Bill Text: NY S04601 | 2009-2010 | General Assembly | Amended
Bill Title: Provides that bond anticipation notes issued during calendar year 2004 or 2005 may not extend more than seven years beyond the original date of issue of such bond anticipation notes; relates to private sale of bonds, notice of sale of bonds and bid deposits for the public sale of bonds; authorizes municipalities, school districts and district corporations to issue deficiency notes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2010-08-13 - SIGNED CHAP.386 [S04601 Detail]
Download: New_York-2009-S04601-Amended.html
S T A T E O F N E W Y O R K
________________________________________________________________________
4601--A
2009-2010 Regular Sessions
I N S E N A T E
April 24, 2009
___________
Introduced by Sen. STEWART-COUSINS -- (at request of the State Comp-
troller) -- read twice and ordered printed, and when printed to be
committed to the Committee on Local Government -- recommitted to the
Committee on Local Government in accordance with Senate Rule 6, sec. 8
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the local finance law, in relation to bond anticipation
notes; to amend the local finance law, in relation to the private sale
of bonds; to amend the local finance law, in relation to notice of
sale of bonds; to amend the local finance law, in relation to bid
deposits for the public sale of bonds; to amend the local finance law,
in relation to authorizing municipalities, school districts and
district corporations to issue deficiency notes; and providing for the
repeal of certain provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Paragraph b of section 23.00 of the local finance law, as
2 amended by chapter 201 of the laws of 1994, is amended to read as
3 follows:
4 b. Such notes shall mature at such time as the issuer may determine
5 and may be renewed from time to time, provided, that in no event shall
6 such notes or the renewals thereof extend more than two years beyond
7 such original date of issue unless a portion of such notes or the
8 renewals thereof shall be redeemed from a source other than the proceeds
9 of bonds within two years from such original date of issue and unless a
10 further portion thereof shall be so redeemed prior to the termination of
11 each twelve months' period succeeding the date such original portion was
12 so redeemed, if any of such notes, as renewed, are still outstanding at
13 the termination of each such period, but such notes or the renewals
14 thereof shall not extend more than five years beyond such original date
15 of issue. Such redemption shall be consistent with the amortization
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10317-04-0
S. 4601--A 2
1 requirements of article eight of the state constitution and section
2 21.00 of this [chapter] TITLE. If the finance board has determined to
3 provide for substantially level or declining debt service on the bonds
4 in anticipation of which such notes are authorized to be issued, such
5 notes shall be redeemed in an amount at least equal in each year to the
6 annual installment which would be paid in such year if such notes were
7 serial bonds issued at a five percent rate of interest for the remaining
8 period of probable usefulness of the object or purpose for which issued,
9 or, if less, the remaining portion of the maximum authorized maturity of
10 such bonds, and all annual debt service payments were equal over the
11 life of such bonds. In any event, bond anticipation notes shall not be
12 renewed after the receipt of the proceeds from the sale of the bonds in
13 anticipation of which such notes were issued. Notwithstanding the
14 provisions of this paragraph[,]: 1. bond anticipation notes issued in
15 anticipation of the receipt of the proceeds of the sale of bonds for the
16 purpose of providing moneys out of which to make loans to limited profit
17 housing companies pursuant to article two of the private housing finance
18 law, or loans to owners of existing multiple dwellings pursuant to arti-
19 cle eight of the private housing finance law, or for the purpose of
20 providing moneys for the effectuating of any urban renewal program or
21 part thereof pursuant to the general municipal law, or the renewals of
22 such notes, may extend not more than five years beyond the original date
23 of issue of such notes; AND 2. RENEWALS OF BOND ANTICIPATION NOTES
24 ISSUED ORIGINALLY DURING CALENDAR YEAR TWO THOUSAND FOUR OR TWO THOUSAND
25 FIVE MAY NOT EXTEND MORE THAN SEVEN YEARS BEYOND THE ORIGINAL DATE OF
26 ISSUE OF SUCH BOND ANTICIPATION NOTES.
27 S 2. Subdivision 5 of paragraph d of section 57.00 of the local
28 finance law, as amended by chapter 413 of the laws of 1991, is amended
29 to read as follows:
30 5. Prescribing the requirements for the alternative and permissive
31 publication or circularization of notices for the sale of bonds of an
32 issue not exceeding [one] FIVE million dollars, as permitted in section
33 63.00 of this chapter.
34 S 3. Paragraphs a and b of section 62.10 of the local finance law,
35 paragraph a as amended by chapter 413 of the laws of 1991 and paragraph
36 b as amended by chapter 179 of the laws of 1996, are amended to read as
37 follows:
38 a. Notwithstanding any other provisions of this chapter, if the prin-
39 cipal amount for an object or purpose, or objects or purposes, or class
40 or classes thereof, to be financed by the issuance of bonds does not
41 exceed [one] FIVE million dollars in the aggregate, a single bond, to be
42 known as a statutory installment bond, may be issued for the full prin-
43 cipal amount, if the issue is to be sold at private sale. Any such bond
44 shall provide for the payment of both the principal and interest upon
45 presentation of the bond for notation of such payments thereon, except
46 that such a statutory installment bond may be issued and sold to the
47 United States of America or any agency thereof in any amount and that
48 such principal and interest shall be payable without such presentation.
49 b. A statutory installment bond, in bearer, if authorized by federal
50 law, or registered form, shall be in terms, form and contents, substan-
51 tially as follows:
52 Statutory United States of America $ (Here insert full
53 Installment State of New York amount of bond
54 Bond County of issue)
S. 4601--A 3
1 (Here insert name of the issuer)
2 (Here insert type of bond and year, such as "Highway Machinery Serial
3 Bond--1976")
4 The (Here insert name of the issuer), in the County of ___________, a
5 (Here insert whether a municipality, school district, fire district or
6 other district corporation) of the State of New York, hereby acknowl-
7 edges itself indebted and for value received promises to pay to (Here
8 insert "bearer" or the name of registered owner if the bond is issued in
9 registered form) the principal sum of __________________ Dollars
10 ($________) (in (_____) equal annual installments of __________ Dollars
11 ($________) on the ________ day of ____ in the years [19] 20__ __, to
12 [19] 20 __, inclusive)
13 or
14 (in________(___) annual installments (Here state the amounts, the annual
15 principal payment date, and the years in which the principal payments
16 will be made. No annual installment shall be more than fifty per centum
17 in excess of the smallest prior installment unless the finance board has
18 determined to provide for substantially level or declining annual debt
19 service, in which case the aggregate amount of debt service payable in
20 any year shall not exceed the lowest aggregate amount of debt service
21 payable in any prior year by more than five percent))
22 and to pay interest on the unpaid balance of such principal sum at the
23 rate of ______ per centum (______%) per annum, semi-annually on the
24 _________ days of ________ and ______ in each year from the date of this
25 bond until it matures. Interest will not be paid on any installment of
26 principal, or of interest, after the due date thereof. Both the install-
27 ments of principal of and the interest on this bond will be paid to the
28 (Here insert "bearer" or "registered owner" if the bond is issued in
29 registered form) of this bond in lawful money of the United States* only
30 upon presentation of this bond for notation of any such payment thereon*
31 (omit language enclosed within asterisks when the bond is sold to the
32 United States of America or an agency thereof) at the office of ________
33 (Here insert place or places of payment)
34 This bond is a statutory installment bond, the principal sum of which
35 cannot exceed [One Million Dollars ($1,000,000)] FIVE MILLION DOLLARS
36 ($5,000,000) unless it is issued and sold to the United States of Ameri-
37 ca or any agency thereof, and is issued pursuant to section 62.10 of the
38 Local Finance Law and pursuant to a bond resolution entitled "(Here
39 insert title)", duly adopted by the (Here insert name of the finance
40 board) of such (Here insert name of the issuer) on the ________ day of
41 ___, [19] 20 __. This bond may not be converted into a coupon bond.
42 The faith and credit of such (Here insert name of the issuer) are
43 hereby irrevocably pledged for the punctual payment of the installments
44 of principal of and the interest on this bond according to its terms.
45 It is hereby certified and recited that all conditions, acts and
46 things required by the Constitution and statutes of the State of New
47 York to exist, to have happened and to have been performed precedent to
48 and in the issuance of this bond, exist, have happened and have been
49 performed, and that this bond, together with all other indebtedness of
50 such (Here insert name of the issuer) is within every debt and other
51 limit prescribed by the Constitution and laws of such State.
S. 4601--A 4
1 In Witness Whereof, the (Here insert name of the issuer) has caused
2 this bond to be signed by its (Here insert title of officer) and its
3 (Here insert title of officer), and its corporate seal to be hereunto
4 affixed and attested by its (Here insert title of attesting officer) and
5 to be dated as of the ________ day of _______, [19] 20 __.
6 (Name of municipality, school
7 district, fire district or
8 (Corporate Seal) other district corporation)
9 By: (Signature and title of officer)
10 and (Signature and title of officer)
11 Attest:
12 (Signature and title of attesting officer)
13 *PRINCIPAL PAYMENTS
14 Amount Date Received Received by
15 $________ __________, [19] 20 __ _____________________
16 (Signature of person
17 receiving payment)
18 $________ __________, [19] 20 __ _____________________
19 (continue as necessary)
20 INTEREST PAYMENTS
21 Amount Interest to Received by
22 $_______ ___________, [19] 20 __ _____________________
23 (Signature of person
24 receiving payment)
25 $_______ ___________, [19] 20 __ _____________________
26 (continue as necessary)
27 The notations of principal and interest payments may be made on the
28 face of the bond, on the reverse side, or on a sheet attached thereto*
29 (omit language enclosed within asterisks when the bond is sold to the
30 United States of America or an agency thereof).
31 S 4. The section heading and paragraph a of section 63.00 of the local
32 finance law, as amended by chapter 413 of the laws of 1991, are amended
33 to read as follows:
34 Bond issues of [one million dollars or less] CERTAIN AMOUNTS. a. When
35 sold at public sale, bonds of an issue not exceeding [one] FIVE million
36 dollars, whether of a single issue or sold as a single issue pursuant to
37 paragraph c of section 57.00 of this chapter, having a maximum maturity
38 of not more than five years measured from the date of the bonds, need
39 not be sold in accordance with the requirements of section 58.00 of this
40 chapter for publication of the notice of sale but may be sold upon such
41 publication or circularization of such notice as shall be prescribed by
42 the state comptroller in the rule or order referred to in paragraph d of
43 section 57.00 of this chapter.
44 S 5. Paragraph b of section 63.00 of the local finance law, as amended
45 by chapter 413 of the laws of 1991, is amended to read as follows:
46 b. Bonds of an issue not exceeding [one] FIVE million dollars, whether
47 of a single issue or sold as a single issue pursuant to paragraph c of
48 section 57.00 of this chapter, may be sold at private sale without limi-
49 tation as to rate of interest, provided, however, that the total amount
50 of bonds which may be sold at private sale in any fiscal year of the
S. 4601--A 5
1 municipality, school district or district corporation shall not exceed
2 [one] FIVE million dollars, and provided further that if such bonds have
3 a maximum maturity of more than ten years measured from the date of the
4 bonds, the issuer shall furnish the purchaser a written opinion, signed
5 by any person regularly admitted to practice as an attorney and counse-
6 lor in the courts of record of this state, that such bonds have been
7 duly authorized and issued in accordance with the constitution and laws
8 of this state and are valid and legally binding obligations of the
9 issuer. Such legal opinion shall be furnished at the expense of the
10 issuer and a duplicate original thereof shall be filed with the officer
11 of the issuer who is required to keep a record of such bonds pursuant to
12 section 163.00 of this chapter.
13 S 6. On or before December 31, 2011, the comptroller shall deliver to
14 the governor, the chair of the senate finance committee and the chair of
15 the assembly ways and means committee a report on the private sales of
16 bonds conducted pursuant to paragraph b of section 63.00 of the local
17 finance law from the effective date of this act through June 30, 2011.
18 Such report may include recommendations with respect to such private
19 sales of bonds as the comptroller deems appropriate. Every municipality,
20 school district and district corporation which conducts such a private
21 sale of bonds shall file a report of such sale with the comptroller at
22 such time, in such manner, and containing such information as may be
23 required by the comptroller.
24 S 7. Subparagraphs (b) and (d) of subdivision 2 of paragraph b of
25 section 58.00 of the local finance law, as amended by chapter 179 of the
26 laws of 1996, are amended to read as follows:
27 (b) In lieu of the statement of the time and date for the opening of
28 bids required by subparagraph (a) of this subdivision, a statement (i)
29 that the time and date for the opening of bids will be provided on not
30 less than twenty-four hours prior notice by means of a supplemental
31 notice of sale and indicating the manner in which such supplemental
32 notice will be provided, or (ii) setting a time and date for the opening
33 of bids, stating that notice of a change in the time or date for the
34 opening of bids may be provided not less than [twenty-four hours] ONE
35 HOUR prior to the time originally scheduled for the opening of bids by
36 means of a supplemental notice of sale and indicating the manner in
37 which such supplemental notice will be provided. Where notice is given
38 that the time or date of a sale will be changed without specifying the
39 new time or date, notice of the new time or date of sale must be
40 provided by means of a second supplemental notice of sale at least
41 [twenty-four hours] ONE HOUR prior to the new time for the opening of
42 bids.
43 (d) The supplemental notice of sale shall be provided by transmittal
44 over a definitive trade wire service of the municipal bond industry
45 which, in general, makes available information regarding activity and
46 sales of municipal bonds and is generally available to participants in
47 the municipal bond industry, or by publication in the financial newspa-
48 per published and circulated in the city of New York which the state
49 comptroller, in the rule or order referred to in paragraph d of section
50 57.00 of this article, shall designate for such publication. In addi-
51 tion, WHEN THE TIME AND DATE FOR THE OPENING OF BIDS IS DELAYED BY MORE
52 THAN TWENTY-FOUR HOURS, public notice of the time and date set for the
53 opening of bids in the supplemental notice of sale shall be given to the
54 news media and shall be posted in one or more designated public
55 locations within the issuing municipality, school district or district
56 corporation at least twenty-four hours prior to the time and date set
S. 4601--A 6
1 for the opening of bids; provided however, that such public notice shall
2 not be construed to require publication as a legal notice.
3 S 8. Subdivision 3 of paragraph c of section 58.00 of the local
4 finance law, as amended by chapter 469 of the laws of 1998, is amended
5 to read as follows:
6 3. A requirement that as a condition precedent to the consideration of
7 his OR HER bid, each bidder shall deposit with such official as the
8 agency in charge of the sale may designate, a certified or cashier's
9 check drawn upon an incorporated bank or trust company to the order of
10 the municipality, school district or district corporation or such offi-
11 cial, for [not] THE AMOUNT SPECIFIED IN THE NOTICE, BUT IN NO EVENT less
12 than ONE-HALF OF one per centum of the amount of bonds to be bid
13 for. Such notice may also provide that, in lieu of a certified or cash-
14 ier's check, bidders may furnish as security CASH IN SUCH AMOUNT REMIT-
15 TED BY WIRE TRANSFER TO AN ACCOUNT SPECIFIED IN THE NOTICE OR an eligi-
16 ble surety bond or an eligible letter of credit, approved by such
17 official as to form, sufficiency, and manner of execution. For purposes
18 of this section, "eligible surety bond" shall mean a bond executed by
19 [a] AN insurance company authorized to do business in this state, the
20 claims-paying ability of which is rated in the highest rating category
21 by at least two nationally recognized statistical rating organizations;
22 and "eligible letter of credit" shall mean an irrevocable letter of
23 credit issued in favor of the municipality, school district or district
24 corporation, for a term not to exceed ninety days by a bank, as that
25 term is defined in section two of the banking law, whose commercial
26 paper and other unsecured short-term debt obligations (or, in the case
27 of a bank which is the principal subsidiary of a holding company, whose
28 holding company's commercial paper and other unsecured short-term debt
29 obligations) are rated in one of the three highest rating categories
30 (based on the credit of such bank or holding company) by at least one
31 nationally recognized statistical rating organization or by a bank that
32 is in compliance with applicable federal minimum risk-based capital
33 requirements.
34 S 9. Paragraph c of section 59.00 of the local finance law, as amended
35 by chapter 469 of the laws of 1998, is amended to read as follows:
36 c. When the bidder to whom the bonds are to be awarded has been ascer-
37 tained, the municipality, school district or district corporation shall
38 promptly return all security to the persons furnishing the same, except
39 the security furnished by such bidder. Such bidder shall be promptly
40 notified of the award to him OR HER, and if he OR SHE refuses or
41 neglects to pay either the agreed price for the bonds less the amount of
42 any certified [or] CHECK, cashier's check OR CASH furnished as security,
43 or the agreed price in full for the bonds if an eligible surety bond or
44 eligible letter of credit was furnished as security as provided in
45 subdivision three of paragraph c of section 58.00 of this [article]
46 TITLE, the security furnished by him OR HER, in whatever form, shall be
47 forfeited to and retained by or claimed against or drawn upon by, the
48 municipality, school district or district corporation as liquidated
49 damages for such neglect or refusal. However, if the notice of sale
50 shall contain the statement set forth in paragraph e of section 58.00 of
51 this [chapter] TITLE and if prior to the delivery of the bonds any
52 income tax law of the United States of America shall provide that the
53 interest on such bonds is taxable, or shall be taxable at a future date,
54 for federal income tax purposes, then, at the request of such bidder the
55 security accompanying his OR HER bid shall be returned to him OR HER and
S. 4601--A 7
1 he OR SHE shall be relieved of his OR HER contractual obligations aris-
2 ing from the acceptance of his OR HER bid.
3 S 10. Section 10.00 of the local finance law, as amended by chapter
4 341 of the laws of 2007, is amended to read as follows:
5 S 10.00 Power of municipalities, school districts and district corpo-
6 rations to contract indebtedness. In addition to the power to contract
7 indebtedness pursuant to sections 24.00, 25.00, 25.10 [and], 29.00 AND
8 29.20 of this article, a municipality, school district or district
9 corporation shall have the power to contract indebtedness respectively
10 for any municipal, school district or district corporation object or
11 purpose set forth in paragraph a of section 11.00 of this title, or for
12 a class of such objects or purposes when authorized under the provisions
13 of section 31.00 of this article, if it is authorized by law to expend
14 money for or to accomplish such object or purpose; provided, however,
15 that it shall not be able to contract indebtedness to a greater extent
16 than it is authorized by law to spend money for such object or purpose
17 or class of such objects or purposes and provided also that this section
18 shall not relieve any such unit of government of any duty imposed by law
19 to include in its annual budget or tax levy or otherwise to pay from
20 current funds all or part of any expenditure that it may make for such
21 object or purpose or class of such objects or purposes.
22 S 11. Subdivision 40 of paragraph a of section 11.00 of the local
23 finance law, as amended by chapter 837 of the laws of 1945, is amended
24 to read as follows:
25 40. Miscellaneous expenditures. Any object or purpose set forth in
26 section 29.00 OR 29.20 of this [chapter] ARTICLE, if such object or
27 purpose is to be financed by the issuance of budget notes OR DEFICIENCY
28 NOTES, three years.
29 S 12. The local finance law is amended by adding a new section 29.20
30 to read as follows:
31 S 29.20 DEFICIENCY NOTES. A. ANY MUNICIPALITY, SCHOOL DISTRICT OR
32 DISTRICT CORPORATION MAY ISSUE DEFICIENCY NOTES DURING ANY FISCAL YEAR
33 TO FINANCE A DEFICIENCY IN ANY FUND OR FUNDS ARISING FROM REVENUES BEING
34 LESS THAN THE AMOUNT ESTIMATED IN THE BUDGET FOR SUCH CURRENT FISCAL
35 YEAR. SUCH NOTES MAY BE ISSUED IN SUCH AMOUNT AS THE FINANCE BOARD SHALL
36 DETERMINE TO BE NECESSARY, BUT NOT TO EXCEED FIVE PER CENTUM OF THE
37 AMOUNT OF THE ANNUAL BUDGET OF SUCH MUNICIPALITY, SCHOOL DISTRICT OR
38 DISTRICT CORPORATION.
39 B. DEFICIENCY NOTES MAY BE RENEWED FROM TIME TO TIME, BUT SUCH NOTES,
40 INCLUDING THE RENEWALS THEREOF, SHALL MATURE NOT LATER THAN THE CLOSE OF
41 THE FISCAL YEAR SUCCEEDING THE FISCAL YEAR IN WHICH SUCH NOTES ARE
42 ISSUED. HOWEVER, SUCH NOTES, INCLUDING THE RENEWALS THEREOF, MAY MATURE
43 NOT LATER THAN THE CLOSE OF THE SECOND FISCAL YEAR SUCCEEDING THE FISCAL
44 YEAR IN WHICH SUCH NOTES ARE ISSUED, WHEN AUTHORIZED AND ISSUED DURING A
45 FISCAL YEAR AT A TIME SUBSEQUENT TO THE DATE OF THE ADOPTION OF THE
46 ANNUAL BUDGET FOR THE NEXT SUCCEEDING FISCAL YEAR, BY A MUNICIPALITY,
47 SCHOOL DISTRICT OR DISTRICT CORPORATION IN WHICH THE TOTAL AMOUNT OF
48 TAXES OR ASSESSMENTS LEVIED FOR A FISCAL YEAR IS DETERMINED PURSUANT TO
49 AN ANNUAL BUDGET ADOPTED DURING THE FISCAL YEAR PRECEDING SUCH FISCAL
50 YEAR.
51 C. DEFICIENCY NOTES SHALL BE REDEEMED OUT OF THE TAXES OR ASSESSMENTS
52 LEVIED OR TO BE LEVIED FOR THE FISCAL YEAR IN WHICH THEY MATURE OR OUT
53 OF OTHER REVENUES OF THAT FISCAL YEAR LEGALLY AVAILABLE FOR THAT
54 PURPOSE.
55 D. NOTWITHSTANDING THE PROVISIONS OF ANY GENERAL, SPECIAL OR LOCAL
56 LAW, ANY MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION, WHICH
S. 4601--A 8
1 HAS THE POWER TO ISSUE DEFICIENCY NOTES UNDER THIS SECTION, SHALL TO THE
2 SAME EXTENT HAVE THE POWER TO APPROPRIATE AND EXPEND MONEY RECEIVED FROM
3 THE PROCEEDS OF THE SALE OF DEFICIENCY NOTES FOR THE PURPOSES OF THE
4 FUND OR FUNDS FOR WHICH SUCH NOTES ARE ISSUED.
5 E. THE PROCEEDS OF SUCH NOTES SHALL BE USED ONLY TO FINANCE A DEFI-
6 CIENCY IN ANY FUND OR FUNDS ARISING FROM REVENUES BEING LESS THAN THE
7 AMOUNT ESTIMATED IN THE BUDGET FOR THE CURRENT FISCAL YEAR OR, IN THE
8 EVENT ALL OR A PORTION OF THE PROCEEDS ARE NOT EXPENDED FOR THAT
9 PURPOSE, THE AMOUNT NOT SO EXPENDED SHALL BE USED ONLY FOR THE PAYMENT
10 OF PRINCIPAL OF AND INTEREST ON SUCH NOTES. IN DETERMINING WHETHER ALL
11 OR ANY PORTION OF THE PROCEEDS OF DEFICIENCY NOTES REMAINED UNEXPENDED
12 AT THE CLOSE OF A FISCAL YEAR, THE MONEYS IN SUCH FUND OR FUNDS OTHER
13 THAN THE PROCEEDS OF SUCH NOTES SHALL BE DEEMED TO BE EXPENDED PRIOR TO
14 THE PROCEEDS OF SUCH NOTES.
15 F. ANY MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION WHICH
16 SHALL RENEW DEFICIENCY NOTES PURSUANT TO THE PROVISIONS OF PARAGRAPH B
17 OF THIS SECTION, OR WHICH SHALL ISSUE DEFICIENCY NOTES IN TWO OR MORE
18 SUCCESSIVE FISCAL YEARS, SHALL BE SUBJECT TO THE REQUIREMENTS OF PARA-
19 GRAPHS C, D, E AND F OF SECTION 10.10 OF THIS ARTICLE FOR THREE YEARS
20 COMMENCING WITH THE FISCAL YEAR IN WHICH SUCH NOTES WERE RENEWED OR EACH
21 SECOND SUCCESSIVE FISCAL YEAR IN WHICH SUCH NOTES WERE ISSUED.
22 S 13. The local finance law is amended by adding a new section 40.10
23 to read as follows:
24 S 40.10 DEFICIENCY NOTE RESOLUTION; FORM AND CONTENTS; AUTHORIZATION
25 THEREOF. A. THE ISSUANCE OF DEFICIENCY NOTES OR RENEWALS THEREOF SHALL
26 BE AUTHORIZED BY A "DEFICIENCY NOTE RESOLUTION". EACH SUCH RESOLUTION
27 SHALL BE PROPERLY DATED AND SHALL BEAR A TITLE WHICH WILL INDICATE THAT
28 IT RELATES TO A DEFICIENCY NOTE.
29 B. ANY MUNICIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION MAY ADOPT
30 ONE OR MORE DEFICIENCY NOTE RESOLUTIONS AUTHORIZING THE ISSUANCE OF
31 DEFICIENCY NOTES FOR THE SPECIFIC OBJECT OR PURPOSE OF COVERING A DEFI-
32 CIENCY IN ANY FUND OR FUNDS ARISING FROM REVENUES BEING LESS THAN THE
33 AMOUNT ESTIMATED IN THE BUDGET FOR THE CURRENT FISCAL YEAR OF THE MUNI-
34 CIPALITY, SCHOOL DISTRICT OR DISTRICT CORPORATION.
35 C. A DEFICIENCY NOTE RESOLUTION SHALL CONTAIN, IN SUBSTANCE, AT LEAST
36 THE FOLLOWING PROVISIONS:
37 1. A STATEMENT OF THE SPECIFIC OBJECT OR PURPOSE FOR WHICH THE DEFI-
38 CIENCY NOTES TO BE AUTHORIZED BY SUCH RESOLUTION ARE TO BE ISSUED;
39 2. A STATEMENT OF THE AMOUNT OF DEFICIENCY NOTES TO BE ISSUED, THE
40 AMOUNT AND THE CAUSE OF THE DEFICIENCY IN REVENUES, AND THAT NO OTHER
41 SOURCE OF FINANCING IS AVAILABLE;
42 3. A STATEMENT OF THE PERIOD OF MATURITY OF SUCH NOTES; AND
43 4. IF SUCH NOTES ARE TO BE ISSUED IN RENEWAL OF OTHER NOTES, A STATE-
44 MENT THAT THE DATE OF MATURITY OF SUCH NOTES SHALL NOT EXTEND BEYOND THE
45 APPLICABLE PERIOD PROVIDED IN SECTION 29.20 OF THIS ARTICLE FOR THE
46 MATURITY OF SUCH NOTES.
47 D. EVERY DEFICIENCY NOTE RESOLUTION SHALL BE ADOPTED BY AT LEAST A
48 MAJORITY VOTE OF THE VOTING STRENGTH OF THE FINANCE BOARD. A TWO-THIRDS
49 VOTE OF THE VOTING STRENGTH OF THE FINANCE BOARD SHALL BE REQUIRED TO
50 ADOPT A DEFICIENCY NOTE RESOLUTION AUTHORIZING THE ISSUANCE OF RENEWAL
51 NOTES OR AUTHORIZING THE ISSUANCE OF DEFICIENCY NOTES IN A YEAR NEXT
52 SUCCEEDING A YEAR IN WHICH DEFICIENCY NOTES WERE ISSUED.
53 S 14. This act shall take effect immediately; provided, however, that
54 the provisions of sections two, three, four and five of this act shall
55 expire June 1, 2012 when upon such date the provisions of such sections
56 shall be deemed repealed.
