§ 970-O — Tax increment bonds

§ 970-o. Tax increment bonds. (a) For the purpose of carrying out or\nadministering a redevelopment plan adopted by the legislative body, a\nmunicipality is hereby authorized, without limiting its authority under\nother provisions of law, to issue by resolution of its legislative body\ntax increment bonds or tax increment bond anticipation notes of the\nmunicipality which are payable from and secured by real property taxes,\nin whole or in part, allocated to and paid pursuant to the provisions of\nsection nine hundred seventy-p of this article. The pledge of such real\nproperty taxes allocated and paid shall constitute a first lien on the\nrevenues derived therefrom and tax increment bonds or tax increment bond\nanticipation notes, the repayment of which is secured by such revenues\nshall not be subordinate to any other indebtedness of the municipality\nwith respect to the pledge of such revenues. The municipality shall have\nthe power to issue renewal notes, to issue bonds to pay notes and\nwhenever it deems refunding expedient, to refund any bonds by the\nissuance of new bonds, whether the bonds to be refunded have or have not\nmatured, and to issue bonds partly to refund bonds then outstanding and\npartly for any other purposes.\n (b) In contracting indebtedness pursuant to subdivision (a) of this\nsection a municipality shall not pledge its faith and credit or the\nfaith and credit of the state to the payment of the principal thereof\nand the interest thereon. Indebtedness contracted pursuant to this\nsubdivision shall not be indebtedness of any school district that has\nallocated taxes pursuant to section nine hundred seventy-p of this\narticle.\n (c) Bonds and notes issued pursuant to this section shall bear such\ndate or dates and mature at such time or times, in the case of any note\nor any renewals thereof not to exceed five years from the date of issue\nof such original note, and in the case of any bond not exceeding the\nprobable useful life of the object or purpose for which such bond is\nissued, as the bond or note resolution or resolutions may provide. The\nnotes and bonds shall bear interest at such rates per annum payable at\nsuch times, be in such denominations, be in such form either coupon or\nregistered, carry such registration privileges, be executed in such\nmanner, be payable in lawful money of the United States of America, at\nsuch place or places and be subject to such terms of redemption, as the\nbond or note resolution or resolutions may provide. The notes and bonds\nmay be sold at public or private sale at such price or prices as the\nmunicipality shall determine. No notes or bonds may be sold at private\nsale unless such sale and the terms thereof have been approved in\nwriting by the state comptroller provided, however, that if such notes\nor bonds are sold at private sale to the state comptroller, the sale and\nterms thereof shall first be approved in writing by the state director\nof the budget.\n (d) Any resolution or resolutions authorizing any tax increment bonds\nor tax increment notes or any issue thereof may contain provisions,\nwhich shall be a part of the contract with the holders thereof, as to:\n (i) pledging all or a part of the taxes allocated pursuant to section\nnine hundred seventy-p of this article or the proceeds from the sale of\nproperty acquired with the proceeds of such notes or bonds to secure the\npayment of such notes or bonds or of any issue thereof, subject to such\nagreements with bondholders or noteholders as may exist;\n (ii) the setting aside of reserve or sinking funds and the regulation\nand disposition thereof;\n (iii) limitations on the purpose to which the proceeds of the sale of\nnotes or bonds may be applied and pledging such proceeds to secure the\npayment of the notes or bonds or any issue thereof;\n (iv) the procedure, if any, by which the terms of any contract with\nnoteholders or bondholders may be amended or abrogated, the amount of\nnotes or bonds the holders of which must consent thereto, and the manner\nin which such consent may be given;\n (v) vesting in a trustee or trustees such property, rights, powers and\nduties in trust as the municipality shall determine.\n (e) A bond resolution or bond anticipation note resolution shall be\nauthorized for each redevelopment plan adopted by the legislative body\nwhich provides for the financing of redevelopment projects from the\nproceeds of such notes and bonds.\n (f) Neither the expenditure of money for an object or purpose for\nwhich it is proposed to issue obligations nor a bond resolution or bond\nanticipation note resolution authorized by this section shall be subject\nto a permissive referendum.\n (g) The amount of any indebtedness contracted under this section shall\nbe excluded in ascertaining the power of the municipality to contract\nindebtedness within the provisions of the state constitution or the\nlocal finance law relating thereto.\n (h) The proceeds from the sale of real property acquired with the\nproceeds from the sale of bonds or notes issued pursuant to this section\nshall be used solely for the purposes of repayment of principal on such\nnotes or bonds.\n (i) The municipality may contract indebtedness pursuant to this\nsection for the following objects or purposes:\n (i) acquisition of land;\n (ii) demolition and removal of buildings, structures and improvements\nand site preparation;\n (iii) installation, construction or reconstruction of streets,\nwalkways, docks, drainage, parking facilities, flood control facilities,\nwater and sewer systems and other public utilities, parks and\nplaygrounds;\n (iv) other public improvements or services integral to the\nredevelopment plan authorized by or for which a period of probable\nusefulness has been established by section 11.00 of the local finance\nlaw. Objects and purposes referred to in this subdivision shall be\ndeemed to have the period of probable usefulness as provided for such\nobjects and purposes by such section.\n