2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 4 - Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof › 57.00 - Sale of Bonds.

§  57.00 Sale of bonds. a. Bonds shall be sold only at public sale and
  in accordance with the procedure set forth in this section and  sections
  58.00  and  59.00  of  this  title, except as otherwise provided in this
  paragraph. Bonds may be sold  at  private  sale  to  the  United  States
  government  or  any  agency or instrumentality thereof, the state of New
  York municipal bond bank agency, to any sinking fund or pension fund  of
  the  municipality,  school district or district corporation selling such
  bonds, or, in the case of sales by the city of New York  prior  to  July
  first,  two  thousand  twenty-four,  also  to  the  municipal assistance
  corporation for the city of New York or to any other purchaser with  the
  consent  of  the  mayor and the comptroller of such city and approval of
  the state comptroller, or, in the case of sales by the county of  Nassau
  prior  to  December thirty-first, two thousand seven, also to the Nassau
  county  interim  finance  authority  with  the  approval  of  the  state
  comptroller,  or,  in  the case of sales by the city of Buffalo prior to
  June thirtieth, two thousand thirty-seven, also to  the  Buffalo  fiscal
  stability  authority  with the approval of the state comptroller, or, in
  the case of bonds or other obligations of a municipality issued for  the
  construction  of  any  sewage treatment works, sewage collecting system,
  storm water collecting system, water management facility, air  pollution
  control  facility or solid waste disposal facility, also to the New York
  state environmental facilities corporation, or, in the case of bonds  or
  other  obligations  of a school district or a city acting on behalf of a
  city school district in a city having a  population  in  excess  of  one
  hundred  twenty-five  thousand  but  less  than  one million inhabitants
  according to the latest federal census, issued to finance  or  refinance
  the  cost  of  school  district  capital  facilities  or school district
  capital equipment, as defined in section sixteen hundred seventy-six  of
  the public authorities law, also to the dormitory authority of the state
  of  New  York.  Bonds  of  a  river  improvement  or  drainage  district
  established  by  or  under  the  supervision  of   the   department   of
  environmental  conservation  may be sold at private sale to the state of
  New York as investments for any funds of the state which by law  may  be
  invested, provided, however, that the rate of interest on any such bonds
  so  sold shall be approved by the water power and control commission and
  the state comptroller. Bonds  may  also  be  sold  at  private  sale  as
  provided  in  section  63.00  of  this  title. No bonds shall be sold on
  option or on a deferred payment plan, except that options  to  purchase,
  effective for a period not exceeding one year, may be given:
1.  in  any  case  to the state of New York municipal bond bank agency
  with respect to any bonds or bond anticipation notes; and
2. in the case of a municipality to the New York  state  environmental
  facilities corporation with respect to bonds or other obligations issued
  for  the  construction  of any sewage treatment works, sewage collecting
  system, storm water collecting system, water  management  facility,  air
  pollution  control facility or solid waste disposal facility, or, in the
  case of bonds or other obligations of a school district or a city acting
  on behalf of a city school district in a city  having  a  population  in
  excess  of  one  hundred  twenty-five thousand but less than one million
  inhabitants according to the latest federal census, issued to finance or
  refinance the cost of  school  district  capital  facilities  or  school
  district  capital  equipment,  as  defined  in  section  sixteen hundred
  seventy-six of  the  public  authorities  law,  also  to  the  dormitory
  authority  of  the  state  of  New  York.  A loan commitment may also be
  entered into by and between a municipality, and the state  of  New  York
  municipal  bond  bank agency, by and between a school district or a city
  acting on behalf of a city school district in a city having a population
  in excess of one hundred twenty-five thousand but less than one  million

  inhabitants  according  to  the  latest federal census and the dormitory
  authority of the state of New York, and by and  between  a  municipality
  and  the  New  York  state  environmental  facilities  corporation, such
  commitment  to  be  fulfilled  by  the  purchase  of  the bonds or other
  obligations referred to therein by such agency or such  corporation,  as
  the  case  may  be.  As  used in this paragraph, the term "sinking fund"
  means a fund required by law to be established and  maintained  for  the
  purpose  of  amortizing  indebtedness  evidenced  by  sinking fund bonds
  issued pursuant to the provisions of  this  chapter  or  issued  by  any
  municipality,  school  district  or district corporation under any other
  law.
b. Bonds shall be sold without limitation as to rate of  interest  and
  for  a  sum not less than the par value of, and the accrued interest on,
  such obligations except as authorized by this chapter, and may  also  be
  sold  by  municipalities  at  private  sale  to  the  state  of New York
  municipal bond bank agency and  to  the  New  York  state  environmental
  facilities  corporation,  and in addition by the city of New York to the
  municipal assistance corporation for the city of New York,  and  by  the
  county  of Nassau to the Nassau county interim finance authority, and by
  the city of Buffalo to the Buffalo fiscal stability authority,  at  such
  rate  or  rates  of  interest  as  may be agreed upon by and between the
  issuing municipality and either of such agency or  corporation,  as  the
  case  may  be.  When  sold at public sale, the rate of interest shall be
  determined in the manner  provided  in  section  59.00  of  this  title.
  However,  the  agency  or  corporation  prescribing  the terms, form and
  contents of such bonds, subject to  the  foregoing  provisions  of  this
  paragraph,  may fix a maximum rate of interest at which such bonds shall
  be sold.
c. Bonds for one or more specific objects or purposes  or  classes  of
  objects  or  purposes, or a combination thereof, may be sold as a single
  bond issue.
d. The state comptroller shall adopt a rule  or  order  which  he  may
  amend from time to time:
1.  Designating  a  financial  newspaper  or  newspaper  published and
  circulated in the city of New York in which  notices  for  the  sale  of
  bonds may be published;
2.  Prescribing  the  procedure for the circularization of notices for
  the sale of bonds;
3. Prescribing such  other  requirements  as  he  may  deem  necessary
  relating  to  the publication or circularization of notices for the sale
  of bonds, in addition to but not inconsistent  with  the  provisions  of
  this chapter;
4.  Prescribing  such data and information as he may deem advisable to
  be contained in notices for the sale of bonds, in addition  to  but  not
  inconsistent with the provisions of this chapter; and
5.  Prescribing  the  requirements  for the alternative and permissive
  publication or circularization of notices for the sale of  bonds  of  an
  issue  not exceeding five million dollars, as permitted in section 63.00
  of this chapter.
Such rule or order and the amendments thereof shall be  filed  in  his
  office and in such other offices as he may designate.
e.  Notwithstanding  the  limitations set forth in paragraph b of this
  section, a municipality, school district, or  district  corporation  may
  provide  for  the  public  sale of its bonds at a price of less than the
  face value of such bonds at maturity; provided that no  issue  of  bonds
  shall be sold at a price such that the difference between the sale price
  of  such  bonds,  not  including accrued interest, and the face value of
  such bonds at maturity, shall exceed five percent of the face  value  of

  such issue of bonds at maturity unless the municipality, school district
  or  district corporation issuing such bonds has determined to issue them
  pursuant to a substantially  level  or  declining  annual  debt  service
  schedule  or  unless  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 article. The
  cost of such original issue discount, together with other costs  of  the
  issuance  of  obligations,  shall  be  deemed  a part of the cost of the
  object or purpose for which such obligations are issued.
* f. To facilitate the marketing of any issue of bonds issued pursuant
  to paragraph e of this section, such municipality,  school  district  or
  district  corporation  may,  notwithstanding  any limitations on private
  sales of bonds provided by law, and subject to rules promulgated by  the
  state comptroller governing such sales: (A) arrange for the underwriting
  of such bonds at private sale through negotiated agreement, compensation
  for  such  underwriting  to  be provided by negotiated fee or by sale of
  such bonds to an underwriter at a price of less than  the  sum  of  face
  value  at maturity of, and the accrued interest on, such obligations; or
  (B) arrange for private sale of such bonds through negotiated agreement,
  compensation for such sale to be provided by negotiated arrangement,  if
  required.  The  cost  of such underwriting or private placement shall be
  deemed a preliminary cost for purposes of section 11.00 of this chapter.
* NB Repealed July 15, 2024