§39-5  Sale of bonds.  (a)  The
director of finance may make such arrangements as may be necessary or proper
for the sale of each issue of bonds or part thereof as are issued pursuant to
this part, including, without limitation, arranging for the preparation and
printing of the bonds, the official statement and any other documents or
instruments deemed required for the issuance and sale of bonds, and retaining
financial, accounting, and legal consultants, all upon such terms and
conditions as the director of finance deems advisable and in the best interest
of the State.  The director of finance may offer the bonds at competitive sale
or may negotiate the sale of the bonds to any person or group of persons, to
the United States of America, or any board, agency, instrumentality, or
corporation thereof, to the employees retirement system of the State, to any
political subdivision of the State, or to any board, agency, instrumentality,
public corporation, or other governmental organization of the State or of any
political subdivision of the State.



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



(c)  The sale of the bonds by the director of
finance at competitive sale shall be at such price or prices and upon such
terms and conditions, and the bonds shall bear interest at such rate or rates
or such varying rates determined from time to time in the manner as specified
by the successful bidder, and the bonds shall be sold in accordance with this
subsection.  The bonds offered at competitive sale shall be sold only after
published notice of sale advising prospective purchasers of the proposed sale. 
The bonds offered at competitive sale may be sold to the bidder offering to
purchase the bonds at the lowest interest cost.  For the purpose of this
subsection, the lowest interest cost shall be determined on any one of the
following bases as selected by the director of finance, with the approval of
the governor:



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



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



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



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



(d)  Bonds offered at competitive sale, without
further action, shall bear interest at the rate or rates specified by the
successful bidder or varying rates determined from time to time in the manner
specified by the successful bidder with the consent of the director of
finance.  The notice of sale required by this section shall be given at least
once and at least five days prior to the date of the sale in the State and in a
financial 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 and
conditions that the director of finance shall determine.  The notice of sale
shall comply with the requirements of this section if it merely advises
prospective purchasers of the proposed sale and makes reference to a detailed
notice of sale which is available to prospective purchasers and which sets
forth the specific details of the bonds and terms and conditions upon which the
bonds are to be offered.  The notice of sale and any detailed notice of sale
may omit the date and time of sale, in which event the date and time shall be
either given in the same manner and medium in which the original notice of sale
was given or transmitted via electronic communication systems deemed proper by
the director of finance which are generally available to the financial
community, in either case at least twenty-four hours prior to the time fixed
for the sale. [L 1988, c 28, pt of §3; am L 1998, c 2, §11]