§ 462. Reserve funds, appropriations and other funds and accounts. 1.\n(a) The fund shall create and establish a special fund (herein referred\nto as capital reserve fund), and, to secure bonds of the fund issued\nprior to the twenty-fourth day of July, nineteen hundred seventy-six,\nshall pay into such capital reserve fund (1) any monies appropriated and\nmade available by the state or the city of New York for the purposes of\nsuch fund, (2) any proceeds of sale of notes or bonds to the extent\nprovided in the resolution of the fund authorizing the issuance thereof,\nand (3) any other monies which may be made available to the fund for the\npurpose of such capital reserve fund from any other source or sources.\nAll moneys held in the capital reserve fund, established for bonds of\nthe fund secured by such capital reserve fund except as hereinafter\nprovided, shall be used solely for the payment of the principal of such\nbonds as the same mature, required payments to any sinking fund\nestablished for the amortization of such term bonds (hereinafter\nreferred to as "sinking fund payments"), the purchase or redemption of\nsuch bonds, the payment of interest on such bonds or the payment of any\nredemption premium required to be paid when such bonds are redeemed\nprior to maturity; provided, however, that moneys in such capital\nreserve fund shall not be withdrawn therefrom at any time in such amount\nas would reduce the amount of such fund to less than the maximum amount\nof principal and interest maturing and becoming due and sinking fund\npayments required to be made in any succeeding fiscal year on all bonds\nof the fund secured by the capital reserve fund then outstanding, except\nfor the purpose of paying principal, interest and sinking fund payments\nbecoming due on such bonds of the fund maturing and becoming due and for\nthe payment of which other monies of the fund are not available. For the\npurposes of this subdivision, in computing the maximum amount of\nprincipal maturing in any succeeding calendar year, the principal amount\nof any term bonds which are to be amortized by sinking fund payments\nshall not be included in the computation. Any income or interest earned\nby, or increment to, the capital reserve fund due to the investment\nthereof may be transferred to other funds or accounts to the extent it\ndoes not reduce the amount of the capital reserve fund below the maximum\namount of principal and interest maturing and becoming due and sinking\nfund payments required to be made in any succeeding calendar year on all\nbonds of the fund then outstanding secured by the capital reserve fund.\n (b) The fund shall not issue bonds secured by the capital reserve fund\nat any time if the maximum amount of principal and interest maturing and\nbecoming due and sinking fund payments required to be made in a\nsucceeding fiscal year on the bonds then to be issued and on all other\nbonds of the fund then outstanding secured by the capital reserve fund\nwill exceed the amount of the capital reserve fund at the time of\nissuance unless the fund, at the time of issuance of such bonds, shall\ndeposit in the capital reserve fund from the proceeds of the bonds so to\nbe issued, or otherwise, an amount which, together with the amount then\nin such fund, will be not less than the maximum amount of principal and\ninterest maturing and becoming due and sinking fund payments required to\nbe made in any succeeding fiscal year on such bonds then to be issued\nand on all other bonds of the fund then outstanding secured by the\ncapital reserve fund.\n (c) To assure the continued operation and solvency of the capital\nreserve fund for the carrying out of the public purposes of this\narticle, provision is made in paragraph (a) of this subdivision for the\naccumulation in the capital reserve fund of an amount equal to the\nmaximum amount of principal and interest maturing and becoming due and\nsinking fund payments required to be made in any suc
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.