§ 3238-A — Payment to city of New York

New York § 3238-A

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 4: New York Local Government Assistance Corporation
• Art. 10-B: Title

Text

* § 3238-a. Payment to city of New York. 1. Notwithstanding any\ninconsistent provision of law, the corporation shall transfer to the\ncity of New York one hundred seventy million dollars from the resources\nof the corporation pursuant to section thirty-two hundred thirty-nine of\nthis title. Such payment shall be made during each city fiscal year;\nprovided, however, that on and after July first, two thousand twenty,\nthe obligation of the corporation to make such payments shall be\nterminated if all outstanding bonds of the sales tax asset receivable\ncorporation that are secured by the corporation's payments described in\nthis subdivision have been fully paid and discharged by means of a legal\ndefeasance in accordance with the trust indenture under which they were\nissued before July first, two thousand twenty-one, and in addition the\ncorporation has paid to the city of New York or to its assignee if such\npayments have been assigned pursuant to this subdivision, the sum of\nforty-six million dollars on or before June thirtieth, two thousand\ntwenty-one. Such payments from the corporation shall be made from the\nfund established by section ninety-two-r of the state finance law and in\naccordance with the provisions thereof.\n 2. The city of New York, acting by the mayor alone, may assign all or\nany portion of such amount to any not-for-profit corporation\nincorporated pursuant to section fourteen hundred eleven of the\nnot-for-profit corporation law and, upon such assignment, the amount so\nassigned shall be the property of such not-for-profit corporation for\nall purposes. Following notice from the city of New York to the\ncorporation and the comptroller of such assignment, such payment shall\nbe made directly to the city's assignee. If such not-for-profit\ncorporation issues bonds and/or notes, the state does hereby pledge and\nagree with the holders of any issue of bonds and/or notes secured by\nsuch a pledge that the state will not limit or alter the rights vested\nin such not-for-profit corporation to fulfill the terms of any\nagreements made with such holders or in any way impair the rights and\nremedies of such holders or the security for such bonds and/or notes\nuntil such bonds and/or notes, together with the interest thereon and\nall costs and expenses in connection with any action or proceeding by or\non behalf of such holders, are fully paid and discharged. The foregoing\npledge and agreement may be included in any agreement with the holders\nof such bonds or notes. Nothing contained in this section shall be\ndeemed to restrict the right of the state to amend, modify, repeal or\notherwise alter statutes imposing or relating to the taxes subject to\nsuch assignment, but such taxes shall in all events continue to be so\npayable, as assigned, so long as any such taxes are imposed.\n 3. Proceeds of state supported debt, as defined in subdivision one of\nsection sixty-seven-a of the state finance law, or other available\nmonies, may be provided to the trustee for the bonds of the sales tax\nasset receivable corporation secured by the corporation's payments\ndescribed in subdivision one of this section in an amount sufficient to\nfully pay and discharge such bonds by means of a legal defeasance of all\nsuch outstanding bonds in accordance with the trust indenture under\nwhich they were issued. So long as such bonds are legally defeased and\nthe corporation has paid to the city of New York or to its assignee if\nsuch payments have been assigned pursuant to this subdivision, the sum\nof forty-six million dollars on or before June thirtieth, two thousand\ntwenty-one the corporation's obligation contained in subdivision one of\nthis section to transfer funds to the city of New York shall be deemed\nsatisfied and fully discharged. Upon any such legal defeasance of such\nbonds, the sales tax asset receivable corporation shall no longer be\ndeemed a local authority within the meaning of subdivision two of\nsection two of this chapter and the provisions of this chapter,\nincluding, without limitation, the provisions of article nine of this\nchapter, shall no longer be applicable to the sales tax asset receivable\ncorporation.\n 4. Notwithstanding any inconsistent provision of law, the dormitory\nauthority of the state of New York and the New York state urban\ndevelopment corporation are hereby authorized to issue bonds in one or\nmore series pursuant to article five-C or article five-F of the state\nfinance law in an aggregate principal amount sufficient to directly or\nindirectly (i) finance the legal defeasance or payment of all of the\noutstanding bonds of the sales tax asset receivable corporation secured\nby the corporation's payments described in subdivision one of this\nsection, (ii) one or more related debt service reserve funds, and (iii)\ncosts of issuance attributable to such bonds, and the issuance of such\nbonds is hereby determined to be for an "authorized purpose", as defined\nin subdivision two of section sixty-eight-a and subdivision two of\nsection sixty-nine-m of the state finance law, as the case may be.\n * NB Repealed July 1, 2034\n