§ 7. Reserve funds and appropriations.\n 1. (a) For the purposes of the issuance by the agency of bonds, the\nterm "capital reserve fund requirement" shall mean, as of any particular\ndate of computation, with respect to each capital reserve fund of the\nagency an amount of money equal to the greatest of the respective\namounts, for the then current or any succeeding calendar year, of annual\ndebt service payments of the agency on the bonds secured by such capital\nreserve fund, such annual debt service payments for any calendar year\nbeing an amount of money equal to the aggregate of the following with\nrespect to all such bonds of the agency outstanding on said date of\ncomputation; (i) all interest payable during such calendar year, plus\n(ii) the principal amount which matures (net of any sinking fund\npayments payable in prior years) during such calendar year, plus (iii)\nthe amount of all sinking fund payments payable during such calendar\nyear; and the term "sinking fund payment" shall mean the amount of money\nspecified in the resolution authorizing term bonds as payable into a\nsinking fund for the amortization of such term bonds. The agency may\ncreate and establish one or more special funds to be known as capital\nreserve funds and may pay into each such reserve fund (1) any monies\nappropriated and made available by the state for the purposes of such\nfund, (2) any proceeds of sale of notes or bonds, to the extent provided\nin the resolution of the agency authorizing the issuance thereof, and\n(3) any other monies which may be made available to the agency for the\npurposes of such fund from any other source or sources. The monies held\nin or credited to any capital reserve fund established under this\nsubdivision, except as hereinafter provided, shall be used solely for\nthe payment of the principal of bonds of the agency secured by such\nreserve fund, as the same mature, sinking fund payments with respect to\nsuch bonds of the agency, the purchase of such bonds of the agency, the\npayment of interest on such bonds of the agency, or the payment of any\nredemption premium required to be paid when such bonds are redeemed\nprior to maturity; provided, however, that monies in any such fund shall\nnot be withdrawn therefrom at any time in such amount as would reduce\nthe amount of such fund to less than the capital reserve fund\nrequirement, except for the purpose of paying principal and interest on\nthe bonds of the agency secured by such reserve fund maturing and\nbecoming due or any sinking fund payments with respect to such bonds and\nfor the payment of which other monies of the agency are not available.\nAny income or interest earned by, or increment to, any capital reserve\nfund due to the investment thereof may be transferred to any other fund\nor account of the agency to the extent it does not reduce the amount of\nsuch capital reserve fund below the capital reserve fund requirement.\n (b) The agency shall not issue bonds at any time if upon issuance, the\namount in the capital reserve fund securing such bonds will be less than\nthe capital reserve fund requirement unless the agency, at the time of\nissuance of such bonds shall deposit in such reserve fund from the\nproceeds of the bonds so to be issued, or otherwise, an amount which\ntogether with the amount then in such reserve fund, will be not less\nthan the capital reserve fund requirement.\n (c) To assure the continued operation and solvency of the agency for\nthe carrying out of the public purposes of this act, provision is made\nin paragraph (a) of this subdivision for the accumulation in each\ncapital reserve fund of an amount equal to the capital reserve fund\nrequirement. In order further to assure the maintenance of each such\ncapital reserve fund, there shall be annually apportioned and paid to\nthe agency for deposit in each capital reserve fund such sum, if any, as\nshall be certified by the chairman of the agency to the governor and\ndirector
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