribe.

c. In the case of river improvement or drainage districts established

by or under the supervision of the conservation department, the

provisions of this chapter shall be followed, but the obligations

authorized and prescribed by the finance board shall be sold and issued

by the state comptroller.

Sale of bonds. a. Bonds shall be sold only at public sale and

in accordance with the procedure set forth in this section and sections

58.00 and 59.00 of this title, except as otherwise provided in this

paragraph. Bonds may be sold at private sale to the United States

government or any agency or instrumentality thereof, the state of New

York municipal bond bank agency, to any sinking fund or pension fund of

the municipality, school district or district corporation selling such

bonds, or, in the case of sales by the city of New York prior to July

first, two thousand twenty-seven, also to the municipal assistance

corporation for the city of New York or to any other purchaser with the

consent of the mayor and the comptroller of such city and approval of

the state comptroller, or, in the case of sales by the county of Nassau

prior to December thirty-first, two thousand seven, also to the Nassau

county interim finance authority with the approval of the state

comptroller, or, in the case of sales by the city of Buffalo prior to

June thirtieth, two thousand thirty-seven, also to the Buffalo fiscal

stability authority with the approval of the state comptroller, or, in

the case of bonds or other obligations of a municipality issued for the

construction of any sewage treatment works, sewage collecting system,

storm water collecting system, water management facility, air pollution

control facility or solid waste disposal facility, also to the New York

state environmental facilities corporation, or, in the case of bonds or

other obligations of a school district or a city acting on behalf of a

city school district in a city having a population in excess of one

hundred twenty-five thousand but less than one million inhabitants

according to the latest federal census, issued to finance or refinance

the cost of school district capital facilities or school district

capital equipment, as defined in section sixteen hundred seventy-six of

the public authorities law, also to the dormitory authority of the state

of New York. Bonds of a river improvement or drainage district

established by or under the supervision of the department of

environmental conservation may be sold at private sale to the state of

New York as investments for any funds of the state which by law may be

invested, provided, however, that the rate of interest on any such bonds

so sold shall be approved by the water power and control commission and

the state comptroller. Bonds may also be sold at private sale as

provided in section 63.00 of this title. No bonds shall be sold on

option or on a deferred payment plan, except that options to purchase,

effective for a period not exceeding one year, may be given:

1. in any case to the state of New York municipal bond bank agency

with respect to any bonds or bond anticipation notes; and

2. in the case of a municipality to the New York state environmental

facilities corporation with respect to bonds or other obligations issued

for the construction of any sewage treatment works, sewage collecting

system, storm water collecting system, water management facility, air

pollution control facility or solid waste disposal facility, or, in the

case of bonds or other obligations of a school district or a city acting

on behalf of a city school district in a city having a population in

excess of one hundred twenty-five thousand but less than one million

inhabitants according to the latest federal census, issued to finance or

refinance the cost of school district capital facilities or school

district capital equipment, as defined in section sixteen hundred

seventy-six of the public authorities law, also to the dormitory

authority of the state of New York. A loan commitment may also be

entered into by and between a municipality, and the state of New York

municipal bond bank agency, by and between a school district or a city

acting on behalf of a city school district in a city having a population

in excess of one hundred twenty-five thousand but less than one million

inhabitants according to the latest federal census and the dormitory

authority of the state of New York, and by and between a municipality

and the New York state environmental facilities corporation, such

commitment to be fulfilled by the purchase of the bonds or other

obligations referred to therein by such agency or such corporation, as

the case may be. As used in this paragraph, the term "sinking fund"

means a fund required by law to be established and maintained for the

purpose of amortizing indebtedness evidenced by sinking fund bonds

issued pursuant to the provisions of this chapter or issued by any

municipality, school district or district corporation under any other

law.

b. Bonds shall be sold without limitation as to rate of interest and

for a sum not less than the par value of, and the accrued interest on,

such obligations except as authorized by this chapter, and may also be

sold by municipalities at private sale to the state of New York

municipal bond bank agency and to the New York state environmental

facilities corporation, and in addition by the city of New York to the

municipal assistance corporation for the city of New York, and by the

county of Nassau to the Nassau county interim finance authority, and by

the city of Buffalo to the Buffalo fiscal stability authority, at such

rate or rates of interest as may be agreed upon by and between the

issuing municipality and either of such agency or corporation, as the

case may be. When sold at public sale, the rate of interest shall be

determined in the manner provided in section 59.00 of this title.

However, the agency or corporation prescribing the terms, form and

contents of such bonds, subject to the foregoing provisions of this

paragraph, may fix a maximum rate of interest at which such bonds shall

be sold.

c. Bonds for one or more specific objects or purposes or classes of

objects or purposes, or a combination thereof, may be sold as a single

bond issue.

d. The state comptroller shall adopt a rule or order which he may

amend from time to time:

1. Designating a financial newspaper or newspaper published and

circulated in the city of New York in which notices for the sale of

bonds may be published;

2. Prescribing the procedure for the circularization of notices for

the sale of bonds;

3. Prescribing such other requirements as he may deem necessary

relating to the publication or circularization of notices for the sale

of bonds, in addition to but not inconsistent with the provisions of

this chapter;

4. Prescribing such data and information as he may deem advisable to

be contained in notices for the sale of bonds, in addition to but not

inconsistent with the provisions of this chapter; and

5. Prescribing the requirements for the alternative and permissive

publication or circularization of notices for the sale of bonds of an

issue not exceeding five million dollars, as permitted in section 63.00

of this chapter.

Such rule or order and the amendments thereof shall be filed in his

office and in such other offices as he may designate.

e. Notwithstanding the limitations set forth in paragraph b of this

section, a municipality, school district, or district corporation may

provide for the public sale of its bonds at a price of less than the

face value of such bonds at maturity; provided that no issue of bonds

shall be sold at a price such that the difference between the sale price

of such bonds, not including accrued interest, and the face value of

such bonds at maturity, shall exceed five percent of the face value of

such issue of bonds at maturity unless the municipality, school district

or district corporation issuing such bonds has determined to issue them

pursuant to a substantially level or declining annual debt service

schedule or unless interest is contributed at least annually to a

sinking fund in accordance with section two of article VIII of the

constitution and the procedures of section 22.10 of this article. The

cost of such original issue discount, together with other costs of the

issuance of obligations, shall be deemed a part of the cost of the

object or purpose for which such obligations are issued.

* f. To facilitate the marketing of any issue of bonds issued pursuant

to paragraph e of this section, such municipality, school district or

district corporation may, notwithstanding any limitations on private

sales of bonds provided by law, and subject to rules promulgated by the

state comptroller governing such sales: (A) arrange for the underwriting

of such bonds at private sale through negotiated agreement, compensation

for such underwriting to be provided by negotiated fee or by sale of

such bonds to an underwriter at a price of less than the sum of face

value at maturity of, and the accrued interest on, such obligations; or

(B) arrange for private sale of such bonds through negotiated agreement,

compensation for such sale to be provided by negotiated arrangement, if

required. The cost of such underwriting or private placement shall be

deemed a preliminary cost for purposes of section 11.00 of this chapter.

* NB Repealed July 15, 2027

* § 57.10 Guidelines for sale of bonds and notes on a negotiated

basis. The state comptroller shall promulgate rules in conformance with

the state administrative procedure act governing the sale of bonds and

notes on a negotiated basis as authorized by sections 54.90 and 57.00 of

this chapter. No bond or note sale on a negotiated basis shall be

conducted by a municipality, school district or district corporation

without prior approval of the state comptroller except as provided in

such rules, which shall set forth the circumstances under which such

approval shall not be required. The state comptroller shall annually

deliver to the senate finance committee and the assembly ways and means

committee a report listing all such sales conducted in the previous

year, including the name of the issuer and the amount of the issue for

each such sale. Such rules shall be reviewed at least annually and

updated as may be necessary.

* NB Repealed July 15, 2027

Notice of sale of bonds. * a. There shall be published, at

least once, not less than five nor more than thirty days before the date

fixed for the public sale of bonds, a notice of such public sale or a

summary thereof in accordance with one of the following methods: (1) the

notice of sale shall be published in any financial newspaper published

and circulated in the city of New York which the state comptroller, in

the rule or order referred to in paragraph d of section 57.00 of this

chapter, shall designate for such publication; (2) the notice of sale

shall be circularized in such manner as the state comptroller shall

prescribe in such rule or order and shall be published in any newspaper

or newspapers which the finance board of the municipality, school

district or district corporation may designate for such purpose; or (3)

(i) a summary of the notice of sale shall be published in both the

financial newspaper published and circulated in the city of New York

which the state comptroller has designated in the rule or order referred

to in paragraph d of section 57.00 of this chapter, and (ii) any

newspaper or newspapers which the finance board of the municipality,

school district or district corporation may designate for such purpose.

A summary of the notice of sale shall at a minimum contain the name of

the issuer, the amount, date, and maturities of the bonds, the frequency

of interest payments, the place where bids will be received, the

designation of the receiving device if the finance board of the issuing

municipality, school district or district corporation has authorized or

required the receipt of bids in an electronic format, the time and date

for the opening of the bids, including circumstances under which such

time and date may be changed in accordance with law, the method of award

and a procedure for promptly obtaining the complete notice of sale and

any preliminary official statement prepared in connection with the sale,

and such other information as the state comptroller may prescribe by

rule or order.

* NB Effective until June 1, 2028

* a. There shall be published, at least once, not less than five nor

more than thirty days before the date fixed for the public sale of

bonds, a notice of such public sale or a summary thereof in accordance

with one of the following methods: (1) the notice of sale shall be

published in any financial newspaper published and circulated in the

city of New York which the state comptroller, in the rule or order

referred to in paragraph d of section 57.00 of this chapter, shall

designate for such publication; (2) the notice of sale shall be

circularized in such manner as the state comptroller shall prescribe in

such rule or order and shall be published in any newspaper or newspapers

which the finance board of the municipality, school district or district

corporation may designate for such purpose; or (3) (i) a summary of the

notice of sale shall be published in both the financial newspaper

published and circulated in the city of New York which the state

comptroller has designated in the rule or order referred to in paragraph

d of section 57.00 of this chapter, and (ii) any newspaper or newspapers

which the finance board of the municipality, school district or district

or district corporation may designate for such purpose. A summary of the

notice of sale shall at a minimum contain the name of the issuer, the

amount, date, and maturities of the bonds, the frequency of interest

payments, the place where bids will be received, the time and date for

the opening of the bids, including circumstances under which such time

and date may be changed in accordance with law, the method of award and

a procedure for promptly obtaining the complete notice of sale and any

preliminary official statement prepared in connection with the sale, and

such other information as the state comptroller may prescribe by rule or

order.

* NB Effective June 1, 2028

b. Such notice shall call for sealed bids for the purchase of such

bonds, and shall state:

* 1. The place where bids will be received and considered, and the

designation of the receiving device if the finance board of the issuing

municipality, school district or district corporation has authorized or

required the receipt of bids in an electronic format.

* NB Effective until June 1, 2028

* 1. The place where bids will be received and considered.

* NB Effective June 1, 2028

2. (a) The time and date for the opening of bids, which shall be only

on weekdays, Saturdays and holidays excluded, between the hours of ten

o'clock ante meridian and four o'clock post meridian, eastern standard

time.

(b) In lieu of the statement of the time and date for the opening of

bids required by subparagraph (a) of this subdivision, a statement (i)

that the time and date for the opening of bids will be provided on not

less than twenty-four hours prior notice by means of a supplemental

notice of sale and indicating the manner in which such supplemental

notice will be provided, or (ii) setting a time and date for the opening

of bids, stating that notice of a change in the time or date for the

opening of bids may be provided not less than one hour prior to the time

originally scheduled for the opening of bids by means of a supplemental

notice of sale and indicating the manner in which such supplemental

notice will be provided. Where notice is given that the time or date of

a sale will be changed without specifying the new time or date, notice

of the new time or date of sale must be provided by means of a second

supplemental notice of sale at least one hour prior to the new time for

the opening of bids.

(c) A supplemental notice of sale shall refer to and be deemed a part

of the notice of sale required by this section and shall not establish

or change the terms of the sale other than the time or date for the

opening of bids, the amount of principal scheduled to be repaid in each

year, the right of redemption prior to maturity, and the face value at

maturity of the issue or any installment thereof. The time set for the

opening of bids in the supplemental notice of sale shall not be less

than five nor more than thirty days after publication of the notice of

sale required pursuant to paragraph a of this section.

(d) The supplemental notice of sale shall be provided by transmittal

over a definitive trade wire service of the municipal bond industry

which, in general, makes available information regarding activity and

sales of municipal bonds and is generally available to participants in

the municipal bond industry, or by publication in the financial

newspaper published and circulated in the city of New York which the

state comptroller, in the rule or order referred to in paragraph d of

section 57.00 of this article, shall designate for such publication. In

addition, when the time and date for the opening of bids is delayed by

more than twenty-four hours, public notice of the time and date set for

the opening of bids in the supplemental notice of sale shall be given to

the news media and shall be posted in one or more designated public

locations within the issuing municipality, school district or district

corporation at least twenty-four hours prior to the time and date set

for the opening of bids; provided however, that such public notice shall

not be construed to require publication as a legal notice.

3. The maximum rate of interest, if any, fixed by or pursuant to

paragraph b of section 57.00 of this chapter.

c. Such notice shall also include:

1. A statement that the rate or rates of interest to be bid shall be a

multiple of one-hundredth of one per centum per annum or a multiple of

one-eighth of one per centum per annum, as the agency in charge of the

sale may determine and may require or permit in such notice.

2. A statement of the conditions of sale and the methods of bidding

which shall include the following:

a. A statement that one or more than one rate of interest may be bid;

provided, however, that only one rate of interest may be bid for bonds

of the same maturity. Where more than one rate of interest may be bid,

such notice shall specify the maximum number of rates which may be bid.

Where the net interest cost method of calculating interest cost is used,

or where the notice so provides, the interest rate for each maturity

shall not be less than the interest rate for any prior maturity. Such

notice shall also state that such rate or any of such rates may not be

higher than the maximum rate prescribed in such notice, if a maximum

rate has been prescribed. Notwithstanding the above, in inviting

proposals for the sale of bonds in an amount of twenty million dollars

or more, a municipality may advertise in such notice to sell, in series,

at a single bid price per bond. b. Where two or more issues are offered

in the same notice of sale, a statement specifying whether each of the

issues so offered shall be sold separately as a single bond issue,

whether some of the issues shall be combined and sold separately as one

or more single bond issues, or whether the aggregate amount of bonds of

all of the issues shall be combined and sold as a single bond issue. c.

Where the finance board of a municipality, school district or district

corporation has determined to provide for substantially level or

declining annual debt service pursuant to paragraph d of section 21.00

of this article, a statement specifying the dates of maturity for such

bonds and the dates for payment of interest on such bonds, and setting

forth the annual principal installments expected to provide for,

together with the interest thereon, substantially level or declining

annual debt service on such bonds. Such notice shall state that the

municipality, school district or district corporation may, after

selecting the low bidder, adjust such installments to the extent

necessary to meet the requirements of substantially level or declining

debt service.

3. A requirement that as a condition precedent to the consideration of

his or her bid, each bidder shall deposit with such official as the

agency in charge of the sale may designate, a certified or cashier's

check drawn upon an incorporated bank or trust company to the order of

the municipality, school district or district corporation or such

official, for the amount specified in the notice, but in no event less

than one-half of one per centum of the amount of bonds to be bid

for. Such notice may also provide that, in lieu of a certified or

cashier's check, bidders may furnish as security cash in such amount

remitted by wire transfer to an account specified in the notice or an

eligible surety bond or an eligible letter of credit, approved by such

official as to form, sufficiency, and manner of execution. For purposes

of this section, "eligible surety bond" shall mean a bond executed by an

insurance company authorized to do business in this state, the

claims-paying ability of which is rated in one of the three highest

rating categories by at least one nationally recognized statistical

rating organization; and "eligible letter of credit" shall mean an

irrevocable letter of credit issued in favor of the municipality, school

district or district corporation, for a term not to exceed ninety days

by a bank, as that term is defined in section two of the banking law,

whose commercial paper and other unsecured short-term debt obligations

(or, in the case of a bank which is the principal subsidiary of a

holding company, whose holding company's commercial paper and other

unsecured short-term debt obligations) are rated in one of the three

highest rating categories (based on the credit of such bank or holding

company) by at least one nationally recognized statistical rating

organization or by a bank that is in compliance with applicable federal

minimum risk-based capital requirements.

4. A statement that there is reserved to the municipality, school

district or district corporation the right to reject all bids, and that

any bid not complying with the terms of the notice will be rejected.

5. A statement that the agency prescribing the terms, form and

contents of such bonds has reserved to itself the power to call in and

redeem a portion of such bonds prior to their date of maturity pursuant

to section 53.00 of this chapter, if such agency has reserved to itself

such power. Such statement shall identify the portion of the bonds which

may be so redeemed and shall describe the terms and conditions under

which such bonds may be redeemed.

6. A statement indicating which of the methods set forth in paragraph

a of section 59.00 of this chapter will be used in awarding such bonds.

7. Such further data and information as shall be prescribed by the

state comptroller in the rule or order referred to in paragraph d of

section 57.00 of this chapter.

d. It may be a condition of the sale of bonds that every bidder may be

required to accept a portion of the whole amount of the bonds for which

he or she has bid, at the same rate for such portion as may be specified

in his or her bid for the full amount. If such condition is imposed, the

notice of sale shall so state and such notice also shall state that, in

addition, any bidder may offer to purchase all or none of such bonds on

different terms.

e. The notice of sale may provide that the bidder to whom the bonds

are to be awarded, at his or her option, may refuse to accept the bonds

if prior to the delivery of the bonds any income tax law of the United

States of America shall provide that the interest on such bonds is

taxable, or shall be taxable at a future date, for federal income tax

purposes.

* f. For purposes of this section and section 59.00 of this chapter,

"sealed bids" shall include bids submitted in an electronic format,

provided that the finance board of the issuing municipality, school

district or district corporation, by resolution, has authorized the

receipt of bids in such format. Submission in electronic format may be

required as the sole method for the submission of bids. Bids submitted

in an electronic format shall be transmitted by bidders to the receiving

device designated by the issuing municipality, school district or

district corporation. Any method used to receive electronic bids shall

comply with article three of the state technology law and any rules and

regulations promulgated and guidelines developed thereunder and, at a

minimum, must: (a) document the time and date of receipt of each bid

received electronically; (b) authenticate the identity of the sender;

(c) ensure the security of the information transmitted; and (d) ensure

the confidentiality of the bid until the time and date established for

the opening of bids. The timely submission of an electronic bid in

compliance with instructions provided for such submission in the notice

of sale and any supplemental notice of sale shall be the responsibility

solely of each bidder or prospective bidder. No issuing municipality,

school district or district corporation shall incur any liability from

delays of or interruptions in the receiving device designated for the

submission and receipt of electronic bids.

* NB Repealed June 1, 2028

* § 58.10 Electronic open auction public bond sale pilot program. a.

As used in this section:

1. "Municipality" means a county, or a city or town with a population

of one hundred thousand or more that has issued at least twenty-five

million dollars in bonds within at least one of the preceding five

years.

2. "Nationally recognized electronic securities bidding service" means

a bidding service that is approved by the superintendent pursuant to

subdivision b of this section.

3. "Open auction" means a bond sale procedure that allows a bidder to

receive information with respect to the ranking of its bids prior to the

conclusion of the bidding period in accordance with the municipality's

notice of such bond sale circulated in accordance with applicable

requirements of this chapter.

4. "Program" means the electronic open auction public bond sale pilot

program established pursuant to this section.

5. "Superintendent" means the superintendent of financial services.

b. 1. There is hereby established an electronic open auction bond sale

pilot program authorizing municipalities to conduct open auction public

bond sales through any nationally recognized electronic securities

bidding service approved by the superintendent. Nationally recognized

electronic securities bidding services desiring to operate an electronic

open auction shall apply to the superintendent for authorization to do

so by filing an application with the superintendent. The superintendent

shall make available an application form that provides the

superintendent with information regarding the technology and security

practices maintained by the nationally recognized electronic securities

bidding service, the requirements to be established for bidding by

bidders, the methods by which auction sales are conducted, the

experience of the nationally recognized electronic securities bidding

service in conducting electronic open auctions of bonds, and other

information the superintendent may deem relevant.

2. If the superintendent determines that the requirements and

conditions of the open auction are in accordance with the provisions of

this chapter and the bidding service provides a secure, open and

competitive opportunity for qualified bidders to submit proposals, the

application shall be deemed approved.

3. The superintendent shall post information regarding the nationally

recognized electronic securities bidding services that have been

approved for use by municipalities on the department of financial

services website.

c. If the chief fiscal officer of the municipality has authorized the

receipt of bids in an electronic open auction format, such electronic

bids may be submitted in the form of open auctions conducted through a

nationally recognized electronic securities bidding service which entity

shall be deemed to be the designated receiving device pursuant to

section 58.00 of this title. Notice of any bond sale shall provide for

the manner in which the bidding period may be extended and the basis for

determination of the winning bidder.

d. Notwithstanding the provisions of subdivision one of section three

hundred five of the state technology law, if the notice of sale for the

open auction public bond contains a provision that bids will only be

accepted electronically in the manner provided in such notice of sale,

the municipality shall not be required to accept non-electronic bids in

any form.

e. The municipality's chief fiscal officer shall administer the

program and shall publish its policies and procedures for the

procurement of nationally recognized electronic securities bidding

services on the municipality's internet website. Such policies and

procedures shall include policies to prevent fraud. Except as modified

by this section, the municipal program shall comply with this chapter

and all other applicable laws, rules and regulations related to the sale

of bonds.

f. The municipality's chief fiscal officer shall review the electronic

open auction bidding process to ensure that the bond sale was completed

in a timely fashion; the sale was completed without errors; and the

process was favorable as compared to the method currently used by the

municipality.

g. The municipality shall conduct evaluations of the program annually

with a summary evaluation at the end of the two year program. The

municipality shall submit the evaluations to the superintendent, the

temporary president of the senate and the speaker of the assembly. Such

report shall include, but not be limited to, any demonstrated evidence

that sale of public bonds using electronic open auctions is comparable

to the cost of issuing public bonds through the current sealed bid

process, the fees associated with nationally recognized electronic

securities bidding services, whether the use of electronic open auctions

resulted in an increased number of bidders and whether the process was

favorable as compared to the method currently used by the municipality.

* NB Repealed January 1, 2028

Bids opened publicly; amendments; awards. * a. All bids shall

be opened publicly at the time and place stated in the notice of sale,

and not before, and shall be publicly announced. Prior to the time fixed

for such public opening of bids, a sealed bid may be amended by a bidder

by delivery to the official to whom the sealed bid was delivered of a

sealed amendment to such bid. No bid shall be amended by a telegraphic

or telephonic communication, except that an electronic bid may be

amended in the same manner in which it was originally submitted. The

bonds shall be awarded to the bidder offering the lowest interest cost

to the municipality, school district or district corporation, without

taking into consideration any adjustment to be made in accordance with

subdivision two of paragraph c of section 58.00 of this article, as

computed in accordance with the net interest cost method or the

actuarial or true interest cost method.

* NB Effective until June 1, 2028

* a. All bids shall be opened publicly at the time and place stated in

the notice of sale, and not before, and shall be publicly announced.

Prior to the time fixed for such public opening of bids, a sealed bid

may be amended by a bidder by delivery to the official to whom the

sealed bid was delivered of a sealed amendment to such bid. No bid shall

be amended by a telegraphic or telephonic communication. The bonds shall

be awarded to the bidder offering the lowest interest cost to the

municipality, school district or district corporation, without taking

into consideration any adjustment to be made in accordance with

subdivision two of paragraph c of section 58.00 of this article, as

computed in accordance with the net interest cost method or the

actuarial or true interest cost method.

* NB Effective June 1, 2028

b. If it is a condition of the sale of bonds that every bidder may be

required to accept a portion of the whole amount of such bonds for which

he has bid, at the same rate for such portion as may be specified in his

bid for the full amount then any bidder may, in addition, offer to

purchase all or none of such bonds on different terms.

c. When the bidder to whom the bonds are to be awarded has been

ascertained, the municipality, school district or district corporation

shall promptly return all security to the persons furnishing the same,

except the security furnished by such bidder. Such bidder shall be

promptly notified of the award to him or her, and if he or she refuses

or neglects to pay either the agreed price for the bonds less the amount

of any certified check, cashier's check or cash furnished as security,

or the agreed price in full for the bonds if an eligible surety bond or

eligible letter of credit was furnished as security as provided in

subdivision three of paragraph c of section 58.00 of this title, the

security furnished by him or her, in whatever form, shall be forfeited

to and retained by or claimed against or drawn upon by, the

municipality, school district or district corporation as liquidated

damages for such neglect or refusal. However, if the notice of sale

shall contain the statement set forth in paragraph e of section 58.00 of

this title and if prior to the delivery of the bonds any income tax law

of the United States of America shall provide that the interest on such

bonds is taxable, or shall be taxable at a future date, for federal

income tax purposes, then, at the request of such bidder the security

accompanying his or her bid shall be returned to him or her and he or

she shall be relieved of his or her contractual obligations arising from

the acceptance of his or her bid.

Sale of notes. a. Notes may be sold at either public or

private sale, but they shall not be sold on option or on a deferred

payment plan, except as authorized by paragraph a of section 57.00 of

this chapter.

b. Notes may be sold without limitation as to rate of interest, and

for a sum not less than the par value of, and the accrued interest on,

such obligations except as authorized by section 54.10 of this chapter,

and bond anticipation notes of municipalities may be sold to the state

of New York municipal bond bank agency, and in addition by the city of

New York to the municipal assistance corporation for the city of New

York, at such rate or rates of interest as may be agreed upon by and

between the issuer and either of such agencies.

c. Capital notes for one or more specific objects or purposes or

classes of objects or purposes, or a combination thereof, may be sold as

a single capital note issue. Bond anticipation notes for one or more

specific objects or purposes or classes of objects or purposes, or a

combination thereof, may be sold as a single bond anticipation note

issue.

d. If notes are sold at public sale the agency in charge of the sale

may specify the procedure therefor or such agency may adopt as much of

the procedure prescribed for the sale of bonds in sections 57.00 to

59.00, inclusive, of this chapter, as such agency may desire. In all

such sales, however, the agency shall comply with the provisions of

paragraph e of this section. Nothing herein contained shall be construed

to prevent the sale of notes at public auction.

e. The state comptroller shall adopt a rule or order, which he may

amend from time to time, prescribing a procedure for the circularization

of notices for the public sale of notes and which shall also prescribe

such data and information as he may deem advisable to be contained in

such notices. Such rule or order and the amendments thereto shall be

filed in his office and in such other offices as he may designate.

Sale of obligations to certain banks and trust companies

authorized. a. The agency selling notes of a municipality, school

district or district corporation may sell such notes at private sale to

a bank or trust company of which an officer or employee of the

municipality, school district or district corporation has an interest

which is otherwise prohibited by the provisions of article eighteen of

the general municipal law, without limitation as to rate of interest,

provided that at least two other banks are unwilling or unable to

purchase the notes at a rate of interest equal to or less than that at

which the bank in which the officer or employee has an interest proposes

to purchase such notes. Disclosure of any such actual or prospective

sale shall be made as provided in section eight hundred three of the

general municipal law. Where any such relationship exists, however, no

such sales shall be authorized in the event that:

1. During the current fiscal year of the municipality, school district

or district corporation the bank or trust company has purchased, or by

virtue of the sale would purchase, at private sales from the

municipality, school district or district corporation, notes of such

issuer, the aggregate principal amount of which is or would exceed, one

hundred thousand dollars; or

2. The bank or trust company then is, or by virtue of the sale would

become, the holder of notes of the municipality, school district or

district corporation, purchased at private sale from such issuer, the

aggregate principal amount of which is, or would exceed, one hundred

thousand dollars.

The foregoing limitations of this paragraph a shall not be applicable

to notes renewed at private sale where such notes were originally sold

at public sale, pursuant to the requirements of former section 60.20 of

this chapter, and are renewed by the original buyer thereof at the same

or lower rate of interest.

b. The agency selling bonds of a municipality, school district, or

district corporation may, subject to the limitations of section 63.00 of

this chapter, sell such bonds at private sale to a bank or trust company

of which an officer or employee of the municipality, school district or

district corporation has an interest which is otherwise prohibited by

the provisions of article eighteen of the general municipal law.

Disclosure of any such actual or prospective sale shall be made as

provided in section eight hundred three of the general municipal law.

Where any such relationship exists, however, no such sales shall be

authorized in the event that the bank or trust company then is, or by

virtue of the sale would become, the holder of bonds of the

municipality, school district or district corporation, purchased at

private sale from such issuer, the aggregate principal amount of which

is, or would exceed one hundred thousand dollars.

c. Any officer of a municipality, school district or district

corporation who wilfully participates in authorizing the sale of, or in

selling, obligations of the municipality, school district or district

corporation in violation of the foregoing provisions of this section

shall be guilty of a misdemeanor.

Execution of obligations. a. All obligations, including

interim bonds, shall be executed in the name of the municipality, school

district or district corporation by the chief fiscal officer unless the

finance board shall, by resolution, designate a different officer or

officers to execute such obligations. Such execution may be by

facsimile signature, in which event the finance board shall provide for

authentication of such obligation by the manual countersignature of a

fiscal agent or of a designated official of the municipality, school

district or district corporation. Such obligations shall have the seal

or a facsimile seal of the municipality, school district or district

corporation impressed or imprinted thereon. Such obligations may be

attested by the facsimile or manual signature of the clerk of such

municipality, school district or district corporation or such other

official thereof as may be designated by the finance board. Coupons

attached to a bond shall be authenticated by the facsimile or manual

signature of the chief fiscal officer unless the finance board shall, by

resolution, provide that such coupons shall be authenticated by the

facsimile or manual signature of a different officer.

b. Obligations executed in the manner set forth above by the officials

designated and referred to above shall be valid and binding obligations

when duly delivered, notwithstanding the fact that before the delivery

thereof the persons executing the same shall have ceased to be officials

or other officials may have been designated to perform such functions.

Interim bonds. The agency selling and issuing the bonds of a

municipality, school district or district corporation may issue interim

bonds pending the printing or engraving and delivery of bonds in

definitive form. Such interim bonds shall be of substantially the same

form and tenor as the definitive bonds, except that they shall also

provide that they are exchangeable for the definitive bonds when such

bonds are ready for delivery, and if such definitive bonds are coupon

bonds, the interim bonds need not have coupons attached but may provide

for the payment of interest upon their presentation for notation of such

payment thereon. Such interim bonds may be issued in such denominations

as the purchaser may request, which may be one denomination equal to the

principal amount of the bond issue.

Statutory installment bonds. a. Notwithstanding any other

provisions of this chapter, if the principal amount for an object or

purpose, or objects or purposes, or class or classes thereof, to be

financed by the issuance of bonds does not exceed five million dollars

in the aggregate, a single bond, to be known as a statutory installment

bond, may be issued for the full principal amount, if the issue is to be

sold at private sale. Any such bond shall provide for the payment of

both the principal and interest upon presentation of the bond for

notation of such payments thereon, except that such a statutory

installment bond may be issued and sold to the United States of America

or any agency thereof in any amount and that such principal and interest

shall be payable without such presentation.

b. A statutory installment bond, in bearer, if authorized by federal

law, or registered form, shall be in terms, form and contents,

substantially as follows:

Statutory United States of America $ (Here insert full

Installment State of New York amount of bond

Bond County of issue)

(Here insert name of the issuer)

(Here insert type of bond and year, such as "Highway Machinery Serial

Bond--1976")

The (Here insert name of the issuer), in the County of ___________, a

(Here insert whether a municipality, school district, fire district or

other district corporation) of the State of New York, hereby

acknowledges itself indebted and for value received promises to pay to

(Here insert "bearer" or the name of registered owner if the bond is

issued in registered form) the principal sum of __________________

Dollars ($________) (in (_____) equal annual installments of __________

Dollars ($________) on the ________ day of ____ in the years 20__ __, to

20 __, inclusive)

or

(in________(___) annual installments (Here state the amounts, the annual

principal payment date, and the years in which the principal payments

will be made. No annual installment shall be more than fifty per centum

in excess of the smallest prior installment unless the finance board has

determined to provide for substantially level or declining annual debt

service, in which case the aggregate amount of debt service payable in

any year shall not exceed the lowest aggregate amount of debt service

payable in any prior year by more than five percent))

and to pay interest on the unpaid balance of such principal sum at the

rate of ______ per centum (______%) per annum, semi-annually on the

_________ days of ________ and ______ in each year from the date of this

bond until it matures. Interest will not be paid on any installment of

principal, or of interest, after the due date thereof. Both the

installments of principal of and the interest on this bond will be paid

to the (Here insert "bearer" or "registered owner" if the bond is issued

in registered form) of this bond in lawful money of the United States*

only upon presentation of this bond for notation of any such payment

thereon* (omit language enclosed within asterisks when the bond is sold

to the United States of America or an agency thereof) at the office of

________

(Here insert place or places of payment)

This bond is a statutory installment bond, the principal sum of which

cannot exceed Five Million Dollars ($5,000,000) unless it is issued and

sold to the United States of America or any agency thereof, and is

issued pursuant to section 62.10 of the Local Finance Law and pursuant

to a bond resolution entitled "(Here insert title)", duly adopted by the

(Here insert name of the finance board) of such (Here insert name of the

issuer) on the ________ day of ___, 20 __. This bond may not be

converted into a coupon bond.

The faith and credit of such (Here insert name of the issuer) are

hereby irrevocably pledged for the punctual payment of the installments

of principal of and the interest on this bond according to its terms.

It is hereby certified and recited that all conditions, acts and

things required by the Constitution and statutes of the State of New

York to exist, to have happened and to have been performed precedent to

and in the issuance of this bond, exist, have happened and have been

performed, and that this bond, together with all other indebtedness of

such (Here insert name of the issuer) is within every debt and other

limit prescribed by the Constitution and laws of such State.

In Witness Whereof, the (Here insert name of the issuer) has caused

this bond to be signed by its (Here insert title of officer) and its

(Here insert title of officer), and its corporate seal to be hereunto

affixed and attested by its (Here insert title of attesting officer) and

to be dated as of the ________ day of _______, 20 __.

(Name of municipality, school

district, fire district or

(Corporate Seal) other district corporation)

By: (Signature and title of officer)

and (Signature and title of officer)

Attest:

(Signature and title of attesting officer)

*PRINCIPAL PAYMENTS

Amount Date Received Received by

$________ __________, 20 __ _____________________

(Signature of person

receiving payment)

$________ __________, 20 __ _____________________

(continue as necessary)

INTEREST PAYMENTS

Amount Interest to Received by

$_______ ___________, 20 __ _____________________

(Signature of person

receiving payment)

$_______ ___________, 20 __ _____________________

(continue as necessary)

The notations of principal and interest payments may be made on the

face of the bond, on the reverse side, or on a sheet attached thereto*

(omit language enclosed within asterisks when the bond is sold to the

United States of America or an agency thereof).

* c. Notwithstanding any provision of law contained in this chapter to

the contrary, statutory installment bonds, in substantially the form

provided in this section, may be issued and sold to the New York state

environmental facilities corporation in a principal amount not to exceed

twenty million dollars and such bonds shall provide for either a fixed

rate or, if such bonds provide for serial maturities, at a set rate, for

each maturity, which rate is fixed on the date of issuance of such

bonds.

* NB Repealed September 30, 2029

Bond issues of certain amounts. a. When sold at public sale,

bonds of an issue not exceeding five million dollars, whether of a

single issue or sold as a single issue pursuant to paragraph c of

section 57.00 of this chapter, having a maximum maturity of not more

than five years measured from the date of the bonds, need not be sold in

accordance with the requirements of section 58.00 of this chapter for

publication of the notice of sale but may be sold upon such publication

or circularization of such notice as shall be prescribed by the state

comptroller in the rule or order referred to in paragraph d of section

57.00 of this chapter.

b. Bonds of an issue not exceeding five million dollars, whether of a

single issue or sold as a single issue pursuant to paragraph c of

section 57.00 of this chapter, may be sold at private sale without

limitation as to rate of interest, provided, however, that the total

amount of bonds which may be sold at private sale in any fiscal year of

the municipality, school district or district corporation shall not

exceed five million dollars, and provided further that if such bonds

have a maximum maturity of more than ten years measured from the date of

the bonds, the issuer shall furnish the purchaser a written opinion,

signed by any person regularly admitted to practice as an attorney and

counselor in the courts of record of this state, that such bonds have

been duly authorized and issued in accordance with the constitution and

laws of this state and are valid and legally binding obligations of the

issuer. Such legal opinion shall be furnished at the expense of the

issuer and a duplicate original thereof shall be filed with the officer

of the issuer who is required to keep a record of such bonds pursuant to

section 163.00 of this chapter.

c. The bonds of any issue which may be sold pursuant to the provisions

of this section need not have coupons attached in accordance with the

requirements of paragraph a of section 55.00 of this chapter but may

provide for the payment of interest upon their presentation for notation

of such payment thereon. Such bonds, if issued without coupons, shall,

nevertheless, be considered and treated as coupon bonds for the purposes

of sections 71.00, 72.00 and 75.00 of this chapter, except that upon the

reconversion of such a bond which has been converted into a registered

bond, a new bond may be issued in substantially the same form and tenor

as originally issued, or with coupons, as the holder may request.

Cancellation of obligations. When obligations are paid,

notwithstanding the provisions of any other general, special or local

law or of article forty-six of the education law relating to public

records, they shall be cancelled or destroyed in such manner as the

state comptroller shall prescribe by a rule or order to be filed in his

office and in such other offices as he may designate.

Fiscal agent. a. The term "fiscal agent" as used in this

title shall mean:

1. In counties, the chief fiscal officer thereof, unless the finance

board shall designate a different officer.

2. In cities, the chief fiscal officer thereof.

3. In towns and villages, the clerk thereof.

4. In school districts and district corporations, the clerk or

secretary or such other officer thereof as the finance board shall

designate, except that in a river improvement or drainage district

established by or under the supervision of the department of

conservation the state comptroller shall act as fiscal agent. However, a

finance board on behalf of any municipality, school district or district

corporation, or in the case of the city of New York the chief fiscal

officer thereof, may contract from time to time, with any bank or banks

or trust company or trust companies located and authorized to do

business in this state for the purpose of having such bank or trust

company act, in connection with all its obligations, or any specific

issue or issues of its obligations, or any specific type or types of its

obligations, as the fiscal agent for such municipality, school district

or district corporation, including the maintenance of an office for the

registration, conversion, reconversion and transfer of bonds and notes,

the preparation and substitution of new bonds and notes, and for the

payment of the principal thereof, redemption premium, if any, interest

thereon, and for related services, and for the payment by such

municipality, school district or district corporation of a reasonable

compensation to any such bank or trust company for the services to be

performed by it pursuant to such contract. Any such bank or trust

company shall be responsible to the municipality, school district or

district corporation for the faithful and safe conduct of the services

to be performed by it as such fiscal agent, or services related thereto;

for the fidelity and integrity of the officers and agents of such bank

or trust company performing the duties of a fiscal agent, or services

related thereto; and for all loss or damage which may result from any

failure of such officers or agents to discharge their duties and for any

improper or incorrect discharge of those duties; and shall save the

municipality, school district or district corporation free and harmless

from any and all loss or damage occasioned by or incurred in the

performance of such services. Such contracts may be terminated by the

finance board of the municipality, school district or district

corporation, or in the case of the city of New York the chief fiscal

officer thereof, at any time.

b. The fiscal agent, if not already under bond, shall execute a bond

in such form, in such sum and with such sureties as the finance board,

or in the case of the city of New York the chief fiscal officer thereof,

shall direct and approve, and such approval shall be indicated upon the

bond. Such bond shall then be filed in the office of the clerk of the

county in which the municipality, school district or district

corporation is located. If the municipality, school district or district

corporation is located in more than one county, a duplicate original of

such bond, approved by the finance board, or in the case of the city of

New York the chief fiscal officer thereof, shall be filed in the office

of the clerk of each county in which the municipality, school district

or district corporation is located, except that in a city containing

more than one county such bond shall be filed only in the office of the

city clerk. The expense of such bond shall be a charge upon the

municipality, school district or district corporation. The provisions of

this paragraph shall not apply to a bank or trust company which has been

designated as fiscal agent of a municipality, school district or

district corporation pursuant to the provisions of paragraph a of this

section, unless the finance board of such municipality, school district

or district corporation, or in the case of the city of New York the

chief fiscal officer thereof, shall by resolution determine that such

bank or trust company shall be required to furnish a bond for the

faithful performance of its duties as fiscal agent.

c. No municipality, school district or district corporation, or any

fiscal agent thereof, shall charge, impose, collect, or receive from the

holder of any obligation issued pursuant to this chapter, or issued

pursuant to laws in effect prior to the effective date of this chapter,

any fee or consideration for any services required to be performed by a

fiscal agent pursuant to the provisions of this chapter. However, the

holder of an obligation shall bear the expense of preparing new bonds or

coupons which he shall request to be issued pursuant to the provisions

of title five of this article, also the actual and necessary expenses

for the mailing, shipping or the insuring of obligations incurred in

connection with the rendition of services performed by a fiscal agent at

his request. At least annually every fiscal agent shall render to and

file with the finance board of the municipality, school district or

district corporation, or in the case of the city of New York the chief

fiscal officer thereof, for which he or it acts a statement of all

moneys received and disbursed by such agent for the expenses mentioned

in this paragraph. Notwithstanding the foregoing provisions of this

paragraph, if the finance board of a municipality, school district or

district corporation, or in the case of the city of New York the chief

fiscal officer thereof, shall determine that it would be to the

financial advantage of the municipality, school district or district

corporation not to impose and collect such mailing, shipping or

insurance charges, it may adopt a resolution directing its fiscal agent

not to impose and collect any or all of such charges.

d. Notwithstanding any other provisions of law, the comptroller of the

city of New York may prescribe rules and regulations for the

registration, conversion, reconversion and transfer of the bonds and

notes of the city of New York, including the preparation and

substitution of new bonds, for the payment of the principal thereof,

redemption premium, if any, and interest thereon, and for other

authorized services to be performed by such fiscal agent.

e. Any bank or trust company acting as the fiscal agent of a

municipality, school district or district corporation may bid for,

purchase, acquire, hold, sell or dispose of obligations of the

municipality, school district or district corporation for which it acts

as such agent, and may enter into other service contracts with the

municipality, school district or district corporation. No bank or trust

company acting as such fiscal agent shall print, engrave, or otherwise

prepare, new bonds or coupons required in connection with the conversion

and reconversion of bonds as provided in title five of this article, if

such bank or trust company acts as fiscal agent in such conversion or

reconversion.

Conversion of coupon bonds into registered bonds. a. If a

coupon bond so provides, the holder thereof may present such bond to the

registration agent with a written request for its conversion into a

registered bond. The registration agent shall thereupon cut off and

destroy the coupons and endorse a certificate of such conversion upon

the bond.

b. The certificate of conversion shall contain a statement, properly

dated, of the amount and value of such coupons, and that the interest,

at the rate and on the dates stated in the bond and as was provided by

the coupons, as well as the principal, is to be paid to the registered

holder, his legal representatives, successors or transferees, at the

place or places stated in the bond and as was stated in the coupons,

unless such place or places shall be changed with the written consent of

the holder.

c. When the coupons have been cut off and destroyed, and a certificate

of conversion has been properly endorsed upon the bond, such bond shall

then be registered as provided in section 75.00 of this chapter.

Reconversion of coupon bonds which have been converted into

registered bonds. a. If a coupon bond issued prior or subsequent to the

effective date of this chapter has been converted into a registered

bond, the registered holder, or his legal representatives, successors,

or transferees, may request the registration agent to notify him of the

charge for reconverting such bond into a coupon bond. The request shall

describe the bond and state whether coupons for the unmatured interest

or a new bond with coupons for the unmatured interest is desired. The

registration agent shall thereupon ascertain and notify the person

making such request of the expense of preparing such new bond or

coupons, and other actual and necessary expenses which will be incurred

for mailing, shipping or the insuring of such obligations. The holder,

or his legal representatives, successors, or transferees, may then

present such bond with a written request for its reconversion, which

request shall be duly acknowledged or proved, or in the alternative, the

signature of the person making such request shall be certified as to its

genuineness by an officer of a bank or trust company located and

authorized to do business in this state, and shall at the same time pay

the said expenses for such reconversion, to the registration agent.

Notwithstanding the foregoing provisions of this paragraph, coupon bonds

of an issue originally sold to the state of New York municipal bond bank

agency may provide that such bonds may be reconverted from time to time

without charge or subject to such limited charge as may be provided

therein.

b. The registration agent shall thereupon cause the coupons, or the

new bond with coupons, as the case may be, to be prepared. They shall be

of substantially the same form and tenor as those originally issued,

except that the new bond if issued shall be signed by the appropriate

persons in office at the time of such reconversion and shall bear the

date of the original bond and the coupons shall bear the facsimile

signature of the appropriate person in office at the time of such

reconversion. There shall be endorsed on such new bond the following

statement, "This bond has been reconverted and reissued on the day

of ,19 . " If a new bond is issued, the original bond shall be

destroyed, and the registration agent shall make an appropriate entry in

his books of such destruction and reconversion. If a new bond is not

issued, the registration agent shall attach the coupons to the original

bond and shall register the bond in his books as payable to bearer, and

shall endorse a certificate of such registration upon the bond.

c. Any bond so reconverted may again and from time to time be

converted into a registered bond and reconverted into a coupon bond in

the manner provided in this section and section 71.00 of this chapter.

Conversion and reconversion of registered bonds. a. A bond

issue in registered form, if it so provides, shall be converted into a

coupon bond at the request of the registered holder, or his legal

representatives, successors or transferees, in the same manner as is

provided in section 72.00 of this chapter for the reconversion of a

coupon bond which has been converted into a registered bond, except that

only a new bond with coupons shall be issued. Such new coupon bond shall

be payable according to the terms of the original bond. A bond

heretofore or hereafter issued in registered form, which does not

provide that it may be converted into a coupon bond, shall be converted

into a coupon bond at the request of the registered holder or his legal

representatives, successors or transferees, provided the issue of which

such bond is a part was sold at public sale and the notice of such sale

provided for the issuance of bonds in bearer form with coupons with the

right of conversion into registered form, and provided the finance board

of the issuer shall adopt a resolution authorizing such conversion and

prescribing the form of the bond and the coupons for unmatured interest.

Such bond, in such event, shall be converted in the same manner as is

provided in section 72.00 of this chapter for the reconversion of a

coupon bond which has been converted into a registered bond, except that

only a new bond with coupons shall be issued and such new coupon bond

shall be payable according to the terms of the original bond.

b. A registered bond which has been so converted may be reconverted

into a registered bond in the same manner as is provided in section

71.00 of this chapter for the conversion of a coupon bond into a

registered bond.

c. Such bond may again and from time to time be converted into a

coupon bond and reconverted into a registered bond in the manner

provided in this section.

Conversion and reconversion of notes. a. A note payable to

bearer, if it so provides, shall be converted into a registered note at

the request of the holder. The registration agent shall register such

note in his books in the name of the holder and endorse a certificate of

such registration upon the note. In like manner, at the written request

of the registered holder of the note so converted, or his legal

representatives, successors, or transferees, the registration agent

shall reconvert such note into a note payable to bearer by registering

such note in his books as payable to bearer and endorsing a certificate

of such registration upon the note. Such request shall be duly

acknowledged or proved, or in the alternative the signature thereto

shall be certified as to its genuineness by an officer of a bank or

trust company located and authorized to do business in this state. Such

note may again and from time to time be converted into a registered note

and reconverted into a note payable to bearer in the manner provided in

this paragraph.

b. A note issued in registered form, if it so provides, shall be

converted into a note payable to bearer at the written request of the

registered holder, or his legal representatives, successors, or

transferees. Such request shall be duly acknowledged or proved, or in

the alternative the signature thereto shall be certified as to its

genuineness by an officer of a bank or trust company located and

authorized to do business in this state. The registration agent shall

register such note in his books as payable to bearer, and shall endorse

a certificate of such registration upon the note. In like manner, at the

request of the holder of a note so converted, the registration agent

shall reconvert such note into a registered note by registering such

note in his books in the name of the holder and endorsing a certificate

of such registration upon the note. Such note may again and from time to

time be converted into a note payable to bearer and reconverted into a

registered note in the manner provided in this paragraph.

Registration of obligations. a. A coupon bond which has been

converted into registered form in the manner provided in section 71.00

of this chapter and, at the request of the owner, a bond issued in

registered form or a note issued in registered form or which provides

that it may be registered, shall be registered in the name of the owner,

or a nominee, as to both principal and interest and not otherwise, in

suitable books kept for such purpose in the office of the fiscal agent,

and a certificate of such registration shall be endorsed upon the bond

or note by such fiscal agent.

b. A bond or note which has been so registered shall be transferable

upon presentation to the fiscal agent with a written transfer of title

of the registered owner. Such transfer shall be dated, and signed by

such registered owner, or his legal representatives. Such transfer shall

be duly acknowledged or proved, or in the alternative the signature

thereto shall be certified as to its genuineness by an officer of a bank

or trust company located and authorized to do business in this state.

The name of the transferee shall be entered in the books kept by the

fiscal agent and a certificate of such registration shall be endorsed

upon the bond or note so transferred, in the same manner as the original

registration. However, instead of transferring obligations as provided

above in this paragraph, a municipality, school district or district

corporation may issue new registered obligations in place of the old in

accordance with regulations prescribed by the state comptroller by a

rule or order to be filed in his office and such other office as he may

designate.

c. No interest shall be paid on a bond or note issued in registered

form until the name of the payee has been inserted therein and such bond

or note has been registered as provided in paragraph a of this section.

d. The principal of, redemption premium, if any, and interest on a

bond or note which has been registered shall be payable only to the

registered owner, his legal representatives, successors or transferees.

e. As an alternative to the procedures for transfer of registration

otherwise set forth in this section, the finance board of a

municipality, school district or district corporation, or, in the case

of the city of New York, the chief fiscal officer thereof, may provide

for the transfer of registration of obligations by book entry on the

records of the fiscal agent or other entity designated for such purpose

and may enter into such contractual arrangements as may be necessary to

accomplish such purposes. In the event a book entry method of transfer

is used, principal of, redemption premium, if any, and interest on the

obligations shall be payable to the registered owner shown in book

entry, his legal representatives, successors or transferees.

Bond resolution, or note resolution or certificate, may

contain estoppel clause. The resolution of a finance board authorizing

the issuance of bonds or notes, or the certificate of a chief fiscal

officer authorizing the issuance of notes, may, in the discretion of the

finance board or such chief fiscal officer, as the case may be, contain

a statement that the validity of such bonds or notes or any bond

anticipation notes issued in anticipation of the sale of such bonds may

be contested only if:

1. Such obligations are authorized for an object or purpose for which

the municipality, school district or district corporation is not

authorized to expend money, or

2. The provisions of law which should be complied with at the date of

the publication of such resolution or summary thereof, or certificate,

as the case may be, are not substantially complied with, and an action,

suit or proceeding contesting such validity, is commenced within twenty

days after the date of such publication, or

3. Such obligations are authorized in violation of the provisions of

the constitution.

Bond resolution, or note resolution or certificate, containing

estoppel clause; publication and notice. a. If a resolution of a finance

board authorizing the issuance of bonds or notes or the certificate of a

chief fiscal officer authorizing the issuance of notes contains the

statement referred to in section 80.00 of this chapter, such resolution

after adoption, or a summary of such resolution, or such certificate

after its execution and filing, shall be published in full by the clerk

of the municipality, school district or district corporation or such

other official or person as the finance board or such fiscal officer may

designate, together with a notice in substantially the following form:

"The resolution (or the resolution a summary of which is) (or

certificate) published herewith has been adopted (or authorized) on

the day of , 19 , and the validity of the obligations authorized

by such resolution (or certificate) may be hereafter contested only if

such obligations were authorized for an object or purpose for which the

(Here insert name of municipality, school district or district

corporation) is not authorized to expend money or if the provisions of

law which should have been complied with as of the date of publication

of this notice were not substantially complied with, and an action, suit

or proceeding contesting such validity is commenced within twenty days

after the date of publication of this notice, or such obligations were

authorized in violation of the provisions of the constitution.

.........................................................................

(Clerk or other official or person designated by the finance board or

chief fiscal officer)"

If a summary of such resolution is published as provided in this

section, such summary shall list the class or classes of objects or

purposes for which the obligations to be authorized by such resolution

are to be issued together with the period or periods of probable

usefulness and the amount of obligations to be issued for each such

class of objects or purposes, and in addition, such summary shall state

an office of the municipality, school district or district corporation

where the resolution summarized thereby shall be available for public

inspection. Such resolution shall be kept available for public

inspection at such office during normal business hours for twenty days

following the publication of such summary as provided in this title.

b. However, if such resolution is subject to a mandatory or permissive

referendum, or is submitted to a referendum by the finance board on its

own motion, such resolution or summary thereof shall not be published

together with such notice until it shall have been approved at such a

referendum or, in the case of a resolution subject to a permissive

referendum, until the period of time shall have elapsed for the

submission and filing of a petition for a permissive referendum and a

valid petition shall not have been submitted and filed, and such notice

shall state that such resolution has been approved at such a referendum

or, in the case of a resolution subject to a permissive referendum, that

the period of time has elapsed for the submission and filing of a

petition for a permissive referendum and a valid petition has not been

submitted and filed, as the case may be.

c. If any bond resolution or capital note resolution does not contain

a determination of the period of probable usefulness of the specific

object or purpose or class of objects or purposes for which such

resolution authorizes the issuance of obligations, there shall be

published, together with such resolution or summary thereof and notice,

the certificate of the appropriate body or official containing such

determination.

d. Such publication as shall be required by this section shall be in

the official newspaper or newspapers of the municipality, school

district or district corporation or if there be no such newspaper or

newspapers, then in such newspaper or newspapers having a general

circulation in the municipality, school district or district corporation

as the finance board shall designate.

Twenty day period of limitation. After the publication of a

resolution, summary of such resolution or certificate together with such

a notice, the validity of the obligations authorized thereby may be

contested only if:

1. Such obligations were authorized for an object or purpose for which

the municipality, school district or district corporation is not

authorized to expend money, or

2. The provisions of law which should have been complied with at the

date of the publication of such resolution, summary of such resolution

or certificate were not substantially complied with, and an action, suit

or proceeding contesting such validity is commenced within twenty days

after such publication, or

3. Such obligations were authorized in violation of the provisions of