NY Loc Fin L § 29.10 (2021)
2021 New York Laws LFN - Local Finance Article 2 - Local Indebtedness Title 2 - Local Obligations: Types Thereof 29.10 - Issuance of Land Installment Purchase Obligations.

* §  29.10  Issuance  of  land  installment purchase obligations. 1. A   municipality  is  hereby  authorized  and  empowered   to   issue   land   installment  purchase  obligations  for  the  purpose  of  financing the   acquisition of interests or  rights  in  real  property  for  which  the   municipality has contracted, pursuant to section two hundred forty-seven   of  the  general  municipal  law,  together  with  the  preliminary  and   incidental  costs  of  such  acquisition.  Such  obligations  shall   be   authorized  by  a  statement  made  in a bond resolution authorizing the   issuance of bonds to finance  such  acquisition.  Such  statement  shall   provide  that  all or a portion of the indebtedness for such purpose may   be issued in the form of a land  installment  purchase  obligation.  Any   portion of the estimated maximum cost of the object or purpose for which   the  issuance of bonds has been authorized that is not financed with the   issuance of a land  installment  purchase  obligation  may  be  financed   through the issuance of bonds or bond anticipation notes.2.  Each land installment purchase obligation shall state the dates of   commencement and maturity, which shall establish a term no  longer  than   the  period  of  probable  usefulness  of  the interests or rights to be   acquired. Each land installment purchase obligation shall  provide  that   the  municipality  shall  be  vested  with  title  and ownership of such   interests or rights and shall be entitled to possession of the interests   or rights to be acquired. A land  installment  purchase  obligation  may   include  such  other  terms  related to the acquisition or possession of   such interests or rights as may be necessary or convenient.3. Payments under a land installment purchase obligation shall  be  in   semi-annual  or annual installments, as provided in the land installment   purchase obligation, commencing within one year  of  the  start  of  the   term,  provided  that  only one such installment scheduled in any fiscal   year of a municipality may contain a principal component.  The  interest   and principal components of each installment shall be identified therein   and  shall be made at the same times and in the same amounts as would be   permitted if the land installment purchase obligation were issued in the   form of a serial bond or a sinking  fund  bond,  provided  that  if  the   municipality  elects  to schedule such payments at the same times and in   the same amounts as would be permitted if the land installment  purchase   agreement  were a sinking fund bond, section 22.10 of this chapter shall   apply, and the owner of such land installment purchase  agreement  shall   be  considered  a  bondholder  for  purposes  of said section, provided,   however, that no such owner shall have any lien, trust or other interest   in moneys held by the state comptroller until the scheduled  installment   date  on  which  such amounts are to be paid. The first such installment   shall be sufficient to pay interest on  the  land  installment  purchase   obligation accruing prior to the date of the installment.4.   The   obligation  to  make  installment  payments  under  a  land   installment purchase obligation shall be a faith and  credit  obligation   of  the  issuer  thereof  and  shall  constitute indebtedness under this   chapter to the same extent as if issued in  the  form  of  bond  bearing   interest   in  the  amount  of  the  interest  component  of  each  such   installment.5. Any municipality may negotiate the  terms  of  a  land  installment   purchase  obligation  with the owner of such interests or rights and the   finance board may delegate the power to set the terms of and  sell  such   land  installment  purchase  obligation  to  such  owner  to  the  chief   financial officer, provided that any such delegation  pursuant  to  this   sentence  shall  not  include  the  power to negotiate the price of land   which is the subject  of  such  land  installment  purchase  obligation.   Before   executing   any  such  agreement,  the  finance  board  of  the   municipality shall adopt a resolution determining such agreement  is  in    the prudent financial interest of the municipality and stating the basis   of that determination.6.  A  land  installment  purchase obligation issued by a municipality   shall be restricted  from  transfer  and  may  not  be  the  subject  of   certificates  of  participation,  unless  explicitly  agreed  to  by the   parties.7.  The  interest  paid  pursuant  to  a  land  installment   purchase   obligation  shall  be  exempt  from  taxation  for  municipal  and state   purposes. Section 161.00  of  this  chapter  shall  not  apply  to  land   installment purchase obligations.* NB Repealed July 31, 2031