§ 29.10 — Issuance of land installment purchase obligations

New York § 29.10

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

Text

* § 29.10 Issuance of land installment purchase obligations. 1. A\nmunicipality is hereby authorized and empowered to issue land\ninstallment purchase obligations for the purpose of financing the\nacquisition of interests or rights in real property for which the\nmunicipality has contracted, pursuant to section two hundred forty-seven\nof the general municipal law, together with the preliminary and\nincidental costs of such acquisition. Such obligations shall be\nauthorized by a statement made in a bond resolution authorizing the\nissuance of bonds to finance such acquisition. Such statement shall\nprovide that all or a portion of the indebtedness for such purpose may\nbe issued in the form of a land installment purchase obligation. Any\nportion of the estimated maximum cost of the object or purpose for which\nthe issuance of bonds has been authorized that is not financed with the\nissuance of a land installment purchase obligation may be financed\nthrough the issuance of bonds or bond anticipation notes.\n 2. Each land installment purchase obligation shall state the dates of\ncommencement and maturity, which shall establish a term no longer than\nthe period of probable usefulness of the interests or rights to be\nacquired. Each land installment purchase obligation shall provide that\nthe municipality shall be vested with title and ownership of such\ninterests or rights and shall be entitled to possession of the interests\nor rights to be acquired. A land installment purchase obligation may\ninclude such other terms related to the acquisition or possession of\nsuch interests or rights as may be necessary or convenient.\n 3. Payments under a land installment purchase obligation shall be in\nsemi-annual or annual installments, as provided in the land installment\npurchase obligation, commencing within one year of the start of the\nterm, provided that only one such installment scheduled in any fiscal\nyear of a municipality may contain a principal component. The interest\nand principal components of each installment shall be identified therein\nand shall be made at the same times and in the same amounts as would be\npermitted if the land installment purchase obligation were issued in the\nform of a serial bond or a sinking fund bond, provided that if the\nmunicipality elects to schedule such payments at the same times and in\nthe same amounts as would be permitted if the land installment purchase\nagreement were a sinking fund bond, section 22.10 of this chapter shall\napply, and the owner of such land installment purchase agreement shall\nbe considered a bondholder for purposes of said section, provided,\nhowever, that no such owner shall have any lien, trust or other interest\nin moneys held by the state comptroller until the scheduled installment\ndate on which such amounts are to be paid. The first such installment\nshall be sufficient to pay interest on the land installment purchase\nobligation accruing prior to the date of the installment.\n 4. The obligation to make installment payments under a land\ninstallment purchase obligation shall be a faith and credit obligation\nof the issuer thereof and shall constitute indebtedness under this\nchapter to the same extent as if issued in the form of bond bearing\ninterest in the amount of the interest component of each such\ninstallment.\n 5. Any municipality may negotiate the terms of a land installment\npurchase obligation with the owner of such interests or rights and the\nfinance board may delegate the power to set the terms of and sell such\nland installment purchase obligation to such owner to the chief\nfinancial officer, provided that any such delegation pursuant to this\nsentence shall not include the power to negotiate the price of land\nwhich is the subject of such land installment purchase obligation.\nBefore executing any such agreement, the finance board of the\nmunicipality shall adopt a resolution determining such agreement is in\nthe prudent financial interest of the municipality and stating the basis\nof that determination.\n 6. A land installment purchase obligation issued by a municipality\nshall be restricted from transfer and may not be the subject of\ncertificates of participation, unless explicitly agreed to by the\nparties.\n 7. The interest paid pursuant to a land installment purchase\nobligation shall be exempt from taxation for municipal and state\npurposes. Section 161.00 of this chapter shall not apply to land\ninstallment purchase obligations.\n * NB Repealed July 31, 2031\n