N.Y. Local Finance Law § 91.00: Refunding of capital notes

§ 91.00 Refunding of capital notes. a. Where serial bonds have not

been issued to finance any part of an object or purpose and such object

or purpose has been financed by the issuance of a capital note, such

capital note may be refunded by the issuance of serial bonds pursuant to

this section.

b. The last installment of bonds issued pursuant to this section shall

mature not later than the expiration of the maximum period of probable

usefulness of the object or purpose for which the capital note was

issued. Such period shall be that which was in effect at the time the

capital note was originally issued unless such period has been

subsequently shortened, in which event the shorter period in effect at

the time of the issuance of the bonds shall apply.

c. The first installment of bonds issued pursuant to this section

shall mature not later than eighteen months after the date of issuance

of such bonds or two years after the date of original issuance of such

notes, whichever is the earlier. However, if bond anticipation notes are

issued in anticipation of bonds authorized to be issued pursuant to this

section, the provisions of section 23.00 of this chapter shall apply

with respect to the issuance, maturity and renewal thereof provided that

the date of original issuance of the capital note which is being

refunded shall be deemed to be the original date of issue of such bond

anticipation notes and provided further that such bond anticipation

notes or the renewal thereof shall not extend beyond five years from

such original date of issue, and in such case, the first installment of

such bonds may, in the alternative, be made to mature not later than

five years from the date of the original issuance of such capital note.

No annual installment of such bonds shall be more than fifty per centum

in excess of the smallest prior installment.

d. Bonds issued pursuant to this section shall not be designated as

refunding bonds but shall contain a recital that they are issued

pursuant to this section. The provisions of this chapter, including but

not limited to sections 33.10, 34.00, 35.00, 36.00, 37.00, 38.00 and

107.00, relating to the authorization, form and contents, sale,

execution and issuance of serial bonds, other than refunding bonds

issued pursuant to section 90.00 of this chapter, shall apply to the

authorization, form and contents, sale, execution and issuance of such

bonds issued pursuant to this section. The bond resolution shall contain

a description of the capital note to be refunded and a statement of the

maximum period of probable usefulness of the object or purpose for which

the capital note was issued and which was in effect on the date of

issuance of the note and that which will be in effect on the date of

issuance of the bonds.

e. Capital notes issued by a municipality to provide current funds for

a down payment in connection with the financing of capital improvements

or equipment, required pursuant to the provisions of paragraph b, or

subdivision one of paragraph c, of section 107.00 of this chapter, shall

not be refunded.