Bill Text: NY S06910 | 2013-2014 | General Assembly | Introduced

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Bill Title: Relates to long-term environmental facilities corporation financing and the town of Cairo; provides relief by validating and ratifying the town of Cairo's actions with respect to a bond anticipation note and renewals.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-08-11 - SIGNED CHAP.309 [S06910 Detail]

Download: New_York-2013-S06910-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6910
                                   I N  S E N A T E
                                    March 28, 2014
                                      ___________
       Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
         printed to be committed to the Committee on Local Government
       AN ACT to legalize, validate, ratify and confirm certain  actions  taken
         by  the  town of Cairo, Greene county, New York, with respect to obli-
         gations heretofore issued, and authorizing the issuance of obligations
         of said town with respect thereto
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1.  Legislative  findings.  It is hereby found and determined
    2  that:  (i) the town of Cairo, Greene county, New  York,  has  heretofore
    3  duly  adopted  bond  resolutions  authorizing  the aggregate issuance of
    4  $2,915,000 serial bonds to finance the  upgrade  and  expansion  to  the
    5  town's  wastewater  treatment  plant,  construction of a force main, and
    6  additional improvements to its sewer system; (ii) pursuant to such  bond
    7  resolutions,  said town issued a bond anticipation note in the principal
    8  amount of $750,000 on December 24, 2008 and renewals of said bond antic-
    9  ipation note on December 24, 2009 and December 23, 2010 and made a prin-
   10  cipal payment of $29,285 on said bond anticipation note on December  23,
   11  2010;  (iii)  pursuant to such bond resolutions, said town also obtained
   12  short term financing through the New York state environmental facilities
   13  corporation ("EFC") on September  29,  2011  in  the  maximum  aggregate
   14  amount  of  $2,885,715.00,  which  refinanced  the outstanding principal
   15  balance of said bond anticipation note of $720,715; (iv)  the  town  did
   16  not  make the minimum principal payments on the EFC short term financing
   17  bond anticipation notes of $19,300 for 2011 and $20,000 for  2012  until
   18  December 2013; (v) section 21.00 of the local finance law states that no
   19  annual  installment  of  bonds  or bond anticipation notes shall be more
   20  than fifty per centum of the smallest prior installment, except that the
   21  municipality may determine to provide for substantially level or declin-
   22  ing annual debt service, and section 23.00  of  the  local  finance  law
   23  states that notes or the renewals thereof shall not extend more than two
   24  years  beyond  the original date of issue unless a portion of such notes
   25  or the renewals thereof shall be redeemed from a source other  than  the
   26  proceeds of bonds  within two years from such original date of issue and
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14271-01-4
       S. 6910                             2
    1  unless  a  further  portion  thereof  shall  be so redeemed prior to the
    2  termination of each twelve  months'  period  succeeding  the  date  such
    3  original  portion  was  so  redeemed;  and (vi) the timing of the town's
    4  payments  on  the EFC note render it incapable of amortizing a long-term
    5  conversion of the short-term EFC financing to comply with the  aforesaid
    6  amortization  requirements  of  sections  21.00  and  23.00 of the local
    7  finance law.
    8    S 2. Notwithstanding the defects described in section one of this act,
    9  the bond anticipation notes and any renewals thereof issued by the  town
   10  of  Cairo  as described in section one of this act, and all resolutions,
   11  acts and proceedings heretofore adopted or taken by the town  board  and
   12  the  supervisor  of said town in relation thereto, are hereby validated,
   13  ratified and confirmed and any principal payment made by  such  town  in
   14  2013  on  the bond anticipation note shall be deemed to be in compliance
   15  with the amortization requirements of sections 21.00, 23.00, and  169.00
   16  of the local finance law.
   17    S  3.  Except  as  otherwise set forth in this act, the bonds and bond
   18  anticipation notes, and renewals thereof, issued pursuant  to  this  act
   19  shall  be  issued in accordance with the provisions of the local finance
   20  law.
   21    S 4. If any clause, sentence, subdivision, paragraph or part  of  this
   22  act  be  adjudged  by any court of competent jurisdiction to be invalid,
   23  such judgment shall not affect, impair or invalidate the remainder ther-
   24  eof, but shall be confined in its operation  to  the  clause,  sentence,
   25  subdivision, paragraph, section or part thereof directly involved in the
   26  controversy in which such judgment shall have been rendered.
   27    S 5. This act shall take effect immediately.