N.Y. State Finance Law § 69-c: Variable rate bonds

§ 69-c. Variable rate bonds. Notwithstanding any other provision of

law to the contrary, any State-supported debt may be issued as variable

rate bonds.

Notwithstanding any other provision of law to the contrary, for

purposes of calculating the present value of debt service and

calculating savings in connection with the issuance of refunding

indebtedness, (i) the effective interest rate and debt service payable

on variable rate bonds in connection with which, and to the extent that,

an authorized issuer has entered into an interest rate exchange or

similar agreement pursuant to which the authorized issuer makes payments

based on a fixed rate and receives payments based on a variable rate

that is reasonably expected by such authorized issuer to be equivalent

over time to the variable rate paid on the related variable rate bonds,

shall be calculated assuming that the rate of interest on such variable

rate bonds is the fixed rate payable by the authorized issuer on such

interest rate exchange or similar agreement for the scheduled term of

such agreement; (ii) the effective interest rate and debt service on

variable rate bonds in connection with which, and to the extent that, an

authorized issuer has not entered into such an interest rate exchange or

similar agreement shall be calculated assuming that interest on such

variable interest rate bonds is payable at a rate or rates reasonably

assumed by the authorized issuer; (iii) the effective interest rate and

debt service on any bonds subject to optional or mandatory tender shall

be a rate or rates reasonably assumed by the authorized issuer; (iv) any

variable rate bonds that are converted or refunded to a fixed rate,

whether or not financed on an interim basis with bond anticipation

notes, shall be assumed to generate a present value savings; and (v)

otherwise, the effective interest rate and debt service on any bonds

shall be calculated at a rate or rates reasonably assumed by the

authorized issuer. Notwithstanding any other provision of law to the

contrary, for calculating the present value of debt service and

calculating savings in connection with the issuance of refunding

indebtedness, the refunding of variable rate debt instruments with new

variable rate debt instruments shall be excluded from any such

requirements, if effectuated for sound business purposes.