3037 - Payments to or purchases of obligations of the city.

* § 3037. Payments to or purchases of obligations of the city.  In the  event  that  the mayor from time to time certifies to the corporation an  amount required by the city to enable it (a) to pay,  at  maturity,  the  principal  of and interest on any short-term obligations of the city, or  (b) to pay for any item which is permitted by law to be included in  the  city's  capital  budget for the fiscal year for which such certification  is made, including payments to reimburse the  general  fund  for  moneys  advanced and expended for any such item, or (c) to make any payment in a  fiscal year to the extent the mayor certifies such payment will have the  effect  of reducing from the then existing level the city's requirements  for an advance by the state, during such fiscal year or  the  succeeding  fiscal  year,  of state assistance moneys payable to the city, or (d) to  meet its seasonal borrowing requirements for the fiscal  year  in  which  such certification is made, or (e) to pay operating expenses of the city  other  than  those  included in subparagraph (b), (c) or (d) hereof, the  corporation may (i) pay to the city or,  (ii)  purchase  from  the  city  obligations  hereafter  issued  by  the city in an amount equivalent to,  part or all of such certified amount. Moneys paid to the  city  pursuant  to  clause  (i)  or  (ii) of this section shall be held in trust for the  payment of short-term obligations or shall be used to make  the  payment  for which such moneys have been so certified.  Any obligations issued by  the  city  and  purchased by the corporation pursuant to this section in  consideration of the payments made to the city pursuant to  subparagraph  (a)  or  (e)  hereof shall mature on a date not later than fifteen years  from the original date of issue of  such  obligations.  The  corporation  shall not make any payment to the city, or purchase any obligations from  the  city, pursuant to this section unless the city shall have agreed to  observe the conditions set forth in section three thousand  thirty-eight  of  this  chapter,  subject  to  such  modifications  as  are  permitted  thereunder. The outstanding amounts  paid  to  the  city  for  operating  expenses  which  are  described  in  subparagraph (e) hereof pursuant to  clause (i) and clause (ii) of this section shall not exceed two  billion  dollars,  provided that not more than nine hundred million dollars shall  be obligations maturing in a fiscal year succeeding the fiscal  year  in  which issued (of which not less than seven hundred fifty million dollars  shall  be  applied for welfare or public education purposes, as to which  state assistance payments have been or will be advanced to the city) and  shall be evidenced by city obligations, and any balance shall  be  short  term obligations payable in the fiscal year in which issued.    The  outstanding  amounts  paid to the city for a purpose set forth in  subparagraph (b) hereof, other than to pay for expense  items  permitted  to be included in the capital budget of the city pursuant to subdivision  five  of  section  three thousand thirty-eight of this article, shall be  evidenced by city bonds. Nothing herein shall be  construed  to  prevent  the  corporation  from acquiring from the city obligations issued by the  city pursuant to the local finance law which evidence  amounts  paid  to  the city by the corporation for other purposes.    Nothing  contained in this article shall be deemed to create an object  or purpose or to establish or extend a period for which a city bond  may  be  issued pursuant to the local finance law, or to create authority for  the city to issue a bond payable  from  a  tax  on  real  estate  levied  outside  the limit imposed by the state constitution on the amount to be  raised by tax on real estate for local purposes other than debt service,  or to modify, amend, repeal, or rescind any other provision of the local  finance law governing the issuance by the  city  of  its  bonds  or  the  payment of principal and interest thereon.    At  all times after receipt of short-term obligations, other than bond  anticipation notes, of the city acquired pursuant to this  section,  thecorporation  shall  have the same rights and powers with respect to such  short-term obligations as the corporation shall  have  with  respect  to  short-term  obligations, other than bond anticipation notes, of the city  received   pursuant   to  subdivision  one  of  section  three  thousand  thirty-five of this article. The corporation shall have the same  rights  and powers with respect to bond anticipation notes and bonds so received  as  the  corporation  shall have with respect to bond anticipation notes  received  pursuant  to  subdivision  one  of  section   three   thousand  thirty-five;  provided  that  the corporation shall not deliver any bond  received pursuant to this section for cancellation unless the city  pays  the  principal  amount  and  accrued  interest  thereon  or pays accrued  interest and exchanges such bond for another bond of the city  in  equal  principal  amounts  in  refunding thereof, and provided further that the  corporation may not sell or transfer to any person other than  the  city  any  bond of the city acquired by it pursuant to this section unless the  mayor and the city  comptroller  have  requested  in  writing  that  the  corporation  sell  or  transfer  such  bond and, if such bond be sold or  transferred at private sale, unless the terms of  such  sale  have  been  approved by the city comptroller.    For   purposes   of   this   section,  the  term  "seasonal  borrowing  requirements" means amounts which are required by the city to enable  it  to  pay  current operating expenses, provided such expenses are included  in an expense budget  of  the  city  balanced  in  accordance  with  the  provisions of section three thousand thirty-eight of this title and such  amounts   are   required   solely   because   the  city's  revenues  and  expenditures, even when in balance on an annual basis, are not  received  and disbursed at equivalent rates throughout the year.    * 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 § 3033 sub 1.