New York Laws
Title 4 - New York Local Government Assistance Coporation
3238-A - Payment to City of New York.

* § 3238-a. Payment to city of New York. 1. Notwithstanding any
inconsistent provision of law, the corporation shall transfer to the
city of New York one hundred seventy million dollars from the resources
of the corporation pursuant to section thirty-two hundred thirty-nine of
this title. Such payment shall be made during each city fiscal year;
provided, however, that on and after July first, two thousand twenty,
the obligation of the corporation to make such payments shall be
terminated if all outstanding bonds of the sales tax asset receivable
corporation that are secured by the corporation's payments described in
this subdivision have been fully paid and discharged by means of a legal
defeasance in accordance with the trust indenture under which they were
issued before July first, two thousand twenty-one, and in addition the
corporation has paid to the city of New York or to its assignee if such
payments have been assigned pursuant to this subdivision, the sum of
forty-six million dollars on or before June thirtieth, two thousand
twenty-one. Such payments from the corporation shall be made from the
fund established by section ninety-two-r of the state finance law and in
accordance with the provisions thereof.

2. The city of New York, acting by the mayor alone, may assign all or
any portion of such amount to any not-for-profit corporation
incorporated pursuant to section fourteen hundred eleven of the
not-for-profit corporation law and, upon such assignment, the amount so
assigned shall be the property of such not-for-profit corporation for
all purposes. Following notice from the city of New York to the
corporation and the comptroller of such assignment, such payment shall
be made directly to the city's assignee. If such not-for-profit
corporation issues bonds and/or notes, the state does hereby pledge and
agree with the holders of any issue of bonds and/or notes secured by
such a pledge that the state will not limit or alter the rights vested
in such not-for-profit corporation to fulfill the terms of any
agreements made with such holders or in any way impair the rights and
remedies of such holders or the security for such bonds and/or notes
until such bonds and/or notes, together with the interest thereon and
all costs and expenses in connection with any action or proceeding by or
on behalf of such holders, are fully paid and discharged. The foregoing
pledge and agreement may be included in any agreement with the holders
of such bonds or notes. Nothing contained in this section shall be
deemed to restrict the right of the state to amend, modify, repeal or
otherwise alter statutes imposing or relating to the taxes subject to
such assignment, but such taxes shall in all events continue to be so
payable, as assigned, so long as any such taxes are imposed.

3. Proceeds of state supported debt, as defined in subdivision one of
section sixty-seven-a of the state finance law, or other available
monies, may be provided to the trustee for the bonds of the sales tax
asset receivable corporation secured by the corporation's payments
described in subdivision one of this section in an amount sufficient to
fully pay and discharge such bonds by means of a legal defeasance of all
such outstanding bonds in accordance with the trust indenture under
which they were issued. So long as such bonds are legally defeased and
the corporation has paid to the city of New York or to its assignee if
such payments have been assigned pursuant to this subdivision, the sum
of forty-six million dollars on or before June thirtieth, two thousand
twenty-one the corporation's obligation contained in subdivision one of
this section to transfer funds to the city of New York shall be deemed
satisfied and fully discharged. Upon any such legal defeasance of such
bonds, the sales tax asset receivable corporation shall no longer be
deemed a local authority within the meaning of subdivision two of
section two of this chapter and the provisions of this chapter,

including, without limitation, the provisions of article nine of this
chapter, shall no longer be applicable to the sales tax asset receivable
corporation.

4. Notwithstanding any inconsistent provision of law, the dormitory
authority of the state of New York and the New York state urban
development corporation are hereby authorized to issue bonds in one or
more series pursuant to article five-C or article five-F of the state
finance law in an aggregate principal amount sufficient to directly or
indirectly (i) finance the legal defeasance or payment of all of the
outstanding bonds of the sales tax asset receivable corporation secured
by the corporation's payments described in subdivision one of this
section, (ii) one or more related debt service reserve funds, and (iii)
costs of issuance attributable to such bonds, and the issuance of such
bonds is hereby determined to be for an "authorized purpose", as defined
in subdivision two of section sixty-eight-a and subdivision two of
section sixty-nine-m of the state finance law, as the case may be.

* NB Repealed July 1, 2034