N.Y. Local Finance Law § 23.00: Bond anticipation notes

§ 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.