NY Loc Fin L § 23.00 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 2 - Local Obligations: Types Thereof 23.00 - Bond Anticipation Notes.

§  23.00  Bond  anticipation  notes. a. Bond anticipation notes may be issued by any municipality, school district or district  corporation  in anticipation  of  the  sale  of bonds. Such notes may be issued whenever bonds have been authorized and the  proceeds  of  such  notes  shall  be expended only for the same object or purpose, or class thereof for which the proceeds of such bonds may be expended.   b.  Such  notes  shall mature at such time as the issuer may determine and may be renewed from time to time, provided, that in no  event  shall such  notes  or  the  renewals thereof extend more than two years beyond such original date of issue unless  a  portion  of  such  notes  or  the renewals thereof shall be redeemed from a source other than the proceeds of  bonds within two years from such original date of issue and unless 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, if any of such notes, as renewed, are still outstanding  at the  termination  of  each  such  period, but such notes or the renewals thereof shall not extend more than five years beyond such original  date of  issue.  Such  redemption  shall  be consistent with the amortization requirements of article eight of  the  state  constitution  and  section 21.00  of this title. If the finance board has determined to provide for substantially  level  or  declining  debt  service  on  the   bonds   in anticipation of which such notes are authorized to be issued, such notes shall be redeemed in an amount at least equal in each year to the annual installment  which  would be paid in such year if such notes were serial bonds issued at a five percent rate of interest for the remaining period of probable usefulness of the object or purpose for which issued, or, if less, the remaining portion of the maximum authorized maturity  of  such bonds,  and all annual debt service payments were equal over the life of such bonds. In any event, bond anticipation notes shall not  be  renewed after  the  receipt  of  the  proceeds  from  the  sale  of the bonds in anticipation of  which  such  notes  were  issued.  Notwithstanding  the provisions  of  this  paragraph:  1.  bond  anticipation notes issued in anticipation of the receipt of the proceeds of the sale of bonds for the purpose of providing moneys out of which to make loans to 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 for the purpose of providing moneys for the effectuating of any urban  renewal  program  or part  thereof  pursuant to the general municipal law, or the renewals of such notes, may extend not more than five years beyond the original date of issue of such notes; and  2.  renewals  of  bond  anticipation  notes issued originally during calendar years two thousand fifteen through two thousand  twenty-one,  inclusive  may  not  extend more than seven years beyond the original date of issue of such bond anticipation notes.   b-1. Notwithstanding the provisions of paragraph b of section 21.00 of this title and the provisions of paragraph b of this  section  any  bond anticipation  notes  issued  in  anticipation of bonds for an assessable improvement may be renewed from time to time for a period not  exceeding one  year for each such renewal, and without limitation as to the number of such renewals, provided that such notes, as renewed, shall not extend beyond the expiration of the period of probable usefulness of the object or purpose for which issued, as computed from the date of the first note or notes so issued, and provided further that such  notes,  as  renewed, shall  not extend more than two years from the date of the first note or notes so issued unless a portion thereof shall be redeemed from a source other than the proceeds of such bonds within two years from the date  of the  first  note or notes so issued and unless 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, if any of  such  notes, as renewed, are still outstanding at the termination of each such period. Annual principal installments on notes issued pursuant to this paragraph shall be computed in accordance with the provisions of paragraph b of this section. Every bond anticipation note resolution and certificate  authorizing  any  such  renewal  note,  in  addition to the statements and provisions required by section  38.10  of  this  chapter, shall  contain  a  statement  indicating  that  such  note  is issued in anticipation of bonds for an assessment improvement.   c. Bond anticipation notes shall not be  issued  in  an  amount  which shall  exceed  the  par value of the bonds in anticipation of which they are to be issued.   d. 1. Bond anticipation notes shall be redeemed from the  proceeds  of the  sale  of  the  bonds  in  anticipation  of  which they were issued. However, if such bonds are not sold, then such bond  anticipation  notes shall be redeemed:  (a)  From any unencumbered balance in any fund which may be applied to the payment thereof, or  (b) By a budgetary appropriation.   2.  Notwithstanding  the  provisions  of  subdivision  one   of   this paragraph, bond anticipation notes may be redeemed, in whole or in part, prior  to the sale of the bonds in anticipation of which such notes were issued, from any moneys which lawfully may be applied to the payment  of such notes.