§ 3037 — Payments to or purchases of obligations of the city

* § 3037. Payments to or purchases of obligations of the city. In the\nevent that the mayor from time to time certifies to the corporation an\namount required by the city to enable it (a) to pay, at maturity, the\nprincipal of and interest on any short-term obligations of the city, or\n(b) to pay for any item which is permitted by law to be included in the\ncity's capital budget for the fiscal year for which such certification\nis made, including payments to reimburse the general fund for moneys\nadvanced and expended for any such item, or (c) to make any payment in a\nfiscal year to the extent the mayor certifies such payment will have the\neffect of reducing from the then existing level the city's requirements\nfor an advance by the state, during such fiscal year or the succeeding\nfiscal year, of state assistance moneys payable to the city, or (d) to\nmeet its seasonal borrowing requirements for the fiscal year in which\nsuch certification is made, or (e) to pay operating expenses of the city\nother than those included in subparagraph (b), (c) or (d) hereof, the\ncorporation may (i) pay to the city, or (ii) purchase from the city\nobligations hereafter issued by the city in an amount equivalent to,\npart or all of such certified amount. Moneys paid to the city pursuant\nto clause (i) or (ii) of this section shall be held in trust for the\npayment of short-term obligations or shall be used to make the payment\nfor which such moneys have been so certified. Any obligations issued by\nthe city and purchased by the corporation pursuant to this section in\nconsideration of the payments made to the city pursuant to subparagraph\n(a) or (e) hereof shall mature on a date not later than fifteen years\nfrom the original date of issue of such obligations. The corporation\nshall not make any payment to the city, or purchase any obligations from\nthe city, pursuant to this section unless the city shall have agreed to\nobserve the conditions set forth in section three thousand thirty-eight\nof this chapter, subject to such modifications as are permitted\nthereunder. The outstanding amounts paid to the city for operating\nexpenses which are described in subparagraph (e) hereof pursuant to\nclause (i) and clause (ii) of this section shall not exceed two billion\ndollars, provided that not more than nine hundred million dollars shall\nbe obligations maturing in a fiscal year succeeding the fiscal year in\nwhich issued (of which not less than seven hundred fifty million dollars\nshall be applied for welfare or public education purposes, as to which\nstate assistance payments have been or will be advanced to the city) and\nshall be evidenced by city obligations, and any balance shall be short\nterm obligations payable in the fiscal year in which issued.\n The outstanding amounts paid to the city for a purpose set forth in\nsubparagraph (b) hereof, other than to pay for expense items permitted\nto be included in the capital budget of the city pursuant to subdivision\nfive of section three thousand thirty-eight of this article, shall be\nevidenced by city bonds. Nothing herein shall be construed to prevent\nthe corporation from acquiring from the city obligations issued by the\ncity pursuant to the local finance law which evidence amounts paid to\nthe city by the corporation for other purposes.\n Nothing contained in this article shall be deemed to create an object\nor purpose or to establish or extend a period for which a city bond may\nbe issued pursuant to the local finance law, or to create authority for\nthe city to issue a bond payable from a tax on real estate levied\noutside the limit imposed by the state constitution on the amount to be\nraised by tax on real estate for local purposes other than debt service,\nor to modify, amend, repeal, or rescind any other provision of the local\nfinance law governing the issuance by the city of its bonds or the\npayment of principal and interest thereon.\n At all times after receipt of short-term obligations, other than bond\nanticipation notes, of the city acquired pursuant to this section, the\ncorporation shall have the same rights and powers with respect to such\nshort-term obligations as the corporation shall have with respect to\nshort-term obligations, other than bond anticipation notes, of the city\nreceived pursuant to subdivision one of section three thousand\nthirty-five of this article. The corporation shall have the same rights\nand powers with respect to bond anticipation notes and bonds so received\nas the corporation shall have with respect to bond anticipation notes\nreceived pursuant to subdivision one of section three thousand\nthirty-five; provided that the corporation shall not deliver any bond\nreceived pursuant to this section for cancellation unless the city pays\nthe principal amount and accrued interest thereon or pays accrued\ninterest and exchanges such bond for another bond of the city in equal\nprincipal amounts in refunding thereof, and provided further that the\ncorporation may not sell or transfer to any person other than the city\nany bond of the city acquired by it pursuant to this section unless the\nmayor and the city comptroller have requested in writing that the\ncorporation sell or transfer such bond and, if such bond be sold or\ntransferred at private sale, unless the terms of such sale have been\napproved by the city comptroller.\n For purposes of this section, the term "seasonal borrowing\nrequirements" means amounts which are required by the city to enable it\nto pay current operating expenses, provided such expenses are included\nin an expense budget of the city balanced in accordance with the\nprovisions of section three thousand thirty-eight of this title and such\namounts are required solely because the city's revenues and\nexpenditures, even when in balance on an annual basis, are not received\nand disbursed at equivalent rates throughout the year.\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 § 3033 sub 1.\n