CHAPTER 541 AN ACT to amend chapter thirteen of the laws of nineteen hundred eightyseven amending the public authorities law relating to providing financial assistance to the metropolitan transportation authority, in relation to increasing the appropriation made to the department of transportation for the suburban transportation fund and for certain highway and bridge improvements Became a law July 30, 1987, with the approval of the Governor. The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Section twenty-one of chapter thirteen of the laws of nineteen hundred eighty-seven, amending the public authorities law relating to providing financial assistance to the metropolitan transportation authority, is is amended to read as follows: § 21. The sum of (twenty million dollars ($20,000,000)] ninety million dollars ($90,000,000), or so much thereof as may be necessary and available, is hereby appropriated as an advance from the capital projects fund for the period April first, nineteen hundred eighty-seven to March thirty-first, nineteen hundred eighty-eight to the department of transportation for the preparation of designs, plans specifications and estimates, for contract engineering services, for the acquisition of property, and for the construction and reconstruction of projects undertaken for the purposes of carrying out the provisions of section eightyeight-b of the state finance law and section three hundred seventy-six of the public authorities law. No expenditure shall be made from this appropriation until a certificate of approval of availability has been issued by the director of the budget and filed with the state comptroller and a copy filed with the chairman of the senate finance committee and the chairman of the assembly ways and means committee. Such certificate may be amended from time to time by the director of the budget and a copy of such amendment shall be filed with the state comptroller, the chairman of the senate finance committee and the chairman of the assembly ways and means committee. The director of the budget shall not issue any certificate of approval of availability from this appropriation until (a) he has entered into an agreement with the commissioner of transportation and the New York state thruway authority to reimburse the state in full from the sale of of bonds or notes issued by the New York state thruway authority to be supported by the suburban transportation fund, or (b) he has entered into an agreement with the commissioner of transportation to reimburse advances made pursuant to this appropriation from the suburban transportation fund. Such advance funds shall be reimbursed by the New York state thruway authority not later than March thirty-first of the fiscal year in which the funds are advanced. The state comptroller shall, at the commencement of each month certify to the director of the budget, chairman the of the senate finance committee and the chairman of the assembly ways and means committee the amounts disbursed pursuant to this appropriation for projects which are reimbursable from (i) the proceeds of bonds or notes issued by the New York state thruway authority, and (ii) the suburban transportation fund for month preceding such certification. Upon such certification, the comptroller is hereby authorized and directed to transfer to the capital projects fund from the suburban transportation fund an amount equal to the the EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law transfer, state amount certified as reimbursable, provided, however, § 2. This act shall take effect immediately. 90,000,000 CHAPTER 542 AN ACT to amend the local finance law, in relation to the redemption of obligations prior to maturity, the cost of sales, the sale of bonds, the sale of variable rate notes, the exchange of bonds and the down payment for bonds, and the New York state financial emergency act the city of New York, in relation to a pledge and agreement of the state Became a law July 30, 1987, with the approval of the Governor. for The People of the State of New York, represented in Senate and Assembly, do enact as follows: Section 1. Legislative findings. In nineteen hundred seventy-five and nineteen hundred seventy-eight, certain laws were enacted in response to the financial emergency existing in the city of New York. In certain instances these laws were by their terms to expire on June thirtieth, nineteen hundred eighty-two. In nineteen hundred eighty-two, the legislature found that these statutes had been instrumental in permitting the city of New York to make progress toward a full fiscal recovery, and that expiration of these statutes would impede the efforts of such city in this regard. The legislature also found that certain other changes important to the marketing of New York city obligations and consistent with current market practices were necessary to assist such city in this effort and that other units of municipal government could safely benefit from additional flexibility in issuing securities. Accordingly, certain statutes were extended and certain new provisions were enacted, certain of which statutes and provisions were by their terms to expire on June thirtieth, nineteen hundred eighty-six. Since then, the city of New York has achieved a full fiscal recovery. The network of legislation enacted in nineteen hundred seventy-five, nineteen hundred seventy-eight and nineteen hundred eighty-two was instrumental in achieving such recovery. In addition, many of these laws have provided the city of New York and other units of local government with proven and effective methods of financing that enable them to issue securities in a flexible and efficient manner in accordance with current market practices. Consequently, certain statutes and provisions sions were again extended and will by their terms expire on June thirtieth, nineteen hundred eighty-seven. While the city of New York's ability to meet its bond financed capital needs solely by competitive sale have yet to be determined, certain statutes and provisions are again extended and will by their terms expire on June thirtieth, nineteen hundred eighty-eight. § 2. Paragraph b of section 53.00 of the local finance law, as amended by chapter two hundred seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: b. If such bonds or notes are payable in installments, the installments remaining unpaid may be called for re redemption only (1) in the verse in 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-six] eighty-seven, install i ments remaining unpaid on such bonds may be called for redemption pursuant to such schedule 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-six] eighty-seven, a municipality, school district, or district corporation may provide for redemption of prior to the date of their maturity at a price or prices as may be as determined by [such municipality, school district, or district corporation] the issuer of such bonds or notes at the time of the issuance thereof. §3. Paragraph (a) of section 54.10 of such law, as amended by chapter two hundred seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: (a) To facilitate the marketing of any city of New York issued on or before June [eighty-seven] eighty-eight, the mayor issue of bonds or notes of the thirtieth, nineteen hundred and comptroller of such city may, subject to the approval of the state comptroller and the limitations on private sales of bonds and notes, respectively, provided by law: (i) arrange for the underwriting of its bonds or notes through negotiated agreement or public letting, and provide for compensation for services rendered in connection with such underwriting by negotiated fee or by sale of such bonds or notes to an underwriter at a price of less than the sum of par value of, and the accrued interest on, such obligations; (ii) arrange for the private sale of its bonds or notes through negotiated agreement, and provide for compensation for services rendered in connection with such sales by negotiated fee or by sale of such bonds or notes at a price of less than the sum of par value of, and the accrued interest on, such obligations; (iii) provide for the private sale of its bonds or notes at a price of less than the sum of par value of, and accrued interest on, such obligations; provided that no such obligations shall be sold at a price such that the difference between the sale price of such obligations and the sum of par value of, and accrued interest on such obligations, shall exceed the sum of (A) five percent of the par value of such obligations and (B) the cost of services rendered in connection with underwriting such obligations pursuant to subdivision (i) of this paragraph; or (iv) provide for redemption of its bonds or notes prior to the date of their maturity at a price or prices and pursuant to such schedule as may be determined by the city at the time of the issuance thereof, notwithstanding any limitation set chapter. forth in section 53.00 of this The cost of such underwriting or private placement or such original issue discount, together with other costs of the issuance of or object purpose part of the cost of the obligations, shall be deemed a § 4. Paragraph a of section 57.00 of such law, as amended by chapter two hundred seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: EXPLANATION-Matter in italics is new; matter in brackets ( ) is old law a. Bonds shall be sold only at public sale and in accordance with the procedure set forth in this section and sections 58.00 and 59.00 of this chapter, except as otherwise provided in this paragraph. Bonds may be sold at private sale to the United States government or any agency or instrumentality thereof, the state of New York municipal bond bank agency, to any sinking fund or pension fund of the municipality, school district or district corporation selling such bonds, or, in the case of sales by the city of New York prior to July first, nineteen hundred [eighty-seven] eighty-eight, also to the municipal assistance corporation for the city of New York or to any other purchaser with the consent of the mayor and the comptroller of such city and approval of the state comptroller, or, in the case of bonds or other obligations of a municipality issued for the construction of any sewage treatment works, sewage collecting system, storm water collecting system, water management facility, air pollution control facility or solid waste disposal facility, also to the New York state environmental facilities corporation. Bonds of a river improvement or drainage district established by or under the supervision of the department tment of environmental conservation may be sold at private sale to the State of New York as investments for any funds of the state which by law may be invested, provided, however, that the rate of interest on any such bonds so sold shall be approved by the water power and control commission and the state comptroller. Bonds may also be sold at private sale as provided in section 63.00 of this chapter. No bonds shall be sold on option or on deferred payment plan, except that options to purchase, effective for a period not exceeding one year, may be given: a 1. in any case to the state of New York municipal bond bank agency with respect to any bonds or bond anticipation notes; and air 2. in the case of a municipality to the New York state environmental facilities corporation with respect to bonds or other obligations issued for the construction of any sewage treatment works, sewage collecting system, storm water collecting system, water management pollution control facility or solid waste disposal facility. A loan commitment may also be entered into by and between a municipality, and the state of New York municipal bond bank agency and by and between a municipality and the New York state environmental facilities corporation, such commitment to be fulfilled by the purchase of the bonds or other obligations referred to therein by such agency or such corporation, the case may be. As used in this paragraph, the term "sinking fund" means a fund required by law to be established and maintained for the purpose of amortizing indebtedness evidenced by sinking fund bonds issued pursuant to the provisions of this chapter or issued by any municipality, school district or district corporation under any other law. as Paragraph e of section 57.00 of such law, as amended by chapter two hundred seventy-seven seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: e. Notwithstanding the limitations set forth in paragraph b of this section, for the one-year period commencing July first, nineteen hundred [eighty-six) eighty-seven, a municipality, school district, or district corporation may provide for the public sale of its bonds at a price of less than the sum of par value of, and accrued interest on, such bonds; provided that no such bonds shall be sold at a price such that the difference between the sale price of such bonds and the sum of par value of, and accrued interest on such bonds, shall exceed the sum of (1) five percent of the par value of such bonds and (2) the cost of services rendered in connection with underwriting such bonds. The cost of such original issue discount, together with other costs of the issuance of obligations, shall be deemed a part of the cost of the object or purpose for which such obligations are issued. § 6. Subdivision three of paragraph g of section 90.00 of such law, as amended by chapter two hundred seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: 3. Outstanding bonds may, pursuant to a power to recall and redeem or with the consent of the holders thereof be exchanged for refunding bonds (i) if the refunding bonds are to bear interest at a rate equal to or lower than that borne by the bonds to be refunded or (ii) if, in the of the city of New York prior to July first, nineteen hundred case [eighty-seven] eighty-eight, the annual payment required for principal and interest on the refunding bond is less than the annual payment required for principal and interest on the bond to be refunded, in each case such annual payments to be determined by dividing the total principal and interest payments due over the remaining life of the bond by the number of years to maturity of the bond or (iii) if, the bonds to be refunded were issued by the city of New York after June thirtieth, nineteen hundred seventy-eight and prior to July first, nineteen hundred [eighty-seven] eighty-eight and contain covenants referring to the existence of the New York state financial control board for the city of New York or any other covenants relating to matters other than the prompt payment of principal and interest on the obligations when due and the refunding bond omits or modifies any such covenant. § 7. Subdivision eight of paragraph d of section 107.00 of such law, as amended by chapter two hundred seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: in 8. Notwithstanding any other provision of law, the financing by the city of New York prior to July first, ninet nineteen hundred (eighty-seven] eighty-eight of any object or purpose which has a period of probable usefulness determined by law by the issuance of any bonds or notes, cluding (i) the issuance of bonds or notes to obtain reimbursement for funds heretofore advanced for the object or purpose for which the bonds or notes are being issued, (ii) the issuance of bonds or notes to redeem notes previously issued for the object or purpose for which the bonds or notes are being issued or (iii) the issuance of bonds to refund bonds previously issued for the object or purpose for which bonds are being issued. § 8. Subdivision one of section ten-a of section two of chapter eight hundred sixty-eight of the laws of nineteen hundred seventy-five, constituting the New York state financial emergency act for the city of New York, as amended by chapter two hundred seventy-seven of the laws of nineteen hundred eighty-six, is amended to read as follows: 1. In the event that after the date on which the provisions of this act become operative, any notes or bonds are issued by the city prior to July first, nineteen hundred [eighty-seven] eighty-eight, or any bonds are issued by a state financing agency, the state of New York hereby authorizes the city and authorizes and requires such state financing agency to include a pledge and agreement of the state of New York in any agreement made by the city or such state financing agency with holders or guarantors of such notes or bonds that the state will not take any action which will (a) substantially impair the authority of the board during a control period, as defined in subdivision twelve of section two of this act as in effect on the date such notes or bonds are issued (i) to approve, disapprove, or modify any financial plan or financial plan modification, includin the revenue projections (or any item thereof) contained therein, subject to the standards set forth in paragraphs c, d, e and f of subdivision one of section eight of this act as in effect on the date such notes or bonds are issued and paragraph b of such subdivision as in effect from time to time, (ii) to disapprove a contract of the city or a covered organization if the performance of such contract would be inconsistent with the financial plan or to approve or disapprove proposed short-term or long-term borrowing of the city or a covered organization or any agreement or other arrangement referred to in subdivision four of section seven of the act, or (iii) to establish and adopt procedures with respect to the deposit in and disbursement from the board fund of city revenues; (b) substantially impair a, the plans, financial plan modifi a authority of the board to review financial cations, contracts of the city or the covered organizations and proposed short-term or long-term borrowings of the city and the covered organizations; (c) substantially impair the independent maintenance of separate fund for the payment of debt service on bonds and notes of the city; (d) alter the composition of the board so that the majority of the voting members of the board are not officials of the state of New York elected in a state-wide election or appointees of the governor; (e) terminate the existence of the board prior to the time to be determined in accordance with section thirteen of this act as in effect on the date such notes or bonds are issued; (f) substantially modify the requirement that the city's financial statements be audited by a nationally recognized independent certified public accounting firm or consortium of firms and that a report on such audit be furnished to the board; or alter the definition of a control period set forth in subdivision twelve (g) EXPLANATION-Matter in italics is new; matter in brackets [ ] is old law |