§39-55  Sale of revenue bonds. (a)  The director of finance may make such arrangements as may be necessary orproper for the sale of each issue of revenue bonds or part thereof as areissued pursuant to this part, including, without limitation, arranging for thepreparation and printing of the revenue bonds, the official statement and anyother documents or instruments deemed required for the issuance and sale ofrevenue bonds and retaining such financial, accounting and legal consultants,all upon such terms and conditions as the director of finance deems advisableand in the best interest of the State.  The department head or the governingbody may offer the revenue bonds at competitive sale or may negotiate the saleof the revenue bonds to any person or group of persons, to the United States ofAmerica, or any board, agency, instrumentality, or corporation thereof, to theemployees retirement system of the State, to any political subdivision of theState, or to any board, agency, instrumentality, public corporation, or othergovernmental organization of the State or of any political subdivision of theState.

(b)  The sale of the revenue bonds by thedepartment head or the governing body by negotiation shall be at such price orprices, and upon such terms and conditions, and the revenue bonds shall bearinterest at such rate or rates or such varying rates determined from time totime in the manner as the department head or the governing body, with theapproval of the governor, shall approve.

(c)  The sale of the revenue bonds by thedepartment head or the governing body at competitive sale shall be at suchprice or prices and upon such terms and conditions, and the revenue bonds shallbear interest at such rate or rates or such varying rates determined from timeto time in the manner as specified by the successful bidder, and the revenuebonds shall be sold in accordance with this subsection.  The revenue bondsoffered at competitive sale shall be sold only after published notice of saleadvising prospective purchasers of the proposed sale.  The revenue bondsoffered at competitive sale may be sold to the bidder offering to purchase therevenue bonds at the lowest interest cost, the interest cost, for the purposeof this subsection, being determined on any one of the following bases asselected by the department head or the governing body, with the approval of thegovernor:

(1)  The figure obtained by adding together theamounts of interest payable on the revenue bonds from their date to theirrespective maturity dates at the rate or rates specified by the bidder anddeducting from the sum obtained the amount of any premium offered by thebidder;

(2)  Where the interest on the revenue bonds ispayable annually, the annual interest rate (compounded annually), or where theinterest on the revenue bonds is payable semiannually, the rate obtained bydoubling the semiannual interest rate (compounded semiannually), necessary todiscount the principal and interest payments on the revenue bonds from thedates of payment thereof to the date of the revenue bonds and to the price bid(the price bid for the purpose of this paragraph shall not include the amountof interest accrued on the revenue bonds from their date to the date ofdelivery and payment); or

(3)  Where the interest on the revenue bonds ispayable other than annually or semiannually or will vary from time to time uponsuch basis as, in the opinion of the department head or the governing body,shall result in the lowest cost to the State;

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

(d)  Revenue bonds offered at competitive sale,without further action, shall bear interest at the rate or rates specified bythe successful bidder or the varying rates determined from time to time in themanner specified by the successful bidder with the consent of the departmenthead or the governing body.  The notice of sale required by this section shallbe given at least once and at least five days prior to the date of the sale inthe State and in a financial newspaper or newspapers published in any of thecities of New York, Chicago, or San Francisco, and shall be in a form andcontain terms and conditions that the department head or the governing bodyshall determine.  The notice of sale shall comply with the requirements of thissection if it merely advises prospective purchasers of the proposed sale andmakes reference to a detailed notice of sale which is available to prospectivepurchasers and which sets forth the specific details of the revenue bonds andterms and conditions upon which any revenue bonds are to be offered.  Thenotice of sale and any detailed notice of sale may omit the date and time ofsale, in which event the date and time shall be either given in the same mannerand medium in which the original notice of sale was given or transmitted viaelectronic communication systems deemed proper by the department head or thegoverning body, which are generally available to the financial community, ineither case at least twenty-four hours prior to the time fixed for the sale.

(e)  A governing body may delegate theresponsibility for any or all of the determinations or actions to the memberwho is the presiding officer or to the executive director or other officer ofthe board, commission, agency, authority or public corporation,instrumentality, or other body. [L 1988, c 28, pt of §3; am L 1998, c 2, §12]