Section 60.10. Sale of obligations to certain banks and trust companies authorized

a. The  agency  selling  notes  of  a  municipality,  school  district  or district corporation may sell such notes at private sale to
  a bank or  trust  company  of  which  an  officer  or  employee  of  the
  municipality,  school  district  or district corporation has an interest
  which is otherwise prohibited by the provisions of article  eighteen  of
  the  general  municipal  law, without limitation as to rate of interest,
  provided that at least two  other  banks  are  unwilling  or  unable  to
  purchase  the  notes at a rate of interest equal to or less than that at
  which the bank in which the officer or employee has an interest proposes
  to purchase such notes. Disclosure of any  such  actual  or  prospective
  sale  shall  be  made  as provided in section eight hundred three of the
  general municipal law. Where any such relationship exists,  however,  no
  such sales shall be authorized in the event that:
    1. During the current fiscal year of the municipality, school district
  or  district  corporation the bank or trust company has purchased, or by
  virtue  of  the  sale  would  purchase,  at  private  sales   from   the
  municipality,  school  district  or  district corporation, notes of such
  issuer, the aggregate principal amount of which is or would exceed,  one
  hundred thousand dollars; or
    2.  The  bank or trust company then is, or by virtue of the sale would
  become, the holder of notes of  the  municipality,  school  district  or
  district  corporation,  purchased  at private sale from such issuer, the
  aggregate principal amount of which is, or  would  exceed,  one  hundred
  thousand dollars.
    The  foregoing limitations of this paragraph a shall not be applicable
  to notes renewed at private sale where such notes were  originally  sold
  at  public sale, pursuant to the requirements of former section 60.20 of
  this chapter, and are renewed by the original buyer thereof at the  same
  or lower rate of interest.
    b.  The  agency  selling  bonds of a municipality, school district, or
  district corporation may, subject to the limitations of section 63.00 of
  this chapter, sell such bonds at private sale to a bank or trust company
  of which an officer or employee of the municipality, school district  or
  district  corporation  has  an interest which is otherwise prohibited by
  the provisions  of  article  eighteen  of  the  general  municipal  law.
  Disclosure  of  any  such  actual  or  prospective sale shall be made as
  provided in section eight hundred three of the  general  municipal  law.
  Where  any  such  relationship  exists,  however, no such sales shall be
  authorized in the event that the bank or trust company then  is,  or  by
  virtue   of   the  sale  would  become,  the  holder  of  bonds  of  the
  municipality, school district  or  district  corporation,  purchased  at
  private  sale  from such issuer, the aggregate principal amount of which
  is, or would exceed one hundred thousand dollars.
    c.  Any  officer  of  a  municipality,  school  district  or  district
  corporation  who wilfully participates in authorizing the sale of, or in
  selling, obligations of the municipality, school  district  or  district
  corporation  in  violation  of  the foregoing provisions of this section
  shall be guilty of a misdemeanor.