Section 60. Issuance of housing bonds, or urban renewal bonds

1. Whenever
  the legislature, under the power granted  to  it  by  section  three  of
  article  eighteen  of  the state constitution, shall have authorized the
  creation of a state debt or debts for the purpose  of  providing  moneys
  out  of  which  to  make  loans  for low rent housing for persons of low
  income  as  defined  by  law,  or   for   the   clearance,   replanning,
  reconstruction  and  rehabilitation of substandard and insanitary areas,
  or for both such purposes and  for  recreational  and  other  facilities
  incidental  or appurtenant thereto, 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  "housing  bonds,"  except  where  issued  in
  connection with a program of urban renewal undertaken by a city, town or
  village pursuant to the general municipal law, in which event they shall
  be known as "urban renewal bonds." The state comptroller may  issue  and
  sell  a single series of bonds pursuant to one or more authorizations to
  sell "housing", "urban renewal", or other bonds, whether or not pursuant
  to this section, and for one or more duly authorized works or  purposes.
  As part of the proceedings for such issuance and sale of bonds the state
  comptroller  shall  designate  the works or purposes for which they were
  issued. It shall not be necessary for the state comptroller to designate
  the works or purposes for which the bonds are issued on the face of  the
  bonds. The proceeds from the sale of bonds shall be separately accounted
  for  according  to the works or purposes designated for such sale by the
  state comptroller and the proceeds received for  each  work  or  purpose
  shall  be  expended  only for such work or purpose. The bonds 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 at least semi-annually, in the
  case of bonds with a fixed interest rate, and at least annually, in  the
  case  of  bonds  with  an interest rate that varies periodically, in the
  city of New York unless annual payments of principal and interest result
  in substantially level or declining debt service payments over the  life
  of  an  issue  of  bonds pursuant to paragraph (b) of subdivision two of
  this section or unless accrued interest is contributed to a sinking fund
  in accordance with subdivision three of section twelve of article  seven
  of  the state constitution, in which case interest shall be paid at such
  times and at such places as shall be determined by the state comptroller
  prior to issuance of the bonds.
    2. Except as hereinafter provided, such bonds, or the portion  thereof
  at  any time issued, shall be made payable (a) in equal annual principal
  installments the first of which shall be payable  not  more  than  three
  years  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 fifty years
  after the date of issue, in the case of housing bonds, and not more than
  twenty-five years after the date of issue in the case of  urban  renewal
  bonds  or  (b)  in  annual  installments of principal and interest which
  result in substantially level or declining debt  service  payments  over
  the  life  of  the bonds, the last of which annual installments shall be
  payable at such time as the comptroller may determine but not more  than
  fifty  years  after the date of issue, in the case of housing bonds, and
  not more than twenty-five years after the date of issue in the  case  of
  urban  renewal  bonds. Where bonds are payable pursuant to paragraph (b)
  of this subdivision, except for the year of  initial  issuance  if  less
  than  a  full year of debt service is to become due in that year, either
  (i) the greatest aggregate amount of debt service payable in any  fiscal

  year  shall  not differ from the lowest aggregate amount of debt service
  payable in any other fiscal year by more than five percent or  (ii)  the
  aggregate  amount of debt service in each fiscal year shall be less than
  the aggregate amount of debt service in the immediately preceding fiscal
  year.  For  purposes of this subdivision, debt service shall include all
  principal, redemption price, sinking fund installments or contributions,
  and interest scheduled  to  become  due.  For  purposes  of  determining
  whether  debt  service  is  level  or  declining  on bonds issued with a
  variable rate of interest pursuant to paragraph b of subdivision four of
  this section, the comptroller shall assume a market rate of interest  as
  of  the date of issuance. Where the comptroller determines that interest
  shall be compounded and payable at maturity, such bonds shall be payable
  only in accordance with paragraph (b) of this subdivision unless accrued
  interest is contributed to a sinking fund in accordance with subdivision
  three of section twelve of article seven of the state  constitution.  In
  no case shall any bonds or portion thereof be issued for a period longer
  than  the  probable life of the work or purpose, or part thereof, to aid
  which the proceeds of the bonds are to be applied or loaned  or  in  the
  alternative,  the  weighted  average  period of the probable life of the
  works or purposes to aid which the proceeds  of  the  bonds  are  to  be
  applied  or  loaned  taking into consideration the respective amounts of
  bonds issued for each work  or  purpose,  as  may  be  determined  under
  section sixty-one of this chapter and in accordance with the certificate
  of  the  state  commissioner  of  housing  and  community  renewal. Such
  certificates 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  purposes  are  different,  the  groups
  specified  in  such  section, for which the amount, or amounts, shall be
  provided by the issuance and sale of bonds. Weighted average  period  of
  probable  life  shall be determined by computing the sum of the products
  derived from multiplying the dollar value of the  portion  of  the  debt
  contracted  to  aid each work or purpose (or class of works or purposes)
  by the probable life of such work or  purpose  (or  class  of  works  or
  purposes)  and  dividing  the  resulting  sum by the dollar value of the
  entire debt after taking into consideration any original issue discount.
  Any costs of issuance financed with  bond  proceeds  shall  be  prorated
  among  the various works or purposes. 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.
  Notwithstanding  the  foregoing  provisions  of  this  subdivision,  the
  comptroller  may  issue  all  or a portion of such bonds as serial debt,
  term debt or  a  combination  thereof,  maturing  as  required  by  this
  subdivision,  provided  that the comptroller shall have provided for the
  retirement each year, or otherwise have provided  for  the  payment  of,
  through  sinking  fund  installment  payments or otherwise, a portion of
  such term bonds in an amount meeting the requirements of  paragraph  (a)
  or  (b) of this subdivision or shall have established a sinking fund and
  provided for contributions thereto as provided in subdivision  eight  of
  this   section  and  section  twelve  of  article  seven  of  the  state
  constitution.
    3. Such bonds shall be sold in such lot or lots, from time to time, as
  may be required for the loans for which the creation of a state debt  or
  debts  shall  have  been authorized pursuant to section three of article
  eighteen of the constitution, and appropriations shall have been made by
  law, but not in excess of  the  aggregate  amount  authorized  for  such
  purpose.  For  the  purpose of determining the total amount of debt sold
  for a particular work or purpose, only  the  amount  of  money  actually

  received  by  the  state  shall  be  considered when bonds are sold at a
  discount.
    4.  (a)  Such bonds shall be sold at par, at par plus a premium not to
  exceed five percent in the case of refunding bonds or five-tenths of one
  percent in the case of all other bonds, or at a discount to  the  bidder
  offering   the   lowest   interest   cost  to  the  state,  taking  into
  consideration any premium or discount and,  in  the  case  of  refunding
  bonds,  the  bona fide initial public offering price, 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 definitive trade publication
  of the municipal bond industry published on each  business  day  in  the
  state  of  New  York which is generally available to participants in the
  municipal bond industry, which notice shall state the terms of the sale.
  The comptroller may not change the terms of the sale  unless  notice  of
  such change is sent via 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, at least one day prior to
  the date of the sale as set forth in the original notice of sale. In  so
  changing  the  terms  or  conditions  of a sale the comptroller may send
  notice by such wire service that the sale  will  be  delayed  by  up  to
  thirty  days,  provided  that  wire  notice of the new sale date will be
  given at least one business day prior to the new time when bids will  be
  accepted.  In  such event, no new notice of sale shall be required to be
  published. Notwithstanding the provisions of section three hundred  five
  of  the  state  technology  law  or any other law, if the notice of sale
  contains a provision that bids will only be accepted  electronically  in
  the manner provided in such notice of sale, the comptroller shall not be
  required to accept non-electronic bids in any form. 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 negotiate a private sale or 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.
  Notwithstanding the foregoing provisions of this  subdivision,  whenever
  in  the  judgment  of the comptroller the interests of the state will be
  served thereby, he may sell state bonds at private sale at par,  at  par
  plus a premium not to exceed five percent in the case of refunding bonds
  or  five-tenths  of  one percent in the case of all other bonds, or at a
  discount. The comptroller shall  promulgate  regulations  governing  the
  terms  and conditions of any such private sales, which regulations shall
  include a provision that he give notice to the governor,  the  temporary
  president  of  the  senate,  and  the  speaker  of  the  assembly of his
  intention to conduct a private sale  of  obligations  pursuant  to  this
  section  not  less than five days prior to such sale or the execution of
  any binding agreement to effect such sale.
    (b) Notwithstanding paragraph (a) of this subdivision, whenever in the
  judgment of the comptroller the interests of the state  will  be  served
  thereby,  such bonds may be sold at public or private sale in accordance
  with the procedures set forth in paragraph (a) of this subdivision, with
  interest rates that vary in accordance with a formula or  procedure  set
  forth  or  referred  to in the bonds and may provide the holders thereof
  with such rights to require the state or other persons  to  purchase  or
  redeem  such  bonds  or renewals thereof from the proceeds of the resale
  thereof or otherwise from time to time prior to the  final  maturity  of
  such bonds as the comptroller may determine and the state may resell, at
  any time prior to final maturity, any such bonds acquired as a result of

  the  exercise of such rights. The holders of bonds sold pursuant to this
  paragraph may be provided  with  the  right  to  require  the  state  to
  repurchase  or  redeem  the bonds prior to the final maturity thereof if
  the  state  has  entered into one or more letter of credit agreements or
  other liquidity facility agreements entered into for the express purpose
  of such sale and which shall require a financially responsible party  or
  parties  to  the  agreement  or  agreements,  which may be the state, to
  purchase or redeem all or any portion of  such  bonds  tendered  by  the
  holders thereof for repurchase or redemption prior to the final maturity
  of  such  bonds.  Such  requirement  to  purchase  or redeem bonds shall
  continue until such time as the right of the holders of  such  bonds  to
  require  repurchase  or  redemption  of  such  bonds  prior to the final
  maturity  thereof  shall  cease.  A  financially  responsible  party  or
  parties,  for purposes of this paragraph, shall mean a person or persons
  determined by the comptroller to have sufficient net worth and liquidity
  to purchase and pay for on a timely basis all of the bonds which may  be
  tendered for repurchase or redemption by the holders thereof.
    5.  The  proceeds  of  bonds sold pursuant to this section or of notes
  issued in anticipation thereof shall be paid into  the  state  treasury,
  and  shall  be  a separate fund or funds available only to the extent of
  appropriations for loans pursuant to section three of  article  eighteen
  of  the constitution. Such proceeds of the bonds or notes as will not be
  immediately required for application to a loan to a housing authority, a
  municipality or a corporation regulated by law  as  to  rents,  profits,
  dividends  and  disposition  of its property or franchise and engaged in
  providing housing facilities may, upon request of the housing authority,
  the municipality or said corporation which is  being  charged  with  the
  interest  costs  of  the  bonds  or  notes  from which such proceeds are
  derived, or upon the request of the state commissioner  of  housing  and
  community  renewal,  be invested by the state comptroller in obligations
  of the categories approved for investment in section  ninety-eight-a  of
  this  chapter  and  of maturities approved by the state comptroller; and
  any returns earned upon such investment shall be credited by  the  state
  comptroller  to  the  account of such housing authority, municipality or
  corporation and applied by the state comptroller to reduce to the extent
  of such returns the liability of such housing authority, municipality or
  corporation for interest under its loan contract with the state.
    6. Except with respect to bonds  issued  in  the  manner  provided  in
  paragraph  (c)  of  subdivision  seven of this section, all bonds of the
  state of New York which the comptroller of the  state  of  New  York  is
  authorized to issue and sell, shall be executed in the name of the state
  comptroller  and  his  seal  (or a facsimile thereof) shall be thereunto
  affixed, imprinted, engraved or otherwise reproduced. In case the  state
  comptroller  who  shall  have  signed  and sealed any of the bonds shall
  cease to hold the office of state comptroller before the bonds so signed
  and sealed shall have been actually countersigned and delivered  by  the
  fiscal  agent,  such  bonds  may,  nevertheless,  be  countersigned  and
  delivered as herein  provided,  and  may  be  issued  as  if  the  state
  comptroller who signed and sealed such bonds had not ceased to hold such
  office.  Any  bond of a series may be signed and sealed on behalf of the
  state of New York by such person as at the actual time of the  execution
  of  such  bond  shall hold the office of comptroller of the state of New
  York, although at the date of the bonds of such series such  person  may
  not have held such office.
    The coupons to be attached to the coupon bonds of each series shall be
  signed  by the facsimile signature of the state comptroller of the state
  of New York or by any person who shall have held  the  office  of  state
  comptroller  of  the state of New York on or after the date of the bonds

  of such series, notwithstanding that such person may not have been  such
  state  comptroller at the date of any such bond or may have ceased to be
  such state comptroller at the date when any such bond shall be  actually
  countersigned and delivered.
    The  bonds  of  each  series  shall  be  countersigned with the manual
  signature of an authorized employee of the fiscal agent of the state  of
  New York. No bond and no coupon thereunto appertaining shall be valid or
  obligatory  for  any  purpose  until  such manual countersignature of an
  authorized employee of the fiscal agent of the state of New  York  shall
  have been duly affixed to such bond.
    7.  (a)  The  state  comptroller is authorized to issue bonds in fully
  registered form,  executed  as  provided  in  subdivision  six  of  this
  section,  in  such  denominations  as  shall  be determined by the state
  comptroller and exchangeable for fully registered bonds in denominations
  as shall be determined by the state comptroller.
    (b) The state comptroller is authorized to issue  bonds  as  a  single
  registered  bond,  executed  as  provided  in  subdivision  six  of this
  section, in an amount equal to the principal amount  of  the  series  of
  bonds being issued, or more than one registered bond in amounts equal to
  the  principal  amount of the series of bonds maturing in a single year,
  and to deposit the bond or bonds with a securities depository  organized
  under  the  banking  law  of  the  state of New York and qualifying as a
  clearing agency registered under the United States  Securities  Exchange
  Act  of 1934, as amended. Book entries representing beneficial ownership
  of  the  bonds  shall  be  in  denominations  determined  by  the  state
  comptroller.
    (c)   The   state   comptroller   is  authorized  to  issue  bonds  as
  uncertificated securities within the meaning of  article  eight  of  the
  uniform  commercial  code  with  beneficial  ownership  in denominations
  determined by the state comptroller and exchangeable in book entries  in
  denominations as shall be determined by the state comptroller.
    8.  Any  sinking  funds  created  pursuant  to  this  section shall be
  maintained and managed by the state comptroller or an agent  or  trustee
  designated  by  the  state comptroller and shall be funded in accordance
  with the requirements of section twelve of article seven  of  the  state
  constitution. Money in such sinking funds shall be held as cash or shall
  be  invested  in  direct  obligations  of  the  federal  government,  or
  obligations the interest on which is exempt from federal income taxation
  and which are  fully  secured  by  direct  obligations  of  the  federal
  government,  having  such  maturities  and  interest  payment  dates  as
  required to make all payments to be made from the sinking fund  as  they
  come  due.  Amounts  in  such sinking funds shall be used solely for the
  purpose of retiring the bonds secured thereby  except  that  amounts  in
  excess  of  the  required  balance  on any contribution date and amounts
  remaining in such funds after all of the bonds secured thereby have been
  retired shall be deposited in the general fund. No  appropriation  shall
  be  required  for  disbursement of money, or income earned thereon, from
  any sinking fund for the purpose of paying principal of and interest  on
  the bonds for which such fund was created, except that interest shall be
  paid  from  any  such  fund  only  if, and to the extent that, it is not
  payable annually and contributions on account of such interest were made
  to the fund.