§ 60.10. Sale of obligations to certain banks and trust companies\nauthorized.
a.The agency selling notes of a municipality, school\ndistrict or district corporation may sell such notes at private sale to\na bank or trust company of which an officer or employee of the\nmunicipality, school district or district corporation has an interest\nwhich is otherwise prohibited by the provisions of article eighteen of\nthe general municipal law, without limitation as to rate of interest,\nprovided that at least two other banks are unwilling or unable to\npurchase the notes at a rate of interest equal to or less than that at\nwhich the bank in which the officer or employee has an interest proposes\nto purchase such notes. Disclosure of any such actual or prospective\nsale shall be made as provided
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§ 60.10. Sale of obligations to certain banks and trust companies\nauthorized. a. The agency selling notes of a municipality, school\ndistrict or district corporation may sell such notes at private sale to\na bank or trust company of which an officer or employee of the\nmunicipality, school district or district corporation has an interest\nwhich is otherwise prohibited by the provisions of article eighteen of\nthe general municipal law, without limitation as to rate of interest,\nprovided that at least two other banks are unwilling or unable to\npurchase the notes at a rate of interest equal to or less than that at\nwhich the bank in which the officer or employee has an interest proposes\nto purchase such notes. Disclosure of any such actual or prospective\nsale shall be made as provided in section eight hundred three of the\ngeneral municipal law. Where any such relationship exists, however, no\nsuch sales shall be authorized in the event that:\n 1. During the current fiscal year of the municipality, school district\nor district corporation the bank or trust company has purchased, or by\nvirtue of the sale would purchase, at private sales from the\nmunicipality, school district or district corporation, notes of such\nissuer, the aggregate principal amount of which is or would exceed, one\nhundred thousand dollars; or\n 2. The bank or trust company then is, or by virtue of the sale would\nbecome, the holder of notes of the municipality, school district or\ndistrict corporation, purchased at private sale from such issuer, the\naggregate principal amount of which is, or would exceed, one hundred\nthousand dollars.\n The foregoing limitations of this paragraph a shall not be applicable\nto notes renewed at private sale where such notes were originally sold\nat public sale, pursuant to the requirements of former section 60.20 of\nthis chapter, and are renewed by the original buyer thereof at the same\nor lower rate of interest.\n b. The agency selling bonds of a municipality, school district, or\ndistrict corporation may, subject to the limitations of section 63.00 of\nthis chapter, sell such bonds at private sale to a bank or trust company\nof which an officer or employee of the municipality, school district or\ndistrict corporation has an interest which is otherwise prohibited by\nthe provisions of article eighteen of the general municipal law.\nDisclosure of any such actual or prospective sale shall be made as\nprovided in section eight hundred three of the general municipal law.\nWhere any such relationship exists, however, no such sales shall be\nauthorized in the event that the bank or trust company then is, or by\nvirtue of the sale would become, the holder of bonds of the\nmunicipality, school district or district corporation, purchased at\nprivate sale from such issuer, the aggregate principal amount of which\nis, or would exceed one hundred thousand dollars.\n c. Any officer of a municipality, school district or district\ncorporation who wilfully participates in authorizing the sale of, or in\nselling, obligations of the municipality, school district or district\ncorporation in violation of the foregoing provisions of this section\nshall be guilty of a misdemeanor.\n