Section 58.00. Notice of sale of bonds

* a. There shall be published, at
  least once, not less than five nor more than thirty days before the date
  fixed for the public sale of bonds, a notice of such public  sale  or  a
  summary thereof in accordance with one of the following methods: (1) the
  notice  of  sale shall be published in any financial newspaper published
  and circulated in the city of New York which the state  comptroller,  in
  the  rule  or  order referred to in paragraph d of section 57.00 of this
  chapter, shall designate for such publication; (2) the  notice  of  sale
  shall  be  circularized  in  such  manner as the state comptroller shall
  prescribe in such rule or order and shall be published in any  newspaper
  or  newspapers  which  the  finance  board  of  the municipality, school
  district or district corporation may designate for such purpose; or  (3)
  (i)  a  summary  of  the  notice  of sale shall be published in both the
  financial newspaper published and circulated in the  city  of  New  York
  which the state comptroller has designated in the rule or order referred
  to  in  paragraph  d  of  section  57.00  of  this chapter, and (ii) any
  newspaper or newspapers which the finance  board  of  the  municipality,
  school  district or district corporation may designate for such purpose.
  A summary of the notice of sale shall at a minimum contain the  name  of
  the issuer, the amount, date, and maturities of the bonds, the frequency
  of  interest  payments,  the  place  where  bids  will  be received, the
  designation of the receiving device if the finance board of the  issuing
  municipality, school district or district corporation has authorized the
  receipt  of  bids  in  an  electronic  format, the time and date for the
  opening of the bids, including circumstances under which such  time  and
  date  may  be  changed in accordance with law, the method of award and a
  procedure for promptly obtaining the complete notice  of  sale  and  any
  preliminary official statement prepared in connection with the sale, and
  such other information as the state comptroller may prescribe by rule or
  order.
    * NB Effective until June 1, 2013
    * a.  There  shall be published, at least once, not less than five nor
  more than thirty days before the date  fixed  for  the  public  sale  of
  bonds,  a  notice of such public sale or a summary thereof in accordance
  with one of the following methods: (1)  the  notice  of  sale  shall  be
  published  in  any  financial  newspaper published and circulated in the
  city of New York which the state  comptroller,  in  the  rule  or  order
  referred  to  in  paragraph  d  of  section 57.00 of this chapter, shall
  designate for  such  publication;  (2)  the  notice  of  sale  shall  be
  circularized  in such manner as the state comptroller shall prescribe in
  such rule or order and shall be published in any newspaper or newspapers
  which the finance board of the municipality, school district or district
  corporation may designate for such purpose; or (3) (i) a summary of  the
  notice  of  sale  shall  be  published  in  both the financial newspaper
  published and circulated in  the  city  of  New  York  which  the  state
  comptroller has designated in the rule or order referred to in paragraph
  d of section 57.00 of this chapter, and (ii) any newspaper or newspapers
  which the finance board of the municipality, school district or district
  [or  district]  corporation may designate for such purpose. A summary of
  the notice of sale shall at a minimum contain the name  of  the  issuer,
  the amount, date, and maturities of the bonds, the frequency of interest
  payments,  the  place where bids will be received, the time and date for
  the opening of the bids, including circumstances under which  such  time
  and  date may be changed in accordance with law, the method of award and
  a procedure for promptly obtaining the complete notice of sale  and  any
  preliminary official statement prepared in connection with the sale, and
  such other information as the state comptroller may prescribe by rule or
  order.

    * NB Effective June 1, 2013
    b.  Such  notice  shall  call for sealed bids for the purchase of such
  bonds, and shall state:
    * 1. The place where bids will be received  and  considered,  and  the
  designation  of the receiving device if the finance board of the issuing
  municipality, school district or district corporation has authorized the
  receipt of bids in an electronic format.
    * NB Effective until June 1, 2013
    * 1. The place where bids will be received and considered.
    * NB Effective June 1, 2013
    2. (a) The time and date for the opening of bids, which shall be  only
  on  weekdays,  Saturdays and holidays excluded, between the hours of ten
  o'clock ante meridian and four o'clock post meridian,  eastern  standard
  time.
    (b)  In  lieu of the statement of the time and date for the opening of
  bids required by subparagraph (a) of this subdivision, a  statement  (i)
  that  the  time and date for the opening of bids will be provided on not
  less than twenty-four hours prior notice  by  means  of  a  supplemental
  notice  of  sale  and  indicating  the manner in which such supplemental
  notice will be provided, or (ii) setting a time and date for the opening
  of bids, stating that notice of a change in the time  or  date  for  the
  opening of bids may be provided not less than twenty-four hours prior to
  the  time  originally  scheduled  for  the opening of bids by means of a
  supplemental notice of sale and indicating  the  manner  in  which  such
  supplemental  notice  will  be  provided. Where notice is given that the
  time or date of a sale will be changed without specifying the  new  time
  or  date,  notice  of  the  new time or date of sale must be provided by
  means of a second supplemental notice of sale at least twenty-four hours
  prior to the new time for the opening of bids.
    (c) A supplemental notice of sale shall refer to and be deemed a  part
  of  the  notice of sale required by this section and shall not establish
  or change the terms of the sale other than the  time  or  date  for  the
  opening  of bids, the amount of principal scheduled to be repaid in each
  year, the right of redemption prior to maturity, and the face  value  at
  maturity  of  the issue or any installment thereof. The time set for the
  opening of bids in the supplemental notice of sale  shall  not  be  less
  than  five  nor more than thirty days after publication of the notice of
  sale required pursuant to paragraph a of this section.
    (d) The supplemental notice of sale shall be provided  by  transmittal
  over  a  definitive  trade  wire  service of the municipal bond industry
  which, in general, makes available information  regarding  activity  and
  sales  of  municipal bonds and is generally available to participants in
  the  municipal  bond  industry,  or  by  publication  in  the  financial
  newspaper  published  and  circulated  in the city of New York which the
  state comptroller, in the rule or order referred to in  paragraph  d  of
  section  57.00 of this article, shall designate for such publication. In
  addition, public notice of the time and date set for the opening of bids
  in the supplemental notice of sale shall be given to the news media  and
  shall  be  posted  in one or more designated public locations within the
  issuing municipality, school district or district corporation  at  least
  twenty-four  hours  prior  to  the  time and date set for the opening of
  bids; provided however, that such public notice shall not  be  construed
  to require publication as a legal notice.
    3.  The  maximum  rate  of  interest,  if any, fixed by or pursuant to
  paragraph b of section 57.00 of this chapter.
    c. Such notice shall also include:
    1. A statement that the rate or rates of interest to be bid shall be a
  multiple of one-hundredth of one per centum per annum or a  multiple  of

  one-eighth  of  one per centum per annum, as the agency in charge of the
  sale may determine and may require or permit in such notice.
    2.  A  statement  of the conditions of sale and the methods of bidding
  which shall include the following:
    a. A statement that one or more than one rate of interest may be  bid;
  provided,  however,  that only one rate of interest may be bid for bonds
  of the same maturity. Where more than one rate of interest may  be  bid,
  such  notice shall specify the maximum number of rates which may be bid.
  Where the net interest cost method of calculating interest cost is used,
  or where the notice so provides, the interest  rate  for  each  maturity
  shall  not  be  less than the interest rate for any prior maturity. Such
  notice shall also state that such rate or any of such rates may  not  be
  higher  than  the  maximum  rate prescribed in such notice, if a maximum
  rate  has  been  prescribed.  Notwithstanding  the  above,  in  inviting
  proposals  for  the sale of bonds in an amount of twenty million dollars
  or more, a municipality may advertise in such notice to sell, in series,
  at a single bid price per bond.
    b. Where two or more issues are offered in the same notice of sale,  a
  statement specifying whether each of the issues so offered shall be sold
  separately  as  a single bond issue, whether some of the issues shall be
  combined and sold separately as one  or  more  single  bond  issues,  or
  whether  the  aggregate  amount  of  bonds of all of the issues shall be
  combined and sold as a single bond issue.
    c. Where the finance board  of  a  municipality,  school  district  or
  district  corporation  has determined to provide for substantially level
  or declining annual debt service pursuant  to  paragraph  d  of  section
  21.00  of this article, a statement specifying the dates of maturity for
  such bonds and the dates for payment of  interest  on  such  bonds,  and
  setting forth the annual principal installments expected to provide for,
  together  with  the  interest  thereon, substantially level or declining
  annual debt service on such bonds. Such  notice  shall  state  that  the
  municipality,   school  district  or  district  corporation  may,  after
  selecting the  low  bidder,  adjust  such  installments  to  the  extent
  necessary  to  meet the requirements of substantially level or declining
  debt service.
    3. A requirement that as a condition precedent to the consideration of
  his bid, each bidder shall deposit with such official as the  agency  in
  charge  of  the sale may designate, a certified or cashier's check drawn
  upon an  incorporated  bank  or  trust  company  to  the  order  of  the
  municipality,  school district or district corporation or such official,
  for not less than one per centum of the amount of bonds to be  bid  for.
  Such  notice  may also provide that, in lieu of a certified or cashier's
  check, bidders may furnish as security an eligible  surety  bond  or  an
  eligible  letter  of  credit,  approved  by  such  official  as to form,
  sufficiency, and manner of execution.  For  purposes  of  this  section,
  "eligible surety bond" shall mean a bond executed by a insurance company
  authorized  to  do  business in this state, the claims-paying ability of
  which is rated in the highest rating category by at least two nationally
  recognized statistical rating organizations;  and  "eligible  letter  of
  credit"  shall  mean  an irrevocable letter of credit issued in favor of
  the municipality, school district or district corporation,  for  a  term
  not  to exceed ninety days by a bank, as that term is defined in section
  two of the banking law,  whose  commercial  paper  and  other  unsecured
  short-term  debt  obligations  (or,  in  the case of a bank which is the
  principal subsidiary of  a  holding  company,  whose  holding  company's
  commercial  paper  and  other unsecured short-term debt obligations) are
  rated in one of the three highest rating categories (based on the credit
  of such bank or holding company) by at least one  nationally  recognized

  statistical  rating organization or by a bank that is in compliance with
  applicable federal minimum risk-based capital requirements.
    4.  A  statement  that  there  is reserved to the municipality, school
  district or district corporation the right to reject all bids, and  that
  any bid not complying with the terms of the notice will be rejected.
    5.  A  statement  that  the  agency  prescribing  the  terms, form and
  contents of such bonds has reserved to itself the power to call  in  and
  redeem  a portion of such bonds prior to their date of maturity pursuant
  to section 53.00 of this chapter, if such agency has reserved to  itself
  such power. Such statement shall identify the portion of the bonds which
  may  be  so  redeemed  and shall describe the terms and conditions under
  which such bonds may be redeemed.
    6. A statement indicating which of the methods set forth in  paragraph
  a of section 59.00 of this chapter will be used in awarding such bonds.
    7.  Such  further  data  and information as shall be prescribed by the
  state comptroller in the rule or order referred to  in  paragraph  d  of
  section 57.00 of this chapter.
    d. It may be a condition of the sale of bonds that every bidder may be
  required  to accept a portion of the whole amount of the bonds for which
  he has bid, at the same rate for such portion as may be specified in his
  bid for the full amount. If such condition is  imposed,  the  notice  of
  sale  shall so state and such notice also shall state that, in addition,
  any bidder may offer to purchase all or none of such bonds on  different
  terms.
    e.  The  notice  of sale may provide that the bidder to whom the bonds
  are to be awarded, at his option, may refuse  to  accept  the  bonds  if
  prior  to  the  delivery  of  the bonds any income tax law of the United
  States of America shall provide that  the  interest  on  such  bonds  is
  taxable,  or  shall  be taxable at a future date, for federal income tax
  purposes.
    * f. For purposes of this section and section 59.00 of  this  chapter,
  "sealed  bids"  shall  include  bids  submitted in an electronic format,
  provided that the finance board  of  the  issuing  municipality,  school
  district  or  district  corporation,  by  resolution, has authorized the
  receipt of bids in such format. Submission in electronic format may not,
  however, be required as the sole method for the submission of bids. Bids
  submitted in an electronic format shall be transmitted by bidders to the
  receiving device designated by the issuing municipality, school district
  or district corporation. Any method  used  to  receive  electronic  bids
  shall  comply  with  article  three  of the state technology law and any
  rules and regulations promulgated and  guidelines  developed  thereunder
  and,  at  a  minimum, must: (a) document the time and date of receipt of
  each bid received electronically; (b) authenticate the identity  of  the
  sender;  (c) ensure the security of the information transmitted; and (d)
  ensure  the  confidentiality  of  the  bid  until  the  time  and   date
  established  for  the  opening  of  bids.  The  timely  submission of an
  electronic  bid  in  compliance  with  instructions  provided  for  such
  submission  in  the  notice  of sale and any supplemental notice of sale
  shall be the responsibility solely of each bidder or prospective bidder.
  No issuing municipality, school district or district  corporation  shall
  incur  any  liability  from  delays of or interruptions in the receiving
  device designated for the submission and receipt of electronic bids.
    * NB Repealed June 1, 2013