§ 60. Issuance of housing bonds, or urban renewal bonds. 1. Whenever the legislature, under the power granted to it by section three of article eighteen of the state constitution, shall have authorized the creation of a state debt or debts for the purpose of providing moneys out of which to make loans for low rent housing for persons of low income as defined by law, or for the clearance, replanning, reconstruction and rehabilitation of substandard and insanitary areas, or for both such purposes and for recreational and other facilities incidental or appurtenant thereto, 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. They shall be known as "housing bonds," except where issued in connection with a program of urban renewal undertaken by a city, town or village pursuant to the general municipal law, in which event they shall be known as "urban renewal bonds." The state comptroller may issue and sell a single series of bonds pursuant to one or more authorizations to sell "housing", "urban renewal", or other bonds, whether or not pursuant to this section, and for one or more duly authorized works or purposes. As part of the proceedings for such issuance and sale of bonds the state comptroller shall designate the works or purposes for which they were issued. It shall not be necessary for the state comptroller 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 shall be separately accounted for according to the works or purposes designated for such sale by the state 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. Except as hereinafter provided, such bonds, or the portion thereof at any time issued, shall be made payable (a) in equal annual principal installments the first of which shall be payable not more than three years 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 fifty years after the date of issue, in the case of housing bonds, and not more than twenty-five years after the date of issue in the case of urban renewal bonds 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 last of which annual installments shall be payable at such time as the comptroller may determine but not more than fifty years after the date of issue, in the case of housing bonds, and not more than twenty-five years after the date of issue in the case of urban renewal bonds. Where bonds are payable pursuant to paragraph (b) of this subdivision, except for the year of initial issuance if less than a full year of debt service is to become due in that year, either (i) the greatest aggregate amount of debt service payable in any fiscalyear shall not differ from the lowest aggregate amount of debt service payable in any other fiscal year by more than five percent or (ii) the aggregate amount of debt service in each fiscal year shall be less than the aggregate amount of debt service in the immediately preceding 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 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 aid which the proceeds of the bonds are to be applied or loaned or in the alternative, the weighted average period of the probable life of the works or purposes to aid which the proceeds of the bonds are to be applied or loaned taking into consideration the respective amounts of bonds issued for each work or purpose, as may be determined under section sixty-one of this chapter and in accordance with the certificate of the state commissioner of housing and community renewal. Such certificates 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 to aid 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 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. Such bonds shall be sold in such lot or lots, from time to time, as may be required for the loans for which the creation of a state debt or debts shall have been authorized pursuant to section three of article eighteen of the constitution, 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 actuallyreceived 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 four nor more than fifteen days, Sundays excepted, after a notice of such sale has been published 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 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 subdivision, 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 five 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 ifthe state has entered into one or more letter of credit agreements or other liquidity facility agreements entered into for the express purpose 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 or of notes issued in anticipation thereof shall be paid into the state treasury, and shall be a separate fund or funds available only to the extent of appropriations for loans pursuant to section three of article eighteen of the constitution. Such proceeds of the bonds or notes as will not be immediately required for application to a loan to a housing authority, a municipality or a corporation regulated by law as to rents, profits, dividends and disposition of its property or franchise and engaged in providing housing facilities may, upon request of the housing authority, the municipality or said corporation which is being charged with the interest costs of the bonds or notes from which such proceeds are derived, or upon the request of the state commissioner of housing and community renewal, be invested by the state comptroller in obligations of the categories approved for investment in section ninety-eight-a of this chapter and of maturities approved by the state comptroller; and any returns earned upon such investment shall be credited by the state comptroller to the account of such housing authority, municipality or corporation and applied by the state comptroller to reduce to the extent of such returns the liability of such housing authority, municipality or corporation for interest under its loan contract with the state. 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 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, 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 besuch 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 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 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.
§ 60. Issuance of housing bonds, or urban renewal bonds. 1. Whenever the legislature, under the power granted to it by section three of article eighteen of the state constitution, shall have authorized the creation of a state debt or debts for the purpose of providing moneys out of which to make loans for low rent housing for persons of low income as defined by law, or for the clearance, replanning, reconstruction and rehabilitation of substandard and insanitary areas, or for both such purposes and for recreational and other facilities incidental or appurtenant thereto, 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. They shall be known as "housing bonds," except where issued in connection with a program of urban renewal undertaken by a city, town or village pursuant to the general municipal law, in which event they shall be known as "urban renewal bonds." The state comptroller may issue and sell a single series of bonds pursuant to one or more authorizations to sell "housing", "urban renewal", or other bonds, whether or not pursuant to this section, and for one or more duly authorized works or purposes. As part of the proceedings for such issuance and sale of bonds the state comptroller shall designate the works or purposes for which they were issued. It shall not be necessary for the state comptroller 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 shall be separately accounted for according to the works or purposes designated for such sale by the state 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. Except as hereinafter provided, such bonds, or the portion thereof at any time issued, shall be made payable (a) in equal annual principal installments the first of which shall be payable not more than three years 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 fifty years after the date of issue, in the case of housing bonds, and not more than twenty-five years after the date of issue in the case of urban renewal bonds 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 last of which annual installments shall be payable at such time as the comptroller may determine but not more than fifty years after the date of issue, in the case of housing bonds, and not more than twenty-five years after the date of issue in the case of urban renewal bonds. Where bonds are payable pursuant to paragraph (b) of this subdivision, except for the year of initial issuance if less than a full year of debt service is to become due in that year, either (i) the greatest aggregate amount of debt service payable in any fiscalyear shall not differ from the lowest aggregate amount of debt service payable in any other fiscal year by more than five percent or (ii) the aggregate amount of debt service in each fiscal year shall be less than the aggregate amount of debt service in the immediately preceding 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 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 aid which the proceeds of the bonds are to be applied or loaned or in the alternative, the weighted average period of the probable life of the works or purposes to aid which the proceeds of the bonds are to be applied or loaned taking into consideration the respective amounts of bonds issued for each work or purpose, as may be determined under section sixty-one of this chapter and in accordance with the certificate of the state commissioner of housing and community renewal. Such certificates 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 to aid 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 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. Such bonds shall be sold in such lot or lots, from time to time, as may be required for the loans for which the creation of a state debt or debts shall have been authorized pursuant to section three of article eighteen of the constitution, 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 actuallyreceived 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 four nor more than fifteen days, Sundays excepted, after a notice of such sale has been published 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 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 subdivision, 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 five 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 ifthe state has entered into one or more letter of credit agreements or other liquidity facility agreements entered into for the express purpose 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 or of notes issued in anticipation thereof shall be paid into the state treasury, and shall be a separate fund or funds available only to the extent of appropriations for loans pursuant to section three of article eighteen of the constitution. Such proceeds of the bonds or notes as will not be immediately required for application to a loan to a housing authority, a municipality or a corporation regulated by law as to rents, profits, dividends and disposition of its property or franchise and engaged in providing housing facilities may, upon request of the housing authority, the municipality or said corporation which is being charged with the interest costs of the bonds or notes from which such proceeds are derived, or upon the request of the state commissioner of housing and community renewal, be invested by the state comptroller in obligations of the categories approved for investment in section ninety-eight-a of this chapter and of maturities approved by the state comptroller; and any returns earned upon such investment shall be credited by the state comptroller to the account of such housing authority, municipality or corporation and applied by the state comptroller to reduce to the extent of such returns the liability of such housing authority, municipality or corporation for interest under its loan contract with the state. 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 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, 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 besuch 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 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 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.
§ 60. Issuance of housing bonds, or urban renewal bonds. 1. Whenever the legislature, under the power granted to it by section three of article eighteen of the state constitution, shall have authorized the creation of a state debt or debts for the purpose of providing moneys out of which to make loans for low rent housing for persons of low income as defined by law, or for the clearance, replanning, reconstruction and rehabilitation of substandard and insanitary areas, or for both such purposes and for recreational and other facilities incidental or appurtenant thereto, 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. They shall be known as "housing bonds," except where issued in connection with a program of urban renewal undertaken by a city, town or village pursuant to the general municipal law, in which event they shall be known as "urban renewal bonds." The state comptroller may issue and sell a single series of bonds pursuant to one or more authorizations to sell "housing", "urban renewal", or other bonds, whether or not pursuant to this section, and for one or more duly authorized works or purposes. As part of the proceedings for such issuance and sale of bonds the state comptroller shall designate the works or purposes for which they were issued. It shall not be necessary for the state comptroller 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 shall be separately accounted for according to the works or purposes designated for such sale by the state 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. Except as hereinafter provided, such bonds, or the portion thereof at any time issued, shall be made payable (a) in equal annual principal installments the first of which shall be payable not more than three years 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 fifty years after the date of issue, in the case of housing bonds, and not more than twenty-five years after the date of issue in the case of urban renewal bonds 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 last of which annual installments shall be payable at such time as the comptroller may determine but not more than fifty years after the date of issue, in the case of housing bonds, and not more than twenty-five years after the date of issue in the case of urban renewal bonds. Where bonds are payable pursuant to paragraph (b) of this subdivision, except for the year of initial issuance if less than a full year of debt service is to become due in that year, either (i) the greatest aggregate amount of debt service payable in any fiscalyear shall not differ from the lowest aggregate amount of debt service payable in any other fiscal year by more than five percent or (ii) the aggregate amount of debt service in each fiscal year shall be less than the aggregate amount of debt service in the immediately preceding 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 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 aid which the proceeds of the bonds are to be applied or loaned or in the alternative, the weighted average period of the probable life of the works or purposes to aid which the proceeds of the bonds are to be applied or loaned taking into consideration the respective amounts of bonds issued for each work or purpose, as may be determined under section sixty-one of this chapter and in accordance with the certificate of the state commissioner of housing and community renewal. Such certificates 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 to aid 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 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. Such bonds shall be sold in such lot or lots, from time to time, as may be required for the loans for which the creation of a state debt or debts shall have been authorized pursuant to section three of article eighteen of the constitution, 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 actuallyreceived 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 four nor more than fifteen days, Sundays excepted, after a notice of such sale has been published 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 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 subdivision, 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 five 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 ifthe state has entered into one or more letter of credit agreements or other liquidity facility agreements entered into for the express purpose 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 or of notes issued in anticipation thereof shall be paid into the state treasury, and shall be a separate fund or funds available only to the extent of appropriations for loans pursuant to section three of article eighteen of the constitution. Such proceeds of the bonds or notes as will not be immediately required for application to a loan to a housing authority, a municipality or a corporation regulated by law as to rents, profits, dividends and disposition of its property or franchise and engaged in providing housing facilities may, upon request of the housing authority, the municipality or said corporation which is being charged with the interest costs of the bonds or notes from which such proceeds are derived, or upon the request of the state commissioner of housing and community renewal, be invested by the state comptroller in obligations of the categories approved for investment in section ninety-eight-a of this chapter and of maturities approved by the state comptroller; and any returns earned upon such investment shall be credited by the state comptroller to the account of such housing authority, municipality or corporation and applied by the state comptroller to reduce to the extent of such returns the liability of such housing authority, municipality or corporation for interest under its loan contract with the state. 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 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, 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 besuch 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 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 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.
