2020 New York Laws
STF - State Finance
Article 5 - Borrowing by the State
57 - Issuance of State Bonds.

§  57.  Issuance  of state bonds.   1. Whenever the legislature, after
authorization of a bond issue by the people at a  general  election,  as
provided  by  section eleven of article seven of the state constitution,
or as provided by  section  three  of  article  eighteen  of  the  state
constitution,  shall  have authorized, by one or more laws, the creation
of a state debt or debts, bonds of the state, to the amount of the  debt
or  debts  so  authorized,  shall  be  issued  and  sold  by  the  state
comptroller. Any appropriation from the proceeds of the sale  of  bonds,
pursuant to this section, shall be deemed to be an authorization for the
creation  of  a state debt or debts to the extent of such appropriation.
The state comptroller may issue  and  sell  a  single  series  of  bonds
pursuant  to  one  or  more such authorizations and for one or more duly
authorized works or purposes. As part of the proceedings for  each  such
issuance  and  sale  of bonds, the state comptroller shall designate the
works or purposes for which they are issued. It shall not  be  necessary
for  him  to  designate  the  works  or purposes for which the bonds are
issued on the face of the bonds. The proceeds from the sale of bonds for
more than  one  work  or  purpose  shall  be  separately  accounted  for
according  to  the  works  or  purposes  designated for such sale by the
comptroller and the proceeds received for each work or purpose shall  be
expended only for such work or purpose. The bonds shall bear interest at
such  rate  or  rates as in the judgment of the state comptroller may be
sufficient or necessary to effect a sale of the bonds, and such interest
shall be payable at least semi-annually, in the case  of  bonds  with  a
fixed interest rate, and at least annually, in the case of bonds with an
interest  rate  that varies periodically, in the city of New York unless
annual payments of principal and interest result in substantially  level
or  declining  debt  service payments over the life of an issue of bonds
pursuant to paragraph (b) of subdivision two of this section  or  unless
accrued  interest  is  contributed  to a sinking fund in accordance with
subdivision three of section  twelve  of  article  seven  of  the  state
constitution,  in which case interest shall be paid at such times and at
such places as shall be determined by the  state  comptroller  prior  to
issuance of the bonds.
  2.  Such  bonds,  or  the portion thereof at any time issued, shall be
made payable (a) in equal annual principal installments or (b) in annual
installments of principal and interest  which  result  in  substantially
level  or  declining  debt service payments, over the life of the bonds,
the first of which annual installments shall be payable  not  more  than
one  year  from the date of issue and the last of which shall be payable
at such time as the comptroller may determine but not  more  than  forty
years or state fiscal years after the date of issue, not more than fifty
years after the date of issue in the case of housing bonds, and not more
than  twenty-five  years in the case of urban renewal bonds. Where bonds
are payable pursuant to paragraph (b) of this  subdivision,  except  for
the  year  or  state fiscal year of initial issuance if less than a full
year of debt service is to become due in that year or state fiscal year,
either (i) the greatest aggregate amount of debt service payable in  any
year  or  state  fiscal  year shall not differ from the lowest aggregate
amount of debt service payable in any other year or state fiscal year by
more than five percent or (ii) the aggregate amount of debt  service  in
each  year  or state fiscal year shall be less than the aggregate amount
of debt service in the immediately preceding year or state fiscal  year.
For  purposes  of  this  subdivision,  debt  service  shall  include all
principal, redemption price, sinking fund installments or contributions,
and interest scheduled  to  become  due.  For  purposes  of  determining
whether  debt  service  is  level  or  declining  on bonds issued with a
variable rate of interest pursuant to paragraph b of subdivision four of

this section, the comptroller shall assume a market rate of interest  as
of  the date of issuance. Where the comptroller determines that interest
on any bonds shall be compounded and payable  at  maturity,  such  bonds
shall  be  payable  only  in  accordance  with  paragraph  (b)  of  this
subdivision unless accrued interest is contributed to a sinking fund  in
accordance  with subdivision three of section twelve of article seven of
the state constitution. In no case shall any bonds or portion thereof be
issued for a period longer  than  the  probable  life  of  the  work  or
purpose,  or  part thereof, to which the proceeds of the bonds are to be
applied, or in the alternative,  the  weighted  average  period  of  the
probable  life  of  the  works  or purposes to which the proceeds of the
bonds are to be applied taking into consideration the respective amounts
of bonds issued for each work or purpose, as  may  be  determined  under
section sixty-one of this article and in accordance with the certificate
of  the  commissioner  of  general  services, and/or the commissioner of
transportation, state architect, state commissioner of housing and urban
renewal, or other authority, as the case may be, having charge by law of
the acquisition, construction, work or improvement for  which  the  debt
was  authorized.  Such  certificate  shall be filed in the office of the
state comptroller and shall state the  group,  or,  where  the  probable
lives  of  two  or  more  separable  parts  of  the work or purposes are
different, the groups, specified in such section, for which  the  amount
or  amounts,  shall  be  provided  by  the  issuance  and sale of bonds.
Weighted  average  period  of  probable  life  shall  be  determined  by
computing  the  sum  of the products derived from multiplying the dollar
value of the portion of the debt contracted for each work or purpose (or
class of works or purposes) by the probable life of such work or purpose
(or class of works or purposes) and dividing the resulting  sum  by  the
dollar  value  of  the  entire  debt after taking into consideration any
original issue discount.  Any  costs  of  issuance  financed  with  bond
proceeds  shall  be  prorated  among the various works or purposes. Such
bonds, or the portion thereof  at  any  time  sold,  shall  be  of  such
denominations,  subject  to  the  foregoing  provisions,  as  the  state
comptroller may determine. Notwithstanding the foregoing  provisions  of
this  subdivision,  the  comptroller  may issue all or a portion of such
bonds as serial debt, term debt or a combination  thereof,  maturing  as
required  by  this subdivision, provided that the comptroller shall have
provided for the retirement each year or state fiscal year, or otherwise
have provided for the  payment  of,  through  sinking  fund  installment
payments or otherwise, a portion of such term bonds in an amount meeting
the  requirements  of  paragraph (a) or (b) of this subdivision or shall
have established a sinking fund and provided for  contributions  thereto
as  provided  in subdivision eight of this section and section twelve of
article seven of the state constitution.
  3. The bonds shall be sold in such lot or lots, from time to time,  as
may  be  required  for  the  work or purpose for which the creation of a
state debt or debts shall have been authorized and appropriations  shall
have  been  made  by  law,  but  not  in  excess of the aggregate amount
authorized for such purpose. For the purpose of  determining  the  total
amount of debt sold for a particular work or purpose, only the amount of
money  actually received by the state shall be considered when bonds are
sold at a discount.
  4. a. Such bonds shall be sold at par, at par plus a premium, or at  a
discount  to  the bidder offering the lowest interest cost to the state,
taking into consideration any premium or discount and, in  the  case  of
refunding  bonds,  the bona fide initial public offering price, not less
than two business days after the publication of  a  notice  of  sale  at
least  once  in  a  definitive  trade  publication of the municipal bond

industry published on each business day in the state of New  York  which
is generally available in electronic or physical form to participants in
the  municipal  bond industry, which notice shall state the terms of the
sale. The comptroller may not change the terms of the sale unless notice
of  such  change  is  sent  via  a  definitive trade wire service of the
municipal bond industry which, in general, makes  available  information
regarding  activity  and  sales  of  municipal  bonds  and  is generally
available to participants in the municipal bond industry, at  least  one
hour  prior  to the time of the sale as set forth in the original notice
of sale.  In  so  changing  the  terms  or  conditions  of  a  sale  the
comptroller  may  send notice by such wire service that the sale will be
delayed by up to thirty days, provided that wire notice of the new  sale
date  will be given at least one business day prior to the new time when
bids will be accepted. In such event, no new notice  of  sale  shall  be
required  to  be  published.  Notwithstanding  the provisions of section
three hundred five of the state technology law or any other law, if  the
notice  of  sale  contains  a  provision that bids will only be accepted
electronically in the manner  provided  in  such  notice  of  sale,  the
comptroller  shall  not be required to accept non-electronic bids in any
form. Advertisements shall contain a provision to the  effect  that  the
state  comptroller, in his or her discretion, may reject any or all bids
made in pursuance of such advertisements,  and  in  the  event  of  such
rejection,  the  state  comptroller is authorized to negotiate a private
sale or readvertise for bids in the form and manner above  described  as
many  times  as,  in  his  or her judgment, may be necessary to effect a
satisfactory sale. Notwithstanding  the  foregoing  provisions  of  this
paragraph,  whenever in the judgment of the comptroller the interests of
the state will be served thereby, he or she  may  sell  state  bonds  at
private  sale  at  par,  at  par  plus  a premium, or at a discount. The
comptroller  shall  promulgate  regulations  governing  the  terms   and
conditions  of any such private sales, which regulations shall include a
provision that he or she give notice  to  the  governor,  the  temporary
president  of the senate, and the speaker of the assembly, of his or her
intention to conduct a private sale  of  obligations  pursuant  to  this
section  not  less  than  two  business  days  prior to such sale or the
execution of any binding agreement to effect such sale.
  b. Notwithstanding paragraph a of this subdivision,  whenever  in  the
judgment  of  the  comptroller the interests of the state will be served
thereby, such bonds may be sold at public or private sale in  accordance
with  the  procedures set forth in paragraph a of this subdivision, with
interest rates that vary in accordance with a formula or  procedure  set
forth  or  referred  to in the bonds and may provide the holders thereof
with such rights to require the state or other persons  to  purchase  or
redeem  such  bonds  or renewals thereof from the proceeds of the resale
thereof or otherwise from time to time prior to the  final  maturity  of
such bonds as the comptroller may determine and the state may resell, at
any time prior to final maturity, any such bonds acquired as a result of
the  exercise of such rights. The holders of bonds sold pursuant to this
paragraph may be provided  with  the  right  to  require  the  state  to
repurchase  or  redeem  the bonds prior to the final maturity thereof if
the state has entered into one or more letter of  credit  agreements  or
other  liquidity  facility  agreements  entered  into  for  the  express
purposes of such sale and which shall require a financially  responsible
party or parties to the agreement or agreements, which may be the state,
to  purchase  or redeem all or any portion of such bonds tendered by the
holders thereof for repurchase or redemption prior to the final maturity
of such bonds. Such  requirement  to  purchase  or  redeem  bonds  shall
continue  until  such  time as the right of the holders of such bonds to

require repurchase or redemption  of  such  bonds  prior  to  the  final
maturity  thereof  shall  cease.  A  financially  responsible  party  or
parties, for purposes of this paragraph, shall mean a person or  persons
determined by the comptroller to have sufficient net worth and liquidity
to  purchase and pay for on a timely basis all of the bonds which may be
tendered for repurchase or redemption by the holders thereof.
  5. The proceeds of bonds sold pursuant to this section shall  be  paid
into the treasury, and each portion thereof provided for a given work or
purpose  shall  be  accounted  for  separately  in  one  or more capital
projects  funds  in  accordance  with  generally   accepted   accounting
principles and made available only for such work or purpose, and only to
the extent of appropriations.
  6.  Except  with  respect  to  bonds  issued in the manner provided in
paragraph (c) of subdivision seven of this section,  all  bonds  of  the
state  of  New  York  which  the comptroller of the state of New York is
authorized to issue and sell, shall be executed in the name of the state
of  New  York  by  the  manual  or  facsimile  signature  of  the  state
comptroller  and  his  seal  (or a facsimile thereof) shall be thereunto
affixed, imprinted, engraved or otherwise reproduced. In case the  state
comptroller  who  shall  have  signed  and sealed any of the bonds shall
cease to hold the office of state comptroller before the bonds so signed
and sealed shall have been actually countersigned and delivered  by  the
fiscal  agent or trustee, such bonds may, nevertheless, be countersigned
and delivered as herein provided, and may be  issued  as  if  the  state
comptroller who signed and sealed such bonds had not ceased to hold such
office.  Any  bond of a series may be signed and sealed on behalf of the
state of New York by such person as at the actual time of the  execution
of  such  bond  shall hold the office of comptroller of the state of New
York, although at the date of the bonds of such series such  person  may
not  have  held  such  office.  The coupons to be attached to the coupon
bonds of each series shall be signed by the facsimile signature  of  the
state  comptroller  of  the state of New York or by any person who shall
have held the office of state comptroller of the state of New York on or
after the date of the bonds of such series,  notwithstanding  that  such
person  may not have been such state comptroller at the date of any such
bond or may have ceased to be such state comptroller at  the  date  when
any  such  bond shall be actually countersigned and delivered. The bonds
of each series shall be countersigned with the manual  signature  of  an
authorized  employee  of the fiscal agent or trustee of the state of New
York. No bond and no coupon thereunto appertaining  shall  be  valid  or
obligatory  for  any  purpose  until  such manual countersignature of an
authorized employee of the fiscal agent or trustee of the state  of  New
York shall have been duly affixed to such bond.
  7.  (a)  The  state  comptroller is authorized to issue bonds in fully
registered form,  executed  as  provided  in  subdivision  six  of  this
section,  in  such  denominations  as  shall  be determined by the state
comptroller and exchangeable for fully registered bonds in denominations
as shall be determined by the state comptroller.
  (b) The state comptroller is authorized to issue  bonds  as  a  single
registered  bond,  executed  as  provided  in  subdivision  six  of this
section, in an amount equal to the principal amount  of  the  series  of
bonds being issued, or more than one registered bond in amounts equal to
the  principal  amount of the series of bonds maturing in a single year,
and to deposit the bond or bonds with a securities depository  organized
under  the  banking  law  of  the  state of New York and qualifying as a
clearing agency registered under the United States  Securities  Exchange
Act  of 1934, as amended. Book entries representing beneficial ownership

of  the  bonds  shall  be  in  denominations  determined  by  the  state
comptroller.
  (c)   The   state   comptroller   is  authorized  to  issue  bonds  as
uncertificated securities within the meaning of  article  eight  of  the
uniform  commercial  code  with  beneficial  ownership  in denominations
determined by the state comptroller and exchangeable in book entries  in
denominations as shall be determined by the state comptroller.
  8.  Any  sinking  funds  created  pursuant  to  this  section shall be
maintained and managed by the state comptroller or an agent  or  trustee
designated  by  the  state comptroller and shall be funded in accordance
with the requirements of section twelve of article seven  of  the  state
constitution. Money in such sinking funds shall be held as cash or shall
be  invested  in  direct  obligations  of  the  federal  government,  or
obligations the interest on which is exempt from federal income taxation
and which are  fully  secured  by  direct  obligations  of  the  federal
government,  having  such  maturities  and  interest  payment  dates  as
required to make all payments to be made from the sinking fund  as  they
come  due.  Amounts  in  such sinking funds shall be used solely for the
purpose of retiring the bonds secured thereby  except  that  amounts  in
excess  of  the  required  balance  on any contribution date and amounts
remaining in such funds after all of the bonds secured thereby have been
retired shall be deposited in the general fund. No  appropriation  shall
be  required  for  disbursement of money, or income earned thereon, from
any sinking fund for the purpose of paying principal of and interest  on
the bonds for which such fund was created, except that interest shall be
paid  from  any  such  fund  only  if, and to the extent that, it is not
payable annually and contributions on account of such interest were made
to the fund.