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

(b) In lieu of the statement of the time and date for the opening of
bids required by subparagraph (a) of this subdivision, a statement (i)
that the time and date for the opening of bids will be provided on not
less than twenty-four hours prior notice by means of a supplemental
notice of sale and indicating the manner in which such supplemental
notice will be provided, or (ii) setting a time and date for the opening
of bids, stating that notice of a change in the time or date for the
opening of bids may be provided not less than one hour prior to the time
originally scheduled for the opening of bids by means of a supplemental
notice of sale and indicating the manner in which such supplemental
notice will be provided. Where notice is given that the time or date of
a sale will be changed without specifying the new time or date, notice
of the new time or date of sale must be provided by means of a second
supplemental notice of sale at least one hour prior to the new time for
the opening of bids.
(c) A supplemental notice of sale shall refer to and be deemed a part
of the notice of sale required by this section and shall not establish
or change the terms of the sale other than the time or date for the
opening of bids, the amount of principal scheduled to be repaid in each
year, the right of redemption prior to maturity, and the face value at
maturity of the issue or any installment thereof. The time set for the
opening of bids in the supplemental notice of sale shall not be less
than five nor more than thirty days after publication of the notice of
sale required pursuant to paragraph a of this section.
(d) The supplemental notice of sale shall be provided by transmittal
over a definitive trade wire service of the municipal bond industry
which, in general, makes available information regarding activity and
sales of municipal bonds and is generally available to participants in
the municipal bond industry, or by publication in the financial
newspaper published and circulated in the city of New York which the
state comptroller, in the rule or order referred to in paragraph d of
section 57.00 of this article, shall designate for such publication. In
addition, when the time and date for the opening of bids is delayed by
more than twenty-four hours, public notice of the time and date set for
the opening of bids in the supplemental notice of sale shall be given to
the news media and shall be posted in one or more designated public
locations within the issuing municipality, school district or district
corporation at least twenty-four hours prior to the time and date set
for the opening of bids; provided however, that such public notice shall
not be construed to require publication as a legal notice.
3. The maximum rate of interest, if any, fixed by or pursuant to
paragraph b of section 57.00 of this chapter.
c. Such notice shall also include:

1. A statement that the rate or rates of interest to be bid shall be a
multiple of one-hundredth of one per centum per annum or a multiple of
one-eighth of one per centum per annum, as the agency in charge of the
sale may determine and may require or permit in such notice.
2. A statement of the conditions of sale and the methods of bidding
which shall include the following:
a. A statement that one or more than one rate of interest may be bid;
provided, however, that only one rate of interest may be bid for bonds
of the same maturity. Where more than one rate of interest may be bid,
such notice shall specify the maximum number of rates which may be bid.
Where the net interest cost method of calculating interest cost is used,
or where the notice so provides, the interest rate for each maturity
shall not be less than the interest rate for any prior maturity. Such
notice shall also state that such rate or any of such rates may not be
higher than the maximum rate prescribed in such notice, if a maximum
rate has been prescribed. Notwithstanding the above, in inviting
proposals for the sale of bonds in an amount of twenty million dollars
or more, a municipality may advertise in such notice to sell, in series,
at a single bid price per bond. b. Where two or more issues are offered
in the same notice of sale, a statement specifying whether each of the
issues so offered shall be sold separately as a single bond issue,
whether some of the issues shall be combined and sold separately as one
or more single bond issues, or whether the aggregate amount of bonds of
all of the issues shall be combined and sold as a single bond issue. c.
Where the finance board of a municipality, school district or district
corporation has determined to provide for substantially level or
declining annual debt service pursuant to paragraph d of section 21.00
of this article, a statement specifying the dates of maturity for such
bonds and the dates for payment of interest on such bonds, and setting
forth the annual principal installments expected to provide for,
together with the interest thereon, substantially level or declining
annual debt service on such bonds. Such notice shall state that the
municipality, school district or district corporation may, after
selecting the low bidder, adjust such installments to the extent
necessary to meet the requirements of substantially level or declining
debt service.
3. A requirement that as a condition precedent to the consideration of
his or her bid, each bidder shall deposit with such official as the
agency in charge of the sale may designate, a certified or cashier's
check drawn upon an incorporated bank or trust company to the order of
the municipality, school district or district corporation or such
official, for the amount specified in the notice, but in no event less
than one-half of one per centum of the amount of bonds to be bid
for. Such notice may also provide that, in lieu of a certified or
cashier's check, bidders may furnish as security cash in such amount
remitted by wire transfer to an account specified in the notice or an
eligible surety bond or an eligible letter of credit, approved by such
official as to form, sufficiency, and manner of execution. For purposes
of this section, "eligible surety bond" shall mean a bond executed by an
insurance company authorized to do business in this state, the
claims-paying ability of which is rated in one of the three highest
rating categories by at least one nationally recognized statistical
rating organization; and "eligible letter of credit" shall mean an
irrevocable letter of credit issued in favor of the municipality, school
district or district corporation, for a term not to exceed ninety days
by a bank, as that term is defined in section two of the banking law,
whose commercial paper and other unsecured short-term debt obligations
(or, in the case of a bank which is the principal subsidiary of a

holding company, whose holding company's commercial paper and other
unsecured short-term debt obligations) are rated in one of the three
highest rating categories (based on the credit of such bank or holding
company) by at least one nationally recognized statistical rating
organization or by a bank that is in compliance with applicable federal
minimum risk-based capital requirements.
4. A statement that there is reserved to the municipality, school
district or district corporation the right to reject all bids, and that
any bid not complying with the terms of the notice will be rejected.
5. A statement that the agency prescribing the terms, form and
contents of such bonds has reserved to itself the power to call in and
redeem a portion of such bonds prior to their date of maturity pursuant
to section 53.00 of this chapter, if such agency has reserved to itself
such power. Such statement shall identify the portion of the bonds which
may be so redeemed and shall describe the terms and conditions under
which such bonds may be redeemed.
6. A statement indicating which of the methods set forth in paragraph
a of section 59.00 of this chapter will be used in awarding such bonds.
7. Such further data and information as shall be prescribed by the
state comptroller in the rule or order referred to in paragraph d of
section 57.00 of this chapter.
d. It may be a condition of the sale of bonds that every bidder may be
required to accept a portion of the whole amount of the bonds for which
he or she has bid, at the same rate for such portion as may be specified
in his or her bid for the full amount. If such condition is imposed, the
notice of sale shall so state and such notice also shall state that, in
addition, any bidder may offer to purchase all or none of such bonds on
different terms.
e. The notice of sale may provide that the bidder to whom the bonds
are to be awarded, at his or her option, may refuse to accept the bonds
if prior to the delivery of the bonds any income tax law of the United
States of America shall provide that the interest on such bonds is
taxable, or shall be taxable at a future date, for federal income tax
purposes.
* f. For purposes of this section and section 59.00 of this chapter,
"sealed bids" shall include bids submitted in an electronic format,
provided that the finance board of the issuing municipality, school
district or district corporation, by resolution, has authorized the
receipt of bids in such format. Submission in electronic format may be
required as the sole method for the submission of bids. Bids submitted
in an electronic format shall be transmitted by bidders to the receiving
device designated by the issuing municipality, school district or
district corporation. Any method used to receive electronic bids shall
comply with article three of the state technology law and any rules and
regulations promulgated and guidelines developed thereunder and, at a
minimum, must: (a) document the time and date of receipt of each bid
received electronically; (b) authenticate the identity of the sender;
(c) ensure the security of the information transmitted; and (d) ensure
the confidentiality of the bid until the time and date established for
the opening of bids. The timely submission of an electronic bid in
compliance with instructions provided for such submission in the notice
of sale and any supplemental notice of sale shall be the responsibility
solely of each bidder or prospective bidder. No issuing municipality,
school district or district corporation shall incur any liability from
delays of or interruptions in the receiving device designated for the
submission and receipt of electronic bids.
* NB Repealed June 1, 2028