New York Laws
Sub Title 5 - Subtitle v Miscellaneous Provisions
1828 - Expenses and Reserve Funds.

§ 1828. Expenses and reserve funds. 1. There shall be included in the
financial information to be submitted annually by the authority pursuant
to the provisions of section eighteen hundred twenty-nine of the public
authorities law, and in the annual report referred to in said section,
items separately showing the respective totals during the last completed
fiscal year of the authority, of (i) all expenses of the authority
clearly attributable to its operations under subtitle II of this title,
(ii) all expenses of the authority clearly attributable to its
operations under subtitle III of this title, and (iii) expenses of the
authority not clearly attributable to a category set forth in clauses
(i) and (ii) of this subdivision.

2. To assure the continued operation and solvency of the authority for
the fulfillment of its corporate purposes with pollution control funds,
provision is made in subdivision two of section eighteen hundred twenty
of this title for the accumulation in the pollution control capital
reserve fund of an amount equal to the maximum amount of principal and
interest maturing and becoming due in any succeeding calendar year on
all pollution control bonds of the authority then outstanding. In order
further to secure such maintenance of the pollution control capital
reserve fund, there shall be annually apportioned and paid to the
authority for deposit in the pollution control capital reserve fund such
sum, if any, as shall be certified by the chairman of the authority to
the governor and director of the budget as necessary to restore the
pollution control capital reserve fund to an amount equal to the maximum
amount of principal and interest maturing and becoming due in any
succeeding calendar year on the pollution control bonds of the authority
then outstanding. The chairman of the authority shall annually, on or
before December first, make and deliver to the governor and director of
the budget his certificate stating the amount, if any, required to
restore the pollution control capital reserve fund to the amount
aforesaid and the amount so stated in said certificate, if any, shall be
apportioned and paid to the authority during the then current state
fiscal year. No amount or amounts shall be apportioned and paid to the
authority pursuant to this subdivision two until the authority has
entered into a written agreement with the director of the budget
providing for the repayment thereof to the state. Any such agreement
shall provide, in lieu of any other provisions required by law regarding
such repayment, that the authority will repay the state in full from
pollution control funds the amount or amounts so apportioned and paid on
the date one year after all pollution control bonds and notes of the
authority outstanding at the date of such agreement or thereafter
issued, together with the interest thereon, with interest on any unpaid
installments of interest, and all costs and expenses in connection with
any action or proceeding by or on behalf of the holders thereof, are
fully met and discharged. The principal amount of bonds secured by the
pollution control capital reserve fund to which state funds are
apportionable pursuant to this subdivision shall be limited to the total
amount of bonds and notes outstanding on the effective date of this act,
plus the total amount of bonds and notes contracted after the effective
date of this act to finance projects in progress on the effective date
of this act, as determined by the New York state public authorities
control board created pursuant to section fifty of this chapter whose
affirmative determination shall be conclusive as to all matters of law
and fact solely for the purposes of the limitations contained in this
subdivision, but in no event shall the total amount of bonds so secured
by such a capital reserve fund or funds exceed five million dollars,
excluding bonds issued to refund such outstanding bonds until the date
of redemption of such outstanding bonds. As outstanding bonds so secured

are paid, the amount so secured shall be reduced accordingly but the
redemption of such outstanding bonds from the proceeds of refunding
bonds shall not reduce the amount so secured.

3. The authority may make and enter into all such covenants and
agreements with respect to accounting for or paying its expenses with
holders of any of its bonds and notes, or of any issue thereof, as it
may determine to be necessary and desirable.

4. To assure the continued operation and solvency of the authority for
the fulfillment of its corporate purposes, there shall be annually paid
to the authority such sum as shall have been appropriated for the
expenses of the authority. The chairman of the authority shall make and
deliver to the governor and director of the budget on or before December
first, nineteen hundred sixty-six and on or before December first in
each year thereafter, a certificate stating the amount estimated to be
required for payment of or provision for expenses of the authority for
the next ensuing state fiscal year. The amount so stated for any such
ensuing state fiscal year shall be the sum of the amounts, if any,
estimated for such fiscal year, by which pollution control expenses
exceed pollution control available revenues, by which special purpose
expenses in respect of loans and the special purpose expenses in respect
of loan guarantees exceed special purpose available revenues. The entire
amount appropriated for each such fiscal year for the expenses of the
authority shall be paid to the authority not later than the tenth day of
each such fiscal year. As used in this subdivision, (i) the term
"expenses" for the fiscal year means ordinary expenditures for operation
and administration of the authority, including interest paid by the
authority on its bonds and notes, and, in addition, such amounts as the
authority may determine to be reasonable and necessary as a reserve
against defaults on its loans and as a reserve against defaults in the
payment or terms of loans guaranteed by the authority, but shall not
include amounts required to be paid to the state under or pursuant to
any written agreement entered into pursuant to subdivision two of this
section; and (ii) the term "available revenues" for the fiscal year
means all amounts received on account of loans (exclusive of principal
repayments), and loan guarantees and applications therefor, and income
or interest earned or added to funds of the authority due to investment
thereof, and not required under the terms or provisions of any covenant
or agreement with holders of any bonds or notes of the authority to be
applied to any purposes other than payment of expenses of the authority.

5. The members of the authority shall formulate a plan and policy to
provide an expedited financial assistance process for fixed asset
financing and other financing assistance programs provided by the
authority for new businesses and expansions of existing businesses
within areas designated as empire zones pursuant to article eighteen-B
of the general municipal law.