§ 656. Reserve funds and appropriations. 1. a. The corporation shall\ncreate and establish special funds (herein referred to as capital\nreserve funds) and shall pay into such a capital reserve fund (1) any\nmoneys appropriated and made available by the state or city for the\npurpose of such fund, (2) any proceeds of sale of notes or bonds, to the\nextent provided in the resolution or resolutions of the corporation\nauthorizing the issuance thereof, and (3) any other moneys which may be\nmade available to the corporation for the purpose of such fund from any\nother source or sources. All moneys held in a capital reserve fund,\nexcept as hereinafter provided, shall be used, as required, solely for\nthe payment of the principal of bonds as the same mature or the annual\nsinking fund payments, the purchase or redemption of bonds, the payment\nof interest on bonds or the payment of any redemption premium required\nto be paid when such bonds are redeemed prior to maturity; provided,\nhowever, that moneys in such fund shall not be withdrawn therefrom at\nany time in such amount as would reduce the amount of such fund to less\nthan the maximum capital reserve fund requirement, except for the\npurposes of paying interest on bonds, principal of bonds and annual\nsinking fund payments, as the same become due and for the payment of\nwhich other moneys of the corporation are not available. Any income or\ninterest earned by, or increment to, a capital reserve fund due to the\ninvestment thereof or any amount in excess of the maximum capital\nreserve fund requirement may be transferred by the corporation to other\nfunds or accounts of the corporation to the extent it does not reduce\nthe amount of such capital reserve fund below the maximum capital\nreserve fund requirement.\n b. The corporation shall not issue bonds at any time if upon issuance\nthe amount in the capital reserve fund will be less than the maximum\ncapital reserve fund requirement, unless the corporation, at the time of\nissuance of such bonds, shall deposit in such fund from the proceeds of\nthe bonds so to be issued, or otherwise, an amount which, together with\nthe amount then in such fund, will not be less than the maximum capital\nreserve fund requirement.\n c. No bonds or notes of the corporation shall be issued if upon such\nissuance the aggregate principal amount of bonds and notes of the\ncorporation then outstanding exceeds the lesser of twenty billion\ndollars or such amount as would cause the maximum capital reserve fund\nrequirement to exceed eighty-five million dollars; provided that, in\ndetermining such aggregate principal amounts there shall be deducted (i)\nall sums then available for the payment of such bonds or notes either at\nmaturity or through the operation of a sinking fund; (ii) the aggregate\nprincipal amount of outstanding bonds issued (a) to refund notes and (b)\nto refund bonds, theretofore issued and then outstanding; and (iii) the\naggregate principal amount of outstanding notes issued to renew notes\ntheretofore issued and then outstanding. The provisions of the prior\nsentence notwithstanding, the corporation shall not issue bonds if such\nissuance shall cause the maximum reserve fund requirement to exceed\nthirty million dollars unless prior to such issuance the senate and\nassembly shall have adopted a concurrent resolution passed by the votes\nof a majority of all the members elected to each such house and,\nsubsequent thereto, the governor shall evidence in writing the\ngovernor's agreement with such resolution to the chairperson of the\ncorporation, which resolution shall be in full force and effect on the\ndate of issuance of the bonds, permitting the maximum capital reserve\nfund requirement to equal or exceed the amount of the maximum capital\nreserve fund requirement which would be effective upon the issuance of\nthe bonds in question, but in no event shall the maximum capital reserve\nfund requirement exceed eighty-five million
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