New York Laws
Title 3 - Municipal Assistance Corporation for the City of New York
3037 - Payments to or Purchases of Obligations of the City.

* § 3037. Payments to or purchases of obligations of the city. In the
event that the mayor from time to time certifies to the corporation an
amount required by the city to enable it (a) to pay, at maturity, the
principal of and interest on any short-term obligations of the city, or
(b) to pay for any item which is permitted by law to be included in the
city's capital budget for the fiscal year for which such certification
is made, including payments to reimburse the general fund for moneys
advanced and expended for any such item, or (c) to make any payment in a
fiscal year to the extent the mayor certifies such payment will have the
effect of reducing from the then existing level the city's requirements
for an advance by the state, during such fiscal year or the succeeding
fiscal year, of state assistance moneys payable to the city, or (d) to
meet its seasonal borrowing requirements for the fiscal year in which
such certification is made, or (e) to pay operating expenses of the city
other than those included in subparagraph (b), (c) or (d) hereof, the
corporation may (i) pay to the city, or (ii) purchase from the city
obligations hereafter issued by the city in an amount equivalent to,
part or all of such certified amount. Moneys paid to the city pursuant
to clause (i) or (ii) of this section shall be held in trust for the
payment of short-term obligations or shall be used to make the payment
for which such moneys have been so certified. Any obligations issued by
the city and purchased by the corporation pursuant to this section in
consideration of the payments made to the city pursuant to subparagraph
(a) or (e) hereof shall mature on a date not later than fifteen years
from the original date of issue of such obligations. The corporation
shall not make any payment to the city, or purchase any obligations from
the city, pursuant to this section unless the city shall have agreed to
observe the conditions set forth in section three thousand thirty-eight
of this chapter, subject to such modifications as are permitted
thereunder. The outstanding amounts paid to the city for operating
expenses which are described in subparagraph (e) hereof pursuant to
clause (i) and clause (ii) of this section shall not exceed two billion
dollars, provided that not more than nine hundred million dollars shall
be obligations maturing in a fiscal year succeeding the fiscal year in
which issued (of which not less than seven hundred fifty million dollars
shall be applied for welfare or public education purposes, as to which
state assistance payments have been or will be advanced to the city) and
shall be evidenced by city obligations, and any balance shall be short
term obligations payable in the fiscal year in which issued.

The outstanding amounts paid to the city for a purpose set forth in
subparagraph (b) hereof, other than to pay for expense items permitted
to be included in the capital budget of the city pursuant to subdivision
five of section three thousand thirty-eight of this article, shall be
evidenced by city bonds. Nothing herein shall be construed to prevent
the corporation from acquiring from the city obligations issued by the
city pursuant to the local finance law which evidence amounts paid to
the city by the corporation for other purposes.

Nothing contained in this article shall be deemed to create an object
or purpose or to establish or extend a period for which a city bond may
be issued pursuant to the local finance law, or to create authority for
the city to issue a bond payable from a tax on real estate levied
outside the limit imposed by the state constitution on the amount to be
raised by tax on real estate for local purposes other than debt service,
or to modify, amend, repeal, or rescind any other provision of the local
finance law governing the issuance by the city of its bonds or the
payment of principal and interest thereon.

At all times after receipt of short-term obligations, other than bond
anticipation notes, of the city acquired pursuant to this section, the

corporation shall have the same rights and powers with respect to such
short-term obligations as the corporation shall have with respect to
short-term obligations, other than bond anticipation notes, of the city
received pursuant to subdivision one of section three thousand
thirty-five of this article. The corporation shall have the same rights
and powers with respect to bond anticipation notes and bonds so received
as the corporation shall have with respect to bond anticipation notes
received pursuant to subdivision one of section three thousand
thirty-five; provided that the corporation shall not deliver any bond
received pursuant to this section for cancellation unless the city pays
the principal amount and accrued interest thereon or pays accrued
interest and exchanges such bond for another bond of the city in equal
principal amounts in refunding thereof, and provided further that the
corporation may not sell or transfer to any person other than the city
any bond of the city acquired by it pursuant to this section unless the
mayor and the city comptroller have requested in writing that the
corporation sell or transfer such bond and, if such bond be sold or
transferred at private sale, unless the terms of such sale have been
approved by the city comptroller.

For purposes of this section, the term "seasonal borrowing
requirements" means amounts which are required by the city to enable it
to pay current operating expenses, provided such expenses are included
in an expense budget of the city balanced in accordance with the
provisions of section three thousand thirty-eight of this title and such
amounts are required solely because the city's revenues and
expenditures, even when in balance on an annual basis, are not received
and disbursed at equivalent rates throughout the year.

* NB The corporation shall continue for a term ending the later of
July 1, 2008 or one year after its liabilities have been fully paid and
discharged per § 3033 sub 1.