New York Laws
Title 4 - Municipal Assistance Corporation for the City of Troy
3057 - Payments to or Purchases of Obligations of the City.

§ 3057. Payments to or purchases of obligations of the city. 1. In the
event that the chief executive officer from time to time certifies to
the corporation an amount required by the city to enable it (a) 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 (b) to pay operating expenses of the city
other than those included in this paragraph, or (c) to liquidate all or
a portion of the city's cumulative deficits for the years nineteen
hundred ninety-three through nineteen hundred ninety-five, both
inclusive, or to pay, at maturity, or on the redemption date, the
principal of and interest on obligations of the city issued for such
purposes, or (d) to acquire, or cause to be acquired, all or a portion
of the real or personal property leased by the city pursuant to one or
more lease agreements between the city and the Troy local development
corporation including the financing of the payment of any judgments or
compromised or settled claims against the city relating thereto, or (e)
to pay at maturity, or on the redemption date, the principal of and
interest on obligations of the city previously issued to finance any
item in the current or any prior fiscal year, or (f) to pay for the
costs of closure of the city's landfill, 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.

2. Moneys paid to the city pursuant to subparagraph (i) or (ii) of
paragraph (e) of subdivision one of this section shall be held in trust
for the payment of city obligations or shall be used to make the payment
for which such moneys have been so certified. 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 fifty-eight of this
title, subject to such modifications as are permitted thereunder.

3. In consideration of the payments made to the city for the purposes
described in paragraph (a), (b), (c), (d), (e) or (f) of subdivision one
of this section, the corporation shall purchase from the city
obligations issued by the city in accordance with applicable provisions
of the state constitution and local finance law then in effect at the
time such obligations are issued in an amount equivalent to such
payment. Nothing herein shall require the corporation to receive
obligations issued by the city under the local finance law as a
condition to making a total of seventy-one million dollars of payments
in the aggregate to the city pursuant to paragraph (a), (c), (d), (e),
or (f) of subdivision one of this section.

4. Nothing contained in this title 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 then 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.

5. At all times after receipt of obligations of the city acquired
pursuant to this section, the corporation shall have the same rights and
powers with respect to such obligations as the corporation shall have
with respect to obligations of the city received pursuant to subdivision
one of section three thousand fifty-five of this title; provided that
the corporation shall not deliver any obligation 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 unless the chief executive officer shall have
requested in writing that such obligations be delivered for
cancellation, and provided further that the corporation may not sell or
transfer to any person other than the city any obligation of the city
acquired by it pursuant to this section unless the chief executive
officer has requested in writing that the corporation sell or transfer
such obligation and, if such obligation be sold or transferred at
private sale, unless the terms of such sale have been approved by the
city comptroller.