53.00 - Obligations redeemable prior to maturity.
§ 53.00 Obligations redeemable prior to maturity. a. The agency prescribing the terms, form and contents of bonds may reserve to itself the power to call in and redeem such bonds prior to the date of their maturity. Such power may be exercised upon the giving of notice of such call for redemption by publication at least three times in a financial newspaper published and circulated in the city of New York and in the official newspaper or newspapers of the municipality, school district or district corporation, or, if there be no official newspaper, then in any newspaper having general circulation therein which the agency shall designate for such purpose, the first publication to be at least thirty days prior to the date set for such redemption or, in the case of registered bonds, by mailing or transmitting such notice to the registered holder at least thirty days prior to such date. The agency prescribing the terms, form and contents of notes may reserve to itself the power to call in and redeem such notes prior to the date of their maturity upon the giving of such notices as it shall prescribe. b. If such bonds or notes are payable in installments, the installments remaining unpaid may be called for redemption only (i) in the inverse order of their maturity or, (ii) in equal proportionate amounts; provided, however, that for bonds issued during the one-year period commencing July first, nineteen hundred eighty-eight, and for bonds issued during the one-year period commencing July first, nineteen hundred eighty-nine, and for bonds issued during the one-year period commencing July first, nineteen hundred ninety, and for bonds issued during the three-year period commencing July first, nineteen hundred ninety-one, and for bonds issued during the period from July first, nineteen hundred ninety-four up until and including July fifteenth, nineteen hundred ninety-seven and for bonds issued during the period from July fifteenth, nineteen hundred ninety-seven up until and including July fifteenth, two thousand, and for bonds issued during the period from July fifteenth, two thousand up until and including July fifteenth, two thousand three, and for bonds issued during the period from July fifteenth, two thousand three up until and including July fifteenth, two thousand six, and for bonds issued during the period from July fifteenth, two thousand six up until and including July fifteenth, two thousand nine, and for bonds issued during the period from July fifteenth, two thousand six up until and including July fifteenth, two thousand twelve, installments remaining unpaid on such bonds may be called for redemption prior to their date of maturity in such amounts, at such times in such manner and pursuant to such terms as may be determined by the finance board of a municipality, school district or district corporation at the time of the issuance thereof. Whenever any bonds or notes are called for redemption prior to the date of their maturity, interest shall cease to be paid thereon after the date for redemption set forth in such call for redemption. The sum to be paid to redeem any unpaid installment prior to its maturity, exclusive of the interest accruing on such installment to the date of redemption, shall in no event be in excess of the lesser amount of either (i) the par value of such installment plus one-half of one per centum of such par value for each calendar year or part thereof elapsing between the date for redemption set forth in such call for redemption and the date of maturity of such installment, provided, however, that such amount shall not exceed one hundred five per centum of such par value, or (ii) the par value of such installment plus the total of all unpaid interest on such installment which would have accrued from the date of redemption to the date of maturity thereof had such installment not been redeemed prior to maturity, except that bonds sold to the state of New York municipal bond bank agency, which are subject to call as hereinbeforeauthorized, may provide for the payment of a redemption premium not to exceed five per centum of the par value of the bonds to be called, payable on the date of the redemption thereof; provided, however, that for bonds issued during the one-year period commencing July first, nineteen hundred eighty-eight, and for bonds issued during the one-year period commencing July first, nineteen hundred eighty-nine, and for bonds issued during the one-year period commencing July first, nineteen hundred ninety, and for bonds issued during the three-year period commencing July first, nineteen hundred ninety-one, and for bonds issued during the period from July first, nineteen hundred ninety-four up until and including July fifteenth, nineteen hundred ninety-seven, and for bonds issued during the period from July fifteenth, nineteen hundred ninety-seven up until and including July fifteenth, two thousand, and for bonds issued during the period from July fifteenth, two thousand up until and including July fifteenth, two thousand three, and for bonds issued during the period from July fifteenth, two thousand three up until and including July fifteenth, two thousand six, and for bonds issued during the period from July fifteenth, two thousand six up until and including July fifteenth, two thousand nine, and for bonds issued during the period from July fifteenth, two thousand nine up until and including July fifteenth, two thousand twelve, a municipality, school district, or district corporation may provide for redemption of such bonds prior to the date of their maturity at a price or prices as may be as determined by the issuer of such bonds or notes at the time of the issuance thereof.