S T A T E O F N E W Y O R K
________________________________________________________________________
6114
2009-2010 Regular Sessions
I N A S S E M B L Y
February 25, 2009
___________
Introduced by M. of A. HOOPER -- Multi-Sponsored by -- M. of A. LAVINE,
SCHIMEL -- read once and referred to the Committee on Local Govern-
ments
AN ACT to authorize the county of Nassau, to issue bonds to refund bonds
issued by the Nassau county interim finance authority
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Notwithstanding any other provision of law to the contrary,
the county of Nassau may issue bonds to refund bonds issued by the
Nassau county interim finance authority in accordance with the
provisions of section 90.00 or 90.10 of the local finance law, provided,
however, any such refunding bond resolution shall require approval by a
two-thirds vote of the voting strength of the county legislature and the
present value savings required under section 90.10 of the local finance
law, in the case of any refunding bonds or multiple series of refunding
bonds, shall be computed using a composite analysis of all bonds to be
refunded by said refunding or multiple series of refunding bonds. For
purposes of calculating the present value of debt service and calculat-
ing savings in connection with the issuance of refunding bonds by the
county of Nassau (i) the effective interest rate and debt service on
variable rate bonds in connection with which, and to the extent that,
the Nassau county interim finance authority has entered into an interest
rate exchange or similar agreement pursuant to which the Nassau county
interim finance authority makes payments based on a fixed rate and
receives payments based on a variable rate that shall be found by the
county treasurer of the county of Nassau to be equivalent over time to
the variable rate paid on the related variable rate bonds, shall be
calculated assuming that the rate of interest on such variable rate
bonds is the fixed rate payable by the Nassau county interim finance
authority on such interest rate exchange or similar agreement for the
scheduled term of such agreement plus the ongoing fees and costs associ-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08819-01-9
A. 6114 2
ated with the underlying variable rate issue; however, if the county
treasurer determines that the variable rate paid is not equivalent to
the variable rate received, then the county treasurer may determine a
higher interest cost on the variable rate bonds to reflect the higher
interest costs plus the ongoing fees and costs associated with the
underlying variable rate issue; (ii) the effective interest rate and
debt service on variable rate bonds in connection with which, and to the
extent that, the Nassau county interim finance authority has not entered
into such an interest rate exchange or similar agreement shall be calcu-
lated assuming that interest on such variable interest rate bonds is
payable at a rate or rates as shall be found by the county treasurer of
the county; (iii) the effective interest rate and debt service on any
bonds subject to optional or mandatory tender shall be calculated assum-
ing that such bonds are remarketed following any such tender at a rate
or rates as shall be found by the county treasurer of the county of
Nassau; and (iv) otherwise, the effective interest rate and debt service
on any bonds shall be calculated at a rate or rates determined by the
county treasurer of the county of Nassau. Notwithstanding any other
provision of law to the contrary, in the case of the county of Nassau,
for calculating the present value of debt service and calculating
savings in connection with the issuance of refunding bonds, the refund-
ing of variable rate debt instruments with new variable rate debt
instruments shall be excluded from any such requirements, if so deter-
mined by the county treasurer of such county.
S 2. Bonds previously issued by the Nassau county interim finance
authority shall be deemed bonds issued by the county of Nassau for
purposes of sections 90.00 and 90.10 of the local finance law. Expenses
related to the termination of an interest rate exchange or similar
agreement may be included in the principal amount of the refunding
bonds. Notwithstanding any other provision of law to the contrary, upon
receipt of written instructions from the county of Nassau, the Nassau
county interim finance authority shall call in and redeem bonds
outstanding and undertake such other actions as may be reasonably
requested by the county in order to effect the purposes of this act.
Upon receipt of the proceeds of the refunding bonds issued by the county
of Nassau, the Nassau county interim finance authority shall deposit and
invest same, as so instructed by the county of Nassau, in such funds and
accounts to defease its bonds refunded.
S 3. This act shall take effect immediately.