Increasing Rate of Interest and Other Matters Relating to Bonds Issued Under Amendment No. 114.

Except as hereinafter limited, bonds which may be issued under the provisions of the amendment to the Constitution which was proposed by Act No. 125 adopted at the First Special Session of the Legislature of 1956 [1956, 1st Ex. Sess., p. 179] and which was ratified by the electors at the general election held on November 6, 1956, and proclaimed ratified on November 15, 1956 [amendment No. 114], may be executed and delivered from time to time in such forms, denominations, series and numbers, may be of such tenor and maturities, may bear such date or dates, may be in registered or bearer form either as to principal and interest or both with rights of conversion into another form, may bear interest at such rate or rates not exceeding 4% per annum payable semiannually and payable and evidenced in such manner, may contain provisions for redemption at the option of the state at such date or dates prior to their maturity and upon payment of such redemption price or prices, and may contain such other terms and conditions not inconsistent with the provisions hereof, all as may be provided in the order of the governor providing for the issuance thereof which shall be made at the time of each sale of any of said bonds. The principal of each series of said bonds shall mature in annual installments in such amounts as shall be specified in the order under which they are issued, the first of which installments shall mature not later than one year after the date of the bonds of such series and the last of which installments shall mature not later than ten years after the date of the bonds of the same series. When each series of said bonds is issued, the maturities of the bonds of that series shall, to such extent as may be practicable, be so arranged that during any then succeeding fiscal year of the state the aggregate installments of principal and interest that will mature on all of the said bonds that will be outstanding hereunder, immediately following the issuance of the bonds of that series, will be substantially equal; provided, that the determination in the order under which the bonds of such series are issued that the requirements of this sentence have been complied with shall be conclusive of such compliance and the purchasers of the bonds with respect to which such determination is made and all subsequent holders thereof shall be fully protected thereby. None of the said bonds shall be sold for less than face value plus accrued interest to the date of delivery, and all of the said bonds shall be sold only at public sale or sales, either on sealed bids or at public auction, after advertisement in a financial journal published in New York City at least one time not less than ten days prior to the date fixed for the sale, to the bidder whose bid reflects the lowest net interest cost to the state computed to the respective maturities of the bonds sold; provided, that if no bid deemed acceptable by the governor is received all bids may be rejected.