§ 57.00 Sale of bonds.
a.Bonds shall be sold only at public sale and\nin accordance with the procedure set forth in this section and sections\n58.00 and 59.00 of this title, except as otherwise provided in this\nparagraph. Bonds may be sold at private sale to the United States\ngovernment or any agency or instrumentality thereof, the state of New\nYork municipal bond bank agency, to any sinking fund or pension fund of\nthe municipality, school district or district corporation selling such\nbonds, or, in the case of sales by the city of New York prior to July\nfirst, two thousand twenty-six, also to the municipal assistance\ncorporation for the city of New York or to any other purchaser with the\nconsent of the mayor and the comptroller of such city and approval of\nthe state comptroller
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§ 57.00 Sale of bonds. a. Bonds shall be sold only at public sale and\nin accordance with the procedure set forth in this section and sections\n58.00 and 59.00 of this title, except as otherwise provided in this\nparagraph. Bonds may be sold at private sale to the United States\ngovernment or any agency or instrumentality thereof, the state of New\nYork municipal bond bank agency, to any sinking fund or pension fund of\nthe municipality, school district or district corporation selling such\nbonds, or, in the case of sales by the city of New York prior to July\nfirst, two thousand twenty-six, also to the municipal assistance\ncorporation for the city of New York or to any other purchaser with the\nconsent of the mayor and the comptroller of such city and approval of\nthe state comptroller, or, in the case of sales by the county of Nassau\nprior to December thirty-first, two thousand seven, also to the Nassau\ncounty interim finance authority with the approval of the state\ncomptroller, or, in the case of sales by the city of Buffalo prior to\nJune thirtieth, two thousand thirty-seven, also to the Buffalo fiscal\nstability authority with the approval of the state comptroller, or, in\nthe case of bonds or other obligations of a municipality issued for the\nconstruction of any sewage treatment works, sewage collecting system,\nstorm water collecting system, water management facility, air pollution\ncontrol facility or solid waste disposal facility, also to the New York\nstate environmental facilities corporation, or, in the case of bonds or\nother obligations of a school district or a city acting on behalf of a\ncity school district in a city having a population in excess of one\nhundred twenty-five thousand but less than one million inhabitants\naccording to the latest federal census, issued to finance or refinance\nthe cost of school district capital facilities or school district\ncapital equipment, as defined in section sixteen hundred seventy-six of\nthe public authorities law, also to the dormitory authority of the state\nof New York. Bonds of a river improvement or drainage district\nestablished by or under the supervision of the department of\nenvironmental conservation may be sold at private sale to the state of\nNew York as investments for any funds of the state which by law may be\ninvested, provided, however, that the rate of interest on any such bonds\nso sold shall be approved by the water power and control commission and\nthe state comptroller. Bonds may also be sold at private sale as\nprovided in section 63.00 of this title. No bonds shall be sold on\noption or on a deferred payment plan, except that options to purchase,\neffective for a period not exceeding one year, may be given:\n 1. in any case to the state of New York municipal bond bank agency\nwith respect to any bonds or bond anticipation notes; and\n 2. in the case of a municipality to the New York state environmental\nfacilities corporation with respect to bonds or other obligations issued\nfor the construction of any sewage treatment works, sewage collecting\nsystem, storm water collecting system, water management facility, air\npollution control facility or solid waste disposal facility, or, in the\ncase of bonds or other obligations of a school district or a city acting\non behalf of a city school district in a city having a population in\nexcess of one hundred twenty-five thousand but less than one million\ninhabitants according to the latest federal census, issued to finance or\nrefinance the cost of school district capital facilities or school\ndistrict capital equipment, as defined in section sixteen hundred\nseventy-six of the public authorities law, also to the dormitory\nauthority of the state of New York. A loan commitment may also be\nentered into by and between a municipality, and the state of New York\nmunicipal bond bank agency, by and between a school district or a city\nacting on behalf of a city school district in a city having a population\nin excess of one hundred twenty-five thousand but less than one million\ninhabitants according to the latest federal census and the dormitory\nauthority of the state of New York, and by and between a municipality\nand the New York state environmental facilities corporation, such\ncommitment to be fulfilled by the purchase of the bonds or other\nobligations referred to therein by such agency or such corporation, as\nthe case may be. As used in this paragraph, the term "sinking fund"\nmeans a fund required by law to be established and maintained for the\npurpose of amortizing indebtedness evidenced by sinking fund bonds\nissued pursuant to the provisions of this chapter or issued by any\nmunicipality, school district or district corporation under any other\nlaw.\n b. Bonds shall be sold without limitation as to rate of interest and\nfor a sum not less than the par value of, and the accrued interest on,\nsuch obligations except as authorized by this chapter, and may also be\nsold by municipalities at private sale to the state of New York\nmunicipal bond bank agency and to the New York state environmental\nfacilities corporation, and in addition by the city of New York to the\nmunicipal assistance corporation for the city of New York, and by the\ncounty of Nassau to the Nassau county interim finance authority, and by\nthe city of Buffalo to the Buffalo fiscal stability authority, at such\nrate or rates of interest as may be agreed upon by and between the\nissuing municipality and either of such agency or corporation, as the\ncase may be. When sold at public sale, the rate of interest shall be\ndetermined in the manner provided in section 59.00 of this title.\nHowever, the agency or corporation prescribing the terms, form and\ncontents of such bonds, subject to the foregoing provisions of this\nparagraph, may fix a maximum rate of interest at which such bonds shall\nbe sold.\n c. Bonds for one or more specific objects or purposes or classes of\nobjects or purposes, or a combination thereof, may be sold as a single\nbond issue.\n d. The state comptroller shall adopt a rule or order which he may\namend from time to time:\n 1. Designating a financial newspaper or newspaper published and\ncirculated in the city of New York in which notices for the sale of\nbonds may be published;\n 2. Prescribing the procedure for the circularization of notices for\nthe sale of bonds;\n 3. Prescribing such other requirements as he may deem necessary\nrelating to the publication or circularization of notices for the sale\nof bonds, in addition to but not inconsistent with the provisions of\nthis chapter;\n 4. Prescribing such data and information as he may deem advisable to\nbe contained in notices for the sale of bonds, in addition to but not\ninconsistent with the provisions of this chapter; and\n 5. Prescribing the requirements for the alternative and permissive\npublication or circularization of notices for the sale of bonds of an\nissue not exceeding five million dollars, as permitted in section 63.00\nof this chapter.\n Such rule or order and the amendments thereof shall be filed in his\noffice and in such other offices as he may designate.\n e. Notwithstanding the limitations set forth in paragraph b of this\nsection, a municipality, school district, or district corporation may\nprovide for the public sale of its bonds at a price of less than the\nface value of such bonds at maturity; provided that no issue of bonds\nshall be sold at a price such that the difference between the sale price\nof such bonds, not including accrued interest, and the face value of\nsuch bonds at maturity, shall exceed five percent of the face value of\nsuch issue of bonds at maturity unless the municipality, school district\nor district corporation issuing such bonds has determined to issue them\npursuant to a substantially level or declining annual debt service\nschedule or unless interest is contributed at least annually to a\nsinking fund in accordance with section two of article VIII of the\nconstitution and the procedures of section 22.10 of this article. The\ncost of such original issue discount, together with other costs of the\nissuance of obligations, shall be deemed a part of the cost of the\nobject or purpose for which such obligations are issued.\n * f. To facilitate the marketing of any issue of bonds issued pursuant\nto paragraph e of this section, such municipality, school district or\ndistrict corporation may, notwithstanding any limitations on private\nsales of bonds provided by law, and subject to rules promulgated by the\nstate comptroller governing such sales: (A) arrange for the underwriting\nof such bonds at private sale through negotiated agreement, compensation\nfor such underwriting to be provided by negotiated fee or by sale of\nsuch bonds to an underwriter at a price of less than the sum of face\nvalue at maturity of, and the accrued interest on, such obligations; or\n(B) arrange for private sale of such bonds through negotiated agreement,\ncompensation for such sale to be provided by negotiated arrangement, if\nrequired. The cost of such underwriting or private placement shall be\ndeemed a preliminary cost for purposes of section 11.00 of this chapter.\n * NB Repealed July 15, 2027\n