§ 23.00 — Bond anticipation notes

New York § 23.00

• Jurisdiction: New York
• Law LFN: Local Finance
• Title 2: Local Obligations: Types Thereof
• Art. 2: Local Indebtedness

Text

§ 23.00 Bond anticipation notes. a. Bond anticipation notes may be\nissued by any municipality, school district or district corporation in\nanticipation of the sale of bonds. Such notes may be issued whenever\nbonds have been authorized and the proceeds of such notes shall be\nexpended only for the same object or purpose, or class thereof for which\nthe proceeds of such bonds may be expended.\n b. Such notes shall mature at such time as the issuer may determine\nand may be renewed from time to time, provided, that in no event shall\nsuch notes or the renewals thereof extend more than two years beyond\nsuch original date of issue unless a portion of such notes or the\nrenewals thereof shall be redeemed from a source other than the proceeds\nof bonds within two years from such original date of issue and unless a\nfurther portion thereof shall be so redeemed prior to the termination of\neach twelve months' period succeeding the date such original portion was\nso redeemed, if any of such notes, as renewed, are still outstanding at\nthe termination of each such period, but such notes or the renewals\nthereof shall not extend more than five years beyond such original date\nof issue. Such redemption shall be consistent with the amortization\nrequirements of article eight of the state constitution and section\n21.00 of this title. If the finance board has determined to provide for\nsubstantially level or declining debt service on the bonds in\nanticipation of which such notes are authorized to be issued, such notes\nshall be redeemed in an amount at least equal in each year to the annual\ninstallment which would be paid in such year if such notes were serial\nbonds issued at a five percent rate of interest for the remaining period\nof probable usefulness of the object or purpose for which issued, or, if\nless, the remaining portion of the maximum authorized maturity of such\nbonds, and all annual debt service payments were equal over the life of\nsuch bonds. In any event, bond anticipation notes shall not be renewed\nafter the receipt of the proceeds from the sale of the bonds in\nanticipation of which such notes were issued. Notwithstanding the\nprovisions of this paragraph: 1. bond anticipation notes issued in\nanticipation of the receipt of the proceeds of the sale of bonds for the\npurpose of providing moneys out of which to make loans to limited profit\nhousing companies pursuant to article two of the private housing finance\nlaw, or loans to owners of existing multiple dwellings pursuant to\narticle eight of the private housing finance law, or for the purpose of\nproviding moneys for the effectuating of any urban renewal program or\npart thereof pursuant to the general municipal law, or the renewals of\nsuch notes, may extend not more than five years beyond the original date\nof issue of such notes; and 2. renewals of bond anticipation notes\nissued originally during calendar years two thousand fifteen through two\nthousand twenty-one, inclusive may not extend more than seven years\nbeyond the original date of issue of such bond anticipation notes.\n b-1. Notwithstanding the provisions of paragraph b of section 21.00 of\nthis title and the provisions of paragraph b of this section any bond\nanticipation notes issued in anticipation of bonds for an assessable\nimprovement may be renewed from time to time for a period not exceeding\none year for each such renewal, and without limitation as to the number\nof such renewals, provided that such notes, as renewed, shall not extend\nbeyond the expiration of the period of probable usefulness of the object\nor purpose for which issued, as computed from the date of the first note\nor notes so issued, and provided further that such notes, as renewed,\nshall not extend more than two years from the date of the first note or\nnotes so issued unless a portion thereof shall be redeemed from a source\nother than the proceeds of such bonds within two years from the date of\nthe first note or notes so issued and unless a further portion thereof\nshall be so redeemed prior to the termination of each twelve months'\nperiod succeeding the date such original portion was so redeemed, if any\nof such notes, as renewed, are still outstanding at the termination of\neach such period. Annual principal installments on notes issued pursuant\nto this paragraph shall be computed in accordance with the provisions of\nparagraph b of this section. Every bond anticipation note resolution and\ncertificate authorizing any such renewal note, in addition to the\nstatements and provisions required by section 38.10 of this chapter,\nshall contain a statement indicating that such note is issued in\nanticipation of bonds for an assessment improvement.\n c. Bond anticipation notes shall not be issued in an amount which\nshall exceed the par value of the bonds in anticipation of which they\nare to be issued.\n d. 1. Bond anticipation notes shall be redeemed from the proceeds of\nthe sale of the bonds in anticipation of which they were issued.\nHowever, if such bonds are not sold, then such bond anticipation notes\nshall be redeemed:\n (a) From any unencumbered balance in any fund which may be applied to\nthe payment thereof, or\n (b) By a budgetary appropriation.\n 2. Notwithstanding the provisions of subdivision one of this\nparagraph, bond anticipation notes may be redeemed, in whole or in part,\nprior to the sale of the bonds in anticipation of which such notes were\nissued, from any moneys which lawfully may be applied to the payment of\nsuch notes.\n