Bill > S00900

This bill amends the local finance law to modify the requirements for good faith deposits when municipalities, school districts, or district corporations are issuing bonds. Currently, bidders must provide a deposit (at least 0.5% of the bond amount) in the form of a certified or cashier's check, and the bill clarifies that these entities can now explicitly require such a deposit as a condition for considering a bid. The bill preserves existing alternative deposit methods, including cash wire transfers, eligible surety bonds (from highly-rated insurance companies), and eligible letters of credit (from banks with strong credit ratings). The key change is providing explicit legal authorization for these entities to mandate good faith deposits upfront, which was previously less clear in the law. The bill takes effect immediately upon passage, allowing municipalities and other local government entities to implement these provisions right away.

Budget and Finance, Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S900