N.Y. Comp. Codes R. & Regs. tit. 2 § 39.7

Current through Register Vol. 46, No. 36, September 4, 2024

Section 39.7 - Private sale of certificates of participation

The governing board or the chief fiscal officer, if the governing board has delegated such power to him, may determine that a public sale of certificates of participation is not in the best interests of the political subdivision. The determination of the governing board or chief fiscal officer, as the case may be, shall state that a private sale of such certificates of participation is expected to reduce the cost of financing and set forth the specific factors upon which the governing board or chief fiscal officer has relied on making such determination. The factors recited in such determination may include:

(a) unstable or volatile market conditions;

(b) conditions of fiscal stress or negative credit factors being experienced by the issuer;

(c) the large dollar amount of the proposed issue;

(d) the complexity of the issue; or

(e) any other factor which the governing board or chief fiscal officer, as the case may be, reasonably and in good faith believes will cause the cost of financing to be lower if the certificates of participation are sold at private rather than public sale.

Such determination, if made by the governing board, shall be made by resolution and if made by the chief fiscal officer, shall be made in a certificate filed with the governing board prior to such sale. Upon making the determination required by this paragraph, such certificates of participation may be sold at private sale provided that any underwriters, providers of letters of credit or liquidity facilities, bond counsel and financial advisors to be used in connection with such sale have been selected in accordance with the policies and procedures contained in section 37.5(b)-(e) of this Title. The prior approval of the State Comptroller shall not be required for any private sale of certificates of participation conducted in accordance with the requirements of this paragraph.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 39.7