§ 56. Call provision in state bonds; refunding state bonds. 1.\nWhenever in the comptroller's opinion it is to the advantage of the\nstate the comptroller when issuing and selling any bonds of the state\nmay reserve to the state on such conditions as the comptroller may deem\nadvisable and proper the privilege of refunding or of redeeming all or\nany part of such bonds prior to the date on which they shall be due and\npayable.\n 2. Whenever the comptroller shall have reserved to the state the right\nto redeem or refund state bonds pursuant to subdivision one of this\nsection, he shall be authorized to issue refunding bonds in accordance\nwith the provisions of this subdivision. Such bonds may be issued prior\nto the first date on which he shall have reserved the right to refund or\nredeem the bonds to be refunded.\n (a) Refunding bonds shall be issued only when the comptroller shall\nhave certified that, as a result of the refunding, there will be a debt\nservice savings to the state on a present value basis as a result of the\nrefunding transaction and that either (i) the refunding will benefit\nstate taxpayers over the life of the refunding bonds by achieving an\nactual debt service savings each year or state fiscal year during the\nterm to maturity of the refunding bonds when debt service on the\nrefunding bonds is expected to be paid from legislative appropriations\nor (ii) debt service on the refunding bonds shall be payable in annual\ninstallments of principal and interest which result in substantially\nlevel or declining debt service payments pursuant to paragraph (b) of\nsubdivision two of section fifty-seven of this article. Such\ncertification by the comptroller shall be conclusive as to matters\ncontained therein after the refunding bonds have been issued.\n For purposes of determining whether there is a debt service savings on\na present value basis the present value of the total payments of both\nprincipal and interest to become due on the refunding bonds, after\ndeducting any accrued interest or premium received by the state and not\nused to pay the principal of or interest on the bonds to be refunded or\ncosts of issuance of the refunding bonds, excluding all such principal\nand interest payments to be made from income received as a result of the\ninvestment of the proceeds from the sale of the refunding bonds, shall\nbe less than the present value of the principal and interest payments to\nbecome due at their stated maturities on the principal amount of bonds\nto be refunded which are outstanding as of the date of the issue of the\nrefunding bonds after deducting therefrom all costs and expenses\nincidental to the issuance of the refunding bonds, including the\ndevelopment of the refunding plan, and of executing and performing the\nterms and conditions of the escrow contract and all fees and charges of\nthe escrow holder, but only to the extent such costs and expenses are\nnot paid from the proceeds of the refunding bonds. The present value of\ndebt service payments pursuant to the foregoing provisions of this\nsubdivision shall be computed by discounting the principal and interest\npayments on both the refunding bonds and the bonds to be refunded from\nthe respective maturities thereof to the date of issue of the refunding\nbonds at a rate equal to the effective interest cost of the refunding\nbonds. The effective interest cost of the refunding bonds shall be that\nrate which is arrived at by doubling the semi-annual interest rate\n(compounded semi-annually) necessary to discount the debt service\npayments on the refunding bonds from the maturity dates thereof to the\ndate of issue of the refunding bonds and to the bona fide initial public\noffering price including estimated accrued interest, or, if there is no\npublic offering, to the price bid including estimated accrued interest.\n (b) The proceeds of refunding bonds, including any premium received on\nthe sale thereof, and any amounts that may be appro
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