Section 59. Issuance of grade crossing bonds

1. Whenever the legislature,
  under the power granted to it by section fourteen of  article  seven  of
  the  state  constitution,  shall have authorized the creation of a state
  debt or debts for the elimination of grade crossings at grade, bonds  of
  the  state,  to  the amount of the debt or debts so authorized, shall be
  issued and sold by the state comptroller.   Any appropriation  from  the
  proceeds of the sale of bonds, pursuant to this section, shall be deemed
  to  be an authorization for the creation of a state debt or debts to the
  extent of such appropriation. They shall be  known  as  "grade  crossing
  elimination bonds." They shall bear interest at such rate or rates as in
  the  judgment of the state comptroller may be sufficient or necessary to
  effect a  sale  of  the  bonds,  and  such  interest  shall  be  payable
  semi-annually in the city of New York.
    2.  Such  bonds,  or  the portion thereof at any time issued, shall be
  made payable in equal annual installments, the first of which  shall  be
  payable  not  more  than one year from the date of issue and the last of
  which shall be payable at such time as the comptroller may determine but
  not more than forty years after the date of issue. In no case shall such
  bonds or portion thereof be issued for a period longer than the probable
  life of the work or purpose, or part thereof, to which the  proceeds  of
  the  bonds  are  to  be  applied,  as  may  be  determined under section
  sixty-one  of  the  state  finance  law  and  in  accordance  with   the
  certificate  of the public service commission. Such certificate shall be
  filed in the office of the state comptroller and shall state the  group,
  or,  where the probable lives of two or more separable parts of the work
  or purpose are different, the groups  specified  in  such  section,  for
  which the amount, or amounts, shall be provided by the issuance and sale
  of  bonds. Such bonds, or the portion thereof at any time sold, shall be
  of such denominations, subject to the foregoing provisions, as the state
  comptroller may determine.
    3. Such bonds shall be sold in such lot or lots, from time to time, as
  may be required for the expense of grade crossing eliminations for which
  the creation of a state  debt  or  debts  shall  have  been  authorized,
  pursuant  to  section fourteen of article seven of the constitution, and
  appropriations shall have been made by law, but not  in  excess  of  the
  aggregate amount authorized for such purpose.
    4. Such bonds shall be sold at not less than par to the highest bidder
  not less than four nor more than fifteen days, Sundays excepted, after a
  notice  of  such  sale  has  been  published  at  least  once in a daily
  newspaper published in Albany and in a  daily  newspaper  published  and
  circulating  in  New York city, which shall state the terms of the sale.
  The comptroller may not change the terms of the sale  unless  notice  of
  such  change  is  published in such newspapers at least one day prior to
  the date of the sale as set  forth  in  the  original  notice  of  sale.
  Advertisements  shall  contain  a provision to the effect that the state
  comptroller, in his discretion, may reject  any  or  all  bids  made  in
  pursuance  of  such  advertisements, and in the event of such rejection,
  the state comptroller is authorized to readvertise for bids in the  form
  and  manner  above  described  as many times as, in his judgment, may be
  necessary to effect a satisfactory sale.
    5. The proceeds of bonds sold pursuant to this section shall  be  paid
  into the state treasury, and shall be a separate fund or funds available
  only  to  the  extent  of  appropriations  for  elimination  of railroad
  crossings at grade pursuant to section fourteen of article seven of  the
  constitution.