NY Loc Fin L § 21.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 2 - Local Obligations: Types Thereof 21.00 - Serial Bonds.

§ 21.00 Serial bonds. a. Any municipality, school district or district   corporation  may  issue  serial bonds for any object or purpose having a   period of probable usefulness set forth in paragraph a of section  11.00   of  this  chapter  and  for  which  object  or  purpose  it may contract   indebtedness pursuant  to  section  10.00  of  this  chapter;  provided,   however,  that  serial  bonds  shall not be issued by such municipality,   school district or district corporation (1)  in  those  cases  in  which   provision  is  made  in sections 24.00 and 25.00 of this chapter for the   issuance of tax anticipation notes and revenue anticipation notes to  be   issued  in  anticipation of the collection or receipt of taxes, revenues   or assessments, as the case may be, or  (2)  in  those  cases  in  which   provision  is  made in section 29.00 of this chapter for the issuance of   budget notes other than paragraph n of such section,  or  (3)  in  those   cases in which budget notes have been issued under such paragraph n; and   further  provided, however, that nothing contained herein shall prohibit   the issuance of serial bonds by such municipality,  school  district  or   district  corporation for the object or purpose specified in subdivision   sixty of paragraph a of section 11.00 of this chapter.b. Serial  bonds  shall  mature  in  annual  installments.  The  first   installment  shall  mature not later than eighteen months after the date   of such bonds or two years after the date of the first bond anticipation   note or notes issued in anticipation of such  bonds,  whichever  is  the   earlier,  provided,  however,  that  until  July fifteenth, two thousand   twenty-four, the first installment shall mature not later than two years   after the date of such bonds or two years after the date  of  the  first   bond  anticipation  note  or notes issued in anticipation of such bonds,   whichever is the earlier. However, if bond anticipation notes are issued   in anticipation of bonds and if a portion of such notes or the  renewals   thereof are redeemed from a source other than the proceeds of such bonds   within  two  years  from  the date of the first such note or notes and a   further portion thereof shall be so redeemed prior to the termination of   each twelve months' period succeeding the date such original portion was   so  redeemed,  the  first  installment  of  such  bonds  may,   in   the   alternative,  be  made to mature not later than five years from the date   of the first such note or notes.b-1. Notwithstanding the provisions of paragraph b of this section, if   bond  anticipation  notes  are  issued  in  anticipation  of  bonds  for   assessable  improvements  and if a portion of such notes or the renewals   thereof are redeemed from a source other than the proceeds of such bonds   within two years from the date of the first such note  or  notes  and  a   further portion thereof shall be so redeemed prior to the termination of   each twelve months' period succeeding the date such original portion was   so  redeemed, the first installment of such bonds shall mature not later   than twelve months from the last  preceding  date  such  portion  is  so   redeemed.c.  The  last  installment of serial bonds shall mature not later than   the expiration of the period of probable usefulness  of  the  object  or   purpose  for  which  such bonds are issued, as computed from the date of   such bonds or, if bond anticipation notes  shall  have  been  issued  in   anticipation  thereof, as computed from the date of the earliest note or   notes so issued.d. No annual installment of serial bonds shall be more than fifty  per   centum  in  excess of the smallest prior installment. For the purpose of   the preceding sentence, bond anticipation notes, which are redeemed from   a source other than the proceeds of bonds, shall be deemed to be  serial   bonds.   Notwithstanding   the  foregoing,  the  finance  board  of  any   municipality, school district or district corporation may  determine  to   issue bonds and provide for substantially level or declining annual debt    service.   The   determination   of   whether  annual  debt  service  is   substantially level or declining shall not take into account  the  first   twelve  months  after  issuance to the extent that no provision is to be   made for the payment of principal during such period. If a municipality,   school district or district corporation determines to issue bonds with a   substantially  level or declining annual debt service schedule, then the   aggregate amount of debt service payable in each year shall  not  exceed   the lowest aggregate amount of debt service payable in any prior year by   more  than  the  greater  of  five  percent or ten thousand dollars. For   purposes of this paragraph,  debt  service  shall  include  all  of  the   following  scheduled to become due: principal, redemption price, sinking   fund installments  or  contributions,  and  interest.  For  purposes  of   determining  whether debt service is substantially level or declining on   bonds issued with a variable rate of interest pursuant to section  54.90   of  this  article,  the finance board shall estimate the average rate of   interest at which fixed interest rate bonds of the same maturities would   be sold and amortize principal based upon such interest rate assumption.   The estimate by the finance board of such interest rate shall be  deemed   final  and  conclusive. If the finance board of the municipality, school   district or district corporation determines that interest on such  bonds   shall  be  compounded  and payable at maturity or prior redemption, such   bonds may be issued only where such  finance  board  has  determined  to   issue  the  bonds  pursuant to a substantially level or declining annual   debt service schedule unless accrued interest is  contributed  at  least   annually  to  a  sinking  fund in accordance with section two of article   VIII of the constitution and the procedures of  section  22.10  of  this   title. A municipality, school district or district corporation providing   for  substantially  level  or  declining  debt  service  may provide for   contracting such indebtedness as serial bonds, as sinking fund bonds, as   term bonds, or as any combination thereof.  Term  bonds  may  be  issued   under  the  authority  of  this  paragraph  with a stated maturity and a   schedule of mandatory redemptions prior thereto, providing  (with  other   bonds  of  the  same issue, if any) for substantially level or declining   debt service.e. Serial bonds shall be redeemed by an annual appropriation.f. Notwithstanding the provisions  of  paragraphs  b  and  d  of  this   section:1.  The  first  installment  of serial bonds issued for the purpose of   providing  moneys  out  of  which  to  make  loans  to  or  in  aid   of   limited-profit  housing companies pursuant to article two of the private   housing finance law, or loans to owners of existing  multiple  dwellings   pursuant  to article eight of the private housing finance law, or issued   for the purpose of providing moneys for the effectuating  of  any  urban   renewal  program  or part thereof pursuant to the general municipal law,   may mature not later than five years after the date of issuance of  such   bonds  or  six  years  after  the  date  of  issuance  of the first bond   anticipation note  or  notes  issued  in  anticipation  of  such  bonds,   whichever  is  earlier; provided, however, that if the bond anticipation   notes or renewals thereof issued in anticipation of  such  serial  bonds   extend  more  than  five  years  beyond the original date of such issue,   pursuant to the provisions of paragraph  b  of  section  23.00  of  this   chapter, the first installment of such serial bonds may mature not later   than  such  number  of years after the date of issuance of such bonds or   such number of years plus one after the original  date  of  issuance  of   such notes, whichever is earlier; and2. The annual installments of serial bonds issued for such purpose and   for the purpose of providing moneys out of which to make loans to owners   of  existing multiple dwellings pursuant to article eight of the private    housing finance law may be computed in such manner  that  the  total  of   principal  and  interest required to be paid in each year beginning with   the year in which the first installment is due,  will  be  approximately   equal to the total of principal and interest required to be paid in each   succeeding year of the period for which such bonds were issued.