Section 29.10. Issuance of land installment purchase obligations

1. A
  municipality  is  hereby  authorized  and  empowered   to   issue   land
  installment  purchase  obligations  for  the  purpose  of  financing the
  acquisition of interests or  rights  in  real  property  for  which  the
  municipality has contracted, pursuant to section two hundred forty-seven
  of  the  general  municipal  law,  together  with  the  preliminary  and
  incidental  costs  of  such  acquisition.  Such  obligations  shall   be
  authorized  by  a  statement  made  in a bond resolution authorizing the
  issuance of bonds to finance  such  acquisition.  Such  statement  shall
  provide  that  all or a portion of the indebtedness for such purpose may
  be issued in the form of a land  installment  purchase  obligation.  Any
  portion of the estimated maximum cost of the object or purpose for which
  the  issuance of bonds has been authorized that is not financed with the
  issuance of a land  installment  purchase  obligation  may  be  financed
  through the issuance of bonds or bond anticipation notes.
    2.  Each land installment purchase obligation shall state the dates of
  commencement and maturity, which shall establish a term no  longer  than
  the  period  of  probable  usefulness  of  the interests or rights to be
  acquired. Each land installment purchase obligation shall  provide  that
  the  municipality  shall  be  vested  with  title  and ownership of such
  interests or rights and shall be entitled to possession of the interests
  or rights to be acquired. A land  installment  purchase  obligation  may
  include  such  other  terms  related to the acquisition or possession of
  such interests or rights as may be necessary or convenient.
    3. Payments under a land installment purchase obligation shall  be  in
  semi-annual  or annual installments, as provided in the land installment
  purchase obligation, commencing within one year  of  the  start  of  the
  term,  provided  that  only one such installment scheduled in any fiscal
  year of a municipality may contain a principal component.  The  interest
  and principal components of each installment shall be identified therein
  and  shall be made at the same times and in the same amounts as would be
  permitted if the land installment purchase obligation were issued in the
  form of a serial bond or a sinking  fund  bond,  provided  that  if  the
  municipality  elects  to schedule such payments at the same times and in
  the same amounts as would be permitted if the land installment  purchase
  agreement  were a sinking fund bond, section 22.10 of this chapter shall
  apply, and the owner of such land installment purchase  agreement  shall
  be  considered  a  bondholder  for  purposes  of said section, provided,
  however, that no such owner shall have any lien, trust or other interest
  in moneys held by the state comptroller until the scheduled  installment
  date  on  which  such amounts are to be paid. The first such installment
  shall be sufficient to pay interest on  the  land  installment  purchase
  obligation accruing prior to the date of the installment.
    4.   The   obligation  to  make  installment  payments  under  a  land
  installment purchase obligation shall be a faith and  credit  obligation
  of  the  issuer  thereof  and  shall  constitute indebtedness under this
  chapter to the same extent as if issued in  the  form  of  bond  bearing
  interest   in  the  amount  of  the  interest  component  of  each  such
  installment.
    5. Any municipality may negotiate the  terms  of  a  land  installment
  purchase  obligation  with the owner of such interests or rights and the
  finance board may delegate the power to set the terms of and  sell  such
  land  installment  purchase  obligation  to  such  owner  to  the  chief
  financial officer, provided that any such delegation  pursuant  to  this
  sentence  shall  not  include  the  power to negotiate the price of land
  which is the subject  of  such  land  installment  purchase  obligation.
  Before   executing   any  such  agreement,  the  finance  board  of  the
  municipality shall adopt a resolution determining such agreement  is  in

  the prudent financial interest of the municipality and stating the basis
  of that determination.
    6.  A  land  installment  purchase obligation issued by a municipality
  shall be restricted  from  transfer  and  may  not  be  the  subject  of
  certificates  of  participation,  unless  explicitly  agreed  to  by the
  parties.
    7.  The  interest  paid  pursuant  to  a  land  installment   purchase
  obligation  shall  be  exempt  from  taxation  for  municipal  and state
  purposes. Section 161.00  of  this  chapter  shall  not  apply  to  land
  installment purchase obligations.
    * NB Repealed July 31, 2011