senate Bill S6598

Signed by Governor Amended

Legalizes and validates certain acts and proceedings of the village board of trustees of the village of Silver Springs, Wyoming county, in relation to the issuance of certain bond anticipation notes

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
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actions

  • 11 / Feb / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 18 / Mar / 2014
    • 1ST REPORT CAL.314
  • 19 / Mar / 2014
    • 2ND REPORT CAL.
  • 20 / Mar / 2014
    • ADVANCED TO THIRD READING
  • 28 / Apr / 2014
    • AMENDED ON THIRD READING (T) 6598A
  • 06 / May / 2014
    • AMENDED ON THIRD READING (T) 6598B
  • 03 / Jun / 2014
    • HOME RULE REQUEST
  • 03 / Jun / 2014
    • PASSED SENATE
  • 03 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 03 / Jun / 2014
    • REFERRED TO LOCAL GOVERNMENTS
  • 19 / Jun / 2014
    • SUBSTITUTED FOR A8980A
  • 19 / Jun / 2014
    • ORDERED TO THIRD READING RULES CAL.603
  • 19 / Jun / 2014
    • HOME RULE REQUEST
  • 19 / Jun / 2014
    • PASSED ASSEMBLY
  • 19 / Jun / 2014
    • RETURNED TO SENATE
  • 11 / Sep / 2014
    • DELIVERED TO GOVERNOR
  • 23 / Sep / 2014
    • SIGNED CHAP.383

Summary

Legalizes and validates certain acts and proceedings of the village board of trustees of the village of Silver Springs, Wyoming county, in relation to the issuance of certain bond anticipation notes.

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Bill Details

Versions:
S6598
S6598A
S6598B
Legislative Cycle:
2013-2014
Law Section:
Wyoming County

Votes

8
0
8
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
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Sponsor Memo

BILL NUMBER:S6598

TITLE OF BILL: An act in relation to authorizing the village board of
trustees of the village of Silver Springs, county of Wyoming to issue
certain bond anticipation notes

PURPOSE: This bill would validate certain findings determinations
with respect to bond anticipation notes issued by the village of
Silver Springs, in the County of Wyoming, and to legalize and
authorize the issuance of obligations of such notes.

SUMMARY OF PROVISIONS:

Section 1 provides the legislative findings regarding the Village
Board of Trustees of the Village of Silver Springs and their actions
in relation to the issuance of certain bond anticipation notes.

Section 2 provides that, notwithstanding the failure of the Board of
Trustees to adopt the bond resolutions, and the other defects noted
above all actions undertaken by the Village Board and the village
officials to date with respect to the BANs are validated, ratified,
and corrected. Further, Section 2 specifically authorizes the Village
of Silver Springs to issue its serial bonds or bond anticipation notes
in the following respective amounts: $120,000 for the Phase I
electrical system financing, $150,000 for the Phase II electrical
system financing, and $325,000 for the Phase III electrical system
financing.

This authorization is subject to the following conditions:

(a) The Village Board of Trustees is required to adopt a bond
resolution for each of the three projects, but such bond resolutions
would not be subject to a permissive referendum as otherwise would be
required by law.

(b) With respect to the BAN maturing on June 13, 2014 for the Phase I
electrical system project, the Village would be authorized to issue
one more renewal BAN maturing no later than June 13, 2015 and to issue
its serial bonds to refinance such BANs no later than June 13, 2014.
This authorization is intended to provide the Village with some
flexibility as to the timing of the serial bonds to be issued for the
project, in the event that the special legislation is enacted on a
date that is too late to allow for the issuance of bonds prior to June
13, 2014.

(c) In the event that the corrective legislation had not been enacted
prior to the April 2, 2014 maturity date of the outstanding BAN for
the Phase III electrical system project and the Village either extends
the maturity of the BAN, issues another renewal BAN, or pays off the
BAN in full, the Village would nevertheless be authorized to issue
bonds to refinance the extended, renewed, or redeemed BAN.

Section 3 provides that the bonds and bond anticipation notes, and
renewals thereof, issued pursuant to this act must be issued in
accordance with the provisions of the local finance law.


Section 4 provides that if any part of this act is adjudged by any
court of competent jurisdiction to be invalid, such judgment shall be
confined in its operation to the part directly involved in the
controversy in which such judgment shall have been rendered and shall
not affect, impair, or invalidate the remainder thereof.

Section 5 provides that this act shall take effect immediately.

JUSTIFICATION: Necessity for Corrective Legislation: Under the State
Local Finance Law, in order to authorize the insurance of bonds or
bond anticipation notes for a capital project, the Village Board of
Trustees is required to adopt a bond resolution. Among other things,
the bond is required to include the following:

i. A description of the specific project that is to be financed by the
bonds and a statement of the maximum amount of bonds and BANs
authorized to be issued.

ii. A statement of the "period of probable usefulness" for the project
being financed by the bonds. The period of probable usefulness is the
maximum term over for which bonds or any bond anticipation notes can
be issued for the project. The local finance law sets forth specific
periods of probable usefulness for each type of the project for which
a municipality can borrow.

iii. A determination of whether or not the bonds and/or BANs are to
have a term of either greater than 5 years or less.

The Local Finance Law also requires that if the term of the borrowing
is to be greater than five years, the bond resolution be subject to a
"permissive referendum". If a bond resolution is subject to a
permissive referendum, then a notice thereof must be published once in
the Village's official newspaper for legal publication purposes not
later than 10 days after adoption of the resolution. Following such
publication, if a petition is submitted to the Village Clerk within 30
days after the date of the adoption of the resolution signed by at
least 20% of the qualified voters in the Village requesting that a
referendum be held on the bond resolution, then the Village must then
hold such referendum. A bond resolution that is subject to a
permissive referendum does not become effective until 30 days after
the date of adoption, if such a petition was filed.

This bill provides that, notwithstanding the failure of the Board of
Trustees to adopt the bond resolutions and the other defects noted
above, all actions undertaken by the Village Board and the village
officials to date with respect to the BANs are validated, ratified,
and corrected.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6598

                            I N  S E N A T E

                            February 11, 2014
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT in relation to authorizing the village board of trustees  of  the
  village  of  Silver  Springs,  county of Wyoming to issue certain bond
  anticipation notes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings. (a) It is hereby found and determined
that  the  village  board  of trustees of the village of Silver Springs,
county of Wyoming undertook the following described actions in  relation
to the issuance of certain bond anticipation notes of said village.
  (1) Pursuant to a resolution adopted by said village board of trustees
on  May  4,  2009  and a certificate of the village clerk dated June 15,
2009, said village issued its bond anticipation  note,  dated  June  15,
2009,  in the principal amount of $400,000, maturing on June 15, 2010 to
finance the cost of the object or  purpose  consisting  of  Phase  I  of
certain  reconstruction  and rehabilitation of said village's electrical
system. Thereafter, pursuant to a resolution  adopted  by  said  village
board of trustees on June 7, 2010 and a certificate of the village clerk
of  said village dated June 15, 2010, a principal payment of $80,000 was
made on said renewal bond anticipation note and said note was renewed by
the issuance of a renewal bond anticipation note, dated June  15,  2010,
in  the principal amount of $320,000, maturing on June 15, 2011.  There-
after, pursuant to a resolution adopted by said village board  of  trus-
tees  on  June  6,  2011  and a certificate of the village clerk of said
village dated June 15, 2011, a principal payment of $80,000 was made  on
said  renewal  bond anticipation note and said note was again renewed by
the issuance of a renewal bond anticipation note, dated June  15,  2011,
in the principal amount of $240,0000, maturing on June 15, 2012.  There-
after,  pursuant  to a resolution adopted by said village board of trus-
tees on June 5, 2012 said bond anticipation note was  again  renewed  by
the issuance of a renewal bond anticipation note dated June 15, 2012, in
the principal amount of $240,000, maturing on June 14, 2013. Thereafter,
pursuant  to  a  resolution adopted by said village board of trustees on

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13964-01-4

S. 6598                             2

June 4, 2013 and a certificate of the  village  clerk  of  said  village
dated  June  14,  2013,  a principal payment of $60,000 was made on said
renewal bond anticipation note and said note was again  renewed  by  the
issuance  of  a  renewal bond anticipation note, dated June 14, 2013, in
the principal amount of $180,000, maturing on June 13, 2014.
  (2) Pursuant to a resolution adopted by said village board of trustees
on February 7, 2011 and a certificate  of  the  village  clerk  of  said
village  dated  April 1, 2011, said village issued its bond anticipation
note, dated April 1, 2011, in the principal amount of $190,000, maturing
on April 2, 2012 to finance the cost of the object or purpose consisting
of Phase  II  of  certain  reconstruction  and  rehabilitation  of  said
village's  electrical  system.  Thereafter,  pursuant  to  a  resolution
adopted by said village board of trustees on March 22, 2012,  said  bond
anticipation  note  was renewed by the issuance of a renewal bond antic-
ipation note dated April 2, 2012, in the principal amount  of  $190,000,
maturing  on  April 2, 2013 which matured one day later than required by
law. Thereafter, pursuant to a resolution adopted by said village  board
of  trustees on March 11, 2013 and a certificate of the village clerk of
said village dated April 2, 2013, a principal  payment  of  $22,000  was
made  on  said  renewal  bond  anticipation note and said note was again
renewed by the issuance of a renewal bond anticipation note, dated April
2, 2013, in the principal amount of $168,000, maturing on April 2, 2014.
  (3) Pursuant to a resolution adopted by said village board of trustees
on March 22, 2012 and a certificate of the village clerk of said village
dated April 2, 2012, said village issued  its  bond  anticipation  note,
dated  April  2,  2012, in the principal amount of $353,515, maturing on
April 2, 2013 to finance the cost of the object or purpose consisting of
Phase III of certain reconstruction and rehabilitation of said village's
electrical system. Thereafter, pursuant to a resolution adopted by  said
village  board  of  trustees  on March 11, 2013 and a certificate of the
village clerk of said village dated April 2, 2013, a  principal  payment
of $1,515 which payment was optional and may be ignored was made on said
renewal  bond  anticipation  note and said note was again renewed by the
issuance of a renewal bond anticipation note dated April 2, 2013, in the
principal amount of $352,000, maturing on April 2, 2014.
  (b) It is hereby further found and determined  that  the  bond  antic-
ipation  notes and renewal bond anticipation notes described in subdivi-
sion (a) of this section were not issued in compliance with the applica-
tion provisions of the local finance law, in that: (1) the village board
of trustees of the village of Silver Springs in each case had not, prior
to the issuance of such bond anticipation notes, adopted a  bond  resol-
ution  in  accordance with sections 31.00 and 32.00 of the local finance
law, which was subject to a permissive  referendum  in  accordance  with
paragraph  a  of section 36.00 of the local finance law, for the purpose
of authorizing the issuance of bonds of said village in anticipation  of
which  such  bond anticipation notes were issued; (2) in the case of the
renewal bond anticipation note dated June 15, 2012, described  in  para-
graph  one  of  subdivision  (a) of this section, a principal portion of
such note was not redeemed; and (3) in the  case  of  the  renewal  bond
anticipation  note  dated  June  14, 2013, described in paragraph one of
subdivision (a) of this section, the term of said note will extend  more
than  five  years beyond the date of issuance of the applicable original
bond anticipation note dated June 15, 2009 by the time  this  act  takes
effect.
  S  2. Notwithstanding the defects describe in section one of this act,
the bond anticipation notes and renewals thereof issued by  the  village

S. 6598                             3

of  Silver  Springs,  as  described  in section one of this act, and all
resolutions, acts and proceedings heretofore adopted  or  taken  by  the
board  of  trustees  in relation thereto, are hereby validated, ratified
and  confirmed. Subject to the adoption by the village board of trustees
of the village of Silver Springs of one  or  more  bond  resolutions  in
accordance  with sections 31.00 and 32.00 of the local finance law, such
village is hereby authorized to hereinafter issue:
  (a) bonds or renewal bond anticipation notes in the aggregate  princi-
pal  amount  of  $120,000 for the purpose of refinancing the outstanding
bond anticipation notes issued for the object or  purpose  described  in
paragraph one of subdivision (a) of section one of this act;
  (b)  bonds or renewal bond anticipation notes in the aggregate princi-
pal amount of $150,000 for the purpose of  refinancing  the  outstanding
bond  anticipation  notes  issued for the object or purpose described in
paragraph two of subdivision (a) of section one of this act;
  (c) bonds or renewal bond anticipation notes in the aggregate  princi-
pal  amount  of  $325,000 for the purpose of refinancing the outstanding
bond anticipation notes issued for the object or  purpose  described  in
paragraph three of subdivision (a) of section one of this act; provided,
however, that:
  (1)  each  such  bond  resolution shall not be subject to a permissive
referendum in accordance with paragraph a of section 36.00 of the  local
finance law;
  (2) notwithstanding the provisions of paragraph b of section 23.00 and
paragraph  b  of  section  21.00  of local finance law, said village may
issue one additional renewal bond anticipation note maturing  not  later
than  June  13,  2015 for the objects or purposes described in paragraph
one of subdivision (a) of section one of this act, and may  provide  for
the  first  installment  payment on the bonds issued for such objects or
purposes to be made on any date on or before June 13, 2015; and
  (3) in the event that the renewal bond anticipation note,  dated  June
13,  2014,  described in paragraph one of subdivision (a) of section one
of this act has, prior to the effective date of this act,  been  amended
to  extend  the  maturity  date thereof, been renewed by another renewal
bond anticipation note, or been redeemed in full, said village,  follow-
ing enactment of this act, shall have the authority, notwithstanding any
such  extension,  renewal  or  redemption, to issue the bonds or renewal
bond anticipation notes described in paragraph three of subdivision  (b)
of  section one of this act for the purpose of refinancing such extended
or renewed bond anticipation notes or for the purpose of reborrowing the
principal amount of such redeemed bond  anticipation  notes  up  to  the
maximum principal amount set forth in such paragraph.
  S  3.  Except  as  otherwise set forth in this act, the bonds and bond
anticipation notes, and renewals thereof, issued pursuant  to  this  act
shall  be  issued in accordance with the provisions of the local finance
law.
  S 4. If any clause, sentence, subdivision, paragraph, section or  part
of  this  act  be  adjudged by any court of competent jurisdiction to be
invalid, such judgment  shall  not  affect,  impair  or  invalidate  the
remainder thereof, but shall be confined in its operation to the clause,
sentence,  subdivision,  paragraph,  section  or  part  thereof directly
involved in the controversy in  which  such  judgment  shall  have  been
rendered.
  S 5. This act shall take effect immediately.

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