Section 3057. Payments to or purchases of obligations of the city

1. In the
  event  that  the  chief executive officer from time to time certifies to
  the corporation an amount required by the city to enable it (a)  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 (b) to pay operating expenses of the city
  other than those included in this paragraph, or (c) to liquidate all  or
  a  portion  of  the  city's  cumulative  deficits for the years nineteen
  hundred  ninety-three  through  nineteen   hundred   ninety-five,   both
  inclusive,  or  to  pay,  at  maturity,  or  on the redemption date, the
  principal of and interest on obligations of the  city  issued  for  such
  purposes,  or  (d) to acquire, or cause to be acquired, all or a portion
  of the real or personal property leased by the city pursuant to  one  or
  more  lease  agreements  between the city and the Troy local development
  corporation including the financing of the payment of any  judgments  or
  compromised  or settled claims against the city relating thereto, or (e)
  to pay at maturity, or on the redemption  date,  the  principal  of  and
  interest  on  obligations  of  the city previously issued to finance any
  item in the current or any prior fiscal year, or  (f)  to  pay  for  the
  costs  of closure of the city's landfill, 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.
    2.  Moneys  paid  to  the city pursuant to subparagraph (i) or (ii) of
  paragraph (e) of subdivision one of this section shall be held in  trust
  for the payment of city obligations or shall be used to make the payment
  for  which such moneys have been so certified. 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 fifty-eight of this
  title, subject to such modifications as are permitted thereunder.
    3. In consideration of the payments made to the city for the  purposes
  described in paragraph (a), (b), (c), (d), (e) or (f) of subdivision one
  of   this   section,  the  corporation  shall  purchase  from  the  city
  obligations issued by the city in accordance with applicable  provisions
  of  the  state  constitution and local finance law then in effect at the
  time such obligations  are  issued  in  an  amount  equivalent  to  such
  payment.  Nothing  herein  shall  require  the  corporation  to  receive
  obligations issued by  the  city  under  the  local  finance  law  as  a
  condition  to  making a total of seventy-one million dollars of payments
  in the aggregate to the city pursuant to paragraph (a), (c),  (d),  (e),
  or (f) of subdivision one of this section.
    4. Nothing contained in this title 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 then 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.
    5. At all times after receipt of  obligations  of  the  city  acquired
  pursuant to this section, the corporation shall have the same rights and
  powers  with  respect  to such obligations as the corporation shall have
  with respect to obligations of the city received pursuant to subdivision
  one of section three thousand fifty-five of this  title;  provided  that
  the  corporation  shall  not deliver any obligation 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  unless  the  chief  executive  officer  shall  have
  requested  in  writing  that   such   obligations   be   delivered   for
  cancellation,  and provided further that the corporation may not sell or
  transfer to any person other than the city any obligation  of  the  city
  acquired  by  it  pursuant  to  this  section unless the chief executive
  officer has requested in writing that the corporation sell  or  transfer
  such  obligation  and,  if  such  obligation  be  sold or transferred at
  private sale, unless the terms of such sale have been  approved  by  the
  city comptroller.