N.Y. Public Authorities Law 3055 – Exchange of notes or bonds of the corporation for obligations of the city
§ 3055. Exchange of notes or bonds of the corporation for obligations of the city. 1. The corporation may issue its notes or bonds for the purposes described in paragraph (a), (b), (c), (d), (e) or (f) of subdivision one of section three thousand fifty-seven of this title and pay the proceeds thereof to the city in exchange for obligations of the city, provided that the principal amount of the corporation's notes or bonds issued in connection with any such exchange shall not exceed the principal amount of such obligations of the city and accrued interest thereon at the stated rate to the date of such exchange. The corporation may also issue its notes or bonds for the purposes described in paragraph (a), (c), (d), (e), or (f) of subdivision one of section three thousand fifty-seven of this title and pay the proceeds thereof to the city in exchange for the agreement by the city to repay such amounts in annual installments, subject to annual appropriation of such installments by the city council of the city of Troy, corresponding to the scheduled principal and interest payments on the corporation's bonds or notes issued to provide such proceeds provided that, excluding any agreements for repayment of amounts paid to the city in accordance with paragraph (d) of subdivision one of section three thousand fifty-seven of this title, such agreement shall provide that the first principal payment shall be made not later than two years after the date of such agreement or two years after the date of the first bond anticipation note or notes issued in anticipation of such agreement, provided that no such first principal payment shall be required to be made prior to January thirty-first, nineteen hundred ninety-nine, and further provided no principal payment shall be more than fifty per centum in excess of the smallest prior installment unless this agreement provides for substantially level or declining debt service payments.
Terms Used In N.Y. Public Authorities Law 3055
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Board of directors: means the board of directors of a municipal assistance corporation. See N.Y. Public Authorities Law 3003
- Chief executive officer: means the chief executive officer of the city as defined in subdivision five-a of § 2. See N.Y. Public Authorities Law 3052
- City: means the city of Troy. See N.Y. Public Authorities Law 3052
- Corporation: means the corporate governmental agency created by section three thousand fifty-three of this title. See N.Y. Public Authorities Law 3052
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- notes: means bonds and notes, respectively, issued by a municipal assistance corporation pursuant to this article. See N.Y. Public Authorities Law 3003
- Obligations: means bonds and notes. See N.Y. Public Authorities Law 3003
- Short-term obligations: means tax anticipation notes, revenue anticipation notes, bond anticipation notes, budget notes and urban renewal notes. See N.Y. Public Authorities Law 3052
2. (a) Upon or at any time after receipt of the obligations of the city exchanged in accordance with subdivision one of this section, the corporation may deliver any or all of such obligations to the city for cancellation, without receiving payment of principal or interest in respect thereof, in which event the city shall thereupon cancel such obligations without making any payment of principal amount or accrued interest thereon and the city shall have no further liability with respect thereto. Notwithstanding the foregoing, the corporation shall not deliver at any time obligations received pursuant to subdivision one of this section to the city for cancellation without receiving payment of principal or interest in respect thereof unless the chief executive officer shall have requested in writing that such obligations be delivered for cancellation.
(b) Upon or at any time after receipt of any short-term obligations of the city exchanged in accordance with subdivision one of this § of the city issued pursuant to the local finance law, all on such terms and conditions as the corporation may deem proper.
3. The corporation shall not exchange any of its bonds or notes for obligations of the city pursuant to subdivision one of this section unless (a) the city shall have agreed to observe the conditions set forth in section three thousand fifty-eight of this title, subject to such modifications as are permitted thereunder and as the corporation may then approve, and (b) the board of directors of the corporation shall have determined that the terms of such exchange will not prejudice the rights of holders of other bonds and notes of the city.