Section 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.
    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  section
  the  corporation  may exchange any or all of such short-term obligations
  for other short-term obligations issued by  the  city  pursuant  to  the
  local  finance  law  and the corporation may exchange any or all of such
  bond anticipation notes included  in  such  short-term  obligations  for
  bonds  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.