NY Loc Fin L § 58.00 (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 58.00 - Notice of Sale of Bonds.

§  58.00  Notice  of sale of bonds.  * a. There shall be published, at least once, not less than five nor more than thirty days before the date fixed for the public sale of bonds, a notice of such public  sale  or  a summary thereof in accordance with one of the following methods: (1) the notice  of  sale shall be published in any financial newspaper published and circulated in the city of New York which the state  comptroller,  in the  rule  or  order referred to in paragraph d of section 57.00 of this chapter, shall designate for such publication; (2) the  notice  of  sale shall  be  circularized  in  such  manner as the state comptroller shall prescribe in such rule or order and shall be published in any  newspaper or  newspapers  which  the  finance  board  of  the municipality, school district or district corporation may designate for such purpose; or  (3) (i)  a  summary  of  the  notice  of sale shall be published in both the financial newspaper published and circulated in the  city  of  New  York which the state comptroller has designated in the rule or order referred to  in  paragraph  d  of  section  57.00  of  this chapter, and (ii) any newspaper or newspapers which the finance  board  of  the  municipality, school  district or district corporation may designate for such purpose. A summary of the notice of sale shall at a minimum contain the  name  of the issuer, the amount, date, and maturities of the bonds, the frequency of  interest  payments,  the  place  where  bids  will  be received, the designation of the receiving device if the finance board of the  issuing municipality,  school district or district corporation has authorized or required the receipt of bids in an electronic format, the time and  date for  the  opening  of the bids, including circumstances under which such time and date may be changed in accordance with law, the method of award and a procedure for promptly obtaining the complete notice of  sale  and any preliminary official statement prepared in connection with the sale, and  such  other  information  as the state comptroller may prescribe by rule or order.   * NB Effective until June 1, 2023   * a. There shall be published, at least once, not less than  five  nor more  than  thirty  days  before  the  date fixed for the public sale of bonds, a notice of such public sale or a summary thereof  in  accordance with  one  of  the  following  methods:  (1) the notice of sale shall be published in any financial newspaper published  and  circulated  in  the city  of  New  York  which  the  state comptroller, in the rule or order referred to in paragraph d of  section  57.00  of  this  chapter,  shall designate  for  such  publication;  (2)  the  notice  of  sale  shall be circularized in such manner as the state comptroller shall prescribe  in such rule or order and shall be published in any newspaper or newspapers which the finance board of the municipality, school district or district corporation  may designate for such purpose; or (3) (i) a summary of the notice of sale shall  be  published  in  both  the  financial  newspaper published  and  circulated  in  the  city  of  New  York which the state comptroller has designated in the rule or order referred to in paragraph d of section 57.00 of this chapter, and (ii) any newspaper or newspapers which the finance board of the municipality, school district or district or district corporation may designate for such purpose. A summary of the notice of sale shall at a minimum contain the name of  the  issuer,  the amount,  date,  and  maturities  of the bonds, the frequency of interest payments, the place where bids will be received, the time and  date  for the  opening  of the bids, including circumstances under which such time and date may be changed in accordance with law, the method of award  and a  procedure  for promptly obtaining the complete notice of sale and any preliminary official statement prepared in connection with the sale, and such other information as the state comptroller may prescribe by rule or order.    * NB Effective June 1, 2023   b.  Such  notice  shall  call for sealed bids for the purchase of such bonds, and shall state:   * 1. The place where bids will be received  and  considered,  and  the designation  of the receiving device if the finance board of the issuing municipality, school district or district corporation has authorized  or required the receipt of bids in an electronic format.   * NB Effective until June 1, 2023   * 1. The place where bids will be received and considered.   * NB Effective June 1, 2023   2.  (a) The time and date for the opening of bids, which shall be only on weekdays, Saturdays and holidays excluded, between the hours  of  ten o'clock  ante  meridian and four o'clock post meridian, eastern standard time.  (b) In lieu of the statement of the time and date for the  opening  of bids  required  by subparagraph (a) of this subdivision, a statement (i) that the time and date for the opening of bids will be provided  on  not less  than  twenty-four  hours  prior  notice by means of a supplemental notice of sale and indicating the  manner  in  which  such  supplemental notice will be provided, or (ii) setting a time and date for the opening of  bids,  stating  that  notice of a change in the time or date for the opening of bids may be provided not less than one hour prior to the time originally scheduled for the opening of bids by means of a  supplemental notice  of  sale  and  indicating  the manner in which such supplemental notice will be provided. Where notice is given that the time or date  of a  sale  will be changed without specifying the new time or date, notice of the new time or date of sale must be provided by means  of  a  second supplemental  notice of sale at least one hour prior to the new time for the opening of bids.  (c) A supplemental notice of sale shall refer to and be deemed a  part of  the  notice of sale required by this section and shall not establish or change the terms of the sale other than the  time  or  date  for  the opening  of bids, the amount of principal scheduled to be repaid in each year, the right of redemption prior to maturity, and the face  value  at maturity  of  the issue or any installment thereof. The time set for the opening of bids in the supplemental notice of sale  shall  not  be  less than  five  nor more than thirty days after publication of the notice of sale required pursuant to paragraph a of this section.  (d) The supplemental notice of sale shall be provided  by  transmittal over  a  definitive  trade  wire  service of the municipal bond industry which, in general, makes available information  regarding  activity  and sales  of  municipal bonds and is generally available to participants in the  municipal  bond  industry,  or  by  publication  in  the  financial newspaper  published  and  circulated  in the city of New York which the state comptroller, in the rule or order referred to in  paragraph  d  of section  57.00 of this article, shall designate for such publication. In addition, when the time and date for the opening of bids is  delayed  by more  than twenty-four hours, public notice of the time and date set for the opening of bids in the supplemental notice of sale shall be given to the news media and shall be posted in  one  or  more  designated  public locations  within  the issuing municipality, school district or district corporation at least twenty-four hours prior to the time  and  date  set for the opening of bids; provided however, that such public notice shall not be construed to require publication as a legal notice.   3.  The  maximum  rate  of  interest,  if any, fixed by or pursuant to paragraph b of section 57.00 of this chapter.   c. Such notice shall also include:    1. A statement that the rate or rates of interest to be bid shall be a multiple of one-hundredth of one per centum per annum or a  multiple  of one-eighth  of  one per centum per annum, as the agency in charge of the sale may determine and may require or permit in such notice.   2.  A  statement  of the conditions of sale and the methods of bidding which shall include the following:   a. A statement that one or more than one rate of interest may be  bid; provided,  however,  that only one rate of interest may be bid for bonds of the same maturity. Where more than one rate of interest may  be  bid, such  notice shall specify the maximum number of rates which may be bid. Where the net interest cost method of calculating interest cost is used, or where the notice so provides, the interest  rate  for  each  maturity shall  not  be  less than the interest rate for any prior maturity. Such notice shall also state that such rate or any of such rates may  not  be higher  than  the  maximum  rate prescribed in such notice, if a maximum rate  has  been  prescribed.  Notwithstanding  the  above,  in  inviting proposals  for  the sale of bonds in an amount of twenty million dollars or more, a municipality may advertise in such notice to sell, in series, at a single bid price per bond. b. Where two or more issues are  offered in  the  same notice of sale, a statement specifying whether each of the issues so offered shall be sold  separately  as  a  single  bond  issue, whether  some of the issues shall be combined and sold separately as one or more single bond issues, or whether the aggregate amount of bonds  of all of the issues shall be combined and sold as a single bond issue.   c.  Where  the  finance  board  of  a municipality, school district or district corporation has determined to provide for  substantially  level or  declining  annual  debt  service  pursuant to paragraph d of section 21.00 of this article, a statement specifying the dates of maturity  for such  bonds  and  the  dates  for payment of interest on such bonds, and setting forth the annual principal installments expected to provide for, together with the interest thereon,  substantially  level  or  declining annual  debt  service  on  such  bonds. Such notice shall state that the municipality,  school  district  or  district  corporation  may,   after selecting  the  low  bidder,  adjust  such  installments  to  the extent necessary to meet the requirements of substantially level  or  declining debt service.   3. A requirement that as a condition precedent to the consideration of his  or  her  bid,  each  bidder shall deposit with such official as the agency in charge of the sale may designate,  a  certified  or  cashier's check  drawn  upon an incorporated bank or trust company to the order of the municipality,  school  district  or  district  corporation  or  such official,  for  the amount specified in the notice, but in no event less than one-half of one      per centum of the amount of bonds  to  be  bid for.  Such  notice  may  also  provide  that,  in lieu of a certified or cashier's check, bidders may furnish as security  cash  in  such  amount remitted  by  wire  transfer to an account specified in the notice or an eligible surety bond or an eligible letter of credit, approved  by  such official  as to form, sufficiency, and manner of execution. For purposes of this section, "eligible surety bond" shall mean a bond executed by an insurance  company  authorized  to  do  business  in  this  state,   the claims-paying  ability  of  which  is  rated in one of the three highest rating categories by at  least  one  nationally  recognized  statistical rating  organization;  and  "eligible  letter  of  credit" shall mean an irrevocable letter of credit issued in favor of the municipality, school district or district corporation, for a term not to exceed  ninety  days by  a  bank,  as that term is defined in section two of the banking law, whose commercial paper and other unsecured short-term  debt  obligations (or,  in  the  case  of  a  bank  which is the principal subsidiary of a  holding company, whose holding  company's  commercial  paper  and  other unsecured  short-term  debt  obligations)  are rated in one of the three highest rating categories (based on the credit of such bank  or  holding company)  by  at  least  one  nationally  recognized  statistical rating organization or by a bank that is in compliance with applicable  federal minimum risk-based capital requirements.   4.  A  statement  that  there  is reserved to the municipality, school district or district corporation the right to reject all bids, and  that any bid not complying with the terms of the notice will be rejected.   5.  A  statement  that  the  agency  prescribing  the  terms, form and contents of such bonds has reserved to itself the power to call  in  and redeem  a portion of such bonds prior to their date of maturity pursuant to section 53.00 of this chapter, if such agency has reserved to  itself such power. Such statement shall identify the portion of the bonds which may  be  so  redeemed  and shall describe the terms and conditions under which such bonds may be redeemed.   6. A statement indicating which of the methods set forth in  paragraph a of section 59.00 of this chapter will be used in awarding such bonds.   7.  Such  further  data  and information as shall be prescribed by the state comptroller in the rule or order referred to  in  paragraph  d  of section 57.00 of this chapter.   d. It may be a condition of the sale of bonds that every bidder may be required  to accept a portion of the whole amount of the bonds for which he or she has bid, at the same rate for such portion as may be specified in his or her bid for the full amount. If such condition is imposed, the notice of sale shall so state and such notice also shall state that,  in addition,  any bidder may offer to purchase all or none of such bonds on different terms.   e. The notice of sale may provide that the bidder to  whom  the  bonds are  to be awarded, at his or her option, may refuse to accept the bonds if prior to the delivery of the bonds any income tax law of  the  United States  of  America  shall  provide  that  the interest on such bonds is taxable, or shall be taxable at a future date, for  federal  income  tax purposes.   * f.  For  purposes of this section and section 59.00 of this chapter, "sealed bids" shall include bids  submitted  in  an  electronic  format, provided  that  the  finance  board  of the issuing municipality, school district or district corporation,  by  resolution,  has  authorized  the receipt  of  bids in such format. Submission in electronic format may be required as the sole method for the submission of bids.  Bids  submitted in an electronic format shall be transmitted by bidders to the receiving device  designated  by  the  issuing  municipality,  school  district or district corporation. Any method used to receive electronic  bids  shall comply  with article three of the state technology law and any rules and regulations promulgated and guidelines developed thereunder  and,  at  a minimum,  must:  (a)  document  the time and date of receipt of each bid received electronically; (b) authenticate the identity  of  the  sender; (c)  ensure  the security of the information transmitted; and (d) ensure the confidentiality of the bid until the time and date  established  for the  opening  of  bids.  The  timely  submission of an electronic bid in compliance with instructions provided for such submission in the  notice of  sale and any supplemental notice of sale shall be the responsibility solely of each bidder or prospective bidder.  No  issuing  municipality, school  district  or district corporation shall incur any liability from delays of or interruptions in the receiving device  designated  for  the submission and receipt of electronic bids.   * NB Repealed June 1, 2023