2 CRR-NY 37.5NY-CRR
2 CRR-NY 37.5
2 CRR-NY 37.5
37.5 Policies and procedures.
Any municipality, school district or district corporation, as a condition to authorizing the issuance and sale of obligations at negotiated sale in accordance with subdivision (a) of either section 37.3 or 37.4 of this Part, shall comply with the following provisions.
(a) In the case of variable rate obligations, the finance board, in its resolution authorizing such obligations, or the chief fiscal officer, in the certificate required by section 30.00(b) of the Local Finance Law, shall include a statement explaining in reasonable detail:
(1) why the issuance of variable, rather than fixed rate obligations is reasonably expected to reduce the cost of borrowing to the municipality; and
(2) why a competitive sale of the proposed variable rate obligations is not feasible or in the best interests of the municipality.
In making these determinations, the municipality or chief fiscal officer shall consider the size of the issue, relative interest yield curves for long term and short term obligations, complexity of the proposed issue, relative costs of issuance of fixed rate versus variable rate obligations and such other factors as the municipality deems relevant.
(b) The municipality, school district or district corporation shall select underwriters, remarketing agents or the providers of letters of credit or liquidity facilities at least once every two years in a manner which affords a reasonable opportunity for interested, qualified candidates to submit a proposal. The method used to solicit proposals from candidates shall be structured to provide notice to qualified parties interested in participating in the selection process. Any bond counsel or financial adviser retained by a municipality, school district or district corporation after January 1, 1992 shall be selected in accordance with the policies and procedures required to be adopted pursuant to section 104-b of the General Municipal Law.
(c) The municipality, school district or district corporation shall, to further the objective of achieving the lowest overall cost to the issuer, evaluate and select underwriters and remarketing agents using criteria which shall include, but not be limited to:
(1) all anticipated costs to the issuer;
(2) the ability of the candidates to market the obligations at competitive interest rates;
(3) the experience and ability of the candidates under consideration to structure the sale of and market the obligations proposed to be issued;
(4) the experience and ability of the individuals whom the candidates plan to involve directly in a sale; and
(5) the soundness of the candidates' overall financing and marketing plans, including any proposed use, if applicable, of letters of credit or liquidity facility agreements.
(d) In selecting the provider of letter of credit or liquidity facilities, criteria shall include, but not be limited to:
(1) those factors set forth in section 168.00 of the Local Finance Law, including whether the provider under consideration is a financially responsible party;
(2) rating and financial strength of the provider;
(3) proposed terms and conditions for issuing the letter of credit or liquidity facility;
(4) proposed terms of any reimbursement agreement; and
(5) price.
(e) The municipality, school district or district corporation shall prepare and maintain written documentation of compliance with subdivisions (b), (c) and (d) of this section, including copies of the notice sent to qualified candidates, the names and addresses of the candidates to whom the notice was sent, copies of any publication of the notice, copies of all responses received from candidates and written justification of the selections made. Such documentation shall be filed with the finance board before the date of sale of the obligations.
2 CRR-NY 37.5
Current through August 31, 2022
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IMPORTANT NOTE REGARDING CONTENT CURRENCY: JULY 31, 2023, is the date of the most recently produced official NYCRR supplement covering this rule section. For later updates to this section, if any, please: consult editions of the NYS Register published after this date; or contact the NYS Department of State Division of Admisnistrative Rules at [email protected]. See Help for additional information on the currency of this unofficial version of the NYS Rules.