NY Loc Fin L § 57.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 4 - Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof 57.00 - Sale of Bonds.

§  57.00 Sale of bonds. a. Bonds shall be sold only at public sale and   in accordance with the procedure set forth in this section and  sections   58.00  and  59.00  of  this  title, except as otherwise provided in this   paragraph. Bonds may be sold  at  private  sale  to  the  United  States   government  or  any  agency or instrumentality thereof, the state of New   York municipal bond bank agency, to any sinking fund or pension fund  of   the  municipality,  school district or district corporation selling such   bonds, or, in the case of sales by the city of New York  prior  to  July   first,  two  thousand  twenty-two,  also  to  the  municipal  assistance   corporation for the city of New York or to any other purchaser with  the   consent  of  the  mayor and the comptroller of such city and approval of   the state comptroller, or, in the case of sales by the county of  Nassau   prior  to  December thirty-first, two thousand seven, also to the Nassau   county  interim  finance  authority  with  the  approval  of  the  state   comptroller,  or,  in  the case of sales by the city of Buffalo prior to   June thirtieth, two thousand thirty-seven, also to  the  Buffalo  fiscal   stability  authority  with the approval of the state comptroller, or, in   the case of bonds or other obligations of a municipality issued for  the   construction  of  any  sewage treatment works, sewage collecting system,   storm water collecting system, water management facility, air  pollution   control  facility or solid waste disposal facility, also to the New York   state environmental facilities corporation, or, in the case of bonds  or   other  obligations  of a school district or a city acting on behalf of a   city school district in a city having a  population  in  excess  of  one   hundred  twenty-five  thousand  but  less  than  one million inhabitants   according to the latest federal census, issued to finance  or  refinance   the  cost  of  school  district  capital  facilities  or school district   capital equipment, as defined in section sixteen hundred seventy-six  of   the public authorities law, also to the dormitory authority of the state   of  New  York.  Bonds  of  a  river  improvement  or  drainage  district   established  by  or  under  the  supervision  of   the   department   of   environmental  conservation  may be sold at private sale to the state of   New York as investments for any funds of the state which by law  may  be   invested, provided, however, that the rate of interest on any such bonds   so  sold shall be approved by the water power and control commission and   the state comptroller. Bonds  may  also  be  sold  at  private  sale  as   provided  in  section  63.00  of  this  title. No bonds shall be sold on   option or on a deferred payment plan, except that options  to  purchase,   effective for a period not exceeding one year, may be given:1.  in  any  case  to the state of New York municipal bond bank agency   with respect to any bonds or bond anticipation notes; and2. in the case of a municipality to the New York  state  environmental   facilities corporation with respect to bonds or other obligations issued   for  the  construction  of any sewage treatment works, sewage collecting   system, storm water collecting system, water  management  facility,  air   pollution  control facility or solid waste disposal facility, or, in the   case of bonds or other obligations of a school district or a city acting   on behalf of a city school district in a city  having  a  population  in   excess  of  one  hundred  twenty-five thousand but less than one million   inhabitants according to the latest federal census, issued to finance or   refinance the cost of  school  district  capital  facilities  or  school   district  capital  equipment,  as  defined  in  section  sixteen hundred   seventy-six of  the  public  authorities  law,  also  to  the  dormitory   authority  of  the  state  of  New  York.  A loan commitment may also be   entered into by and between a municipality, and the state  of  New  York   municipal  bond  bank agency, by and between a school district or a city   acting on behalf of a city school district in a city having a population   in excess of one hundred twenty-five thousand but less than one  million    inhabitants  according  to  the  latest federal census and the dormitory   authority of the state of New York, and by and  between  a  municipality   and  the  New  York  state  environmental  facilities  corporation, such   commitment  to  be  fulfilled  by  the  purchase  of  the bonds or other   obligations referred to therein by such agency or such  corporation,  as   the  case  may  be.  As  used in this paragraph, the term "sinking fund"   means a fund required by law to be established and  maintained  for  the   purpose  of  amortizing  indebtedness  evidenced  by  sinking fund bonds   issued pursuant to the provisions of  this  chapter  or  issued  by  any   municipality,  school  district  or district corporation under any other   law.b. Bonds shall be sold without limitation as to rate of  interest  and   for  a  sum not less than the par value of, and the accrued interest on,   such obligations except as authorized by this chapter, and may  also  be   sold  by  municipalities  at  private  sale  to  the  state  of New York   municipal bond bank agency and  to  the  New  York  state  environmental   facilities  corporation,  and in addition by the city of New York to the   municipal assistance corporation for the city of New York,  and  by  the   county  of Nassau to the Nassau county interim finance authority, and by   the city of Buffalo to the Buffalo fiscal stability authority,  at  such   rate  or  rates  of  interest  as  may be agreed upon by and between the   issuing municipality and either of such agency or  corporation,  as  the   case  may  be.  When  sold at public sale, the rate of interest shall be   determined in the manner  provided  in  section  59.00  of  this  title.   However,  the  agency  or  corporation  prescribing  the terms, form and   contents of such bonds, subject to  the  foregoing  provisions  of  this   paragraph,  may fix a maximum rate of interest at which such bonds shall   be sold.c. Bonds for one or more specific objects or purposes  or  classes  of   objects  or  purposes, or a combination thereof, may be sold as a single   bond issue.d. The state comptroller shall adopt a rule  or  order  which  he  may   amend from time to time:1.  Designating  a  financial  newspaper  or  newspaper  published and   circulated in the city of New York in which  notices  for  the  sale  of   bonds may be published;2.  Prescribing  the  procedure for the circularization of notices for   the sale of bonds;3. Prescribing such  other  requirements  as  he  may  deem  necessary   relating  to  the publication or circularization of notices for the sale   of bonds, in addition to but not inconsistent  with  the  provisions  of   this chapter;4.  Prescribing  such data and information as he may deem advisable to   be contained in notices for the sale of bonds, in addition  to  but  not   inconsistent with the provisions of this chapter; and5.  Prescribing  the  requirements  for the alternative and permissive   publication or circularization of notices for the sale of  bonds  of  an   issue  not exceeding five million dollars, as permitted in section 63.00   of this chapter.Such rule or order and the amendments thereof shall be  filed  in  his   office and in such other offices as he may designate.e.  Notwithstanding  the  limitations set forth in paragraph b of this   section, a municipality, school district, or  district  corporation  may   provide  for  the  public  sale of its bonds at a price of less than the   face value of such bonds at maturity; provided that no  issue  of  bonds   shall be sold at a price such that the difference between the sale price   of  such  bonds,  not  including accrued interest, and the face value of   such bonds at maturity, shall exceed five percent of the face  value  of    such issue of bonds at maturity unless the municipality, school district   or  district corporation issuing such bonds has determined to issue them   pursuant to a substantially  level  or  declining  annual  debt  service   schedule  or  unless  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 article. The   cost of such original issue discount, together with other costs  of  the   issuance  of  obligations,  shall  be  deemed  a part of the cost of the   object or purpose for which such obligations are issued.* f. To facilitate the marketing of any issue of bonds issued pursuant   to paragraph e of this section, such municipality,  school  district  or   district  corporation  may,  notwithstanding  any limitations on private   sales of bonds provided by law, and subject to rules promulgated by  the   state comptroller governing such sales: (A) arrange for the underwriting   of such bonds at private sale through negotiated agreement, compensation   for  such  underwriting  to  be provided by negotiated fee or by sale of   such bonds to an underwriter at a price of less than  the  sum  of  face   value  at maturity of, and the accrued interest on, such obligations; or   (B) arrange for private sale of such bonds through negotiated agreement,   compensation for such sale to be provided by negotiated arrangement,  if   required.  The  cost  of such underwriting or private placement shall be   deemed a preliminary cost for purposes of section 11.00 of this chapter.* NB Repealed July 15, 2024