N.Y.
Public Authorities Law Section 3238-A
Payment to city of New York
1.
Notwithstanding any inconsistent provision of law, the corporation shall transfer to the city of New York one hundred seventy million dollars from the resources of the corporation pursuant to § 3239 (Resources of the corporation)section thirty-two hundred thirty-nine of this title. Such payment shall be made during each city fiscal year; provided, however, that on and after July first, two thousand twenty, the obligation of the corporation to make such payments shall be terminated if all outstanding bonds of the sales tax asset receivable corporation that are secured by the corporation’s payments described in this subdivision have been fully paid and discharged by means of a legal defeasance in accordance with the trust indenture under which they were issued before July first, two thousand twenty-one, and in addition the corporation has paid to the city of New York or to its assignee if such payments have been assigned pursuant to this subdivision, the sum of forty-six million dollars on or before June thirtieth, two thousand twenty-one. Such payments from the corporation shall be made from the fund established by State Finance Law § 92-R (Local government assistance tax fund)section ninety-two-r of the state finance law and in accordance with the provisions thereof.2.
The city of New York, acting by the mayor alone, may assign all or any portion of such amount to any not-for-profit corporation incorporated pursuant to section fourteen hundred eleven of the not-for-profit corporation law and, upon such assignment, the amount so assigned shall be the property of such not-for-profit corporation for all purposes. Following notice from the city of New York to the corporation and the comptroller of such assignment, such payment shall be made directly to the city’s assignee. If such not-for-profit corporation issues bonds and/or notes, the state does hereby pledge and agree with the holders of any issue of bonds and/or notes secured by such a pledge that the state will not limit or alter the rights vested in such not-for-profit corporation to fulfill the terms of any agreements made with such holders or in any way impair the rights and remedies of such holders or the security for such bonds and/or notes until such bonds and/or notes, together with the interest thereon and all costs and expenses in connection with any action or proceeding by or on behalf of such holders, are fully paid and discharged. The foregoing pledge and agreement may be included in any agreement with the holders of such bonds or notes. Nothing contained in this section shall be deemed to restrict the right of the state to amend, modify, repeal or otherwise alter statutes imposing or relating to the taxes subject to such assignment, but such taxes shall in all events continue to be so payable, as assigned, so long as any such taxes are imposed.3.
Proceeds of state supported debt, as defined in subdivision one of State Finance Law § 67-A (Definitions)section sixty-seven-a of the state finance law, or other available monies, may be provided to the trustee for the bonds of the sales tax asset receivable corporation secured by the corporation’s payments described in subdivision one of this section in an amount sufficient to fully pay and discharge such bonds by means of a legal defeasance of all such outstanding bonds in accordance with the trust indenture under which they were issued. So long as such bonds are legally defeased and the corporation has paid to the city of New York or to its assignee if such payments have been assigned pursuant to this subdivision, the sum of forty-six million dollars on or before June thirtieth, two thousand twenty-one the corporation’s obligation contained in subdivision one of this section to transfer funds to the city of New York shall be deemed satisfied and fully discharged. Upon any such legal defeasance of such bonds, the sales tax asset receivable corporation shall no longer be deemed a local authority within the meaning of subdivision two of § 2 (Definitions)section two of this chapter and the provisions of this chapter, including, without limitation, the provisions of article 9 (General Provisions)article nine of this chapter, shall no longer be applicable to the sales tax asset receivable corporation.4.
Notwithstanding any inconsistent provision of law, the dormitory authority of the state of New York and the New York state urban development corporation are hereby authorized to issue bonds in one or more series pursuant to article five-C or article five-F of the state finance law in an aggregate principal amount sufficient to directly or indirectly (i) finance the legal defeasance or payment of all of the outstanding bonds of the sales tax asset receivable corporation secured by the corporation’s payments described in subdivision one of this section, (ii) one or more related debt service reserve funds, and(iii)
costs of issuance attributable to such bonds, and the issuance of such bonds is hereby determined to be for an “authorized purpose”, as defined in subdivision two of section sixty-eight-a and subdivision two of section sixty-nine-m of the state finance law, as the case may be. * NB Repealed July 1, 2034
Source:
Section 3238-A — Payment to city of New York, https://www.nysenate.gov/legislation/laws/PBA/3238-A (updated Apr. 23, 2021; accessed Apr. 27, 2024).
