Sec. 37.4. Negotiated sale of discount bonds

A municipality, school district or district corporation may sell discount bonds at negotiated sale in accordance with either subdivision (a) or (b) of this section.

(a) A municipality, school district or district corporation may sell discount bonds at negotiated sale with the prior written approval of the State Comptroller. All applications for such approval shall be submitted to the State Comptroller in writing at least 14 days before the date of the proposed sale. The application shall state that the municipality, school district or district corporation has determined that:

(1) the competitive sale of the issue of bonds described in the application is not in the best interests of the issuer because of one or more of the following factors:

(i) unstable or volatile market conditions;

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

(iii) the large dollar amount of the proposed issue; or

(iv) the complexity of the issue; and

(2) a negotiated sale is expected to result in lower borrowing costs.

Such application shall state in detail the basis for the foregoing determination by the municipality, school district or district corporation. If the State Comptroller finds that there is a reasonable basis for the determination made by the municipality, school district or district corporation in its application, he may approve the application and such municipality, school district or district corporation shall be able to sell the discount bonds described in its application at negotiated sale within 30 days after such approval is granted unless the State Comptroller grants an extension in writing. Prior to conducting such sale, the municipality, school district or district corporation shall comply with, and make the determinations required by, the policies and procedures contained in section 37.5 of this Part. If the application is disapproved, the municipality, school district or district corporation shall only sell the issue of bonds at competitive sale or pursuant to subdivision (b) of this section.

(b) A municipality, school district or district corporation may sell discount bonds at negotiated sale pursuant to any provision of the Local Finance Law, other than sections 57.00 and 57.10, that permits the municipality, school district or district corporation to sell bonds at negotiated sale. In the event a municipality, school district or district corporation sells bonds at negotiated sale pursuant to such other provision, it shall in all respects comply with the requirements of that provision but need not comply with the policies and procedures contained in section 37.5 of this Part.