NY Law Allows For Municipal Bond Sales Online
A New York State assemblymember from Westchester County says a bill she sponsored could save municipalities some money.
Democratic Westchester Assemblywoman Amy Paulin says the legislation signed into law by Governor Andrew Cuomo allows for municipalities and school districts to sell municipal bonds online. She says her hope is that the process will allow individual municipalities to raise capital quickly while saving money. Paulin, from Scarsdale, points to a 2009 pilot program in Westchester County where electronic bond bidding has not only reduced the overhead costs for sponsoring a municipal bond offering, but also increased participation rates among those interested in purchasing public bonds. This increased participation rate among bidders helps to drive down the interest rate charged for such bonds, providing further cost savings. The law extends the pilot program in Westchester to every municipality in the state.