2023 New York Laws › GMU - General Municipal › Article 18-C - Municipal Redevelopment Law › 970-O - Tax Increment Bonds.

§  970-o. Tax increment bonds.  (a) For the purpose of carrying out or
administering a redevelopment plan adopted by the  legislative  body,  a
municipality  is hereby authorized, without limiting its authority under
other provisions of law, to issue by resolution of its legislative  body
tax  increment  bonds  or  tax  increment bond anticipation notes of the
municipality which are payable from and secured by real property  taxes,
in whole or in part, allocated to and paid pursuant to the provisions of
section  nine hundred seventy-p of this article. The pledge of such real
property taxes allocated and paid shall constitute a first lien  on  the
revenues derived therefrom and tax increment bonds or tax increment bond
anticipation  notes,  the repayment of which is secured by such revenues
shall not be subordinate to any other indebtedness of  the  municipality
with respect to the pledge of such revenues. The municipality shall have
the  power  to  issue  renewal  notes,  to  issue bonds to pay notes and
whenever it deems refunding  expedient,  to  refund  any  bonds  by  the
issuance of new bonds, whether the bonds to be refunded have or have not
matured,  and to issue bonds partly to refund bonds then outstanding and
partly for any other purposes.
(b) In contracting indebtedness pursuant to subdivision  (a)  of  this
section  a  municipality  shall  not  pledge its faith and credit or the
faith and credit of the state to the payment of  the  principal  thereof
and  the  interest  thereon.  Indebtedness  contracted  pursuant to this
subdivision shall not be indebtedness of any school  district  that  has
allocated  taxes  pursuant  to  section  nine  hundred seventy-p of this
article.
(c) Bonds and notes issued pursuant to this section  shall  bear  such
date  or dates and mature at such time or times, in the case of any note
or any renewals thereof not to exceed five years from the date of  issue
of  such  original  note,  and in the case of any bond not exceeding the
probable useful life of the object or purpose for  which  such  bond  is
issued,  as  the bond or note resolution or resolutions may provide. The
notes and bonds shall bear interest at such rates per annum  payable  at
such  times,  be in such denominations, be in such form either coupon or
registered, carry such registration  privileges,  be  executed  in  such
manner,  be  payable in lawful money of the United States of America, at
such place or places and be subject to such terms of redemption, as  the
bond  or note resolution or resolutions may provide. The notes and bonds
may be sold at public or private sale at such price  or  prices  as  the
municipality  shall  determine. No notes or bonds may be sold at private
sale unless such sale and  the  terms  thereof  have  been  approved  in
writing  by  the state comptroller provided, however, that if such notes
or bonds are sold at private sale to the state comptroller, the sale and
terms thereof shall first be approved in writing by the  state  director
of the budget.
(d)  Any resolution or resolutions authorizing any tax increment bonds
or tax increment notes or any  issue  thereof  may  contain  provisions,
which shall be a part of the contract with the holders thereof, as to:
(i)  pledging all or a part of the taxes allocated pursuant to section
nine hundred seventy-p of this article or the proceeds from the sale  of
property acquired with the proceeds of such notes or bonds to secure the
payment  of such notes or bonds or of any issue thereof, subject to such
agreements with bondholders or noteholders as may exist;
(ii) the setting aside of reserve or sinking funds and the  regulation
and disposition thereof;
(iii)  limitations on the purpose to which the proceeds of the sale of
notes or bonds may be applied and pledging such proceeds to  secure  the
payment of the notes or bonds or any issue thereof;
(iv)  the  procedure,  if any, by which the terms of any contract with
noteholders or bondholders may be amended or abrogated,  the  amount  of
notes or bonds the holders of which must consent thereto, and the manner
in which such consent may be given;
(v) vesting in a trustee or trustees such property, rights, powers and
duties in trust as the municipality shall determine.
(e)  A  bond  resolution or bond anticipation note resolution shall be
authorized for each redevelopment plan adopted by the  legislative  body
which  provides  for  the  financing  of redevelopment projects from the
proceeds of such notes and bonds.
(f) Neither the expenditure of money for  an  object  or  purpose  for
which  it is proposed to issue obligations nor a bond resolution or bond
anticipation note resolution authorized by this section shall be subject
to a permissive referendum.
(g) The amount of any indebtedness contracted under this section shall
be excluded in ascertaining the power of the  municipality  to  contract
indebtedness  within  the  provisions  of  the state constitution or the
local finance law relating thereto.
(h) The proceeds from the sale of  real  property  acquired  with  the
proceeds from the sale of bonds or notes issued pursuant to this section
shall  be used solely for the purposes of repayment of principal on such
notes or bonds.
(i) The  municipality  may  contract  indebtedness  pursuant  to  this
section for the following objects or purposes:
(i) acquisition of land;
(ii)  demolition and removal of buildings, structures and improvements
and site preparation;
(iii)  installation,  construction  or  reconstruction   of   streets,
walkways, docks, drainage, parking facilities, flood control facilities,
water   and   sewer  systems  and  other  public  utilities,  parks  and
playgrounds;
(iv)  other  public  improvements  or   services   integral   to   the
redevelopment  plan  authorized  by  or  for  which a period of probable
usefulness has been established by section 11.00 of  the  local  finance
law.  Objects  and  purposes  referred  to  in this subdivision shall be
deemed to have the period of probable usefulness as  provided  for  such
objects and purposes by such section.