N.Y. Public Authorities Law § 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.