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a. The comptroller may:
(1) provide for the redemption, purchase and cancellation prior to maturity of sinking fund bonds redeemable from the general sinking fund;
(2) establish accounts within the general sinking fund for the amortization and redemption of specific issues of sinking fund bonds and provide for restrictions on the use of assets of any such account for purposes other than the redemption of the sinking fund bonds to be redeemed from such account; and
(3) subject to the rights of bondholders and notwithstanding any other provision of this charter (i) withdraw moneys from the general sinking fund, or (ii) transfer any or all responsibility for the administration and management of the general sinking fund and the custody of securities and other assets contained therein to any bank or trust company incorporated in this state, or any national bank located in this state.
b. The sinking fund bonds of a particular series redeemable from the general sinking fund may differ among themselves in their stated maturities, rates of interest and applicable redemption provisions.
c. A schedule of annual or semiannual payments shall be established at the time of issuance of any series of sinking fund bonds redeemable from the general sinking fund sufficient to provide for the redemption of the principal amount of such bonds, and annual appropriations shall be made to the general sinking fund in accordance with such schedule of payments.
The sinking fund bonds to be redeemed from the general sinking fund or any additional sinking funds established pursuant to section two hundred ninety-eight may be selected in such manner as the comptroller may determine and may be identified on the face thereof. The principal amount of sinking fund bonds required to be redeemed on any date by payment from the general sinking fund or any additional sinking fund shall be reduced by the principal amount of any such bonds which has been timely purchased or redeemed and cancelled by the city and not theretofore applied as a credit against such requirements.
A series or part of a series of sinking fund bonds redeemable from the general sinking fund or any additional sinking fund established pursuant to section two hundred ninety-eight, including any covenants or other agreements relative thereto, shall be fully discharged and of no further force and effect at such time as (a) sufficient moneys or direct obligations of the United States or obligations guaranteed by the United States have been deposited in a separate trust account with a bank, trust company or other fiduciary, the principal of and/or interest on which will provide sufficient moneys to pay punctually when due at maturity or prior to maturity by redemption, in accordance with their terms, all principal of, applicable redemption premium, if any, and interest on such sinking fund bonds, and irrevocable instructions from the city to such bank, trust company or other fiduciary to make payment of such principal, applicable redemption premium, if any, and interest with such moneys shall have been given, or (b) such sinking fund bonds, together with interest thereon, shall have been paid in full at maturity, or shall have otherwise been refunded, redeemed, defeased or discharged.
Subject to subdivision a of section two hundred ninety-three, the comptroller may invest the moneys of the general sinking fund or any additional sinking funds established pursuant to section two hundred ninety-eight in any securities in which the city is authorized to invest, including but not limited to the following securities:
(1) Obligations of the city of New York;
(2) Obligations of the state of New York;
(3) Obligations of the United States or of any agency, subdivision, department, division or instrumentality thereof, or obligations fully guaranteed or insured as to interest and principal by an agency, subdivision, department, division or instrumentality of the United States, acting pursuant to a grant of authority from the congress of the United States;
(4) Obligations of the municipal assistance corporation for the city of New York.
The provisions of sections two hundred seventy-seven and two hundred seventy-eight of the charter shall apply to the general sinking fund and any additional sinking funds established pursuant to section two hundred ninety-eight.
On or after July first nineteen hundred eighty-one the comptroller may establish from time to time additional sinking funds to amortize and redeem any or all of the sinking fund bonds issued and sold from time to time by the city of New York on or after that date for any purpose for which sinking fund bonds may be authorized excepting sinking fund bonds which are redeemable from the sinking fund of the city of New York, the water sinking fund of the city of New York, the rapid transit sinking fund of the city of New York or the general sinking fund. Notwithstanding any inconsistent provision of section two hundred ninety-three, such additional sinking funds shall be established with such terms and conditions as the comptroller shall prescribe.
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