§ 3033 — Creation of the municipal assistance corporation for the city of New York; authorized indebtedness

* § 3033. Creation of the municipal assistance corporation for the\ncity of New York; authorized indebtedness. 1. There is hereby created\nthe municipal assistance corporation for the city of New York. The\ncorporation shall be a corporate governmental agency and instrumentality\nof the state constituting a public benefit corporation. It shall have\nthe powers, privileges and duties of a corporation under title two of\nthis article and under this title. The corporation shall continue for a\nterm ending the later of July first, two thousand eight or one year\nafter all its liabilities have been fully paid and discharged. Upon the\ntermination of the existence of the corporation, all of its rights and\nproperty shall pass to and be vested in the state.\n 2. Subject to the provisions of any contract with noteholders or\nbondholders, the corporation shall not issue bonds and notes in an\naggregate principal amount exceeding ten billion dollars, excluding (i)\nbonds and notes issued to refund outstanding bonds and notes and (ii)\nnotes issued for the purpose described in subparagraph (d) of section\nthree thousand thirty-seven of the this article, provided, however, that\nno bonds or notes shall be issued for any purpose other than to pay for\nitems which are permitted by law to be included in the city's capital\nbudget or to make deposits into the capital reserve funds established\npursuant to sections three thousand thirty-six and three thousand\nthirty-six-a of this article if at the time such bonds or notes are\nissued or as a result of their issuance the aggregate principal amount\nof bonds and notes issued by the corporation, exclusive of bonds and\nnotes issued for any purpose described in clause (i) or (ii) of this\nsubdivision, exceeds eight billion eight hundred million dollars.\n 2-a. In addition to the authority provided in subdivision two of this\nsection, the corporation may, until June thirtieth, nineteen hundred\nseventy-eight, issue notes in an aggregate principal amount which the\nmayor certifies to the corporation is required by the city to provide,\nwithout interruption, services essential to its inhabitants while\nmeeting its obligation to the holders of its outstanding securities to\nJune thirtieth, nineteen hundred seventy-eight, but not to exceed five\nhundred million dollars. Such notes shall finally mature no later than\nJune thirtieth, nineteen hundred seventy-eight. Such notes shall not be\nrenewable. The terms of issuance of such notes shall not contain any\nprovision creating rights in the holders of such notes to convert such\nnotes to or exchange such notes for bonds of the corporation. The\ncorporation shall pay the proceeds of such notes to the city to be used\nto provide services essential to its inhabitants without regard to the\nprovisions of section three thousand thirty-seven of this title.\n 2-b. In addition to the authority provided in subdivisions two and\ntwo-a of this section, the corporation may, not later than June\nthirtieth, nineteen hundred ninety-seven issue bonds and notes in an\naggregate principal amount not to exceed one billion five hundred\nmillion dollars (excluding any bonds or notes issued to fund the bond\nreserve fund established pursuant to section three thousand thirty-six-b\nof this title and any bonds or notes issued to refund outstanding bonds\nor notes) for the purpose of funding capital projects within the city\npursuant to section three thousand thirty-seven-a of this title;\nprovided, however, that such authority shall decrease from time to time\nby such amounts as the city shall have made available to fund such\ncapital projects; and provided further, that the authority provided in\nthis subdivision shall be exercised pursuant to a memorandum of\nagreement among the governor, the mayor and the chairman of the\ncorporation, which agreement shall provide that the corporation shall\nnot issue such bonds or notes in any fiscal year in the event and to the\nextent that the city makes available proceeds from the issuance of its\nbonds to fund such capital projects; and which agreement shall also\nprovide for certain operating assistance to be made available by the\ncorporation to the city; and provided further, that bonds issued or to\nbe issued to refund bonds of the corporation shall be excluded from such\nlimitation only if the present value of the aggregate debt service on\nthe refunding bonds shall not have at the time of their issuance\nexceeded the present value of the aggregate debt service on the bonds\nthey were issued to refund, such present value in each case being\ncalculated by using the effective interest rate of the refunding bonds,\nwhich shall be that rate arrived at by doubling the semi-annual interest\nrate (compounded semi-annually) necessary to discount the debt service\npayments on the refunding bonds from the payment date thereof to the\ndate of issue of the refunding bonds and to the price bid therefor, or\nto the proceeds received by the corporation from the sale thereof, in\neach case including estimated accrued interest. The rate of interest on\nbonds which bear interest at a variable rate which shall be used in\ndetermining such present values shall be the rate at which such bonds\nbear interest on the date the refunding bonds are issued.\nNotwithstanding any other provision of law, no such bond or note of the\ncorporation shall mature more than nineteen years from the date of the\noriginal issue of such bond or note and, in any event, not later than\nJuly first, two thousand eight.\n 3. (a) No note or bond (i) shall mature more than thirty years from\nthe date of the original issue of such note or bond and, in any event,\nnot later than July first, two thousand eight or (ii) shall be issued on\na date later than December thirty-first, nineteen hundred eighty-four,\nunless such note or bond is a renewal or refunding of an outstanding\nnote or bond.\n (b) No bond shall be issued by the corporation for a purpose set forth\nin subparagraph (d) of section three thousand thirty-seven of this\narticle and any note issued for such a purpose shall mature not later\nthan the end of the fiscal year in which it is originally issued.\n (c) Whenever all or a portion of a series of notes or bonds of the\ncorporation is issued for a purpose set forth in section three thousand\nthirty-seven of this article, to the extent that the payment of the\nproceeds of such series is evidenced by a bond or bonds of the city, not\nmore than one year following a scheduled payment of principal on any\nsuch city bond (including sinking fund installments), a substantially\nequal payment of principal (including sinking fund installments) shall\nbe scheduled with respect to the notes or bonds included in such series\nof the corporation.\n (d) Whenever all or a portion of a series of bonds or notes of the\ncorporation is issued for a purpose set forth in section three thousand\nthirty-seven-a of this title, the payment of the proceeds of such series\nof bonds or notes to the city shall be evidenced by a bond or bonds of\nthe city issued in accordance with applicable provisions of the state\nconstitution and local finance law then in effect at the time any such\nbond or bonds are issued; provided, however, that principal payments on\nany such issue of city bonds shall in no event be scheduled to fall on a\ndate later than the date on which falls a corresponding amount of\nscheduled principal payments on the series of bonds of the corporation\noriginally issued to provide such proceeds or issued to refund notes of\nthe corporation issued to provide such proceeds.\n 4. If the bond resolution or other resolution pursuant to which any\nobligations of the corporation are issued shall designate, with the\napproval of any emergency financial control board then established for\nthe city or, if none, then with the approval of the mayor, the\ncorporation may hereafter issue obligations which shall, upon maturity,\nat the election of the holder thereof if so provided in such\nobligations, be receivable at full face value and in lieu of cash in\npayment of any tax of the city, any installment of estimated tax of the\ncity, or any interest or penalties thereon. Any obligations of the\ncorporation so received in payment of any such tax or installment of\nestimated tax or interest or penalties shall be presented to the\ncorporation for payment to the city.\n * NB The corporation shall continue for a term ending the later of\nJuly 1, 2008 or one year after its liabilities have been fully paid and\ndischarged per sub 1.\n