New York Laws
Part 1
2408 - Reserve Funds and Appropriations.

(2) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this act, provision is made

in subdivision one of this section for the accumulation in each debt
service reserve fund of an amount equal to the maximum amount of
principal and interest maturing and becoming due in any succeeding state
fiscal year on all bonds of the agency then outstanding and secured by
such reserve fund. In order to further assure the continued operation
and solvency of the agency for the fulfillment of its corporate
purposes, there shall be annually apportioned and paid to the agency for
deposit in each debt service reserve fund such sum, if any, as shall be
certified by the chairman of the agency to the governor and director of
the budget, as necessary to restore any such debt service reserve fund
to an amount equal to the maximum amount of principal and interest
maturing and becoming due in any succeeding state fiscal year on the
bonds of the agency then outstanding and secured by such reserve fund;
in which case such sum so apportioned and paid shall be deposited by the
agency in such debt service reserve fund. The principal amount of bonds
secured by a debt service reserve fund or funds 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 debt service reserve fund or funds exceed three hundred
eighty-seven 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 agency may create and establish such other reserve funds as it
shall deem advisable and necessary.
(4) All amounts paid over to the agency by the state pursuant to the
provisions of this section shall constitute and be accounted for as
advances by the state to the agency and, subject only to the rights of
the holders of any bonds or notes of the agency theretofore or
thereafter issued, shall be repaid to the state from all available
operating revenues of the agency in excess of amounts required for the
debt service reserve funds and operating expenses.
(5) The chairman of the agency shall make and deliver to the governor
and director of the budget on or before December first, nineteen hundred
seventy 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 agency 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 anticipated operating expenses will exceed available operating
revenues that the agency anticipates with reasonable certainty it will
receive during such fiscal year. To assure the continued operation and
solvency of the agency for the fulfillment of its corporate purposes,
there shall be apportioned and paid to the agency after audit by and
upon the warrant of the comptroller on vouchers certified or approved by
the officer or officers authorized by the agency, not more than the
amount so stated for expenses of the agency for such fiscal year.
(6) As used in this section, (a) the term "operating expenses" for the
fiscal year shall mean ordinary expenditures for operation and

administration of the agency; and (b) the term "available operating
revenues" for the fiscal year shall mean all amounts received on account
of mortgages acquired by the agency, fees charged by the agency, if any,
and income or interest earned or added to funds of the agency due to the
investment thereof, and not required under the terms or provisions of
any covenant or agreement with holders of any bonds or notes of the
agency to be applied to any purposes other than payment of expenses of
the agency.