* § 29.10 Issuance of land installment purchase obligations. 1. A
municipality is hereby authorized and empowered to issue land
installment purchase obligations for the purpose of financing the
acquisition of interests or rights in real property for which the
municipality has contracted, pursuant to section two hundred forty-seven
of the general municipal law, together with the preliminary and
incidental costs of such acquisition. Such obligations shall be
authorized by a statement made in a bond resolution authorizing the
issuance of bonds to finance such acquisition. Such statement shall
provide that all or a portion of the indebtedness for such purpose may
be issued in the form of a land installment purchase obligation. Any
portion of the estimated maximum cost of the object or purpose for which
the issuance of bonds has been authorized that is not financed with the
issuance of a land installment purchase obligation may be financed
through the issuance of bonds or bond anticipation notes.

2. Each land installment purchase obligation shall state the dates of
commencement and maturity, which shall establish a term no longer than
the period of probable usefulness of the interests or rights to be
acquired. Each land installment purchase obligation shall provide that
the municipality shall be vested with title and ownership of such
interests or rights and shall be entitled to possession of the interests
or rights to be acquired. A land installment purchase obligation may
include such other terms related to the acquisition or possession of
such interests or rights as may be necessary or convenient.

3. Payments under a land installment purchase obligation shall be in
semi-annual or annual installments, as provided in the land installment
purchase obligation, commencing within one year of the start of the
term, provided that only one such installment scheduled in any fiscal
year of a municipality may contain a principal component. The interest
and principal components of each installment shall be identified therein
and shall be made at the same times and in the same amounts as would be
permitted if the land installment purchase obligation were issued in the
form of a serial bond or a sinking fund bond, provided that if the
municipality elects to schedule such payments at the same times and in
the same amounts as would be permitted if the land installment purchase
agreement were a sinking fund bond, section 22.10 of this chapter shall
apply, and the owner of such land installment purchase agreement shall
be considered a bondholder for purposes of said section, provided,
however, that no such owner shall have any lien, trust or other interest
in moneys held by the state comptroller until the scheduled installment
date on which such amounts are to be paid. The first such installment
shall be sufficient to pay interest on the land installment purchase
obligation accruing prior to the date of the installment.

4. The obligation to make installment payments under a land
installment purchase obligation shall be a faith and credit obligation
of the issuer thereof and shall constitute indebtedness under this
chapter to the same extent as if issued in the form of bond bearing
interest in the amount of the interest component of each such
installment.

5. Any municipality may negotiate the terms of a land installment
purchase obligation with the owner of such interests or rights and the
finance board may delegate the power to set the terms of and sell such
land installment purchase obligation to such owner to the chief
financial officer, provided that any such delegation pursuant to this
sentence shall not include the power to negotiate the price of land
which is the subject of such land installment purchase obligation.
Before executing any such agreement, the finance board of the
municipality shall adopt a resolution determining such agreement is in
the prudent financial interest of the municipality and stating the basis
of that determination.

6. A land installment purchase obligation issued by a municipality
shall be restricted from transfer and may not be the subject of
certificates of participation, unless explicitly agreed to by the
parties.

7. The interest paid pursuant to a land installment purchase
obligation shall be exempt from taxation for municipal and state
purposes. Section 161.00 of this chapter shall not apply to land
installment purchase obligations.

* NB Repealed July 31, 2031