N.Y. Public Authorities Law § 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