§ 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.