App.A:4-23. Sale price; exchange or sale of bonds
5. Bonds authorized under this act may be sold and delivered at such price or prices, computed in the manner or mode of procedure prescribed by Montgomery Rollins, "Tables of Bond Values" (twenty-first edition, published by The Financial Publishing Company, Boston, Massachusetts), as will yield to the purchasers income at a rate not exceeding six per cent (6%) per annum to the maturity dates of the several bonds so sold and delivered on the money paid to the municipality therefor; provided, however, that the price or prices so computed may be reduced by an amount not exceeding one per cent (1%) of the principal amount of such bonds. Bonds may be sold and delivered without previous public offering in exchange for the bonds or notes to be funded or refunded by the issuance thereof and in discharge of any interest due or accrued on such bonds or notes whether or not such bonds or notes be then due and payable and irrespective of any higher or lower rate of interest borne by the bonds or notes so to be funded or refunded. Bonds may be sold and delivered without previous public offering directly to any creditor of the municipality at not less than par in absolute and complete discharge of any indebtedness to be funded or refunded by the issuance thereof, not evidenced by bonds or notes of the municipality; provided, however, that the amount of such indebtedness and its validity shall be fixed and determined by resolution adopted by the votes of a majority of all the members of the governing body of such municipality; and provided, further, that such creditor execute and deliver to the municipality a general release of such indebtedness. Bonds may be sold and delivered without previous public offering to the sinking fund commission or the insurance or pension fund commissioners of the municipality issuing the bonds, or to any board, commission, agency, or officers of the state authorized by law to purchase such bonds. Except bonds sold and delivered or to be sold and delivered without previous public offering as herein above in this section provided, all bonds issued under this act shall be sold at public sale, after notice of such sale or public offering is published at least once at least five days prior to the date of sale in a newspaper published and circulating in the municipality, or, if there be no newspaper published and circulating in the municipality, then in a newspaper published in the county in which the municipality is located and circulating in the municipality, and also published at least once at least three days prior to the date of sale in a newspaper published and circulating in the city of New York, New York; provided, however, that if no legally acceptable bid is received for the bonds advertised to be sold at such public sale, said bonds or any of them may be sold without further advertisement at private sale and without further public offering within ninety days after the advertised date of such public offering. Bonds of any authorized issue and of any authorized maturity may be sold and delivered as herein above provided from time to time and in such blocks as may be deemed advisable, and bonds authorized under this act by the same ordinance may bear different rates of interest. Any such sale, whether public or private, or before, at or after public offering, may be made by resolution of the governing body or may be made by the financial officer designated by resolution adopted by the votes of a majority of all the members of the governing body to sell such bonds. Any sales made by any such financial officer shall be reported by him to such governing body at its next regular meeting, and such report shall be entered in the minutes or other record of such meeting.
(L.1934, c. 60, s. 5, p. 167.)
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Last modified: October 11, 2016