Section 90.00. Refunding of bonds

a. 1. A municipality, school district or
  district corporation may issue serial bonds to refund bonds issued on or
  after January first, nineteen  hundred  thirty-nine,  other  than  bonds
  issued  to redeem notes, certificates or other evidences of indebtedness
  issued  prior  to  January  first,  nineteen  hundred  thirty-nine,   in
  anticipation of such bonds. The last installment of such refunding bonds
  issued  to  refund  bonds issued pursuant to the social services law, or
  the former social welfare law, or the former public welfare law, for the
  purpose of safety net assistance, as defined in such laws, shall  mature
  within ten years after the date of issue of the bonds to be refunded. In
  all  other  cases  the  last  installment  of such refunding bonds shall
  mature not later than the expiration of the maximum period  of  probable
  usefulness  permitted by law at the time of the issuance of the bonds to
  be refunded or the refunding bonds for the object or purpose  for  which
  the bonds to be refunded were issued. Such period shall be computed from
  the  date  of  issuance  of the bonds to be refunded or from the date of
  issuance of the first bond anticipation note issued in  anticipation  of
  such bonds, whichever date is the earlier.
    2.   Notwithstanding   the  provisions  of  subdivision  one  of  this
  paragraph, bonds issued by a school district prior to December first two
  thousand one, or prior to thirty days after the effective date  of  this
  subdivision, whichever is later, for the purpose of financing facilities
  which  were  eligible  for  building  aid pursuant to section thirty-six
  hundred two of the education law, and for which the  aid  apportionments
  payable  in  two  thousand  two--two  thousand three and/or two thousand
  three--two thousand four school years for approved expenditures for debt
  service are subsequently reduced as  a  result  of  the  application  of
  assumed  amortization  to unpaid principal outstanding as of July first,
  two thousand two, may be refunded and the refunding bonds may be sold at
  either public or private sale  in  accordance  with  the  provisions  of
  section 90.10 of this title; provided, however, the school district need
  not  comply with: (i) subparagraph (a) of subdivision two of paragraph b
  of section 90.10 of this title; and (ii) if the bonds to be refunded are
  to be redeemed or paid on the same  date  as  the  refunding  bonds  are
  issued,  the  school  district  need  not  comply with the provisions of
  section 90.10 of this title relating to the escrow of  the  proceeds  of
  the sale of the refunding bonds.
    3.  Refunding  bonds  shall  not  be  issued to refund bonds issued to
  finance an object or purpose which, at the time of the issuance of  such
  bonds, had a period of probable usefulness of five years or less.
    4.  If  a budgetary appropriation has been made for the payment of the
  principal on bonds, such maturity shall not be included in  a  refunding
  bond issue.
    b.  The  maturities  and  amount  of  such refunding bonds shall be so
  arranged that the combined amount of:
    1. The bonds of the original issue, and
    2. Refunding bonds previously issued to refund bonds of  the  original
  issue, if any,
  to  be  redeemed  by  an  appropriation  other than from the proceeds of
  refunding bonds during the year of refunding and the combined amount of:
    1. The bonds of the original issue,
    2. Such refunding bonds, and
    3. Refunding bonds previously issued to refund bonds of  the  original
  issue, if any,
  to  be  redeemed  by  an  appropriation  other than from the proceeds of
  refunding bonds in each succeeding year  thereafter  is  not  more  than
  fifty per centum in excess of the combined amount of:
    1. The bonds of the original issue,

    2. Such refunding bonds, and
    3.  Refunding  bonds previously issued to refund bonds of the original
  issue, if any,
  redeemed or to be redeemed during any preceding year by an appropriation
  other than from the proceeds of refunding bonds.
    b-1. Refunding bonds need not comply with paragraph b of this  section
  provided that no annual installment of each separate series of refunding
  bonds  shall  be  more  than  fifty per centum in excess of the smallest
  prior installment or the  finance  board  of  the  municipality,  school
  district or district corporation issuing the bonds shall have determined
  to  use  a substantially level or declining annual debt service schedule
  for the refunding bonds.  The  amount  of  annual  installments  of  the
  refunding  bonds  may  be  determined  without  reference  to the stated
  maturities of the bonds to be refunded.
    c. 1. Bonds  issued  on  or  after  January  first,  nineteen  hundred
  thirty-nine,  shall  not be refunded within five years after the date of
  original issue. This restriction shall not apply to bonds issued by  the
  city  of  New York, bonds issued by the county of Nassau for the objects
  or purposes described in subdivision thirty-three-a of  paragraph  a  of
  section 11.00 of this chapter or to bonds issued to refund:
    (i) Bonds issued, or
    (ii)  Bonds issued to redeem notes, certificates or other evidences of
  temporary indebtedness issued prior to January first,  nineteen  hundred
  thirty-nine.
    * 2.  Notwithstanding  the  provisions  of  subdivision  one  of  this
  paragraph and subdivision three of paragraph a of  this  section,  bonds
  may  be refunded and the refunding bonds may be sold at either public or
  private sale where the present value of the refunding bonds is less than
  the present value of the bonds to be  refunded  computed  in  accordance
  with subparagraph (a) of subdivision two of paragraph b of section 90.10
  of  this title and where the issuer complies with all other requirements
  of such section; provided, however, that if such bonds are being sold to
  the New York state environmental facilities  corporation  in  connection
  with  a  hardship state revolving fund financing at a rate equal to zero
  percent,  compliance  with  subparagraph  (a)  of  subdivision  two   of
  paragraph  b  of  section  90.10  of  this  title shall not be required;
  provided further, however, that if the bonds to be refunded  are  to  be
  redeemed or paid on the same date as the refunding bonds are issued, the
  issuer  need  not  comply  with  the provisions of section 90.10 of this
  title relating to the  escrow  of  the  proceeds  of  the  sale  of  the
  refunding bonds.
    * NB Effective until September 30, 2011
    * 2.  Notwithstanding  the  provisions  of  subdivision  one  of  this
  paragraph and subdivision three of paragraph a of  this  section,  bonds
  may  be refunded and the refunding bonds may be sold at either public or
  private sale where the present value of the refunding bonds is less than
  the present value of the bonds to be  refunded  computed  in  accordance
  with subparagraph (a) of subdivision two of paragraph b of section 90.10
  of  this title and where the issuer complies with all other requirements
  of such section; provided, however, that if the bonds to be refunded are
  to be redeemed or paid on the same  date  as  the  refunding  bonds  are
  issued,  the issuer need not comply with the provisions of section 90.10
  of this title relating to the escrow of the proceeds of the sale of  the
  refunding bonds.
    * NB Effective September 30, 2011
    d.  With the approval of and on terms and conditions prescribed by the
  state  comptroller,  a  municipality,  school   district   or   district
  corporation may issue bonds to refund:

    1. Bonds issued,
    2.  Bonds  issued  to redeem notes, certificates or other evidences of
  temporary indebtedness issued, or
    3. Bonds issued to refund bonds issued
  prior to January first, nineteen hundred thirty-nine, but  in  no  event
  shall such refunding bonds mature later than twenty years after the date
  thereof. The provisions of section 21.00 of this chapter shall not apply
  to this paragraph.
    e. The issuance of refunding bonds shall be authorized by a "refunding
  bond  resolution".  The  title  of  such resolution shall state that the
  bonds to be authorized thereby are "refunding bonds".
    f. Such a  resolution  shall  contain,  in  substance,  the  following
  provisions:
    1. The amount of refunding bonds to be issued.
    2. A description and the date of the bonds to be refunded.
    3. If the bonds to be refunded are bonds which were issued on or after
  January  first, nineteen hundred thirty-nine, other than bonds issued to
  redeem notes, certificates or other evidences of temporary  indebtedness
  issued   prior  to  January  first,  nineteen  hundred  thirty-nine,  in
  anticipation of such  bonds,  a  statement  of  the  maximum  period  of
  probable  usefulness,  at  the  time  of the issuance of the bonds to be
  refunded, of the object or purpose for which such bonds were issued.
    4. A statement of the proposed maturities of such refunding bonds.
    g. The provisions of this chapter relating to the authorization,  form
  and contents, sale, execution and issuance of bonds other than refunding
  bonds,  shall  apply  to  the  authorization,  form  and contents, sale,
  execution and issuance of refunding bonds, except that:
    1. The provisions of section 107.00 of this chapter shall not apply to
  the issuance of refunding bonds.
    2. The authorization of the issuance of refunding bonds shall  not  be
  subject to a mandatory or permissive referendum.
    3.  Outstanding bonds may, pursuant to a power to recall and redeem or
  with the consent of the holders  thereof,  be  exchanged  for  refunding
  bonds (i) if the refunding bonds are to bear interest at a rate equal to
  or  lower than that borne by the bonds to be refunded or (ii) if, in the
  case of the city of New York prior to July first, two thousand ten,  the
  annual payment required for principal and interest on the refunding bond
  is  less  than the annual payment required for principal and interest on
  the bond to be refunded,  in  each  case  such  annual  payments  to  be
  determined  by  dividing  the  total principal and interest payments due
  over the remaining life of the bond by the number of years  to  maturity
  of the bond or (iii) if the bonds to be refunded were issued by the city
  of  New  York  after  June thirtieth, nineteen hundred seventy-eight and
  prior to July first, two thousand ten and contain covenants referring to
  the existence of the New York state financial control board for the city
  of New York or any other covenants relating to matters  other  than  the
  prompt payment of principal and interest on the obligations when due and
  the refunding bond omits or modifies any such covenant.
    4.  All  refunding  bonds shall contain a recital that they are issued
  pursuant to this chapter, which recital shall be conclusive evidence  of
  their validity and of the regularity of their issuance.
    h. The authority herein granted to authorize the issuance of refunding
  bonds  shall  in  no  way  be  affected  by  the  invalidity  of  or any
  irregularity in any proceedings authorizing the issuance of the bonds to
  be refunded, except that refunding bonds shall not be issued  to  refund
  bonds  adjudged  invalid  by  the final judgment of a court of competent
  jurisdiction.

    i. 1. Refunding bonds issued subsequent  to  January  first,  nineteen
  hundred thirty-nine to refund:
    (a) Bonds issued, or
    (b)  Bonds  issued to redeem notes, certificates or other evidences of
  temporary indebtedness issued
  prior to January first, nineteen hundred thirty-nine, may be refunded by
  the issuance of refunding bonds, but such refunding bonds  shall  mature
  not  later  than  twenty  years  from the date of the original refunding
  bonds. Such refunding bonds shall be issued only with  the  approval  of
  and on terms and conditions prescribed by the state comptroller.
    2.  All  other  refunding  bonds  issued  on  or  after January first,
  nineteen hundred thirty-nine, shall not be refunded.
    j. Bond anticipation notes shall not be issued in anticipation of  the
  sale of refunding bonds.
    k.  The  premium,  if any, resulting from the public sale of refunding
  bonds may be expended for (1) the payment of the costs of  the  issuance
  of  such  refunding  bonds,  including,  but not limited to, legal fees,
  printing or engraving and publication of notices, and (2) the payment of
  the principal of and interest on such refunding bonds.