Provides that bond anticipation notes issued during calendar years 2009 and 2010 may not extend more than 7 years beyond original date of issuance of such bond notes

BILL NUMBER:S5229A

Title of bill

An act to amend the local finance law, in relation to bond anticipation notes issued during the calendar years 2009 and 2010

Purpose or general idea of bill

This legislation extends the rollover period for bond anticipation notes issued during calendar 2009 and 2010 to not more than seven years beyond the original date of issue.

Summary of specific provisions

Section 1. Subparagraph 2 of paragraph b of Section 23.00 of the Local Finance Law as amended by Chapter 264 of the Laws of 2012, is amended as follows:

2. Renewals of bond anticipation notes issued originally during calendar year two thousand nine or two thousand ten may not extend more than seven years beyond the original date of issue of such bond anticipation notes.

Section 2. This act shall Lake effect immediately.

Justification

Currently, except for bond anticipation notes issued in 2006 or 2007, local governments are authorized to extend. or rollover bond anticipation notes for only up to 5 years. At the end of the period, the bond anticipation notes must be retired or converted into longterm debt. This legislation, by extending the rollover period for bond anticipation notes issued during calendar. year 2009 and 2010, will provide municipalities the option of renewing the notes at a later date to shop around for a better rate for the long-term, thereby lowering costs to the municipality.

Prior legislative history

New Bill

Fiscal implications

None. This legislation may result in cost savings to localities.

Effective date

This act shall take effect immediately.