N.Y. Comp. Codes R. & Regs. tit. 2 § 100.9

Current through Register Vol. 46, No. 50, December 11, 2024

Section 100.9 - Private sale of state bonds

(a) Selection of underwriters. When the Comptroller has determined that the interests of the State will be served by a private sale of bonds:

(1) he may select underwriters for a bond sale conducted pursuant to article 5 of the State Finance Law through a request for proposal process; or

(2) he may directly negotiate a sale of State bonds to a public benefit corporation or public authority, the majority of the members of which are appointed by the Governor. With respect to each such sale, except sales to public benefit corporations or public authorities, the majority of the members of which are appointed by the Governor, requests shall be sent to at least 10 firms that have, in the Comptroller's judgment, sufficient expertise and experience in the sale of obligations of the State of New York or other similar issuers to underwrite efficaciously a private sale of State bonds.

(b) Criteria for selection. The Comptroller's selection of the underwriters involved in any private State bond sale pursuant to paragraph (a)(1) of this section shall take into account, but not be limited to, the following factors:

(1) the cost to the State of issuance, including the ability of the candidate firms to market the bonds at competitive interest rates;

(2) the experience and ability of the firms under consideration to structure the sale and market the bonds;

(3) the experience and ability of the individuals whom the firms plan to involve directly in the sale; and

(4) the soundness of the firms' overall marketing plans.

(c) Contents of request for proposal. A request for proposal prepared for candidate firms pursuant to paragraph (a)(1) of this section shall request information from the firms that will enable the Comptroller to evaluate the firms in light of the factors set forth in subdivision (b) of this section, and, if the Comptroller is considering selling the bonds at a discount or at a premium, shall set forth the relevant restrictions on maximum premiums and discounts contained in sections 57 and 60 of the State Finance Law. The Comptroller may also include in such a request any other restrictions and other matters he deems relevant. A copy of relevant portions of section 56 of the State Finance Law in the case of refunding bonds, section 57 of the State Finance Law in the case of all other bonds, and section 60 of said law, where relevant, shall be appended to any request for proposals prepared pursuant to this section.

(d) In accordance with sections 57 and 60 of the State Finance Law, the Comptroller shall give notice to the Governor, the Temporary President of the Senate and the Speaker of the Assembly of his intention to conduct a private sale of obligations pursuant to those sections not less than five days prior to the execution of a purchase contract. The Comptroller may effect a sale to the selected underwriters upon receipt of a final offer to purchase the bonds from such underwriters pursuant to an executed purchase contract.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 100.9