New York Laws
Title 12
1977-C - Reserve Funds and Appropriations for Loans, Advances and Mortgage Financing to Housing Companies.

(a) "Revenues". All amounts received on account of fees and other
charges imposed by the authority for loans, advances and mortgage loans,
if any, and all or any part of the moneys received in payment of loans,
advances and mortgage loans and interest thereon, including prepayments.
(b) "Housing loan capital reserve fund requirement". The amount of
money, as of any particular date of computation and with reference to
outstanding bonds issued by the authority for the purposes of financing
loans, advances and mortgage loans to housing companies, equal to the
greatest of the respective amounts for the then current or any future
fiscal year of the authority, of annual debt service with respect to
such bonds.
For purposes of the housing loan capital reserve fund requirement,
"annual debt service" shall mean an amount of money equal to the
aggregate of:
(i) All interest payable during such fiscal year on all such bonds
outstanding on said date of computation; plus,
(ii) The principal amount of all such bonds outstanding on said date
of computation which mature during such fiscal year; plus,
(iii) All amounts specified in any resolution of the authority
authorizing any of such bonds as payable during such fiscal year as a
sinking fund payment with respect to any of such bonds which mature
after such fiscal year, such sinking fund payments to be calculated on
the assumption that bonds will after said date of computation cease to
be outstanding by reason, but only by reason, of the payment of bonds
when due and the payment when due and application in accordance with the
resolution authorizing those bonds of all of such sinking fund payments
payable at or after said date of computation.
(c) "Operating expenses". All ordinary expenditures for operation and
administration of the authority in connection with its loans, advances
and mortgage loans to housing companies.
(d) "Amortized value". When used with respect to securities purchased
at a premium above or a discount below par, the value as of any given
date obtained by dividing the total amount of the premium or discount at
which such securities were purchased by the number of days remaining to
maturity on such securities at the time of such purchase and by
multiplying the amount so calculated by the number of days having passed
since the date of such purchase; and (a) in the case of securities
purchased at a premium, by deducting the product thus obtained from the
purchase price, and (b) in the case of securities purchased at a
discount, by adding the product thus obtained to the purchase price.
2. Reserve funds. (a) In addition to the setting aside of such other
reserves or sinking funds as it shall deem advisable and necessary, and
the regulation and disposition thereof, the authority may create and
establish one or more capital reserve funds for bonds issued by the
authority for the purposes of financing loans, advances and mortgage
loans to housing companies.
(b) The authority shall pay into each such fund: (i) any monies
appropriated and made available by the state only for the purposes of
such fund; (ii) any proceeds of the sale of any bonds issued to the
extent provided in the resolution of the authority authorizing the
issuance of such bonds; (iii) any moneys directed to be transferred by
the authority to such fund; and (iv) any other moneys made available to
the authority only for the purposes of such fund from any other source
or sources.
(c) The moneys held in or credited to each such capital reserve fund,
except as hereinafter provided, shall be used solely for the payment of
the principal of bonds issued to finance loans, advances and mortgage
loans to housing companies or of the sinking fund payments with respect
to such bonds, the purchase or redemption of such bonds, the payment of
interest on such bonds or the payment of any redemption premium required
to be paid when any of such bonds are redeemed prior to maturity;
provided, however, that moneys in such capital reserve fund shall not be
withdrawn therefrom at any time in such amount as would reduce the
amount of such fund to less than the amount of the housing loan capital
reserve fund requirement therefor, except for the purpose of making with
respect to such bonds payment, when due, of principal, interest and the
sinking fund payments for the payment of which other moneys of the
authority are not available. All income or interest earned by, or
increment to, each such capital reserve fund due to the investment
thereof may be transferred by the authority to other funds or accounts
of the authority to the extent it does not reduce the amount of such
capital reserve fund below the housing loan capital reserve fund
requirement therefor.
(d) Moneys in such a capital reserve fund not required for immediate
use or disbursement may be invested in obligations of the state or the
United States of America or obligations the principal of and interest on
which are guaranteed by the state or the United States of America or
obligations of agencies of the United States of America or obligations
which may from time to time be legally purchased by savings banks of the
state, as investment of funds belonging to them or in their control. In
computing the amount of a capital reserve fund for the purposes of this
section, securities in which all or a portion of such fund are invested
shall be valued at par if purchased at par or, if purchased at other
than par, at their amortized value.
(e) The authority shall not issue any bonds at any time secured by
such a capital reserve fund if the amount in the capital reserve fund
which will secure such bonds at the time of issuance does not equal or
exceed the amount of the housing loan capital reserve fund requirement
for such fund unless the authority at the time of issuance of such bonds
shall deposit in such fund from the proceeds of such bonds or other
sources an amount which together with the amount then in such fund will
not be less than the amount of the housing loan capital reserve fund
requirement for such fund.
3. Preservation of solvency. (a) In order to assure the continued
operation and solvency of the authority for the fulfillment of its
corporate purposes, 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 sum, if any, required to restore
each capital reserve fund to the housing loan capital reserve fund
requirement therefor. There shall be annually apportioned and paid to
the authority for deposit in each such capital reserve fund the sum so
certified by the chairman of the authority as required to restore such
capital reserve fund to the housing loan capital reserve fund
requirement therefor. All sums so apportioned and paid shall be
deposited by the authority in the respective capital reserve funds. The
principal amount of bonds secured by a capital reserve fund or funds to
which state funds are apportionable pursuant to this paragraph 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 paragraph, but in no event shall the total
amount of bonds so secured by such a capital reserve fund or funds
exceed eighty-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.
(b) All amounts paid over to the authority by the state pursuant to
the provisions of this section shall constitute and be accounted for as
advances by the state to the authority and, subject only to the rights
of the holders of any bonds or notes of the authority theretofore or
thereafter issued, shall be repaid to the state from all available
revenues of the authority in excess of housing loan capital reserve fund
requirements and operating expenses.
4. Applicability. This section is applicable solely to capital reserve
funds for bonds issued to finance housing loans, advances and mortgage
loans and is not applicable to the Battery Park project area capital
reserve fund.