N.Y. LFN Law § 28.00

§ 28.00 Capital notes. a. Any municipality, school district or\ndistrict corporation may issue capital notes to finance all or part of\nthe cost of any object or purpose for which serial or sinking fund bonds\nmay be issued. Such capital notes may be renewed from time to time but\nsuch notes, including the renewals thereof, shall mature not later than\nthe last day of the second fiscal year succeeding the fiscal year in\nwhich such notes are issued. However, an installment of not less than\nfifty per centum of the amount of such notes shall mature in the first\nfiscal year succeeding the fiscal year in which such notes are issued,\nunless such notes are authorized and issued during a fiscal year at a\ntime subsequent to the date of the adoption of the annual budget for the\nnext succeeding fiscal year.\n b. Capital notes shall be redeemed out of the taxes or assessments\nlevied or to be levied for the fiscal year in which they mature or out\nof other revenues of that fiscal year legally available for that\npurpose.\n