New York Laws
Title 21 - River Regulation by Storage Reservoirs
15-2129 - Financing.

1. After the cost of any improvement made or to be made under title 21
of this article has been apportioned among the public corporations and
parcels of real estate benefited as herein provided and after such
apportionment has been assessed upon such public corporations and
parcels of real estate, the board may finance the cost of any such
improvement pursuant to the Local Finance Law. Any bonds issued for such
purposes shall not be construed in any event as bonds or indebtedness of
the state, and the state shall not be obligated to pay the principal or
interest therefor. Such bonds shall be lawful investments for trustees
and savings banks of the state and for any of the funds of the state
which by law may be invested.

2. The board shall annually include in the installment of the
assessment to be collected in that year a sum sufficient to provide for
the payment of the principal of and interest on obligations issued for
such purposes and maturing in that year.

3. The proceeds of the sale of obligations issued for the purposes of
title 21 of this article, together with all other revenues of the board
from whatever source derived, shall be deposited in such national or
state bank or banks or trust company or trust companies at Albany or
within the regulating district as are approved by the Comptroller and
the board, subject, however, to the provisions of section 165.00 of the
Local Finance Law. Before any such deposit is made the Comptroller shall
require from any such bank or trust company security for repayment of
the same to such board or to the Comptroller upon demand for the money
so deposited in the manner provided in section 106 of the State Finance
Law. All moneys received by the board under the provisions of title 21
of this article, except from assessments levied to pay the cost of
construction, shall constitute a fund to be known as the "general fund"
of the district.

4. All moneys received from assessments levied to pay the cost of
construction, together with such part of any surplus in the "general
fund" as shall be determined by the board over and above the
requirements for the construction, maintenance and operation of the
reservoir, including the amount raised for a reasonable return to the
state, shall constitute a separate fund, to be known as the "debt
service fund," the moneys in which shall be applied to the payment of
principal of and interest on obligations issued for the purposes of
title 21 of this article, except when the total cost of construction is
paid without the issuance of obligations, in which case the moneys
applicable thereto shall be paid into the "general fund." Any
installment or installments of the assessment which shall become payable
before any obligations have been issued, shall be paid by the
Comptroller into the "general fund" and applied to the payment of the
cost of construction. The Comptroller is authorized and directed to pay
from the "debt service fund" the principal of and interest on
obligations issued for the purposes of title 21 of this article.

5. All moneys in said "debt service fund" shall be applied by the
Comptroller to the payment of the principal of and interest on such
obligations, except as aforesaid, and to the purchase of the same in the
open market when possible and while awaiting such purchase such excess
shall be invested or kept at interest in the same manner as sinking
funds of the state of like nature are invested. If any moneys remain in
the "debt service fund" after all outstanding obligations have been paid
up and redeemed, such moneys shall be paid into the "general fund" and
may be used to pay the expenses of maintenance and operation and other
expenses.

6. The board may invest and reinvest any moneys of the "general fund"
which are not required to be deposited in accordance with the provisions
of section 165.00 of the Local Finance Law. Any such investment shall be
made only in obligations of the federal government and the State of New
York, and in certificates of deposit of banks or trust companies or in
bank or trust accounts of banks in this state, secured by obligations of
the United States of America or of the state of New York of a market
value equal at all times to the amount of the deposit and with the
approval of the Comptroller. The board may sell and dispose of any
securities purchased for investment pursuant to this paragraph at any
time with the consent of the Comptroller, and the proceeds thereof shall
be paid to the Comptroller and deposited in the "general fund."

7. Any obligations purchased for investment pursuant to this section
shall be delivered by the seller to the Comptroller who shall be the
custodian thereof until the same are sold or otherwise disposed of. The
Comptroller also shall collect the income of such investments and
deposit such income in the "general fund." Except that certificates of
deposit purchased for the Black river regulating district shall be
retained in the office of the said Black river regulating district at
Watertown, New York and a statement shall be filed with the Comptroller
listing such certificate or certificates, the amount thereof, the
interest due and payable thereon, the mateurity date thereof, the issuer
of such certificate and such other information as shall be required by
the Comptroller.

8. All payments from the "general fund" of the district shall be made
by requisition of the board signed by the board or by the officer or
officers thereof authorized by it so to do and audited and countersigned
by the Comptroller.

9. The board shall keep in suitable books a complete record of its
financial transactions, and the books shall be audited from time to time
by the Comptroller.