§ 13. The legislature may provide means and authority whereby any\nstate debt or debts, or any portion or combination thereof, may be\nrefunded in accordance with the following provisions:\n 1. State debts may be refunded at any time after they are incurred\nprovided that the state will achieve a debt service savings on a present\nvalue basis as a result of the refunding transaction, and further\nprovided that no maturity shall be called for redemption unless the\nprivilege to pay prior to the maturity date was reserved to the state.\nThe legislature may provide for the method of computation of present\nvalue for such purpose.\n 2. In no event shall refunding obligations be issued in an amount\nexceeding that necessary to provide sufficient funds to accomplish the\nrefunding of the obligations to be refunded including paying all costs\nand expenses related to the refunding transaction and, in no event,\nshall the proceeds of refunding obligations be applied to any purpose\nother than accomplishing the refunding of the debt to be refunded and\npaying costs and expenses related to the refunding.\n 3. Proceeds of refunding obligations shall be deposited in escrow\nfunds which shall be maintained and managed by the state comptroller or\nby an agent or trustee designated by the state comptroller and no\nlegislative appropriation shall be required for disbursement of money,\nor income earned thereon, from such escrow funds for the purposes\nenumerated in this section.\n 4. Refunding obligations may be refunded pursuant to this section.\n 5. Refunding obligations shall either be paid in annual installments\nor annual contributions shall be made to a sinking fund in amounts\nsufficient to retire the refunding obligations at their maturity. No\nannual installments or contributions of principal need be made with\nrespect to all or any portion of an issue of refunding obligations in\nyears when debt service on such refunding obligations or portion thereof\nis paid or contributed entirely from an escrow fund created pursuant to\nsubdivision 3 of this section or in years when no installments or\ncontributions would have been due on the obligations to be refunded. So\nlong as any of the refunding obligations remain outstanding,\ninstallments or contributions shall be made in any years that\ninstallments or contributions would have been due on the obligations to\nbe refunded.\n 6. In no event shall the last annual installment or contribution on\nany portion of refunding debt, including refunding obligations issued to\nrefund other refunding obligations, be made after the termination of the\nperiod of probable life of the projects financed with the proceeds of\nthe relevant portion of the debt to be refunded, or any debt previously\nrefunded with the refunding obligations to be refunded, determined as of\nthe date of issuance of the original obligations pursuant to section 12\nof this article to finance such projects, or forty years from such date,\nif earlier; provided, however, that in lieu of the foregoing, an entire\nrefunding issue or portion thereof may be structured to mature over the\nremaining weighted average useful life of all projects financed with the\nobligations being refunded.\n 7. Subject to the provisions of subdivision 5 of this section, each\nannual installment or contribution of principal of refunding obligations\nshall be equal to the amount that would be required by subdivision 1 of\nsection 12 of this article if such installments or contributions were\nrequired to be made from the year that the next installment or\ncontribution would have been due on the obligations to be refunded, if\nthey had not been refunded, until the final maturity of the refunding\nobligations but excluding any year in which no installment or\ncontribution would have been due on the obligations to be refunded or,\nin the alternative, the total payments of principal and interest on the\nrefunding bonds shall be less in each year to their f
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.