N.Y. Public Authorities Law § 3055: Exchange of notes or bonds of the corporation for obligations of the city

§ 3055. Exchange of notes or bonds of the corporation for obligations

of the city. 1. The corporation may issue its notes or bonds for the

purposes described in paragraph (a), (b), (c), (d), (e) or (f) of

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

pay the proceeds thereof to the city in exchange for obligations of the

city, provided that the principal amount of the corporation's notes or

bonds issued in connection with any such exchange shall not exceed the

principal amount of such obligations of the city and accrued interest

thereon at the stated rate to the date of such exchange. The corporation

may also issue its notes or bonds for the purposes described in

paragraph (a), (c), (d), (e), or (f) of subdivision one of section three

thousand fifty-seven of this title and pay the proceeds thereof to the

city in exchange for the agreement by the city to repay such amounts in

annual installments, subject to annual appropriation of such

installments by the city council of the city of Troy, corresponding to

the scheduled principal and interest payments on the corporation's bonds

or notes issued to provide such proceeds provided that, excluding any

agreements for repayment of amounts paid to the city in accordance with

paragraph (d) of subdivision one of section three thousand fifty-seven

of this title, such agreement shall provide that the first principal

payment shall be made not later than two years after the date of such

agreement or two years after the date of the first bond anticipation

note or notes issued in anticipation of such agreement, provided that no

such first principal payment shall be required to be made prior to

January thirty-first, nineteen hundred ninety-nine, and further provided

no principal payment shall be more than fifty per centum in excess of

the smallest prior installment unless this agreement provides for

substantially level or declining debt service payments.

2. (a) Upon or at any time after receipt of the obligations of the

city exchanged in accordance with subdivision one of this section, the

corporation may deliver any or all of such obligations to the city for

cancellation, without receiving payment of principal or interest in

respect thereof, in which event the city shall thereupon cancel such

obligations without making any payment of principal amount or accrued

interest thereon and the city shall have no further liability with

respect thereto. Notwithstanding the foregoing, the corporation shall

not deliver at any time obligations received pursuant to subdivision one

of this section to the city for cancellation without receiving payment

of principal or interest in respect thereof unless the chief executive

officer shall have requested in writing that such obligations be

delivered for cancellation.

(b) Upon or at any time after receipt of any short-term obligations of

the city exchanged in accordance with subdivision one of this section

the corporation may exchange any or all of such short-term obligations

for other short-term obligations issued by the city pursuant to the

local finance law and the corporation may exchange any or all of such

bond anticipation notes included in such short-term obligations for

bonds of the city issued pursuant to the local finance law, all on such

terms and conditions as the corporation may deem proper.

3. The corporation shall not exchange any of its bonds or notes for

obligations of the city pursuant to subdivision one of this section

unless (a) 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 and as the corporation

may then approve, and (b) the board of directors of the corporation

shall have determined that the terms of such exchange will not prejudice

the rights of holders of other bonds and notes of the city.