Section 1. (a) The city of Troy, Rensselaer county, is hereby
authorized to issue serial bonds on or before December 31, 1995 in an
aggregate principal amount not to exceed four million two hundred
fifty-five thousand dollars for the specific object or purpose of
liquidating the cumulative deficit of four million two hundred
fifty-five thousand dollars in its general fund at the close of its
fiscal year ended December 31, 1993, including any tax anticipation
notes which may be part of said deficit. In anticipation of the issuance
of the serial bonds authorized to be issued in this subdivision, bond
anticipation notes are hereby authorized to be issued, subject to the
provisions of subdivision (a) of section two of this act.

(b) Further, the city of Troy is hereby authorized to issue serial
bonds in an aggregate principal amount not to exceed fourteen million
three hundred seventy-five thousand dollars for the purpose of
liquidating a projected deficit to be incurred in its general fund
during the 1994 fiscal year, together with preliminary costs, due to
overestimates of revenues and underestimates of expenditures. In
anticipation of the issuance of the serial bonds authorized to be issued
in this subdivision, bond anticipation notes are hereby authorized to be
issued, subject to the provisions of subdivision (b) of section two of
this act.

(c) Further, the city of Troy is hereby authorized to issue serial
bonds or term bonds in an aggregate principal amount not to exceed
$40,000,000 for the purpose of acquiring or causing to be acquired, all
or a portion of real property leased by the city of Troy pursuant to one
or more lease agreements between the city of Troy and the Troy local
development corporation, including the payment of any judgments or
compromised or settled claims against the city relating thereto and
together with preliminary costs plus such amount of serial bonds or term
bonds necessary to fund the bond reserve fund required by the
corporation. In anticipation of the issuance of the serial bonds or
term bonds authorized to be issued in this subdivision, bond
anticipation notes are hereby authorized to be issued.

(d) Further, the city of Troy is hereby authorized to issue serial
bonds or term bonds in an aggregate principal amount not to exceed six
million seventy-six thousand dollars for the purpose of liquidating a
projected deficit to be incurred in its general fund during the 1995
fiscal year, together with preliminary costs, due to overestimates of
revenues and underestimates of expenditures. In anticipation of the
issuance of the serial bonds authorized to be issued in this
subdivision, bond anticipation notes are hereby authorized to be issued,
subject to the provisions of subdivision (b) of section two of this act.

(e) Whenever this section establishes a limit on the principal amount
of bonds or notes that the city is authorized to issue, there shall not
be counted against such limit (i) amounts determined by the city to be
used to pay the costs of issuing such bonds or notes, (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 subdivision (c) of this
section 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.

(f) Notwithstanding the bond authorizations contained in this section,
the city shall not issue any bonds in excess of the amount authorized by
section 104.00 of the local finance law.