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.