S T A T E O F N E W Y O R K
________________________________________________________________________
273
2025-2026 Regular Sessions
I N S E N A T E
(PREFILED)
January 8, 2025
___________
Introduced by Sen. MARTINEZ -- 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 installments of
certain bonds; and to repeal certain provisions of such law relating
thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph b of section 21.00 of the local finance law, as
amended by chapter 167 of the laws of 2024, is amended to read as
follows:
b. Serial bonds shall mature in annual installments. The first
installment shall mature not later than [eighteen months after the date
of such bonds or two years after the date of the first bond anticipation
note or notes issued in anticipation of such bonds, whichever is the
earlier, provided, however, that until July fifteenth, two thousand
twenty-seven, the first installment shall mature not later than] two
years after the date of such bonds or two years after the date of the
first bond anticipation note or notes issued in anticipation of such
bonds, whichever is the earlier. However, if bond anticipation notes are
issued in anticipation of bonds and if a portion of such notes or the
renewals thereof are redeemed from a source other than the proceeds of
such bonds within two years from the date of the first such note or
notes and a further portion thereof shall be so redeemed prior to the
termination of each twelve months' period succeeding the date such
original portion was so redeemed, the first installment of such bonds
may, in the alternative, be made to mature not later than five years
from the date of the first such note or notes.
§ 2. Paragraph b of section 53.00 of the local finance law, as amended
by chapter 167 of the laws of 2024, is amended to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00872-01-5
S. 273 2
b. If such bonds or notes are payable in installments, the install-
ments remaining unpaid may be called for redemption [only (i) in the
inverse order of their maturity or, (ii) in equal proportionate amounts;
provided, however, that for bonds issued during the one-year period
commencing July first, nineteen hundred eighty-eight, and for bonds
issued during the one-year period commencing July first, nineteen
hundred eighty-nine, and for bonds issued during the one-year period
commencing July first, nineteen hundred ninety, and for bonds issued
during the three-year period commencing July first, nineteen hundred
ninety-one, and for bonds issued during the period from July first,
nineteen hundred ninety-four up until and including July fifteenth,
nineteen hundred ninety-seven and for bonds issued during the period
from July fifteenth, nineteen hundred ninety-seven up until and includ-
ing July fifteenth, two thousand, and for bonds issued during the period
from July fifteenth, two thousand up until and including July fifteenth,
two thousand three, and for bonds issued during the period from July
fifteenth, two thousand three up until and including July fifteenth, two
thousand six, and for bonds issued during the period from July
fifteenth, two thousand six up until and including July fifteenth, two
thousand nine, and for bonds issued during the period from July
fifteenth, two thousand six up until and including July fifteenth, two
thousand twelve, and for bonds issued during the period from July
fifteenth, two thousand nine up until and including July fifteenth, two
thousand fifteen, and for bonds issued during the period from July
fifteenth, two thousand fifteen up until and including July fifteenth,
two thousand eighteen, and for bonds issued during the period from July
fifteenth, two thousand eighteen up until and including July fifteenth,
two thousand twenty-one, and for bonds issued during the period from
July fifteenth, two thousand twenty-one up until and including July
fifteenth, two thousand twenty-four, and for bonds issued during the
period from July fifteenth, two thousand twenty-four up until and
including July fifteenth, two thousand twenty-seven, installments
remaining unpaid on such bonds may be called for redemption] prior to
their date of maturity in such amounts, at such times in such manner and
pursuant to such terms as may be determined by the finance board of a
municipality, school district or district corporation at the time of the
issuance thereof. Whenever any bonds or notes are called for redemption
prior to the date of their maturity, interest shall cease to be paid
thereon after the date for redemption set forth in such call for redemp-
tion. [The sum to be paid to redeem any unpaid installment prior to its
maturity, exclusive of the interest accruing on such installment to the
date of redemption, shall in no event be in excess of the lesser amount
of either (i) the par value of such installment plus one-half of one per
centum of such par value for each calendar year or part thereof elapsing
between the date for redemption set forth in such call for redemption
and the date of maturity of such installment, provided, however, that
such amount shall not exceed one hundred five per centum of such par
value, or (ii) the par value of such installment plus the total of all
unpaid interest on such installment which would have accrued from the
date of redemption to the date of maturity thereof had such installment
not been redeemed prior to maturity, except that bonds sold to the state
of New York municipal bond bank agency, which are subject to call as
hereinbefore authorized, may provide for the payment of a redemption
premium not to exceed five per centum of the par value of the bonds to
be called, payable on the date of the redemption thereof; provided,
however, that for bonds issued during the one-year period commencing
S. 273 3
July first, nineteen hundred eighty-eight, and for bonds issued during
the one-year period commencing July first, nineteen hundred eighty-nine,
and for bonds issued during the one-year period commencing July first,
nineteen hundred ninety, and for bonds issued during the three-year
period commencing July first, nineteen hundred ninety-one, and for bonds
issued during the period from July first, nineteen hundred ninety-four
up until and including July fifteenth, nineteen hundred ninety-seven,
and for bonds issued during the period from July fifteenth, nineteen
hundred ninety-seven up until and including July fifteenth, two thou-
sand, and for bonds issued during the period from July fifteenth, two
thousand up until and including July fifteenth, two thousand three, and
for bonds issued during the period from July fifteenth, two thousand
three up until and including July fifteenth, two thousand six, and for
bonds issued during the period from July fifteenth, two thousand six up
until and including July fifteenth, two thousand nine, and for bonds
issued during the period from July fifteenth, two thousand nine up until
and including July fifteenth, two thousand twelve, and for bonds issued
during the period from July fifteenth, two thousand twelve up until and
including July fifteenth, two thousand fifteen, and for bonds issued
during the period from July fifteenth, two thousand fifteen up until and
including July fifteenth, two thousand eighteen, and for bonds issued
during the period from July fifteenth, two thousand eighteen up until
and including July fifteenth, two thousand twenty-one, and for bonds
issued during the period from July fifteenth, two thousand twenty-one up
until and including July fifteenth, two thousand twenty-four, and for
bonds issued during the period from July fifteenth, two thousand twen-
ty-four up until and including July fifteenth, two thousand twenty-sev-
en, a] A municipality, school district, or district corporation may
provide for redemption of such bonds prior to the date of their maturity
at a price or prices as may be as determined by the issuer of such bonds
or notes at the time of the issuance thereof.
§ 3. Section 107.00 of the local finance law is REPEALED.
§ 4. This act shall take effect immediately.