New York City will lose its authorization to sell notes and bonds through negotiation at midnight tonight unless the deadlocked New York State Senate reconvenes and passes an extension bill.
The city will still be able to sell debt competitively, but local finance law 54.10, which allows the city to do negotiated sales, is set to expire. The Assembly already passed a routine bill, A. 8616, that would extend the law's sunset until June 30, 2010, but with the Senate deadlocked it looks unlikely that the bill will be headed to Gov. David Paterson's desk for a signature any time soon.