N.Y. Local Finance Law § 92.00: Refunding of bond anticipation notes issued by a school district prior to annexation or consolidation

§ 92.00 Refunding of bond anticipation notes issued by a school

district prior to annexation or consolidation. a. Where serial bonds

have been authorized by a school district to finance an object or

purpose and in anticipation of the issuance of such bonds the school

district has issued a bond anticipation note or notes and subsequent to

the issuance and prior to the maturity of such note or notes such school

district has been annexed to an adjoining district or adjoining

districts as provided in section fifteen hundred five of the education

law or consolidated as provided in section fifteen hundred twelve or

section fifteen hundred twenty-two or section fifteen hundred twenty-six

of the education law, the enlarged school district formed by such

annexation or consolidation may issue its serial bonds pursuant to this

section for the object or purpose of refunding such bond anticipation

note or notes.

b. It is hereby determined that the period of probable usefulness of

the object or purpose for which bonds may be issued pursuant to this

section is the same as the period of probable usefulness specified in

paragraph a of section 11.00 of this chapter for the object or purpose

for which the serial bonds were authorized by such school district prior

to its annexation or consolidation. 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 such object or purpose.

Such period shall be that which was in effect at the time the first bond

anticipation note was 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. Bonds issued pursuant to this section shall be issued within five

years after the date of issuance of the first such bond anticipation

note and the first installment thereof shall mature not later than

eighteen months after the date of issuance of such bonds or five years

after the date of issuance of the first such note, whichever is the

earlier. 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 section 37.00, relating to the authorization, form and

content, sale, execution and issuance of serial bonds, other than bonds

issued pursuant to sections 90.00 and 91.00 of this chapter, shall apply

to the authorization, form and content, sale, execution and issuance of

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

contain a description of the bond anticipation note or notes to be

refunded and a statement of the maximum period of probable usefulness of

the object or purpose for which the bond anticipation note or notes were

issued and which was in effect on the date of issuance of the first bond

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

issuance of the bonds.

e. The object or purpose for which bonds may be issued pursuant to

this section shall constitute a specific object or purpose within the

meaning of said term as used in this chapter.