New York Laws
Title 4 - Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof
53.00 - Obligations Redeemable Prior to Maturity.

§ 53.00 Obligations redeemable prior to maturity. a. The agency
prescribing the terms, form and contents of bonds may reserve to itself
the power to call in and redeem such bonds prior to the date of their
maturity. Such power may be exercised upon the giving of notice of such
call for redemption by publication at least three times in a financial
newspaper published and circulated in the city of New York and in the
official newspaper or newspapers of the municipality, school district or
district corporation, or, if there be no official newspaper, then in any
newspaper having general circulation therein which the agency shall
designate for such purpose, the first publication to be at least thirty
days prior to the date set for such redemption or, in the case of
registered bonds, by mailing or transmitting such notice to the
registered holder at least thirty days prior to such date. The agency
prescribing the terms, form and contents of notes may reserve to itself
the power to call in and redeem such notes prior to the date of their
maturity upon the giving of such notices as it shall prescribe.

b. If such bonds or notes are payable in installments, the
installments remaining unpaid may be called for redemption only (i) in
the inverse order of their maturity or, (ii) in equal proportionate
amounts; provided, however, that for bonds issued during the one-year
period commencing July first, nineteen hundred eighty-eight, and for
bonds issued during the one-year period commencing July first, nineteen
hundred eighty-nine, and for bonds issued during the one-year period
commencing July first, nineteen hundred ninety, and for bonds issued
during the three-year period commencing July first, nineteen hundred
ninety-one, and for bonds issued during the period from July first,
nineteen hundred ninety-four up until and including July fifteenth,
nineteen hundred ninety-seven and for bonds issued during the period
from July fifteenth, nineteen hundred ninety-seven up until and
including July fifteenth, two thousand, and for bonds issued during the
period from July fifteenth, two thousand up until and including July
fifteenth, two thousand three, and for bonds issued during the period
from July fifteenth, two thousand three up until and including July
fifteenth, two thousand six, and for bonds issued during the period from
July fifteenth, two thousand six up until and including July fifteenth,
two thousand nine, and for bonds issued during the period from July
fifteenth, two thousand six up until and including July fifteenth, two
thousand twelve, and for bonds issued during the period from July
fifteenth, two thousand nine up until and including July fifteenth, two
thousand fifteen, and for bonds issued during the period from July
fifteenth, two thousand fifteen up until and including July fifteenth,
two thousand eighteen, and for bonds issued during the period from July
fifteenth, two thousand eighteen up until and including July fifteenth,
two thousand twenty-one, and for bonds issued during the period from
July fifteenth, two thousand twenty-one up until and including July
fifteenth, two thousand twenty-four, installments remaining unpaid on
such 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 district corporation at the time of the issuance thereof.
Whenever any bonds or notes are called for redemption prior to the date
of their maturity, interest shall cease to be paid thereon after the
date for redemption set forth in such call for redemption. The sum to be
paid to redeem any unpaid installment prior to its maturity, exclusive
of the interest accruing on such installment to the date of redemption,
shall in no event be in excess of the lesser amount of either (i) the
par value of such installment plus one-half of one per centum of such
par value for each calendar year or part thereof elapsing between the

date for redemption set forth in such call for redemption and the date
of maturity of such installment, provided, however, that such amount
shall not exceed one hundred five per centum of such par value, or (ii)
the par value of such installment plus the total of all unpaid interest
on such installment which would have accrued from the date of redemption
to the date of maturity thereof had such installment not been redeemed
prior to maturity, except that bonds sold to the state of New York
municipal bond bank agency, which are subject to call as hereinbefore
authorized, may provide for the payment of a redemption premium not to
exceed five per centum of the par value of the bonds to be called,
payable on the date of the redemption thereof; provided, however, that
for bonds issued during the one-year period commencing July first,
nineteen hundred eighty-eight, and for bonds issued during the one-year
period commencing July first, nineteen hundred eighty-nine, and for
bonds issued during the one-year period commencing July first, nineteen
hundred ninety, and for bonds issued during the three-year period
commencing July first, nineteen hundred ninety-one, and for bonds issued
during the period from July first, nineteen hundred ninety-four up until
and including July fifteenth, nineteen hundred ninety-seven, and for
bonds issued during the period from July fifteenth, nineteen hundred
ninety-seven up until and including July fifteenth, two thousand, and
for bonds issued during the period from July fifteenth, two thousand up
until and including July fifteenth, two thousand three, and for bonds
issued during the period from July fifteenth, two thousand three up
until and including July fifteenth, two thousand six, and for bonds
issued during the period from July fifteenth, two thousand six up until
and including July fifteenth, two thousand nine, and for bonds issued
during the period from July fifteenth, two thousand nine up until and
including July fifteenth, two thousand twelve, and for bonds issued
during the period from July fifteenth, two thousand twelve up until and
including July fifteenth, two thousand fifteen, and for bonds issued
during the period from July fifteenth, two thousand fifteen up until and
including July fifteenth, two thousand eighteen, and for bonds issued
during the period from July fifteenth, two thousand eighteen up until
and including July fifteenth, two thousand twenty-one, and for bonds
issued during the period from July fifteenth, two thousand twenty-one up
until and including July fifteenth, two thousand twenty-four, a
municipality, school district, or district corporation may provide for
redemption of such bonds prior to the date of their maturity at a price
or prices as may be as determined by the issuer of such bonds or notes
at the time of the issuance thereof.