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NY A09410
Bill
Status
12/19/2025
Primary Sponsor
Michaelle Solages
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AI Summary
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Serial bonds issued by municipalities, school districts, and district corporations must have their first installment mature no later than two years after the bond date or two years after the first bond anticipation note, whichever is earlier, making this requirement permanent rather than temporary
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Removes complex historical restrictions on bond redemption that had been repeatedly extended in three-year increments since 1988, most recently through July 15, 2027
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Grants finance boards of municipalities, school districts, and district corporations permanent authority to call unpaid bond installments for early redemption at prices, times, and terms determined at issuance
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Eliminates previous caps on redemption premiums, including the former limit of 105% of par value or formulas based on remaining interest
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Repeals Section 107.00 of the local finance law, which contained the 5% capital improvement funding requirement for municipalities before issuing bonds
Legislative Description
Permanently requires that the first installment of serial bonds mature not later than two years after the date of such bonds; provides that principal installments remaining unpaid on bonds may be called for redemption prior to their date of maturity in such amounts, at such times in such manner and pursuant to such terms as may be determined by the finance board of a municipality, school district or corporation at the time of the issuance thereof; repeals provisions that permanently eliminate the requirement that municipalities provide from current funds an amount equal to at least 5% of the estimated cost of each capital improvement (excluding from such cost state or federal grant funding and certain benefited area assessments) prior to the issuance of bonds or bond anticipation notes to finance such capital improvement.
Last Action
referred to local governments
1/7/2026