§ 486. 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 shall pay into such capital reserve\nfund (1) any monies appropriated and made available by the state or the\ncity of Yonkers for the purposes of such fund, (2) any proceeds of sale\nof notes or bonds to the extent provided in the resolution of the fund\nauthorizing the issuance thereof, and (3) any other monies which may be\nmade available to the fund for the purpose of such capital reserve fund\nfrom any other source or sources. All monies held in the capital reserve\nfund, except as hereinafter provided, shall be used solely for the\npayment of the principal of bonds of the fund as the same mature, the\npurchase of bonds of the fund, the payment of interest on such bonds of\nthe fund or the payment of any redemption premium required to be paid\nwhen such bonds are redeemed prior to maturity; provided, however, that\nmoneys in such capital reserve fund shall not be withdrawn therefrom at\nany time in such amount as would reduce the amount of such fund to less\nthan the maximum amount of principal and interest maturing and becoming\ndue in any succeeding fiscal year on all bonds of the fund then\noutstanding, except for the purpose of paying principal of and interest\non such bonds of the fund maturing and becoming due and for the payment\nof which other monies of the fund are not available. Any income or\ninterest earned by, or increment to, the capital reserve fund due to the\ninvestment thereof may be transferred to other funds or accounts to the\nextent it does not reduce the amount of the capital reserve fund below\nthe maximum amount of principal and interest maturing and becoming due\nin any succeeding calendar year on all bonds of the fund then\noutstanding.\n (b) The fund shall not issue bonds at any time if the maximum amount\nof principal and interest maturing and becoming due in a succeeding\nfiscal year on such bonds then to be issued and on all other bonds of\nthe fund then outstanding will exceed the amount of the capital reserve\nfund at the time of issuance unless the fund, at the time of issuance of\nsuch bonds, shall deposit in the capital reserve fund from the proceeds\nof the bonds so to be issued, or otherwise, an amount which, together\nwith the amount then in such fund, will be not less than the maximum\namount of principal and interest maturing and becoming due in any\nsucceeding fiscal year on such bonds then to be issued and on all other\nbonds of the fund then outstanding.\n (c) To assure the continued operation and solvency of the fund for the\ncarrying out of the public purposes of this article, provision is made\nin paragraph (a) of this subdivision for the accumulation in the capital\nreserve fund of an amount equal to the maximum amount of principal and\ninterest maturing and becoming due in any succeeding fiscal year on all\nbonds of the fund then outstanding. In order further to assure such\nmaintenance of the capital reserve fund, the board of education shall\nannually request from the city of Yonkers and pay over to the fund, for\ndeposit in the capital reserve fund, such sum, if any, as shall be\ncertified by the chairman of the fund to the board, the mayor and the\ndirector of the budget of the city of Yonkers as necessary to restore\nthe capital reserve fund to an amount equal to the maximum amount of\nprincipal and interest maturing and becoming due in the next succeeding\nfiscal year on the bonds of the fund then outstanding; provided,\nhowever, that such sum shall have been first appropriated by the city to\nthe board or shall otherwise have been made lawfully available to the\nboard for such purpose. The chairman of the fund shall annually, not\nlater than the fifteenth day of February in each year, make and deliver\nto the board and the mayor his certificate stating the amount, if any,\nrequired to restore
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