2006 New York Code - Exchange Of Notes Or Bonds Of The Corporation For Short-term Obligations Of The City.

 
    * § 3035. Exchange of notes or bonds of the corporation for short-term
  obligations of the city. 1. The corporation may issue its notes or bonds
  in  exchange  for  short-term obligations of the city, provided that the
  principal amount of the corporation's notes or bonds issued in any  such
  exchange  shall  not  exceed  the  principal  amount  of such short-term
  obligations and accrued interest thereon at the stated rate to the  date
  of such exchange.
    2. (a) Upon or at any time after receipt of the short-term obligations
  of  the  city  exchanged  in accordance with subdivision one hereof, the
  corporation may deliver any or all of such short-term 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 bond anticipation notes received  pursuant
  to  subdivision  one  to  the  city  for  cancellation without receiving
  payment of principal or interest in respect thereof unless the mayor and
  the  city  comptroller  shall  have  requested  in  writing  that   such
  short-term obligations be delivered for cancellation.
    (b) Upon or at any time after receipt of the short-term obligations of
  the  city  exchanged  in  accordance  with  subdivision  one  hereof 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
  short-term  obligations  of  the city pursuant to subdivision one hereof
  unless (a) the city shall have agreed  to  observe  the  conditions  set
  forth in section three thousand thirty-eight of this chapter, 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.
    * 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 § 3033 sub 1.