2023 New York Laws › PBA - Public Authorities › Article 10 - New York State Municipal Assistance Corporation Act › Title 3 - Municipal Assistance Corporation for the City of New York › 3033 - Creation of the Municipal Assistance Corporation for the City of New York; Authorized Indebtedness.

* §  3033.  Creation  of  the municipal assistance corporation for the
city of New York; authorized indebtedness. 1. There  is  hereby  created
the  municipal  assistance  corporation  for  the  city of New York. The
corporation shall be a corporate governmental agency and instrumentality
of the state constituting a public benefit corporation.  It  shall  have
the  powers,  privileges  and duties of a corporation under title two of
this article and under this title. The corporation shall continue for  a
term  ending  the  later  of  July first, two thousand eight or one year
after all its liabilities have been fully paid and discharged. Upon  the
termination  of  the existence of the corporation, all of its rights and
property shall pass to and be vested in the state.
2. Subject to the provisions  of  any  contract  with  noteholders  or
bondholders,  the  corporation  shall  not  issue  bonds and notes in an
aggregate principal amount exceeding ten billion dollars, excluding  (i)
bonds  and  notes  issued to refund outstanding bonds and notes and (ii)
notes issued for the purpose described in subparagraph  (d)  of  section
three thousand thirty-seven of the this article, provided, however, that
no  bonds or notes shall be issued for any purpose other than to pay for
items which are permitted by law to be included in  the  city's  capital
budget  or  to  make deposits into the capital reserve funds established
pursuant to  sections  three  thousand  thirty-six  and  three  thousand
thirty-six-a  of  this  article  if  at the time such bonds or notes are
issued or as a result of their issuance the aggregate  principal  amount
of  bonds  and  notes  issued by the corporation, exclusive of bonds and
notes issued for any purpose described in clause (i)  or  (ii)  of  this
subdivision, exceeds eight billion eight hundred million dollars.
2-a.  In addition to the authority provided in subdivision two of this
section, the corporation may, until  June  thirtieth,  nineteen  hundred
seventy-eight,  issue  notes  in an aggregate principal amount which the
mayor certifies to the corporation is required by the city  to  provide,
without  interruption,  services  essential  to  its  inhabitants  while
meeting its obligation to the holders of its outstanding  securities  to
June  thirtieth,  nineteen hundred seventy-eight, but not to exceed five
hundred million dollars. Such notes shall finally mature no  later  than
June  thirtieth, nineteen hundred seventy-eight. Such notes shall not be
renewable. The terms of issuance of such notes  shall  not  contain  any
provision  creating  rights in the holders of such notes to convert such
notes to or exchange such  notes  for  bonds  of  the  corporation.  The
corporation  shall pay the proceeds of such notes to the city to be used
to provide services essential to its inhabitants without regard  to  the
provisions of section three thousand thirty-seven of this title.
2-b.  In  addition  to  the authority provided in subdivisions two and
two-a of  this  section,  the  corporation  may,  not  later  than  June
thirtieth,  nineteen  hundred  ninety-seven  issue bonds and notes in an
aggregate principal amount  not  to  exceed  one  billion  five  hundred
million  dollars  (excluding  any bonds or notes issued to fund the bond
reserve fund established pursuant to section three thousand thirty-six-b
of this title and any bonds or notes issued to refund outstanding  bonds
or  notes)  for  the purpose of funding capital projects within the city
pursuant  to  section  three  thousand  thirty-seven-a  of  this  title;
provided,  however, that such authority shall decrease from time to time
by such amounts as the city shall  have  made  available  to  fund  such
capital  projects;  and provided further, that the authority provided in
this  subdivision  shall  be  exercised  pursuant  to  a  memorandum  of
agreement  among  the  governor,  the  mayor  and  the  chairman  of the
corporation, which agreement shall provide that  the  corporation  shall
not issue such bonds or notes in any fiscal year in the event and to the
extent  that  the city makes available proceeds from the issuance of its

bonds to fund such capital projects;  and  which  agreement  shall  also
provide  for  certain  operating  assistance to be made available by the
corporation to the city; and provided further, that bonds issued  or  to
be issued to refund bonds of the corporation shall be excluded from such
limitation  only  if  the present value of the aggregate debt service on
the refunding bonds shall  not  have  at  the  time  of  their  issuance
exceeded  the  present  value of the aggregate debt service on the bonds
they were issued to refund,  such  present  value  in  each  case  being
calculated  by using the effective interest rate of the refunding bonds,
which shall be that rate arrived at by doubling the semi-annual interest
rate (compounded semi-annually) necessary to discount the  debt  service
payments  on  the  refunding  bonds from the payment date thereof to the
date of issue of the refunding bonds and to the price bid  therefor,  or
to  the  proceeds  received by the corporation from the sale thereof, in
each case including estimated accrued interest. The rate of interest  on
bonds  which  bear  interest  at  a variable rate which shall be used in
determining such present values shall be the rate at  which  such  bonds
bear   interest   on   the   date   the   refunding  bonds  are  issued.
Notwithstanding any other provision of law, no such bond or note of  the
corporation  shall  mature more than nineteen years from the date of the
original issue of such bond or note and, in any event,  not  later  than
July first, two thousand eight.
3.  (a)  No  note or bond (i) shall mature more than thirty years from
the date of the original issue of such note or bond and, in  any  event,
not later than July first, two thousand eight or (ii) shall be issued on
a  date  later than December thirty-first, nineteen hundred eighty-four,
unless such note or bond is a renewal or  refunding  of  an  outstanding
note or bond.
(b) No bond shall be issued by the corporation for a purpose set forth
in  subparagraph  (d)  of  section  three  thousand thirty-seven of this
article and any note issued for such a purpose shall  mature  not  later
than the end of the fiscal year in which it is originally issued.
(c)  Whenever  all  or  a portion of a series of notes or bonds of the
corporation is issued for a purpose set forth in section three  thousand
thirty-seven  of  this  article,  to  the extent that the payment of the
proceeds of such series is evidenced by a bond or bonds of the city, not
more than one year following a scheduled payment  of  principal  on  any
such  city  bond  (including sinking fund installments), a substantially
equal payment of principal (including sinking fund  installments)  shall
be  scheduled with respect to the notes or bonds included in such series
of the corporation.
(d) Whenever all or a portion of a series of bonds  or  notes  of  the
corporation  is issued for a purpose set forth in section three thousand
thirty-seven-a of this title, the payment of the proceeds of such series
of bonds or notes to the city shall be evidenced by a bond or  bonds  of
the  city  issued  in accordance with applicable provisions of the state
constitution and local finance law then in effect at the time  any  such
bond  or bonds are issued; provided, however, that principal payments on
any such issue of city bonds shall in no event be scheduled to fall on a
date later than the date  on  which  falls  a  corresponding  amount  of
scheduled  principal  payments on the series of bonds of the corporation
originally issued to provide such proceeds or issued to refund notes  of
the corporation issued to provide such proceeds.
4.  If  the  bond resolution or other resolution pursuant to which any
obligations of the corporation are  issued  shall  designate,  with  the
approval  of  any emergency financial control board then established for
the city or,  if  none,  then  with  the  approval  of  the  mayor,  the
corporation  may hereafter issue obligations which shall, upon maturity,

at  the  election  of  the  holder  thereof  if  so  provided  in   such
obligations,  be  receivable  at  full face value and in lieu of cash in
payment of any tax of the city, any installment of estimated tax of  the
city,  or  any  interest  or  penalties  thereon. Any obligations of the
corporation so received in payment of any such  tax  or  installment  of
estimated  tax  or  interest  or  penalties  shall  be  presented to the
corporation for payment to the city.
* NB The corporation shall continue for a term  ending  the  later  of
July  1, 2008 or one year after its liabilities have been fully paid and
discharged per sub 1.