* § 3033. Creation of the municipal assistance corporation for the\ncity of New York; authorized indebtedness. 1. There is hereby created\nthe municipal assistance corporation for the city of New York. The\ncorporation shall be a corporate governmental agency and instrumentality\nof the state constituting a public benefit corporation. It shall have\nthe powers, privileges and duties of a corporation under title two of\nthis article and under this title. The corporation shall continue for a\nterm ending the later of July first, two thousand eight or one year\nafter all its liabilities have been fully paid and discharged. Upon the\ntermination of the existence of the corporation, all of its rights and\nproperty shall pass to and be vested in the state.\n 2. Subject to the provisions of any contract with noteholders or\nbondholders, the corporation shall not issue bonds and notes in an\naggregate principal amount exceeding ten billion dollars, excluding (i)\nbonds and notes issued to refund outstanding bonds and notes and (ii)\nnotes issued for the purpose described in subparagraph (d) of section\nthree thousand thirty-seven of the this article, provided, however, that\nno bonds or notes shall be issued for any purpose other than to pay for\nitems which are permitted by law to be included in the city's capital\nbudget or to make deposits into the capital reserve funds established\npursuant to sections three thousand thirty-six and three thousand\nthirty-six-a of this article if at the time such bonds or notes are\nissued or as a result of their issuance the aggregate principal amount\nof bonds and notes issued by the corporation, exclusive of bonds and\nnotes issued for any purpose described in clause (i) or (ii) of this\nsubdivision, exceeds eight billion eight hundred million dollars.\n 2-a. In addition to the authority provided in subdivision two of this\nsection, the corporation may, until June thirtieth, nineteen hundred\nseventy-eight, issue notes in an aggregate principal amount which the\nmayor certifies to the corporation is required by the city to provide,\nwithout interruption, services essential to its inhabitants while\nmeeting its obligation to the holders of its outstanding securities to\nJune thirtieth, nineteen hundred seventy-eight, but not to exceed five\nhundred million dollars. Such notes shall finally mature no later than\nJune thirtieth, nineteen hundred seventy-eight. Such notes shall not be\nrenewable. The terms of issuance of such notes shall not contain any\nprovision creating rights in the holders of such notes to convert such\nnotes to or exchange such notes for bonds of the corporation. The\ncorporation shall pay the proceeds of such notes to the city to be used\nto provide services essential to its inhabitants without regard to the\nprovisions of section three thousand thirty-seven of this title.\n 2-b. In addition to the authority provided in subdivisions two and\ntwo-a of this section, the corporation may, not later than June\nthirtieth, nineteen hundred ninety-seven issue bonds and notes in an\naggregate principal amount not to exceed one billion five hundred\nmillion dollars (excluding any bonds or notes issued to fund the bond\nreserve fund established pursuant to section three thousand thirty-six-b\nof this title and any bonds or notes issued to refund outstanding bonds\nor notes) for the purpose of funding capital projects within the city\npursuant to section three thousand thirty-seven-a of this title;\nprovided, however, that such authority shall decrease from time to time\nby such amounts as the city shall have made available to fund such\ncapital projects; and provided further, that the authority provided in\nthis subdivision shall be exercised pursuant to a memorandum of\nagreement among the governor, the mayor and the chairman of the\ncorporation, which agreement shall provide that the corporation shall\nnot issue such bonds or notes in any fiscal year in the event and to the\nextent
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