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NY A01461
Bill
Status
Introduced
1/17/2023
Primary Sponsor
Fred Thiele
Click for details
AI Summary
- Changes requirement for good faith bond deposits from all bidders to only the successful bidder, unless the municipality, school district, or district corporation opts to require deposits from all bidders
- Maintains minimum deposit amount at one-half of one percent of the bond amount, with acceptable forms including certified or cashier's check, cash via wire transfer, eligible surety bond, or eligible letter of credit
- Defines "eligible surety bond" as a bond from an insurance company authorized in New York with claims-paying ability rated in one of the three highest categories by a nationally recognized rating organization
- Defines "eligible letter of credit" as an irrevocable letter from a qualifying bank for a term not exceeding ninety days, with either the bank or its holding company's short-term debt rated in one of the three highest categories, or the bank in compliance with federal minimum risk-based capital requirements
- Takes effect immediately upon enactment
Legislative Description
Relates to the delivery of the good faith deposit following award of the bonds to the successful bidder; provides that a municipality, school district or district corporation may require that such deposit be made as a condition precedent to the consideration of a bid for the bonds.
Last Action
referred to local governments
1/3/2024
Committee Referrals
Local Governments1/17/2023
Full Bill Text
No bill text available