§39-5  Sale of bonds.  (a)  Thedirector of finance may make such arrangements as may be necessary or properfor the sale of each issue of bonds or part thereof as are issued pursuant tothis part, including, without limitation, arranging for the preparation andprinting of the bonds, the official statement and any other documents orinstruments deemed required for the issuance and sale of bonds, and retainingfinancial, accounting, and legal consultants, all upon such terms andconditions as the director of finance deems advisable and in the best interestof the State.  The director of finance may offer the bonds at competitive saleor may negotiate the sale of the bonds to any person or group of persons, tothe United States of America, or any board, agency, instrumentality, orcorporation thereof, to the employees retirement system of the State, to anypolitical subdivision of the State, or to any board, agency, instrumentality,public corporation, or other governmental organization of the State or of anypolitical subdivision of the State.

(b)  The sale of the bonds by the director offinance by negotiation shall be at such price or prices and upon such terms andconditions, and the bonds shall bear interest at such rate or rates or suchvarying rates determined from time to time in such manner, as the director offinance, with the approval of the governor, shall approve.

(c)  The sale of the bonds by the director offinance at competitive sale shall be at such price or prices and upon suchterms and conditions, and the bonds shall bear interest at such rate or ratesor such varying rates determined from time to time in the manner as specifiedby the successful bidder, and the bonds shall be sold in accordance with thissubsection.  The bonds offered at competitive sale shall be sold only afterpublished notice of sale advising prospective purchasers of the proposed sale. The bonds offered at competitive sale may be sold to the bidder offering topurchase the bonds at the lowest interest cost.  For the purpose of thissubsection, the lowest interest cost shall be determined on any one of thefollowing bases as selected by the director of finance, with the approval ofthe governor:

(1)  The figure obtained by adding together theamounts of interest payable on the bonds from their date to their respectivematurity dates at the rate or rates specified by the bidder and deducting fromthe sum obtained the amount of any premium offered by the bidder;

(2)  Where the interest on the bonds is payableannually, the annual interest rate (compounded annually), or, where theinterest on the bonds is payable semiannually, the rate obtained by doublingthe semiannual interest rate (compounded semiannually), necessary to discountthe principal and interest payments on the bonds from the dates of paymentthereof to the date of the bonds and to the price bid (the price bid for thepurpose of this paragraph shall not include the amount of interest accrued onthe bonds from their date to the date of delivery and payment); or

(3)  Where the interest on the bonds is payable otherthan annually or semiannually or will vary from time to time, and which, in theopinion of the director of finance, shall result in the lowest cost to theState;

provided that in any case the right shall bereserved to reject any or all bids and waive any irregularity or informality inany bid.

(d)  Bonds offered at competitive sale, withoutfurther action, shall bear interest at the rate or rates specified by thesuccessful bidder or varying rates determined from time to time in the mannerspecified by the successful bidder with the consent of the director offinance.  The notice of sale required by this section shall be given at leastonce and at least five days prior to the date of the sale in the State and in afinancial newspaper or newspapers published in any of the cities of New York,Chicago, or San Francisco, and shall be in a form and contain terms andconditions that the director of finance shall determine.  The notice of saleshall comply with the requirements of this section if it merely advisesprospective purchasers of the proposed sale and makes reference to a detailednotice of sale which is available to prospective purchasers and which setsforth the specific details of the bonds and terms and conditions upon which thebonds are to be offered.  The notice of sale and any detailed notice of salemay omit the date and time of sale, in which event the date and time shall beeither given in the same manner and medium in which the original notice of salewas given or transmitted via electronic communication systems deemed proper bythe director of finance which are generally available to the financialcommunity, in either case at least twenty-four hours prior to the time fixedfor the sale. [L 1988, c 28, pt of §3; am L 1998, c 2, §11]