N.Y. Local Finance Law § 53.00: Obligations redeemable prior to maturity

§ 53.00 Obligations redeemable prior to maturity. a. The agency

prescribing the terms, form and contents of bonds may reserve to itself

the power to call in and redeem such bonds prior to the date of their

maturity. Such power may be exercised upon the giving of notice of such

call for redemption by publication at least three times in a financial

newspaper published and circulated in the city of New York and in the

official newspaper or newspapers of the municipality, school district or

district corporation, or, if there be no official newspaper, then in any

newspaper having general circulation therein which the agency shall

designate for such purpose, the first publication to be at least thirty

days prior to the date set for such redemption or, in the case of

registered bonds, by mailing or transmitting such notice to the

registered holder at least thirty days prior to such date. The agency

prescribing the terms, form and contents of notes may reserve to itself

the power to call in and redeem such notes prior to the date of their

maturity upon the giving of such notices as it shall prescribe.

b. If such bonds or notes are payable in installments, the

installments 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

including 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

redemption. 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 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 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 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 twenty-four up until and

including July fifteenth, two thousand twenty-seven, 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.