§ 54.90 Issuance of bonds or notes with variable rates of interest. a.\nWhenever in the judgment of the finance board the interest of a\nmunicipality would be served thereby, the municipality may issue bonds\nor notes, on or before July fifteenth, two thousand twenty-seven, with\ninterest rates that vary in accordance with a formula or procedure and\nare subject to a maximum rate of interest set forth or referred to in\nthe bonds or notes and may provide the holders thereof with such rights\nto require the municipality or other persons to purchase such bonds or\nnotes or renewals thereof from the proceeds of the resale thereof or\notherwise from time to time prior to the final maturity of such bonds or\nnotes as the finance board may determine and the municipality may\nresell, at any time prior to final maturity, any such bonds or notes\nacquired as a result of the exercise of such rights; provided, however,\nthat at no time shall the total principal amount of bonds and notes\nissued pursuant to this paragraph (other than bonds and notes bearing\ninterest at rates and for periods of time that are specified at\nissuance) exceed ten percent of the limit prescribed by section 104.00\nof this article.\n Notwithstanding the foregoing, the holders of bonds or notes sold\npursuant to this paragraph shall not be provided with the right to\nrequire the municipality or other persons to repurchase the bonds or\nnotes prior to the final maturity thereof unless the municipality has\nentered into one or more letter of credit agreements or liquidity\nfacility agreements for the express purpose of such sale, which\nagreements the municipality is hereby authorized to enter into, and\nwhich shall require a financially responsible party or parties to the\nagreement or agreements, as defined by section 2.00 of this chapter,\nother than the municipality to purchase all or any portion of such bonds\nor notes tendered by the holders thereof for repurchase prior to the\nfinal maturity of such bonds or notes until such time as the right of\nthe holders of such bonds or notes to require repurchase of such bonds\nor notes prior to the final maturity thereof shall cease.\n Notwithstanding the foregoing, whenever in the judgment of the finance\nboard of the city of New York the interest of such city would be served\nthereby, the city of New York may without further approval issue bonds\nor notes, on or before July fifteenth, two thousand twenty-six, with\ninterest rates that vary in accordance with a formula or procedure and\nare subject to a maximum rate of interest set forth or referred to in\nthe bonds or notes and may provide the holders thereof with such rights\nto require the city or other persons to purchase such bonds or notes or\nrenewals thereof from the proceeds of the resale thereof or otherwise\nfrom time to time prior to the final maturity of such bonds or notes as\nthe finance board of the city of New York may determine and the city may\nresell, at any time prior to final maturity, any such bonds or notes\nacquired as a result of the exercise of such rights; provided, however,\nthat at no time shall the total principal amount of bonds and notes\nissued by the city of New York pursuant to this paragraph (other than\nbonds and notes (1) bearing interest at rates and for periods of time\nthat are specified without reference to future events or contingencies,\nor (2) described in section 136.00 of this article) exceed twenty-five\npercent of the limit prescribed by section 104.00 of this article.\n b. To facilitate the marketing of any issue of bonds and notes issued\npursuant to this section, such municipality may, notwithstanding any\nlimitation on private sale of bonds and notes provided by law, and\nsubject to rules promulgated by the state comptroller governing such\nsales: (i) arrange for the underwriting of such bonds and notes at\nprivate sale through negotiated agreement, compensation for such\nunderwriting to be provided by negotia
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