§ 231 — Permanent financing of district and special improvements

§ 231. Permanent financing of district and special improvements. 1.\nWhen the cost of any improvement is to be borne by special assessment to\nbe assessed and paid as provided in this subdivision, such improvement\nshall be temporarily financed pursuant to the local finance law until\nafter the confirmation of the assessment. When such assessments shall\nhave been confirmed, a period of thirty days shall be given from the\ndate of confirmation in which such assessments may be paid in whole or\nin part, provided a part payment so made shall equal ten per centum, or\na multiple thereof, of the amount payable and the obligation or\nappropriate portion thereof cancelled. Upon the expiration of such\nperiod, obligations shall be issued pursuant to the local finance law\nfor the total cost thereof, deducting the amounts of the assessments or\nparts thereof so paid within such period.\n Upon ascertainment of the amount of the cost to be assessed by special\nassessment the town board shall prescribe that such assessments may be\nso paid at the option of the payer in whole or in part, without penalty\nor interest, and the unpaid amounts, if any, to be paid in annual\ninstallments, with interest thereon.\n If bond anticipation notes are issued, all collections from\nassessments so paid in whole or in part shall be applied at once in\nreduction of such notes.\n Annual collections of assessments payable in installments shall be\napplied in payment of maturing obligations and accruing interest. If the\ntotal amount of assessments payable in installments collected in any\nyear shall be less than the amount required to pay maturing bonds and\naccruing interest, the town board may direct that surplus moneys, not\notherwise appropriated, be applied.\n Any surplus accruing from the sale of obligations, whether from\npremiums or otherwise, shall be applied to the reduction of the debt so\nincurred.\n 2. Notwithstanding any other provisions of this chapter, the town\nboard, upon the completion of the improvement or at any time prior\nthereto, may determine to issue, pursuant to the local finance law, the\nobligations of said town in such an amount as said board may estimate to\nbe sufficient to pay the entire cost of the improvement, but not in\nexcess of the maximum amount proposed to be expended for the improvement\nas stated in the petition, or in the final order, if the town board\nproceeded under article twelve-A of this chapter, or, if such\nimprovement be an improvement constructed pursuant to section two\nhundred two-b of this chapter, not in excess of the estimated expense\nthereof as stated in the notice of hearing. There shall be annually\napportioned and assessed upon the several lots and parcels of land\nespecially benefited by the improvement in proportion to the amount of\nbenefit which the improvement shall confer upon the same, and in the\nmanner provided in section two hundred two-a of the town law for the\nassessment of the cost of maintenance in a sewer district, an amount\nsufficient to pay the principal and interest of any obligations issued\nfor such improvement as the same shall become due and to pay the cost of\nmaintenance for the fiscal year commencing on the first day of January\nnext succeeding. In the event that the annual collection of such\nassessments shall be less than the amount required to pay the principal\nand interest of such obligations as they shall become due, the town\nboard shall direct that surplus moneys not otherwise appropriated be\napplied.\n Whenever an unpaid assessment has been divided into annual\ninstallments pursuant to this section the town board may, at the time of\nmaking such division, or at any time thereafter, provide that all future\nannual installments may be prepaid together with a sum sufficient to\nmeet all future pro rata shares of the annual interest payable on such\nobligations and which would otherwise have been added to such future\ninstallments had same not been prepaid. All sums received from such\nprepayments shall be deposited and retained in a separate account in a\ndepositary designated in the manner provided by section ten of the\ngeneral municipal law to be applied only to the payment of the\nobligations issued pursuant to this section. Notwithstanding the\nforegoing, such sums so received may be invested in the manner permitted\nin section eleven of the general municipal law.\n