2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 4 - Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof › 58.00 - Notice of Sale of Bonds.

§  58.00  Notice  of sale of bonds.  * a. There shall be published, at
least once, not less than five nor more than thirty days before the date
fixed for the public sale of bonds, a notice of such public  sale  or  a
summary thereof in accordance with one of the following methods: (1) the
notice  of  sale shall be published in any financial newspaper published
and circulated in the city of New York which the state  comptroller,  in
the  rule  or  order referred to in paragraph d of section 57.00 of this
chapter, shall designate for such publication; (2) the  notice  of  sale
shall  be  circularized  in  such  manner as the state comptroller shall
prescribe in such rule or order and shall be published in any  newspaper
or  newspapers  which  the  finance  board  of  the municipality, school
district or district corporation may designate for such purpose; or  (3)
(i)  a  summary  of  the  notice  of sale shall be published in both the
financial newspaper published and circulated in the  city  of  New  York
which the state comptroller has designated in the rule or order referred
to  in  paragraph  d  of  section  57.00  of  this chapter, and (ii) any
newspaper or newspapers which the finance  board  of  the  municipality,
school  district or district corporation may designate for such purpose.
A summary of the notice of sale shall at a minimum contain the  name  of
the issuer, the amount, date, and maturities of the bonds, the frequency
of  interest  payments,  the  place  where  bids  will  be received, the
designation of the receiving device if the finance board of the  issuing
municipality,  school district or district corporation has authorized or
required the receipt of bids in an electronic format, the time and  date
for  the  opening  of the bids, including circumstances under which such
time and date may be changed in accordance with law, the method of award
and a procedure for promptly obtaining the complete notice of  sale  and
any preliminary official statement prepared in connection with the sale,
and  such  other  information  as the state comptroller may prescribe by
rule or order.
* NB Effective until June 1, 2028
* a. There shall be published, at least once, not less than  five  nor
more  than  thirty  days  before  the  date fixed for the public sale of
bonds, a notice of such public sale or a summary thereof  in  accordance
with  one  of  the  following  methods:  (1) the notice of sale shall be
published in any financial newspaper published  and  circulated  in  the
city  of  New  York  which  the  state comptroller, in the rule or order
referred to in paragraph d of  section  57.00  of  this  chapter,  shall
designate  for  such  publication;  (2)  the  notice  of  sale  shall be
circularized in such manner as the state comptroller shall prescribe  in
such rule or order and shall be published in any newspaper or newspapers
which the finance board of the municipality, school district or district
corporation  may designate for such purpose; or (3) (i) a summary of the
notice of sale shall  be  published  in  both  the  financial  newspaper
published  and  circulated  in  the  city  of  New  York which the state
comptroller has designated in the rule or order referred to in paragraph
d of section 57.00 of this chapter, and (ii) any newspaper or newspapers
which the finance board of the municipality, school district or district
or district corporation may designate for such purpose. A summary of the
notice of sale shall at a minimum contain the name of  the  issuer,  the
amount,  date,  and  maturities  of the bonds, the frequency of interest
payments, the place where bids will be received, the time and  date  for
the  opening  of the bids, including circumstances under which such time
and date may be changed in accordance with law, the method of award  and
a  procedure  for promptly obtaining the complete notice of sale and any
preliminary official statement prepared in connection with the sale, and
such other information as the state comptroller may prescribe by rule or
order.
* NB Effective June 1, 2028
b.  Such  notice  shall  call for sealed bids for the purchase of such
bonds, and shall state:
* 1. The place where bids will be received  and  considered,  and  the
designation  of the receiving device if the finance board of the issuing
municipality, school district or district corporation has authorized  or
required the receipt of bids in an electronic format.
* NB Effective until June 1, 2028
* 1. The place where bids will be received and considered.
* NB Effective June 1, 2028
2.  (a) The time and date for the opening of bids, which shall be only
on weekdays, Saturdays and holidays excluded, between the hours  of  ten
o'clock  ante  meridian and four o'clock post meridian, eastern standard
time.
(b) In lieu of the statement of the time and date for the  opening  of
bids  required  by subparagraph (a) of this subdivision, a statement (i)
that the time and date for the opening of bids will be provided  on  not
less  than  twenty-four  hours  prior  notice by means of a supplemental
notice of sale and indicating the  manner  in  which  such  supplemental
notice will be provided, or (ii) setting a time and date for the opening
of  bids,  stating  that  notice of a change in the time or date for the
opening of bids may be provided not less than one hour prior to the time
originally scheduled for the opening of bids by means of a  supplemental
notice  of  sale  and  indicating  the manner in which such supplemental
notice will be provided. Where notice is given that the time or date  of
a  sale  will be changed without specifying the new time or date, notice
of the new time or date of sale must be provided by means  of  a  second
supplemental  notice of sale at least one hour prior to the new time for
the opening of bids.
(c) A supplemental notice of sale shall refer to and be deemed a  part
of  the  notice of sale required by this section and shall not establish
or change the terms of the sale other than the  time  or  date  for  the
opening  of bids, the amount of principal scheduled to be repaid in each
year, the right of redemption prior to maturity, and the face  value  at
maturity  of  the issue or any installment thereof. The time set for the
opening of bids in the supplemental notice of sale  shall  not  be  less
than  five  nor more than thirty days after publication of the notice of
sale required pursuant to paragraph a of this section.
(d) The supplemental notice of sale shall be provided  by  transmittal
over  a  definitive  trade  wire  service of the municipal bond industry
which, in general, makes available information  regarding  activity  and
sales  of  municipal bonds and is generally available to participants in
the  municipal  bond  industry,  or  by  publication  in  the  financial
newspaper  published  and  circulated  in the city of New York which the
state comptroller, in the rule or order referred to in  paragraph  d  of
section  57.00 of this article, shall designate for such publication. In
addition, when the time and date for the opening of bids is  delayed  by
more  than twenty-four hours, public notice of the time and date set for
the opening of bids in the supplemental notice of sale shall be given to
the news media and shall be posted in  one  or  more  designated  public
locations  within  the issuing municipality, school district or district
corporation at least twenty-four hours prior to the time  and  date  set
for the opening of bids; provided however, that such public notice shall
not be construed to require publication as a legal notice.
3.  The  maximum  rate  of  interest,  if any, fixed by or pursuant to
paragraph b of section 57.00 of this chapter.
c. Such notice shall also include:
1. A statement that the rate or rates of interest to be bid shall be a
multiple of one-hundredth of one per centum per annum or a  multiple  of
one-eighth  of  one per centum per annum, as the agency in charge of the
sale may determine and may require or permit in such notice.
2.  A  statement  of the conditions of sale and the methods of bidding
which shall include the following:
a. A statement that one or more than one rate of interest may be  bid;
provided,  however,  that only one rate of interest may be bid for bonds
of the same maturity. Where more than one rate of interest may  be  bid,
such  notice shall specify the maximum number of rates which may be bid.
Where the net interest cost method of calculating interest cost is used,
or where the notice so provides, the interest  rate  for  each  maturity
shall  not  be  less than the interest rate for any prior maturity. Such
notice shall also state that such rate or any of such rates may  not  be
higher  than  the  maximum  rate prescribed in such notice, if a maximum
rate  has  been  prescribed.  Notwithstanding  the  above,  in  inviting
proposals  for  the sale of bonds in an amount of twenty million dollars
or more, a municipality may advertise in such notice to sell, in series,
at a single bid price per bond. b. Where two or more issues are  offered
in  the  same notice of sale, a statement specifying whether each of the
issues so offered shall be sold  separately  as  a  single  bond  issue,
whether  some of the issues shall be combined and sold separately as one
or more single bond issues, or whether the aggregate amount of bonds  of
all of the issues shall be combined and sold as a single bond issue.  c.
Where  the  finance board of a municipality, school district or district
corporation  has  determined  to  provide  for  substantially  level  or
declining  annual  debt service pursuant to paragraph d of section 21.00
of this article, a statement specifying the dates of maturity  for  such
bonds  and  the dates for payment of interest on such bonds, and setting
forth  the  annual  principal  installments  expected  to  provide  for,
together  with  the  interest  thereon, substantially level or declining
annual debt service on such bonds. Such  notice  shall  state  that  the
municipality,   school  district  or  district  corporation  may,  after
selecting the  low  bidder,  adjust  such  installments  to  the  extent
necessary  to  meet the requirements of substantially level or declining
debt service.
3. A requirement that as a condition precedent to the consideration of
his or her bid, each bidder shall deposit  with  such  official  as  the
agency  in  charge  of  the sale may designate, a certified or cashier's
check drawn upon an incorporated bank or trust company to the  order  of
the  municipality,  school  district  or  district  corporation  or such
official, for the amount specified in the notice, but in no  event  less
than  one-half  of  one      per centum of the amount of bonds to be bid
for. Such notice may also provide  that,  in  lieu  of  a  certified  or
cashier's  check,  bidders  may  furnish as security cash in such amount
remitted by wire transfer to an account specified in the  notice  or  an
eligible  surety  bond or an eligible letter of credit, approved by such
official as to form, sufficiency, and manner of execution. For  purposes
of this section, "eligible surety bond" shall mean a bond executed by an
insurance   company  authorized  to  do  business  in  this  state,  the
claims-paying ability of which is rated in  one  of  the  three  highest
rating  categories  by  at  least  one nationally recognized statistical
rating organization; and "eligible  letter  of  credit"  shall  mean  an
irrevocable letter of credit issued in favor of the municipality, school
district  or  district corporation, for a term not to exceed ninety days
by a bank, as that term is defined in section two of  the  banking  law,
whose  commercial  paper and other unsecured short-term debt obligations
(or, in the case of a bank  which  is  the  principal  subsidiary  of  a

holding  company,  whose  holding  company's  commercial paper and other
unsecured short-term debt obligations) are rated in  one  of  the  three
highest  rating  categories (based on the credit of such bank or holding
company)  by  at  least  one  nationally  recognized  statistical rating
organization or by a bank that is in compliance with applicable  federal
minimum risk-based capital requirements.
4.  A  statement  that  there  is reserved to the municipality, school
district or district corporation the right to reject all bids, and  that
any bid not complying with the terms of the notice will be rejected.
5.  A  statement  that  the  agency  prescribing  the  terms, form and
contents of such bonds has reserved to itself the power to call  in  and
redeem  a portion of such bonds prior to their date of maturity pursuant
to section 53.00 of this chapter, if such agency has reserved to  itself
such power. Such statement shall identify the portion of the bonds which
may  be  so  redeemed  and shall describe the terms and conditions under
which such bonds may be redeemed.
6. A statement indicating which of the methods set forth in  paragraph
a of section 59.00 of this chapter will be used in awarding such bonds.
7.  Such  further  data  and information as shall be prescribed by the
state comptroller in the rule or order referred to  in  paragraph  d  of
section 57.00 of this chapter.
d. It may be a condition of the sale of bonds that every bidder may be
required  to accept a portion of the whole amount of the bonds for which
he or she has bid, at the same rate for such portion as may be specified
in his or her bid for the full amount. If such condition is imposed, the
notice of sale shall so state and such notice also shall state that,  in
addition,  any bidder may offer to purchase all or none of such bonds on
different terms.
e. The notice of sale may provide that the bidder to  whom  the  bonds
are  to be awarded, at his or her option, may refuse to accept the bonds
if prior to the delivery of the bonds any income tax law of  the  United
States  of  America  shall  provide  that  the interest on such bonds is
taxable, or shall be taxable at a future date, for  federal  income  tax
purposes.
* f.  For  purposes of this section and section 59.00 of this chapter,
"sealed bids" shall include bids  submitted  in  an  electronic  format,
provided  that  the  finance  board  of the issuing municipality, school
district or district corporation,  by  resolution,  has  authorized  the
receipt  of  bids in such format. Submission in electronic format may be
required as the sole method for the submission of bids.  Bids  submitted
in an electronic format shall be transmitted by bidders to the receiving
device  designated  by  the  issuing  municipality,  school  district or
district corporation. Any method used to receive electronic  bids  shall
comply  with article three of the state technology law and any rules and
regulations promulgated and guidelines developed thereunder  and,  at  a
minimum,  must:  (a)  document  the time and date of receipt of each bid
received electronically; (b) authenticate the identity  of  the  sender;
(c)  ensure  the security of the information transmitted; and (d) ensure
the confidentiality of the bid until the time and date  established  for
the  opening  of  bids.  The  timely  submission of an electronic bid in
compliance with instructions provided for such submission in the  notice
of  sale and any supplemental notice of sale shall be the responsibility
solely of each bidder or prospective bidder.  No  issuing  municipality,
school  district  or district corporation shall incur any liability from
delays of or interruptions in the receiving device  designated  for  the
submission and receipt of electronic bids.
* NB Repealed June 1, 2028