New York Laws
Title 3 - Municipal Assistance Corporation for the City of New York
3036-A - Further Payments to the Corporation; Additional Funds of the Corporation.

* § 3036-a. Further payments to the corporation; additional funds of
the corporation. 1. In addition to the total amount certified by such
chairman for such fiscal year, all as referred to in subdivision one of
section three thousand thirty-six, the chairman shall at the same time
certify to the state comptroller and to the mayor a schedule setting
forth additional cash requirements of the corporation which shall be
equal to: (i) the amounts which are required to be deposited in the
capital reserve fund authorized to be created and established pursuant
to subdivision two of this section (in this section called the capital
reserve fund) during such fiscal year in order to maintain the capital
reserve fund at the level required in accordance with subdivision four
of this section; (ii) the amounts required to be deposited in the bond
service fund of the corporation to pay all interest and all payments of
principal and redemption premium, if any, on notes and bonds payable
from the sources hereinafter identified in this section and maturing or
otherwise coming due during such fiscal year; and (iii) the amounts
required to be deposited in the operating fund of the corporation
heretofore established, as determined by the corporation, to meet the
operating requirements and other expenses of the corporation during such
fiscal year. If any increase shall occur in such additional cash
requirements specified above, or if payments are required at a time or
times earlier than previously certified or if the city shall for any
reason fail to make timely payment of the principal and accrued interest
due on any obligation issued by the city to the corporation and maturing
within the same fiscal year, such chairman shall certify a revised
schedule of such additional cash requirements for such fiscal year to
the state comptroller and to the mayor. The schedule accompanying each
certification (or revision thereof) shall provide for such payment dates
as the corporation deems appropriate to assure that sufficient funds
will be available from the sources identified below to enable it to meet
its current obligations under this section as they come due. Upon
receipt of such certification, or any revision thereof, the state
comptroller shall pay such amount to the corporation for deposit in the
appropriate funds referred to in this section, in accordance with such
certification from the special account established for the corporation
in the municipal assistance state aid fund in accordance with
subdivision one of section ninety-two-e of the state finance law and,
subject to agreements with outstanding bond and note holders of the
corporation, from the special account established for the corporation in
the municipal assistance tax fund, in accordance with subdivision one of
section ninety-two-d of the state finance law, including any amount
transferred to the municipal assistance tax fund from the stock transfer
tax fund pursuant to subdivision four of section ninety-two-b of the
state finance law. Any such payment shall be made within thirty days of
receipt of the certification or at the time specified in the
certification, whichever is later; provided that any such amounts shall
have been first appropriated by the state for such purpose or shall have
been otherwise made available. Any amount paid to the corporation from
such municipal assistance state aid fund shall be deducted from the
amount otherwise payable to the city as per capita aid pursuant to
sections fifty-four and ninety-two-e of the state finance law and shall
not obligate the state to make, nor entitle the city to receive, any
additional payments of per capita aid. Any amount so paid to the
corporation from the municipal assistance tax fund shall, in addition to
the amount deducted pursuant to subdivision one of section three
thousand thirty-six, be deducted from the amount otherwise payable to
the city from the municipal assistance tax fund and shall not obligate

the state to make, nor entitle the city to receive, any additional
payments from such municipal assistance tax fund.

2. The corporation shall create and establish a capital reserve fund
as an additional special fund, and shall pay into such capital reserve
fund (i) any moneys appropriated and made available by the state for the
purposes of such fund, (ii) any proceeds of sale or notes or bonds, to
the extent provided in the resolution of the corporation authorizing the
issuance thereof, and (iii) any other moneys which may be made available
to the corporation for the purpose of such fund from any other source or
sources. All moneys held in the capital reserve fund, except as
hereinafter provided, shall be used solely for the payment of the
principal of bonds secured by such capital reserve fund of the
corporation, as the same mature or otherwise become due, the purchase of
such bonds of the corporate, the payment of interest on such bonds of
the corporation or the payment of any redemption premium required to be
paid when such bonds are redeemed prior to maturity. If the amount
contained in the capital reserve fund exceeds the amount required to be
contained in such fund pursuant to this subdivision of this section plus
any additional amounts required to be contained in such fund pursuant to
the terms of issuance of any bonds or notes secured by such capital
reserve fund, such excess moneys may be withdrawn from the capital
reserve fund by the corporation; provided, however, that moneys in such
fund shall not be withdrawn therefrom at any time in such amounts as
would reduce the amount of such fund to less than the amount of
principal and interest maturing or otherwise due or becoming due in the
succeeding calendar year on all bonds of the corporation secured by such
capital reserve fund then outstanding, except for the purpose of paying
principal of and interest on such bonds of the corporation maturing or
otherwise becoming due and for the payment of which other moneys of the
corporation are not available. Any income or interest earned by, or
increment to, the capital reserve fund due to the investment thereof may
be transferred by the corporation to any other fund of the corporation
to the extent it does not reduce the amount of the capital reserve fund
below the amount of principal and interest maturing or otherwise due or
becoming due in the succeeding calendar year on all bonds of the
corporation secured by such capital reserve fund then outstanding.

3. In order further to assure the maintenance of the capital reserve
fund, there shall be annually appropriated and paid to the corporation
for deposit in the capital reserve fund such sum, if any, as shall be
certified by the chairman to the governor and director of the budget as
necessary to restore the capital reserve fund to an amount equal to the
capital reserve fund requirement. The chairman of the board of directors
of the corporation 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 the capital reserve fund to
the amount aforesaid; and the sum or sums so certified, if any, shall be
appropriated and paid to the corporation during the then current state
fiscal year.

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

otherwise due or becoming due in the succeeding calendar year on such
bonds then to be issued and on all other bonds of the corporation
secured by such capital reserve fund then outstanding (such amount is
herein sometimes referred to as the capital reserve fund requirement).
Notwithstanding the foregoing provisions of this subdivision for each of
the calendar years set forth below the capital reserve fund requirement,
as of any date of calculation, shall equal the percentage set forth
opposite such calendar year of the amount of principal and interest
maturing or otherwise due or becoming due during such calendar year on
all bonds of the corporation secured by the capital reserve fund
outstanding on such date:

Calendar Year Percentage

1975 0%

1976 0%

1977 25%

1978 50%

1979 75%

1980 100%

5. In computing the amount of the capital reserve fund for the
purposes of this section securities in which all or a portion of such
fund shall be invested shall be valued at par or if purchased at other
than par, at amortized value.

6. The corporation shall create a bond service fund.

* NB The corporation shall continue for a term ending the later of
July 1, 2008 or one year after its liabilities have been fully paid and
discharged per § 3033 sub 1.