Bill > A03483

This bill amends the local finance law to modify regulations concerning good faith deposits for bond bids. Under the proposed changes, municipalities, school districts, and district corporations are explicitly authorized to require a good faith deposit as a condition for considering a bid for bonds. The deposit must be at least one-half of one percent of the bond amount and can be submitted in several forms: a certified or cashier's check, cash via wire transfer, an eligible surety bond (from an insurance company with high credit ratings), or an eligible letter of credit (from a bank with strong credit ratings). The bill clarifies that while previously the language was less clear about requiring deposits, now these government entities can explicitly mandate such deposits before evaluating a bond bid. This change provides more flexibility for local government entities in managing their bond bidding processes and helps ensure bidders have a financial stake in their proposals. The amendment takes effect immediately upon passage.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A3483