N.Y. Town Law § 231: Permanent financing of district and special improvements

§ 231. Permanent financing of district and special improvements. 1.

When the cost of any improvement is to be borne by special assessment to

be assessed and paid as provided in this subdivision, such improvement

shall be temporarily financed pursuant to the local finance law until

after the confirmation of the assessment. When such assessments shall

have been confirmed, a period of thirty days shall be given from the

date of confirmation in which such assessments may be paid in whole or

in part, provided a part payment so made shall equal ten per centum, or

a multiple thereof, of the amount payable and the obligation or

appropriate portion thereof cancelled. Upon the expiration of such

period, obligations shall be issued pursuant to the local finance law

for the total cost thereof, deducting the amounts of the assessments or

parts thereof so paid within such period.

Upon ascertainment of the amount of the cost to be assessed by special

assessment the town board shall prescribe that such assessments may be

so paid at the option of the payer in whole or in part, without penalty

or interest, and the unpaid amounts, if any, to be paid in annual

installments, with interest thereon.

If bond anticipation notes are issued, all collections from

assessments so paid in whole or in part shall be applied at once in

reduction of such notes.

Annual collections of assessments payable in installments shall be

applied in payment of maturing obligations and accruing interest. If the

total amount of assessments payable in installments collected in any

year shall be less than the amount required to pay maturing bonds and

accruing interest, the town board may direct that surplus moneys, not

otherwise appropriated, be applied.

Any surplus accruing from the sale of obligations, whether from

premiums or otherwise, shall be applied to the reduction of the debt so

incurred.

2. Notwithstanding any other provisions of this chapter, the town

board, upon the completion of the improvement or at any time prior

thereto, may determine to issue, pursuant to the local finance law, the

obligations of said town in such an amount as said board may estimate to

be sufficient to pay the entire cost of the improvement, but not in

excess of the maximum amount proposed to be expended for the improvement

as stated in the petition, or in the final order, if the town board

proceeded under article twelve-A of this chapter, or, if such

improvement be an improvement constructed pursuant to section two

hundred two-b of this chapter, not in excess of the estimated expense

thereof as stated in the notice of hearing. There shall be annually

apportioned and assessed upon the several lots and parcels of land

especially benefited by the improvement in proportion to the amount of

benefit which the improvement shall confer upon the same, and in the

manner provided in section two hundred two-a of the town law for the

assessment of the cost of maintenance in a sewer district, an amount

sufficient to pay the principal and interest of any obligations issued

for such improvement as the same shall become due and to pay the cost of

maintenance for the fiscal year commencing on the first day of January

next succeeding. In the event that the annual collection of such

assessments shall be less than the amount required to pay the principal

and interest of such obligations as they shall become due, the town

board shall direct that surplus moneys not otherwise appropriated be

applied.

Whenever an unpaid assessment has been divided into annual

installments pursuant to this section the town board may, at the time of

making such division, or at any time thereafter, provide that all future

annual installments may be prepaid together with a sum sufficient to

meet all future pro rata shares of the annual interest payable on such

obligations and which would otherwise have been added to such future

installments had same not been prepaid. All sums received from such

prepayments shall be deposited and retained in a separate account in a

depositary designated in the manner provided by section ten of the

general municipal law to be applied only to the payment of the

obligations issued pursuant to this section. Notwithstanding the

foregoing, such sums so received may be invested in the manner permitted

in section eleven of the general municipal law.