N.Y. STF Law § 66-B — New York Code / Act STF / Article 5-A / Section 66-B
Issuance of certificates of participation
Status: in_force

§ 66-b. Issuance of certificates of participation. 1. The director of\nthe budget shall determine whether the use of certificates of\nparticipation to finance and/or to refinance installment purchase or\nlease purchase contracts entered into by state departments, agencies or\nthe city university of New York is financially desirable and in the best\ninterest of the state. Upon notice of such a determination the state\ncomptroller is authorized, pursuant to a request for proposals,\ncompetitive bidding or negotiated placement, to cause to be issued\ncertificates of participation or similar instruments that represent\nundivided proportionate interests in periodic payments due from the\nstate to fund installment purchase or lease purchase contracts entered\ninto, or expected to be entered into, by the state departments,\nagencies, the city university of New York, or any combination thereof,\npursuant to the provisions of this article. The state comptroller shall\nissue regulations to govern the procedure he shall follow in any sale\nconducted pursuant to this section of such certificates. Such\nregulations shall, in the case of all sales, require that notice be\npublished in a definitive trade publication of the municipal bond\nindustry published on each business day in the state of New York, which\nis generally available to participants in the municipal bond industry,\nwhich notice shall state the terms of the sale. The proceeds from the\nissuance of such certificates may also be used for the establishment of\nreserve funds to secure such certificates, the cost or premium of\nletters of credit, insurance or other credit enhancements, the cost of\nbond counsel, financial advisor, trustees and paying agent, and such\nother related expenses as may be necessary for the issuance of such\ncertificates. The foregoing shall not be construed to authorize the use\nof such proceeds for the payment of personal service expenses of state\ndepartments, agencies or the city university of New York, other than\npayments made to the department of law for legal services rendered.\n  2. The maximum term of certificates of participation issued to finance\npersonal property shall be ten years. The maximum term of certificates\nof participation to finance the acquisition or improvement of real\nproperty shall be twenty-five years. In no event, however, shall such\nterm exceed the expected useful life of the property being financed,\nwith such term calculated from the date of delivery, with respect to\npersonal property, and the date of occupancy, with respect to real\nproperty.\n  3. Ten days prior to the issuance of certificates of participation\npursuant to this section, the director of the budget shall transmit to\nthe chairs of the senate finance committee and the assembly ways and\nmeans committee a copy of the director of the budget's notice to the\nstate comptroller pursuant to this section. Such notice shall provide\nthe following information pertaining to the personal property to be\nfinanced by the certificates:\n  1. The agency and program procuring the equipment.\n  2. A brief description of the equipment.\n  3. The estimated cost of the equipment if purchased outright.\n  4. The estimated terms of such financings.\n  5. The estimated total lease or installment purchase payments for the\nequipment.\n  6. The estimated lease or installment purchase payments by fiscal year\nfor the current fiscal year and the next five fiscal years.\n  7. The anticipated source of funds to make lease or installment\npurchase payments.\n  8. Those items of equipment not anticipated to be financed upon\nenactment of the budget for such fiscal year.\nBefore the issuance of the certificates the director of the budget may\namend such notice and shall transmit a copy of the amended notice to the\nchairs of the senate finance committee and assembly ways and means\ncommittee. After the issuance of the certificates, the director of the\nbudget shall transmit to the chairs of the senate finance committee and\nassembly ways and means committee and the state comptroller a copy of\nthe final official statement accompanying such issuance and thereafter\nshall transmit quarterly reports which update such notices to such\nindividuals.\n  4. Subject to the provisions of chapter fifty-nine of the laws of two\nthousand, but notwithstanding any other provisions of law to the\ncontrary, the maximum amount of certificates of participation or similar\ninstruments representing periodic payments due from the state of New\nYork, issued on behalf of state departments and agencies, the city\nuniversity of New York and any other state entity otherwise specified\nafter March thirty-first, two thousand three shall be seven hundred\neighty-four million two hundred eighty-five thousand dollars. Such\namount shall be exclusive of certificates of participation or similar\ninstruments issued to fund a reserve fund or funds, costs of issuance\nand to refund outstanding certificates of participation.\n