Table Of Contents
Chapter 1. Introduction . . . 1
Chapter 2. Constitutional Requirements . . . 5
Loan of Credit Prohibition . . . 5
Valid Purpose Requirement . . . 6
Pledge of Faith and Credit . . . 6
Annual Appropriation . . . 6
Debt Limits . . . 7
Tax Limits . . . 7
Chapter 3. General Implementing Statutory Provisions . . . 9
Protection of Holders of Local Government Debt in the State . . . 10
Contract Remedies . . . 10
The State Aid Intercept . . . 11
Chapter 4. The Library District Referendum Process . . . 13
Procedural Rules Regarding Bond Resolutions . . . 13
Coordination of Proposition Language and Bond Resolution Language/Problem Language . . . 13
Proposition Language . . . 14
Referenda In School Districts . . . 15
Referenda In Towns and Villages . . . 15
Referenda In Cities and Counties . . . 15
Referenda In Joint Public Libraries . . . 16
Projects To Be Financed Through The Dormitory Authority . . . 16
Library Improvements Without An Increase In The Tax Levy . . . 16
Chapter 5. After The Referendum Process . . . 17
Chapter 6. Anatomy of a Bond Resolution and Its Adoption . . . 19
Bond Resolutions . . . 19
Elements of a Bond Resolution . . . 20
Temporary Advances of Non-Borrowed Moneys/Bond Resolutions for Planning . . . 23
Additional Money Bond Resolutions / Phased Projects . . . 24
Bond Resolutions and Contingencies to Utilization . . . 25
Repeal of a Bond Resolution . . . 25
Chapter 7. Certain Legal Elements of a Financed Capital Project . . . 27
Periods of Probable Usefulness . . . 27
Specific Object or Purpose or Classes of Objects or Purposes . . . 28
Policing a Class of Objects or Purposes . . . 29
Further Aggregation of Items . . . 29
Special Super Period of Probable Usefulness For School Districts . . . 30
Maximum Estimated Cost . . . 31
Plan of Financing . . . 32
Some Peculiar PPU Rules . . . 32
Chapter 8. Estoppel . . . 35
Chapter 9. Types of Debt . . . 39
BANs and BARNs . . . 41
Serial Bonds . . . 42
Statutory Installment Bonds . . . 45
BANs or Bonds for a Capital Project . . . 49
Tax Anticipation Notes . . . 49
Revenue Anticipation Notes . . . 52
TAN and RAN Resolutions Format . . . 54
Budget Notes . . . 55
Specialized Bond Types . . . 57
Capital Notes . . . 57
Refunding Bonds (Refinancing Outstanding Bonds) . . . 58
Steps in an Advance Refunding Transaction . . . 60
Qualified Zone Academy Bonds (QZABs) . . . 60
Joint Projects and Cooperative Debt . . . 62
Mortgage Notes of a Library District . . . 62
Chapter 10. Amortization Structures . . . 69
The “Two Year Rule” for Bond Anticipation Notes . . . 70
The “Two Year Rule” for Bond Issues . . . 70
The 50% Rule . . . 70
The 50% Rule and Seeming Violations . . . 71
Level Debt Service . . . 73
Relationship of Bond Anticipation Notes to Bonds: The “Five-Year” Rule . . . 74
Series Financings . . . 74
Chapter 15. Federal Disclosure Law Issues . . . 115
The Official Statement (“OS”) . . . 115
Background of the Rule . . . 115
1994 Amendments . . . 116
The Amendments in Detail . . . 117
Exemptions . . . 120
Compliance . . . 121
Responsibilities and Liabilities . . . 121
Chapter 16. Post-Issuance Responsibilities, Issues and Problems . . . 123
Responsibility: Investment of Borrowed Proceeds . . . 123
Responsibility: Compliance with Federal Reporting, Arbitrage and Arbitrage Rebate Regulations . . . 125
Responsibility: Compliance with Federal Disclosure Rules . . . 125
Responsibility: State Oversight Reporting . . . 126
Post-Issuance Issues: Insufficient Funds . . . 126
Post-Issuance Issues: Too Much Money Authorized . . . 127
Post-Issuance Issues: Reimbursement Issues . . . 127
Post-Issuance Issues: Change in Capital Project Elements . . . 128
Chapter 17. Lease-Purchase Agreements, Energy Performance Contracts and
Certificates of Participation . . . 131
The State Comptroller’s Rules . . . 134
Energy Performance Contracts . . . 139
Chapter 18. Bond Insurance and Section 168.00 of the Local Finance Law . . . 143
Chapter 19. Financings for School District Affiliated Public Libraries—Commonly Asked Questions . . . 145
Chapter 20. Capital Financings for Free Association Libraries . . . 151
Section 145 . . . 152
Who Can Issue The Debt? . . . 153
Section 501(c)(3) . . . 154
Relevant State Law . . . 154
Initial Steps To A Free Association Library Financing . . . 156
Industrial Development Authority Financings . . . 158
Dormitory Authority Financings . . . 159
Please see full Article below for further information.
Please see full publication below for more information.
