2023 New York Laws › LFN - Local Finance › Article 2 - Local Indebtedness › Title 2 - Local Obligations: Types Thereof › 23.00 - Bond Anticipation Notes.

§  23.00  Bond  anticipation  notes. a. Bond anticipation notes may be
issued by any municipality, school district or district  corporation  in
anticipation  of  the  sale  of bonds. Such notes may be issued whenever
bonds have been authorized and the  proceeds  of  such  notes  shall  be
expended only for the same object or purpose, or class thereof for which
the proceeds of such bonds may be expended.
b.  Such  notes  shall mature at such time as the issuer may determine
and may be renewed from time to time, provided, that in no  event  shall
such  notes  or  the  renewals thereof extend more than two years beyond
such original date of issue unless  a  portion  of  such  notes  or  the
renewals thereof shall be redeemed from a source other than the proceeds
of  bonds within two years from such original date of issue and unless 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, if any of such notes, as renewed, are still outstanding  at
the  termination  of  each  such  period, but such notes or the renewals
thereof shall not extend more than five years beyond such original  date
of  issue.  Such  redemption  shall  be consistent with the amortization
requirements of article eight of  the  state  constitution  and  section
21.00  of this title. If the finance board has determined to provide for
substantially  level  or  declining  debt  service  on  the   bonds   in
anticipation of which such notes are authorized to be issued, such notes
shall be redeemed in an amount at least equal in each year to the annual
installment  which  would be paid in such year if such notes were serial
bonds issued at a five percent rate of interest for the remaining period
of probable usefulness of the object or purpose for which issued, or, if
less, the remaining portion of the maximum authorized maturity  of  such
bonds,  and all annual debt service payments were equal over the life of
such bonds. In any event, bond anticipation notes shall not  be  renewed
after  the  receipt  of  the  proceeds  from  the  sale  of the bonds in
anticipation of  which  such  notes  were  issued.  Notwithstanding  the
provisions  of  this  paragraph:  1.  bond  anticipation notes issued in
anticipation of the receipt of the proceeds of the sale of bonds for the
purpose of providing moneys out of which to make loans to 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 for the purpose of
providing moneys for the effectuating of any urban  renewal  program  or
part  thereof  pursuant to the general municipal law, or the renewals of
such notes, may extend not more than five years beyond the original date
of issue of such notes; and  2.  renewals  of  bond  anticipation  notes
issued originally during calendar years two thousand fifteen through two
thousand  twenty-one,  inclusive  may  not  extend more than seven years
beyond the original date of issue of such bond anticipation notes.
b-1. Notwithstanding the provisions of paragraph b of section 21.00 of
this title and the provisions of paragraph b of this  section  any  bond
anticipation  notes  issued  in  anticipation of bonds for an assessable
improvement may be renewed from time to time for a period not  exceeding
one  year for each such renewal, and without limitation as to the number
of such renewals, provided that such notes, as renewed, shall not extend
beyond the expiration of the period of probable usefulness of the object
or purpose for which issued, as computed from the date of the first note
or notes so issued, and provided further that such  notes,  as  renewed,
shall  not extend more than two years from the date of the first note or
notes so issued unless a portion thereof shall be redeemed from a source
other than the proceeds of such bonds within two years from the date  of
the  first  note or notes so issued and unless 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, if any
of  such  notes, as renewed, are still outstanding at the termination of
each such period. Annual principal installments on notes issued pursuant
to this paragraph shall be computed in accordance with the provisions of
paragraph b of this section. Every bond anticipation note resolution and
certificate  authorizing  any  such  renewal  note,  in  addition to the
statements and provisions required by section  38.10  of  this  chapter,
shall  contain  a  statement  indicating  that  such  note  is issued in
anticipation of bonds for an assessment improvement.
c. Bond anticipation notes shall not be  issued  in  an  amount  which
shall  exceed  the  par value of the bonds in anticipation of which they
are to be issued.
d. 1. Bond anticipation notes shall be redeemed from the  proceeds  of
the  sale  of  the  bonds  in  anticipation  of  which they were issued.
However, if such bonds are not sold, then such bond  anticipation  notes
shall be redeemed:
(a)  From any unencumbered balance in any fund which may be applied to
the payment thereof, or
(b) By a budgetary appropriation.
2.  Notwithstanding  the  provisions  of  subdivision  one   of   this
paragraph, bond anticipation notes may be redeemed, in whole or in part,
prior  to the sale of the bonds in anticipation of which such notes were
issued, from any moneys which lawfully may be applied to the payment  of
such notes.