Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jun 14, 2010 |
referred to local governments delivered to assembly passed senate |
Jun 10, 2010 |
advanced to third reading |
Jun 09, 2010 |
2nd report cal. |
Jun 08, 2010 |
1st report cal.800 |
Jun 03, 2010 |
reported and committed to finance |
May 14, 2010 |
referred to local government |
Senate Bill S7838
2009-2010 Legislative Session
Sponsored By
(D) Senate District
Archive: Last Bill Status - In Assembly Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
Votes
2009-S7838 (ACTIVE) - Details
- Current Committee:
- Assembly Local Governments
- Law Section:
- Local Finance Law
- Laws Affected:
- Amd ยงยง90.00 & 90.10, Loc Fin L
2009-S7838 (ACTIVE) - Sponsor Memo
BILL NUMBER: S7838 TITLE OF BILL : An act to amend the local finance law, in relation to the refunding of bonds SUMMARY OF PROVISIONS : This bill amends paragraph b-1 of section 90.00 and subdivision 3 of paragraph c of section 90.10 of the Local Finance Law to permit the amounts and stated maturity dates of refunding bonds to be the same as those of the bonds to be refunded. REASONS FOR SUPPORT : Under existing law, refunding bonds must comply with the fifty percent rule or have level or declining debt service. To meet these requirements, a refunding of a single maturity in a series must also refund bonds which yield no present value savings, but are included only to conform the refunding issue to the requirement of Local Finance Law. This restriction causes these structuring bonds to be refunded prematurely, wasting potential present value savings, because tax-exempt bonds generally may be refunded only once under applicable federal tax laws. The provisions of this bill broaden an issuer's ability to utilize advance refunding bonds by allowing, as an alternative, the amounts and stated maturities of the refunding bonds to be set by reference to the refunded bonds. This eliminates the requirement to include structuring bonds that provide no present value savings in a refunding issue. This allows for targeted refunding of a single or limited number of maturities without triggering a prepayment of principal. The
2009-S7838 (ACTIVE) - Bill Text download pdf
S T A T E O F N E W Y O R K ________________________________________________________________________ 7838 I N S E N A T E May 14, 2010 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the local finance law, in relation to the refunding of bonds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Paragraph b-1 of section 90.00 of the local finance law, as added by chapter 201 of the laws of 1994, is amended to read as follows: b-1. Refunding bonds need not comply with paragraph b of this section provided that no annual installment of each separate series of refunding bonds shall be more than fifty per centum in excess of the smallest prior installment or THE AMOUNTS AND STATED MATURITY DATES OF THE REFUNDING BONDS SHALL BE THE SAME AS THOSE OF THE BONDS TO BE REFUNDED OR the finance board of the municipality, school district or district corporation issuing the bonds shall have determined to use a substan- tially level or declining annual debt service schedule for the refunding bonds. The amount of annual installments of the refunding bonds may be determined without reference to the stated maturities of the bonds to be refunded. S 2. Subdivision 3 of paragraph c of section 90.10 of the local finance law, as amended by chapter 201 of the laws of 1994, is amended to read as follows: 3. No annual installment of each separate series of refunding bonds shall be more than fifty per centum in excess of the smallest prior installment unless THE AMOUNTS AND STATED MATURITY DATES OF THE REFUND- ING BONDS SHALL BE THE SAME AS THOSE OF THE BONDS TO BE REFUNDED OR the finance board of the municipality, school district or district corpo- ration issuing the bonds has determined to use a substantially level or declining annual debt service schedule for the refunding bonds. The amounts of annual installments of the refunding bonds may be determined without reference to the stated maturities of the bonds to be refunded. S 3. Severability. If any clause, sentence, paragraph, section or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted.
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