N.Y. Public Authorities Law § 3053: Creation of the municipal assistance corporation for the city of Troy; authorized indebtedness

§ 3053. Creation of the municipal assistance corporation for the city

of Troy; authorized indebtedness. 1. There is hereby created the

municipal assistance corporation for the city of Troy. The corporation

shall be a corporate governmental agency and instrumentality of the

state constituting a public benefit corporation. It shall have the

powers, privileges and duties of a corporation under title two of this

article and under this title. The corporation shall continue for a term

of one year after all its liabilities have been fully paid and

discharged. Upon the termination of the existence of the corporation,

all of its rights and property shall pass to and be vested in the state.

1-a. Notwithstanding the provisions of subdivision one of this section

or any other provision of law, upon payment in full of all outstanding

bonds or notes issued by the corporation under this title, and payment

of all amounts required to be paid to the United States Treasury for

tax-exempt bond rebate obligations, all remaining funds of the

corporation not needed in the determination of the board of the

corporation for operating expenses of the corporation, are hereby

authorized and directed to be paid directly to the city of Troy. The

determination of the board of the corporation of the amount of such

funds available to be paid to the city of Troy shall be final and

conclusive. In addition, upon payment of all outstanding obligations of

the corporation, including after completion of audited financial

statements of the corporation for the two thousand twenty-one fiscal

year, as well as any shortened audit for any portion of the two thousand

twenty-two fiscal year which may be determined by the board of the

corporation to be in the public interest, the existence of the

corporation may be terminated by resolution of the board of the

corporation at any time, but in no event later than one year after all

its liabilities have been paid.

2. Subject to the provisions of any contract with noteholders or

bondholders, the corporation shall not issue bonds and notes in an

aggregate principal amount exceeding seventy-one million dollars,

excluding bonds and notes issued to fund the bond reserve fund

established pursuant to section three thousand fifty-six of this title

and any bonds or notes issued to refund outstanding bonds and notes of

the corporation, for the purposes described in paragraphs (c), (d), (e),

and (f) of subdivision one of section three thousand fifty-seven of this

title.

2-a. In addition to the authority provided in subdivision two of this

section, the corporation may, until December thirty-first, nineteen

hundred ninety-nine, issue notes in an aggregate principal amount which

the chief executive officer certifies to the corporation is required by

the city to provide for purposes described in paragraph (b) of

subdivision one of section three thousand fifty-seven of this title,

without interruption, services essential to its inhabitants while

meeting its obligation to the holders of its outstanding securities to

December thirty-first, nineteen hundred ninety-nine, but not to exceed

two million dollars outstanding in the aggregate at any time (excluding

notes to fund the bond reserve fund established pursuant to section

three thousand fifty-six of this title). Such notes shall finally mature

no later than December thirty-first, two thousand. Such notes shall

mature within one year from their date of issue and may be renewed from

time to time, but each renewal shall be for a period not to exceed one

year. The terms of issuance of such notes shall not contain any

provision creating rights in the holders of such notes to convert such

notes to or exchange such notes for bonds of the corporation.

2-b. In addition to the authority provided in subdivisions two and

two-a of this section, the corporation may, not later than December

thirty-first, nineteen hundred ninety-eight issue bonds and notes in an

aggregate principal amount not to exceed two million dollars (excluding

any bonds or notes issued to fund the bond reserve fund established

pursuant to section three thousand fifty-six of this title and any bonds

or notes issued to refund outstanding bonds or notes) for the purpose of

funding capital projects within the city pursuant to subdivision (a) of

section three thousand fifty-seven of this title.

3. (a) No note or bond (i) shall mature more than thirty years from

the date of the original issue of such note or bond and, in any event,

not later than January first, two thousand thirty or (ii) shall be

issued on a date later than December thirty-first, nineteen hundred

ninety-nine, unless such note or bond is a renewal or refunding of an

outstanding note or bond.

(b) No bond shall be issued by the corporation for a purpose set forth

in paragraph (b) of subdivision one of section three thousand

fifty-seven of this title.

(c) Whenever all or a portion of a series of notes or bonds of the

corporation is issued for a purpose set forth in section three thousand

fifty-seven of this title to the extent that the payment of the proceeds

of such series is evidenced by a bond or bonds of the city, not more

than one year following a scheduled payment of principal on any such

city bond (including sinking fund installments), a substantially equal

payment of principal (including sinking fund installments) shall be

scheduled with respect to the notes or bonds included in such series of

the corporation.

4. The corporation is authorized to procure a bond or note facility

with respect to its bonds or notes issued pursuant to this section and

as security for the principal of and interest on any bonds or notes

issued pursuant to this section and for its obligations under any bond

or note facility the corporation may pledge any part of its revenues or

assets.

5. Whenever this title establishes a limit on the principal amount of

bonds or notes that the corporation is authorized to issue, there shall

not be counted against such limit (i) amounts certified by the chairman

of the corporation as reasonable to be used to pay the cost of issuing

such bonds or notes where such certification has been provided in

writing to the state comptroller and the city of Troy, (ii) the amount

of bonds or notes that would constitute interest under the Internal

Revenue Code of 1986, as amended, and (iii) the portion of any bonds or

notes issued to accomplish the purposes described in paragraphs (d) and

(e) of subdivision one of section three thousand fifty-seven of this

title to the extent necessary to pay interest to the date of redemption

or maturity, redemption premium, if any, or other similar costs relating

to the accomplishment of such purposes.

6. At the written request of the city, the corporation is authorized

to pledge, subject to the prior pledge of the corporation's revenues and

assets pursuant to its contracts with the holders of its bonds, notes or

other obligations, any part of its revenues or assets not to exceed one

hundred thousand dollars in any state fiscal year in favor of the

commissioner of environmental conservation to secure obligations of the

city related to post-closure care and potential corrective measures of

the city's landfill.