* § 3033. Creation of the municipal assistance corporation for the
city of New York; authorized indebtedness. 1. There is hereby created
the municipal assistance corporation for the city of New York. 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 ending the later of July first, two thousand eight or 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 ten billion dollars, excluding (i)
bonds and notes issued to refund outstanding bonds and notes and (ii)
notes issued for the purpose described in subparagraph (d) of section
three thousand thirty-seven of the this article, provided, however, that
no bonds or notes shall be issued for any purpose other than to pay for
items which are permitted by law to be included in the city's capital
budget or to make deposits into the capital reserve funds established
pursuant to sections three thousand thirty-six and three thousand
thirty-six-a of this article if at the time such bonds or notes are
issued or as a result of their issuance the aggregate principal amount
of bonds and notes issued by the corporation, exclusive of bonds and
notes issued for any purpose described in clause (i) or (ii) of this
subdivision, exceeds eight billion eight hundred million dollars.

2-a. In addition to the authority provided in subdivision two of this
section, the corporation may, until June thirtieth, nineteen hundred
seventy-eight, issue notes in an aggregate principal amount which the
mayor certifies to the corporation is required by the city to provide,
without interruption, services essential to its inhabitants while
meeting its obligation to the holders of its outstanding securities to
June thirtieth, nineteen hundred seventy-eight, but not to exceed five
hundred million dollars. Such notes shall finally mature no later than
June thirtieth, nineteen hundred seventy-eight. Such notes shall not be
renewable. 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. The
corporation shall pay the proceeds of such notes to the city to be used
to provide services essential to its inhabitants without regard to the
provisions of section three thousand thirty-seven of this title.

2-b. In addition to the authority provided in subdivisions two and
two-a of this section, the corporation may, not later than June
thirtieth, nineteen hundred ninety-seven issue bonds and notes in an
aggregate principal amount not to exceed one billion five hundred
million dollars (excluding any bonds or notes issued to fund the bond
reserve fund established pursuant to section three thousand thirty-six-b
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 section three thousand thirty-seven-a of this title;
provided, however, that such authority shall decrease from time to time
by such amounts as the city shall have made available to fund such
capital projects; and provided further, that the authority provided in
this subdivision shall be exercised pursuant to a memorandum of
agreement among the governor, the mayor and the chairman of the
corporation, which agreement shall provide that the corporation shall
not issue such bonds or notes in any fiscal year in the event and to the
extent that the city makes available proceeds from the issuance of its
bonds to fund such capital projects; and which agreement shall also
provide for certain operating assistance to be made available by the
corporation to the city; and provided further, that bonds issued or to
be issued to refund bonds of the corporation shall be excluded from such
limitation only if the present value of the aggregate debt service on
the refunding bonds shall not have at the time of their issuance
exceeded the present value of the aggregate debt service on the bonds
they were issued to refund, such present value in each case being
calculated by using the effective interest rate of the refunding bonds,
which shall be that rate arrived at by doubling the semi-annual interest
rate (compounded semi-annually) necessary to discount the debt service
payments on the refunding bonds from the payment date thereof to the
date of issue of the refunding bonds and to the price bid therefor, or
to the proceeds received by the corporation from the sale thereof, in
each case including estimated accrued interest. The rate of interest on
bonds which bear interest at a variable rate which shall be used in
determining such present values shall be the rate at which such bonds
bear interest on the date the refunding bonds are issued.
Notwithstanding any other provision of law, no such bond or note of the
corporation shall mature more than nineteen years from the date of the
original issue of such bond or note and, in any event, not later than
July first, two thousand eight.

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 July first, two thousand eight or (ii) shall be issued on
a date later than December thirty-first, nineteen hundred eighty-four,
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 subparagraph (d) of section three thousand thirty-seven of this
article and any note issued for such a purpose shall mature not later
than the end of the fiscal year in which it is originally issued.

(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
thirty-seven of this article, 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.

(d) Whenever all or a portion of a series of bonds or notes of the
corporation is issued for a purpose set forth in section three thousand
thirty-seven-a of this title, the payment of the proceeds of such series
of bonds or notes to the city shall be evidenced by a bond or bonds of
the city issued in accordance with applicable provisions of the state
constitution and local finance law then in effect at the time any such
bond or bonds are issued; provided, however, that principal payments on
any such issue of city bonds shall in no event be scheduled to fall on a
date later than the date on which falls a corresponding amount of
scheduled principal payments on the series of bonds of the corporation
originally issued to provide such proceeds or issued to refund notes of
the corporation issued to provide such proceeds.

4. If the bond resolution or other resolution pursuant to which any
obligations of the corporation are issued shall designate, with the
approval of any emergency financial control board then established for
the city or, if none, then with the approval of the mayor, the
corporation may hereafter issue obligations which shall, upon maturity,
at the election of the holder thereof if so provided in such
obligations, be receivable at full face value and in lieu of cash in
payment of any tax of the city, any installment of estimated tax of the
city, or any interest or penalties thereon. Any obligations of the
corporation so received in payment of any such tax or installment of
estimated tax or interest or penalties shall be presented to the
corporation for payment to the city.

* 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 sub 1.