New York Laws
Title 19 - New York State Sports Authority
2472 - Reserve Fund.

* § 2472. Reserve fund. 1. The authority may create and establish one
or more reserve funds to be known as debt service reserve funds and may
pay into such reserve funds (a) any payments received from a
participating municipality (b) any moneys appropriated and made
available by the state for the purposes of such funds (c) any proceeds
of sale of bonds and notes to the extent provided in the resolution of
the authority authorizing the issuance thereof (d) any moneys directed
to be transferred by the authority to such funds, and (e) any other
moneys which may be made available to the authority for the purposes of
such funds from any other source or sources. The moneys held in or
credited to any debt service reserve fund established under this
subdivision, except as hereinafter provided, shall be used solely for
the payment of the principal of and interest on bonds of the authority
secured by such reserve fund, as the same mature, required payments to
any sinking fund established for the amortization of such bonds
(hereinafter referred to as "sinking fund payments"), the purchase or
redemption of such bonds of the authority or the payment of any
redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that moneys in any such fund shall
not be withdrawn therefrom at any time in such amount as would reduce
the amount of such fund to less than the maximum amount of principal and
interest maturing and becoming due in the then current or any succeeding
calendar year on the bonds of the authority then outstanding and secured
by such reserve fund, except for the purpose of paying principal and
interest on the bonds of the authority secured by such reserve fund
maturing and becoming due and sinking fund payments for the payment of
which other moneys of the authority are not available. Any income or
interest earned by, or increment to, any such debt service reserve fund
due to the investment thereof may be transferred to any other fund or
account of the authority to the extent it does not reduce the amount of
such debt service reserve fund below the maximum amount of principal and
interest maturing and becoming due in the then current or any succeeding
calendar year on all bonds of the authority then outstanding and secured
by such reserve fund. In computing the amount of any debt service
reserve fund for the purposes of this section, securities in which all
or a portion of such reserve fund are invested shall be valued at par if
purchased at par or, if purchased at other than par, at amortized value.

2. The authority shall not issue bonds at any time if the maximum
amount of principal and interest maturing and becoming due in the then
current or any succeeding calendar year on the bonds outstanding and
then to be issued and secured by a debt service reserve fund will exceed
the amount of such reserve fund at the time of issuance, unless the
authority, at the time of issuance of such bonds, shall deposit in such
reserve fund from the proceeds of the bonds so to be issued, or
otherwise, an amount which together with the amount then in such reserve
fund, will be not less than the maximum amount of principal and interest
maturing and becoming due in the then current or any succeeding calendar
year on the bonds then to be issued and on all other bonds of the
authority then outstanding and secured by such reserve fund.

3. To assure the continued operation and solvency of the authority 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 the then current or
any succeeding calendar year on all bonds of the authority then
outstanding and secured by such reserve fund.

4. Upon full amortization of any outstanding bonds issued for the
acquisition, construction or rehabilitation of sports facilities, the

authority is empowered to provide for the transfer or sale of such
facilities to the participating municipality.

* NB (Disbanded March, 1980)