Section 3053. Creation of the municipal assistance corporation for the city of Troy; authorized indebtedness

1.  There  is  hereby  created  the  municipal  assistance  corporation for the city of Troy. 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
  of 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  seventy-one  million   dollars,
  excluding  bonds  and  notes  issued  to  fund  the  bond  reserve  fund
  established pursuant to section three thousand fifty-six of  this  title
  and  any  bonds or notes issued to refund outstanding bonds and notes of
  the corporation, for the purposes described in paragraphs (c), (d), (e),
  and (f) of subdivision one of section three thousand fifty-seven of this
  title.
    2-a. In addition to the authority provided in subdivision two of  this
  section,  the  corporation  may,  until  December thirty-first, nineteen
  hundred ninety-nine, issue notes in an aggregate principal amount  which
  the  chief executive officer certifies to the corporation is required by
  the  city  to  provide  for  purposes  described  in  paragraph  (b)  of
  subdivision  one  of  section  three thousand fifty-seven of this title,
  without  interruption,  services  essential  to  its  inhabitants  while
  meeting  its  obligation to the holders of its outstanding securities to
  December thirty-first, nineteen hundred ninety-nine, but not  to  exceed
  two  million dollars outstanding in the aggregate at any time (excluding
  notes to fund the bond reserve  fund  established  pursuant  to  section
  three thousand fifty-six of this title). Such notes shall finally mature
  no  later  than  December  thirty-first,  two thousand. Such notes shall
  mature within one year from their date of issue and may be renewed  from
  time  to  time, but each renewal shall be for a period not to exceed one
  year. 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.
    2-b. In addition to the authority provided  in  subdivisions  two  and
  two-a  of  this  section,  the  corporation may, not later than December
  thirty-first, nineteen hundred ninety-eight issue bonds and notes in  an
  aggregate  principal amount not to exceed two million dollars (excluding
  any bonds or notes issued to fund  the  bond  reserve  fund  established
  pursuant to section three thousand fifty-six 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 subdivision (a) of
  section three thousand fifty-seven of this title.
    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 January first, two  thousand  thirty  or  (ii)  shall  be
  issued  on  a  date  later  than December thirty-first, nineteen hundred
  ninety-nine, 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   paragraph   (b)  of  subdivision  one  of  section  three  thousand
  fifty-seven of this title.
    (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
  fifty-seven of this title 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.
    4.  The  corporation  is authorized to procure a bond or note facility
  with respect to its bonds or notes issued pursuant to this  section  and
  as  security  for  the  principal  of and interest on any bonds or notes
  issued pursuant to this section and for its obligations under  any  bond
  or  note facility the corporation may pledge any part of its revenues or
  assets.
    5. Whenever this title establishes a limit on the principal amount  of
  bonds  or notes that the corporation is authorized to issue, there shall
  not be counted against such limit (i) amounts certified by the  chairman
  of  the  corporation as reasonable to be used to pay the cost of issuing
  such bonds or notes  where  such  certification  has  been  provided  in
  writing  to  the state comptroller and the city of Troy, (ii) the amount
  of bonds or notes that would  constitute  interest  under  the  Internal
  Revenue  Code of 1986, as amended, and (iii) the portion of any bonds or
  notes issued to accomplish the purposes described in paragraphs (d)  and
  (e)  of  subdivision  one  of section three thousand fifty-seven of this
  title to the extent necessary to pay interest to the date of  redemption
  or maturity, redemption premium, if any, or other similar costs relating
  to the accomplishment of such purposes.
    6.  At  the written request of the city, the corporation is authorized
  to pledge, subject to the prior pledge of the corporation's revenues and
  assets pursuant to its contracts with the holders of its bonds, notes or
  other obligations, any part of its revenues or assets not to exceed  one
  hundred  thousand  dollars  in  any  state  fiscal  year in favor of the
  commissioner of environmental conservation to secure obligations of  the
  city  related  to post-closure care and potential corrective measures of
  the city's landfill.