Section 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,  the

  corporation  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.