2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 2 - Local Obligations: Types Thereof › 21.00 - Serial Bonds.

§ 21.00 Serial bonds. a. Any municipality, school district or district
  corporation  may  issue  serial bonds for any object or purpose having a
  period of probable usefulness set forth in paragraph a of section  11.00
  of  this  chapter  and  for  which  object  or  purpose  it may contract
  indebtedness pursuant  to  section  10.00  of  this  chapter;  provided,
  however,  that  serial  bonds  shall not be issued by such municipality,
  school district or district corporation (1)  in  those  cases  in  which
  provision  is  made  in sections 24.00 and 25.00 of this chapter for the
  issuance of tax anticipation notes and revenue anticipation notes to  be
  issued  in  anticipation of the collection or receipt of taxes, revenues
  or assessments, as the case may be, or  (2)  in  those  cases  in  which
  provision  is  made in section 29.00 of this chapter for the issuance of
  budget notes other than paragraph n of such section,  or  (3)  in  those
  cases in which budget notes have been issued under such paragraph n; and
  further  provided, however, that nothing contained herein shall prohibit
  the issuance of serial bonds by such municipality,  school  district  or
  district  corporation for the object or purpose specified in subdivision
  sixty of paragraph a of section 11.00 of this chapter.
b. Serial  bonds  shall  mature  in  annual  installments.  The  first
  installment  shall  mature not later than eighteen months after the date
  of such bonds or two years after the date of the first bond anticipation
  note or notes issued in anticipation of such  bonds,  whichever  is  the
  earlier,  provided,  however,  that  until  July fifteenth, two thousand
  twenty-four, the first installment shall mature not later than two years
  after the date of such bonds or two years after the date  of  the  first
  bond  anticipation  note  or notes issued in anticipation of such bonds,
  whichever is the earlier. However, if bond anticipation notes are issued
  in anticipation of bonds and if a portion of such notes or the  renewals
  thereof are redeemed from a source other than the proceeds of such bonds
  within  two  years  from  the date of the first such note or notes and 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,  the  first  installment  of  such  bonds  may,   in   the
  alternative,  be  made to mature not later than five years from the date
  of the first such note or notes.
b-1. Notwithstanding the provisions of paragraph b of this section, if
  bond  anticipation  notes  are  issued  in  anticipation  of  bonds  for
  assessable  improvements  and if a portion of such notes or the renewals
  thereof are redeemed from a source other than the proceeds of such bonds
  within two years from the date of the first such note  or  notes  and  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, the first installment of such bonds shall mature not later
  than twelve months from the last  preceding  date  such  portion  is  so
  redeemed.
c.  The  last  installment of serial bonds shall mature not later than
  the expiration of the period of probable usefulness  of  the  object  or
  purpose  for  which  such bonds are issued, as computed from the date of
  such bonds or, if bond anticipation notes  shall  have  been  issued  in
  anticipation  thereof, as computed from the date of the earliest note or
  notes so issued.
d. No annual installment of serial bonds shall be more than fifty  per
  centum  in  excess of the smallest prior installment. For the purpose of
  the preceding sentence, bond anticipation notes, which are redeemed from
  a source other than the proceeds of bonds, shall be deemed to be  serial
  bonds.   Notwithstanding   the  foregoing,  the  finance  board  of  any
  municipality, school district or district corporation may  determine  to
  issue bonds and provide for substantially level or declining annual debt

  service.   The   determination   of   whether  annual  debt  service  is
  substantially level or declining shall not take into account  the  first
  twelve  months  after  issuance to the extent that no provision is to be
  made for the payment of principal during such period. If a municipality,
  school district or district corporation determines to issue bonds with a
  substantially  level or declining annual debt service schedule, then the
  aggregate amount of debt service payable in each year shall  not  exceed
  the lowest aggregate amount of debt service payable in any prior year by
  more  than  the  greater  of  five  percent or ten thousand dollars. For
  purposes of this paragraph,  debt  service  shall  include  all  of  the
  following  scheduled to become due: principal, redemption price, sinking
  fund installments  or  contributions,  and  interest.  For  purposes  of
  determining  whether debt service is substantially level or declining on
  bonds issued with a variable rate of interest pursuant to section  54.90
  of  this  article,  the finance board shall estimate the average rate of
  interest at which fixed interest rate bonds of the same maturities would
  be sold and amortize principal based upon such interest rate assumption.
  The estimate by the finance board of such interest rate shall be  deemed
  final  and  conclusive. If the finance board of the municipality, school
  district or district corporation determines that interest on such  bonds
  shall  be  compounded  and payable at maturity or prior redemption, such
  bonds may be issued only where such  finance  board  has  determined  to
  issue  the  bonds  pursuant to a substantially level or declining annual
  debt service schedule unless accrued 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
  title. A municipality, school district or district corporation providing
  for  substantially  level  or  declining  debt  service  may provide for
  contracting such indebtedness as serial bonds, as sinking fund bonds, as
  term bonds, or as any combination thereof.  Term  bonds  may  be  issued
  under  the  authority  of  this  paragraph  with a stated maturity and a
  schedule of mandatory redemptions prior thereto, providing  (with  other
  bonds  of  the  same issue, if any) for substantially level or declining
  debt service.
e. Serial bonds shall be redeemed by an annual appropriation.
f. Notwithstanding the provisions  of  paragraphs  b  and  d  of  this
  section:
1.  The  first  installment  of serial bonds issued for the purpose of
  providing  moneys  out  of  which  to  make  loans  to  or  in  aid   of
  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 issued
  for the purpose of providing moneys for the effectuating  of  any  urban
  renewal  program  or part thereof pursuant to the general municipal law,
  may mature not later than five years after the date of issuance of  such
  bonds  or  six  years  after  the  date  of  issuance  of the first bond
  anticipation note  or  notes  issued  in  anticipation  of  such  bonds,
  whichever  is  earlier; provided, however, that if the bond anticipation
  notes or renewals thereof issued in anticipation of  such  serial  bonds
  extend  more  than  five  years  beyond the original date of such issue,
  pursuant to the provisions of paragraph  b  of  section  23.00  of  this
  chapter, the first installment of such serial bonds may mature not later
  than  such  number  of years after the date of issuance of such bonds or
  such number of years plus one after the original  date  of  issuance  of
  such notes, whichever is earlier; and
2. The annual installments of serial bonds issued for such purpose and
  for the purpose of providing moneys out of which to make loans to owners
  of  existing multiple dwellings pursuant to article eight of the private

  housing finance law may be computed in such manner  that  the  total  of
  principal  and  interest required to be paid in each year beginning with
  the year in which the first installment is due,  will  be  approximately
  equal to the total of principal and interest required to be paid in each
  succeeding year of the period for which such bonds were issued.