§ 23.00 Bond anticipation notes. a. Bond anticipation notes may be
issued by any municipality, school district or district corporation in
anticipation of the sale of bonds. Such notes may be issued whenever
bonds have been authorized and the proceeds of such notes shall be
expended only for the same object or purpose, or class thereof for which
the proceeds of such bonds may be expended.

b. Such notes shall mature at such time as the issuer may determine
and may be renewed from time to time, provided, that in no event shall
such notes or the renewals thereof extend more than two years beyond
such original date of issue unless a portion of such notes or the
renewals thereof shall be redeemed from a source other than the proceeds
of bonds within two years from such original date of issue and unless 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, if any of such notes, as renewed, are still outstanding at
the termination of each such period, but such notes or the renewals
thereof shall not extend more than five years beyond such original date
of issue. Such redemption shall be consistent with the amortization
requirements of article eight of the state constitution and section
21.00 of this title. If the finance board has determined to provide for
substantially level or declining debt service on the bonds in
anticipation of which such notes are authorized to be issued, such notes
shall be redeemed in an amount at least equal in each year to the annual
installment which would be paid in such year if such notes were serial
bonds issued at a five percent rate of interest for the remaining period
of probable usefulness of the object or purpose for which issued, or, if
less, the remaining portion of the maximum authorized maturity of such
bonds, and all annual debt service payments were equal over the life of
such bonds. In any event, bond anticipation notes shall not be renewed
after the receipt of the proceeds from the sale of the bonds in
anticipation of which such notes were issued. Notwithstanding the
provisions of this paragraph: 1. bond anticipation notes issued in
anticipation of the receipt of the proceeds of the sale of bonds for the
purpose of providing moneys out of which to make loans to limited profit
housing companies pursuant to article two of the private housing finance
law, or loans to owners of existing multiple dwellings pursuant to
article eight of the private housing finance law, or for the purpose of
providing moneys for the effectuating of any urban renewal program or
part thereof pursuant to the general municipal law, or the renewals of
such notes, may extend not more than five years beyond the original date
of issue of such notes; and 2. renewals of bond anticipation notes
issued originally during calendar years two thousand fifteen through two
thousand twenty-one, inclusive may not extend more than seven years
beyond the original date of issue of such bond anticipation notes.

b-1. Notwithstanding the provisions of paragraph b of section 21.00 of
this title and the provisions of paragraph b of this section any bond
anticipation notes issued in anticipation of bonds for an assessable
improvement may be renewed from time to time for a period not exceeding
one year for each such renewal, and without limitation as to the number
of such renewals, provided that such notes, as renewed, shall not extend
beyond the expiration of the period of probable usefulness of the object
or purpose for which issued, as computed from the date of the first note
or notes so issued, and provided further that such notes, as renewed,
shall not extend more than two years from the date of the first note or
notes so issued unless a portion thereof shall be redeemed from a source
other than the proceeds of such bonds within two years from the date of
the first note or notes so issued and unless 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, if any
of such notes, as renewed, are still outstanding at the termination of
each such period. Annual principal installments on notes issued pursuant
to this paragraph shall be computed in accordance with the provisions of
paragraph b of this section. Every bond anticipation note resolution and
certificate authorizing any such renewal note, in addition to the
statements and provisions required by section 38.10 of this chapter,
shall contain a statement indicating that such note is issued in
anticipation of bonds for an assessment improvement.

c. Bond anticipation notes shall not be issued in an amount which
shall exceed the par value of the bonds in anticipation of which they
are to be issued.

d. 1. Bond anticipation notes shall be redeemed from the proceeds of
the sale of the bonds in anticipation of which they were issued.
However, if such bonds are not sold, then such bond anticipation notes
shall be redeemed:

(a) From any unencumbered balance in any fund which may be applied to
the payment thereof, or

(b) By a budgetary appropriation.

2. Notwithstanding the provisions of subdivision one of this
paragraph, bond anticipation notes may be redeemed, in whole or in part,
prior to the sale of the bonds in anticipation of which such notes were
issued, from any moneys which lawfully may be applied to the payment of
such notes.