NY Loc Fin L § 60.10 (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 60.10 - Sale of Obligations to Certain Banks and Trust Companies Authorized.

§  60.10.  Sale  of  obligations  to certain banks and trust companies   authorized. a. The  agency  selling  notes  of  a  municipality,  school   district  or district corporation may sell such notes at private sale to   a bank or  trust  company  of  which  an  officer  or  employee  of  the   municipality,  school  district  or district corporation has an interest   which is otherwise prohibited by the provisions of article  eighteen  of   the  general  municipal  law, without limitation as to rate of interest,   provided that at least two  other  banks  are  unwilling  or  unable  to   purchase  the  notes at a rate of interest equal to or less than that at   which the bank in which the officer or employee has an interest proposes   to purchase such notes. Disclosure of any  such  actual  or  prospective   sale  shall  be  made  as provided in section eight hundred three of the   general municipal law. Where any such relationship exists,  however,  no   such sales shall be authorized in the event that:1. During the current fiscal year of the municipality, school district   or  district  corporation the bank or trust company has purchased, or by   virtue  of  the  sale  would  purchase,  at  private  sales   from   the   municipality,  school  district  or  district corporation, notes of such   issuer, the aggregate principal amount of which is or would exceed,  one   hundred thousand dollars; or2.  The  bank or trust company then is, or by virtue of the sale would   become, the holder of notes of  the  municipality,  school  district  or   district  corporation,  purchased  at private sale from such issuer, the   aggregate principal amount of which is, or  would  exceed,  one  hundred   thousand dollars.The  foregoing limitations of this paragraph a shall not be applicable   to notes renewed at private sale where such notes were  originally  sold   at  public sale, pursuant to the requirements of former section 60.20 of   this chapter, and are renewed by the original buyer thereof at the  same   or lower rate of interest.b.  The  agency  selling  bonds of a municipality, school district, or   district corporation may, subject to the limitations of section 63.00 of   this chapter, sell such bonds at private sale to a bank or trust company   of which an officer or employee of the municipality, school district  or   district  corporation  has  an interest which is otherwise prohibited by   the provisions  of  article  eighteen  of  the  general  municipal  law.   Disclosure  of  any  such  actual  or  prospective sale shall be made as   provided in section eight hundred three of the  general  municipal  law.   Where  any  such  relationship  exists,  however, no such sales shall be   authorized in the event that the bank or trust company then  is,  or  by   virtue   of   the  sale  would  become,  the  holder  of  bonds  of  the   municipality, school district  or  district  corporation,  purchased  at   private  sale  from such issuer, the aggregate principal amount of which   is, or would exceed one hundred thousand dollars.c.  Any  officer  of  a  municipality,  school  district  or  district   corporation  who wilfully participates in authorizing the sale of, or in   selling, obligations of the municipality, school  district  or  district   corporation  in  violation  of  the foregoing provisions of this section   shall be guilty of a misdemeanor.