Local Government Assistance Corp. v. Sales Tax Asset Receivable Corp.

OPINION OF THE COURT

Louis C. Benza, J.

Plaintiffs move this court for a prehminary injunction enjoining defendants from issuing bonds or otherwise implementing the provisions of the MAC Refinancing Act. Defendants oppose such relief. After the submissions by the parties and oral argument held on August 14, 2003, the court makes the following determination.

In response to the fiscal crisis of the City of New York in the mid-1970s, the Legislature created the Municipal Assistance Corporation (hereinafter MAC) as a long-term refinancing vehicle for the City’s massive short-term debt. MAC bonds…