Extends certain provisions relating to the sale, issuance and refund of bonds and notes of New York city

Summary

Extends certain provisions relating to the sale of bonds and notes of the city of New York, the issuance of bonds or notes with variable rates of interest, interest rate exchange agreements of the city of New York, the refunding of bonds, and the down payment for projects financed by bonds; extends the New York state financial emergency act for the city of New York; makes further amendments relating to the effectiveness thereof.

Summary from NY Open Legislation. How we handle summaries

Amends the Local Finance Law.

Purpose, from the sponsor's memo

Section one of this bill would amend paragraph (a) of section 54.10 of the Local Finance Law ("LFL") to extend through June 30, 2027 the provisions of such section authorizing the City to sell its obligations through negotiated agreement, to provide for compensation for services rendered in connection with the private sale of obligations by selling such obligations at a discount, to provide for redemption of its obli- gations prior to maturity at prices and pursuant to terms determined by the City, and to include the costs of a negotiated underwriting and other costs of issuance of its obligations in the total cost of the object or purpose being financed by such obligations. Section two of this bill would amend paragraph a of section 54.90 of the LFL to extend through July 15, 2027 the authorization in such paragraph for the City to issue bonds or notes with variable rates of interest. Section three of this bill would amend subdivision 1 of paragraph d of section 54.90 of the LFL to extend through July 15, 2027 the City's authority to enter into interest rate exchange agreements (commonly referred to as "swaps") or other similar agreements. Section four would amend paragraph a of section 57.00 of the LFL to extend through June 30, 2027 the City's authority to sell bonds at private sale. 16445411 Section five would amend subdivision 3 of paragraph g of section 90.00 of the LFL to extend through June 30, 2027 the City's authority to exchange refunding bonds for outstanding bonds under certain circum- stances. Section six would amend subdivision 8 of paragraph d of section 107.00 of the LFL to extend through June 30, 2027 the inapplicability of the down payment provisions of such section to certain bonds and notes issued by the City. Section seven would amend subdivision 1 of section 10-a of section 2 of Chapter 868 of the Laws of 1975, also known as the New York State Finan- cial Emergency Act for the City of New York ("Financial Emergency Act"), to extend through June 30, 2027 the City's authority to include the pledge and agreement of the State in agreements with holders or guaran- tors of City obligations. Section eight would amend section 5 of Chapter 142 of the Laws of 2004 to extend until July 15, 2027 the amendment to subparagraph (a) of subdivision 2 of paragraph b of section 90.10 of the LFL, providing that for purposes of calculating present value savings in a refund trans- action, the interest payments on variable rate bonds may be the fixed rate payable by the City in a related interest rate exchange agreement, if any, or as found by the Finance Board of the City of New York ("Finance Board"); and in the case of refunding of variable rate bonds with variable rate bonds, if determined by the Finance Board, present value savings would not need to be demonstrated. Section nine would provide that if any portion of this bill is adjudged to be invalid, that judgment will be confined to the portion of this bill that is the subject of that judgment and would not invalidate the remainder of this bill. Section ten would provide that this bill takes effect immediately. REASONS FOR SUPPORT: This bill includes several elements that are instrumental in ensuring that the City of New York continues to have efficient and cost-effective access to the capital markets. First, in 1978, the Legislature enacted various provisions of the LFL and the Financial Emergency Act to respond to the financial emergency existing in the City and to improve marketability of City obligations by authorizing their sale on terms consistent with current market prac- tices. Certain of these provisions contained sunset provisions, and in 1982, the Legislature extended certain sunset provisions and introduced other changes necessary for the continued successful marketing of City obligations, some of which were applicable to other municipal issuers as well. Since 1986, the Legislature has extended these sunset provisions at least annually. This network of legis

Filed with the bill. Read it on nysenate.gov (opens in a new tab)

Where it stands

Signed into law.

Cities · New York State Assembly

Also referred to Cities 1 · New York State Senate.

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Recorded votes

• Vote: Floor vote

  NY SenateJun 4, 2026Result: passedSenate vote on A10922, the matching Assembly bill.

  Voted yes (56)Voted no (4)Voted present (0)Absent (3)

  See member positions for the vote on Jun 4, 2026 (Floor vote)

• Vote: Committee vote · Rules

  Senate RulesMay 28, 2026Result: passed

  Voted yes (21)Voted no (0)Voted present (0)Absent (0)

  See member positions for the vote on May 28, 2026 (Committee vote · Rules)

Full history

1. Jun 26, 2026

   Signed

   SIGNED CHAP.144

   NY Assembly

2. Jun 18, 2026

   Sent to the executive

   DELIVERED TO GOVERNOR

   NY Assembly

3. Jun 4, 2026

   3RD Reading CAL.1435

   3RD READING CAL.1435

   NY Senate

4. Jun 4, 2026

   Passed a chamber

   PASSED SENATE

   NY Senate

5. Jun 4, 2026

   Substituted

   SUBSTITUTED FOR S10431

   NY Senate

Read the record

• Read on NY Senate (opens in a new tab) The official record on nysenate.gov.