New York Laws
Title 4 - Local Obligations: Terms, Form and Contents Thereof; Sale and Issuance Thereof
57.00 - Sale of Bonds.

§ 57.00 Sale of bonds. a. Bonds shall be sold only at public sale and
in accordance with the procedure set forth in this section and sections
58.00 and 59.00 of this title, except as otherwise provided in this
paragraph. Bonds may be sold at private sale to the United States
government or any agency or instrumentality thereof, the state of New
York municipal bond bank agency, to any sinking fund or pension fund of
the municipality, school district or district corporation selling such
bonds, or, in the case of sales by the city of New York prior to July
first, two thousand twenty-four, also to the municipal assistance
corporation for the city of New York or to any other purchaser with the
consent of the mayor and the comptroller of such city and approval of
the state comptroller, or, in the case of sales by the county of Nassau
prior to December thirty-first, two thousand seven, also to the Nassau
county interim finance authority with the approval of the state
comptroller, or, in the case of sales by the city of Buffalo prior to
June thirtieth, two thousand thirty-seven, also to the Buffalo fiscal
stability authority with the approval of the state comptroller, or, in
the case of bonds or other obligations of a municipality issued for the
construction of any sewage treatment works, sewage collecting system,
storm water collecting system, water management facility, air pollution
control facility or solid waste disposal facility, also to the New York
state environmental facilities corporation, or, in the case of bonds or
other obligations of a school district or a city acting on behalf of a
city school district in a city having a population in excess of one
hundred twenty-five thousand but less than one million inhabitants
according to the latest federal census, issued to finance or refinance
the cost of school district capital facilities or school district
capital equipment, as defined in section sixteen hundred seventy-six of
the public authorities law, also to the dormitory authority of the state
of New York. Bonds of a river improvement or drainage district
established by or under the supervision of the department of
environmental conservation may be sold at private sale to the state of
New York as investments for any funds of the state which by law may be
invested, provided, however, that the rate of interest on any such bonds
so sold shall be approved by the water power and control commission and
the state comptroller. Bonds may also be sold at private sale as
provided in section 63.00 of this title. No bonds shall be sold on
option or on a deferred payment plan, except that options to purchase,
effective for a period not exceeding one year, may be given:

1. in any case to the state of New York municipal bond bank agency
with respect to any bonds or bond anticipation notes; and

2. in the case of a municipality to the New York state environmental
facilities corporation with respect to bonds or other obligations issued
for the construction of any sewage treatment works, sewage collecting
system, storm water collecting system, water management facility, air
pollution control facility or solid waste disposal facility, or, in the
case of bonds or other obligations of a school district or a city acting
on behalf of a city school district in a city having a population in
excess of one hundred twenty-five thousand but less than one million
inhabitants according to the latest federal census, issued to finance or
refinance the cost of school district capital facilities or school
district capital equipment, as defined in section sixteen hundred
seventy-six of the public authorities law, also to the dormitory
authority of the state of New York. A loan commitment may also be
entered into by and between a municipality, and the state of New York
municipal bond bank agency, by and between a school district or a city
acting on behalf of a city school district in a city having a population
in excess of one hundred twenty-five thousand but less than one million

inhabitants according to the latest federal census and the dormitory
authority of the state of New York, and by and between a municipality
and the New York state environmental facilities corporation, such
commitment to be fulfilled by the purchase of the bonds or other
obligations referred to therein by such agency or such corporation, as
the case may be. As used in this paragraph, the term "sinking fund"
means a fund required by law to be established and maintained for the
purpose of amortizing indebtedness evidenced by sinking fund bonds
issued pursuant to the provisions of this chapter or issued by any
municipality, school district or district corporation under any other
law.

b. Bonds shall be sold without limitation as to rate of interest and
for a sum not less than the par value of, and the accrued interest on,
such obligations except as authorized by this chapter, and may also be
sold by municipalities at private sale to the state of New York
municipal bond bank agency and to the New York state environmental
facilities corporation, and in addition by the city of New York to the
municipal assistance corporation for the city of New York, and by the
county of Nassau to the Nassau county interim finance authority, and by
the city of Buffalo to the Buffalo fiscal stability authority, at such
rate or rates of interest as may be agreed upon by and between the
issuing municipality and either of such agency or corporation, as the
case may be. When sold at public sale, the rate of interest shall be
determined in the manner provided in section 59.00 of this title.
However, the agency or corporation prescribing the terms, form and
contents of such bonds, subject to the foregoing provisions of this
paragraph, may fix a maximum rate of interest at which such bonds shall
be sold.

c. Bonds for one or more specific objects or purposes or classes of
objects or purposes, or a combination thereof, may be sold as a single
bond issue.

d. The state comptroller shall adopt a rule or order which he may
amend from time to time:

1. Designating a financial newspaper or newspaper published and
circulated in the city of New York in which notices for the sale of
bonds may be published;

2. Prescribing the procedure for the circularization of notices for
the sale of bonds;

3. Prescribing such other requirements as he may deem necessary
relating to the publication or circularization of notices for the sale
of bonds, in addition to but not inconsistent with the provisions of
this chapter;

4. Prescribing such data and information as he may deem advisable to
be contained in notices for the sale of bonds, in addition to but not
inconsistent with the provisions of this chapter; and

5. Prescribing the requirements for the alternative and permissive
publication or circularization of notices for the sale of bonds of an
issue not exceeding five million dollars, as permitted in section 63.00
of this chapter.

Such rule or order and the amendments thereof shall be filed in his
office and in such other offices as he may designate.

e. Notwithstanding the limitations set forth in paragraph b of this
section, a municipality, school district, or district corporation may
provide for the public sale of its bonds at a price of less than the
face value of such bonds at maturity; provided that no issue of bonds
shall be sold at a price such that the difference between the sale price
of such bonds, not including accrued interest, and the face value of
such bonds at maturity, shall exceed five percent of the face value of

such issue of bonds at maturity unless the municipality, school district
or district corporation issuing such bonds has determined to issue them
pursuant to a substantially level or declining annual debt service
schedule or unless interest is contributed at least annually to a
sinking fund in accordance with section two of article VIII of the
constitution and the procedures of section 22.10 of this article. The
cost of such original issue discount, together with other costs of the
issuance of obligations, shall be deemed a part of the cost of the
object or purpose for which such obligations are issued.

* f. To facilitate the marketing of any issue of bonds issued pursuant
to paragraph e of this section, such municipality, school district or
district corporation may, notwithstanding any limitations on private
sales of bonds provided by law, and subject to rules promulgated by the
state comptroller governing such sales: (A) arrange for the underwriting
of such bonds at private sale through negotiated agreement, compensation
for such underwriting to be provided by negotiated fee or by sale of
such bonds to an underwriter at a price of less than the sum of face
value at maturity of, and the accrued interest on, such obligations; or
(B) arrange for private sale of such bonds through negotiated agreement,
compensation for such sale to be provided by negotiated arrangement, if
required. The cost of such underwriting or private placement shall be
deemed a preliminary cost for purposes of section 11.00 of this chapter.

* NB Repealed July 15, 2024