The Sales Tax Asset Receivable Corporation (the “Corporation”) was created to issue bonds to provide for the payment of the outstanding bonds of the Municipal Assistance Corporation of the City of New York ("MAC") and the outstanding bonds of the City of New York (the “City”) held by MAC. The Corporation issued $2.5 billion of bonds on November 4, 2004 in a transaction that resulted in savings for the City over the following four years. Such bonds are secured by funds payable annually to the Corporation from the New York State Local Government Assistance Corporation ("LGAC").
The operations of the Corporation consist of complying with the terms of its indenture, including collecting revenues from LGAC, applying revenues to pay principal and interest on its bonds, and complying with federal tax law in order to maintain the tax exemption of its bonds. In addition, the Corporation complies with annual continuing disclosure requirements, issues annual audited financial statements, and complies with state and local reporting requirements. During the Fiscal Year ended June 30, 2015, the Corporation issued $2 billion of bonds on October 15, 2014 in order to refund all of its outstanding debt and amend its indenture. The transaction eliminated the debt service reserve requirement and generated savings. This enabled the Corporation to make a payment to the New York City Transitional Finance Authority which applied the funds to defease its debt conferring savings to the City over the following four years.