New York Laws
Article 3 - New York State Housing Finance Agency
47 - Reserve Funds and Appropriations.

(b) The agency shall not issue bonds other than state university
construction bonds, equity bonds, non-profit project bonds, hospital and
nursing home project bonds, urban rental project bonds, health
facilities bonds, youth facilities project bonds, community mental
health services and developmental disabilities services project bonds,
community senior citizens services project bonds, mental hygiene
improvement bonds and revenue housing bonds and bonds and notes for the
housing program at any time secured by the capital reserve fund if the
maximum amount of principal and interest maturing and becoming due and
sinking fund payments required to be made in a succeeding calendar year
on such bonds then to be issued and on all other bonds of the agency
then outstanding other than state university construction bonds, equity
bonds, non-profit project bonds, hospital and nursing home project
bonds, urban rental project bonds, health facilities bonds, youth
facilities project bonds, community mental health services and
developmental disabilities services project bonds, community senior
citizens services project bonds, mental hygiene improvement bonds and
revenue housing bonds and bonds and notes for the housing program will
exceed the amount of the capital reserve fund at the time of issuance
unless the agency, at the time of issuance of such bonds, shall deposit
in such 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 maximum amount of principal and interest
maturing and becoming due and sinking fund payments required to be made
in any succeeding calendar year on such bonds then to be issued and on
all other bonds of the agency then outstanding other than state
university construction bonds, equity bonds, non-profit project bonds,
hospital and nursing home project bonds, urban rental project bonds,
health facilities bonds, youth facilities project bonds, community
mental health services and developmental disabilities services project
bonds, community senior citizens services project bonds, mental hygiene
improvement bonds and revenue housing bonds and bonds and notes for the
housing program.
(c) The agency shall not issue bonds and notes other than state
university construction bonds and state university construction notes,
hospital and nursing home project bonds and hospital and nursing home
project notes, health facilities bonds and health facilities notes,
youth facilities project bonds and youth facilities project notes,
community mental health services and developmental disabilities services
project bonds and community mental health services and developmental

disabilities services project notes, community senior citizens services
project notes or community senior citizens services project bonds and
mental hygiene improvement bonds and mental hygiene improvement notes
and bonds and notes for the housing program for any of its corporate
purposes in an aggregate principal amount exceeding thirty-one billion
two hundred eighty million dollars, excluding bonds and notes issued to
refund outstanding bonds and notes.
(d) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article, provision is
made in paragraph (a) of this subdivision for the accumulation in the
capital reserve fund of an amount equal to the maximum amount of
principal and interest maturing and becoming due and sinking fund
payments required to be made in any succeeding calendar year on all
bonds of the agency then outstanding other than state university
construction bonds, equity bonds, non-profit project bonds, hospital and
nursing home project bonds, urban rental project bonds, health
facilities bonds, youth facilities project bonds, community mental
health services and developmental disabilities services project bonds,
community senior citizens services project bonds, mental hygiene
improvement bonds and revenue housing bonds and bonds and notes for the
housing program. In order further to assure such maintenance of the
capital reserve fund, there shall be annually apportioned and paid to
the agency for deposit in the capital 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 the capital reserve fund
to an amount equal to the maximum amount of principal and interest
maturing and becoming due and sinking fund payments required to be made
in any succeeding calendar year on the bonds of the agency then
outstanding other than state university construction bonds, equity
bonds, non-profit project bonds, hospital and nursing home project
bonds, urban rental project bonds, health facilities bonds, youth
facilities project bonds, community mental health services and
developmental disabilities services project bonds, community senior
citizens services project bonds, mental hygiene improvement bonds and
revenue housing bonds and bonds and notes for the housing program. The
chairman of the agency 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 capital reserve fund
to the amount aforesaid and the amount so stated, if any, shall be
apportioned and paid to the agency during the then current state fiscal
year. The principal amount of bonds secured by the capital reserve fund
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 the public authorities law 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 three hundred thirty-eight 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.
(e) 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 less
than par, at their cost to the agency.
2. The agency shall create and establish a special fund (herein
referred to as general reserve fund) and shall pay into such fund all
fees and charges collected by the agency pursuant to paragraph (a) of
subdivision eleven of section forty-four of this article, or otherwise,
other than fees and charges collected in connection with the making of
mortgage loans (or commitments therefor) to mutual companies, non-profit
companies, urban rental companies or community development corporations,
and any monies which the agency shall transfer from the capital reserve
fund pursuant to the provisions of paragraph (a) of subdivision one of
this section. Such monies and any other monies paid into the general
reserve fund may, in the discretion of the agency but subject to
agreements with bondholders and noteholders, be used by the agency (a)
for the repayment of advances from the state in accordance with the
provisions of repayment agreements between the agency and the director
of the budget, (b) to reimburse the division of housing and community
renewal the reasonable costs of the services performed by the
commissioner of housing and community renewal and division of housing
and community renewal pursuant to section fifty-five of this article,
(c) to pay all costs, expenses and charges of financing, including fees
and expenses of trustees and paying agents, (d) for transfers to the
capital reserve fund, (e) for the payment of the principal of and
interest on bonds or notes other than state university construction
bonds or state university construction notes, equity bonds or equity
notes, non-profit project bonds or non-profit project notes, hospital
and nursing home project bonds or hospital and nursing home project
notes, urban rental project bonds or urban rental project notes, health
facilities bonds or health facilities notes, youth facilities project
bonds or youth facilities project notes, community mental health
services and developmental disabilities services project bonds or
community mental health services and developmental disabilities services
project notes, community senior citizens services project notes or
community senior citizens services project bonds, mental hygiene
improvement bonds or mental hygiene improvement notes and revenue
housing bonds and bonds and notes for the housing program issued by the
agency when the same shall become due whether at maturity or on call for
redemption and for the payment of any redemption premium required to be
paid where such bonds or notes are redeemed prior to their stated
maturities, and to purchase bonds or notes other than state university
construction bonds or state university construction notes, equity bonds
or equity notes, non-profit project bonds or non-profit project notes,
hospital and nursing home project bonds or hospital and nursing home
project notes, urban rental project bonds or urban rental project notes,
health facilities bonds or health facilities notes, youth facilities
project bonds or youth facilities project notes, community mental health
services and developmental disabilities services project bonds or
community mental health services and developmental disabilities services
project notes, community senior citizens services project notes or
community senior citizens services project bonds, mental hygiene
improvement bonds or mental hygiene improvement notes and revenue
housing bonds and bonds and notes for the housing program issued by the
agency, or (f) for such other corporate purposes of the agency as the
agency in its discretion shall determine and provide.
3. (a) The agency shall create and establish a special fund (herein
referred to as equity reserve fund), and shall pay into such equity

reserve fund (1) any monies appropriated and made available by the state
for the purposes of such fund, (2) any proceeds of sale of equity notes
or equity bonds, to the extent provided in the resolution of the agency
authorizing the issuance thereof, and (3) any other monies which may be
made available to the agency for the purpose of such fund from any other
source or sources. All moneys held in the equity reserve fund, except as
hereinafter provided, shall be used solely for the payment of the
principal of equity bonds of the agency, as the same mature, the
purchase of equity bonds of the agency, the payment of interest on
equity bonds of the agency or the payment of any redemption premium
required to be paid when such bonds are redeemed prior to maturity;
provided, however, that moneys in 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 any succeeding calendar year on all equity bonds of
the agency then outstanding, except for the purpose of paying principal
and interest on equity bonds of the agency maturing and becoming due and
for the payment of which other monies of the agency are not available.
Any income or interest earned by, or increment to, the equity reserve
fund due to the investment thereof may be transferred to the equity loan
fund or other fund of the agency to the extent it does not reduce the
amount of the equity reserve fund below the maximum amount of principal
and interest maturing and becoming due in any succeeding calendar year
on all equity bonds of the agency then outstanding.
(b) The agency shall not issue equity bonds at any time secured by the
equity reserve fund if the maximum amount of principal and interest
maturing and becoming due in a succeeding calendar year on the equity
bonds then to be issued and on all other equity bonds of the agency then
outstanding will exceed the amount of the equity reserve fund at the
time of issuance, unless the agency, at the time of issuance of such
bonds, shall deposit in such 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 maximum amount of principal and
interest maturing and becoming due in any succeeding calendar year on
the equity bonds then to be issued and on all other equity bonds of the
agency then outstanding.
(c) The agency shall not issue equity bonds and equity notes in an
aggregate principal amount exceeding fifty million dollars, excluding
equity bonds and notes issued to refund outstanding equity bonds and
notes.
(d) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article, provision is
made in paragraph (a) of this subdivision for the accumulation in the
equity 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 equity bonds of the agency then outstanding. In
order further to assure such maintenance of the equity reserve fund,
there shall be annually apportioned and paid to the agency for deposit
in the equity 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 the equity 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 equity bonds of the agency then
outstanding. The chairman of the agency 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 equity reserve fund to the amount aforesaid and the amount so
stated, if any, shall be apportioned and paid to the agency during the

then current state fiscal year. The principal amount of bonds secured by
the equity reserve fund 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 the public authorities law 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 equity reserve fund or funds exceed three hundred fifteen
thousand 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.
(e) In computing the amount of the equity 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 if purchased at par, or if
purchased at other than par, at amortized value.
4. The agency shall create and establish a special fund (herein
referred to as equity loan fund) and shall pay into such fund any monies
which the agency shall transfer from the equity reserve fund pursuant to
the provisions of paragraph (a) of subdivision three of this section and
any monies received in payment of principal of or interest on equity
loans. Such monies and any other monies paid into the equity loan fund
may, in the discretion of the agency, but subject to agreements with the
holders of equity bonds and equity notes be used by the agency (a) for
the repayment of advances from the state in accordance with the
provisions of repayment agreements between the agency and the director
of the budget, (b) to reimburse the division of housing the reasonable
costs of the services performed by the commissioner of housing and
division of housing pursuant to section fifty-five of this article, (c)
to pay all costs, expenses and charges of financing equity loans,
including fees and expenses of trustees and paying agents, (d) for
transfers to the equity reserve fund, (e) for the payment of the
principal of and interest on equity bonds or equity notes issued by the
agency when the same shall become due whether at maturity or on call for
redemption and for the payment of any redemption premium required to be
paid where such bonds or notes are redeemed prior to their stated
maturities, and to purchase equity bonds or equity notes issued by the
agency, or (f) for such other corporate purposes of the agency as the
agency in its discretion shall determine and provide.
5. (a) The agency may create and establish one or more additional
reserve funds to be known as debt service reserve funds and may pay into
such reserve funds (1) any moneys appropriated and made available by the
state for the purposes of such funds, (2) any proceeds of sale of
non-profit project notes or non-profit project bonds, to the extent
provided in the resolution of the agency authorizing the issuance
thereof, and (3) any other moneys which may be made available to the
agency 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 non-profit project
bonds of the agency secured by such reserve fund, as the same mature,
required payments to any sinking fund established in a resolution of the
agency for the amortization of term bonds (hereinafter referred to as

"sinking fund payments"), the purchase or redemption of such non-profit
project bonds of the agency, the payment of interest on such non-profit
project bonds of the agency 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, interest maturing and
becoming due and sinking fund payments required to be made in any
succeeding calendar year on the non-profit project bonds of the agency
then outstanding and secured by such reserve fund, except for the
purpose of paying principal and interest and sinking fund payments
becoming due on the non-profit project bonds of the agency secured by
such reserve fund maturing and becoming due and for the payment of which
other moneys of the agency are not available. For the purposes of this
subdivision five, in computing the maximum amount of principal maturing
at a single future date (herein called "term bonds") in any succeeding
calendar year, the principal amount of any such term bonds which are
subject to mandatory redemption prior to such future date by sinking
fund payments shall not be included in the computation determining the
maximum amount of principal maturing in said future year. 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 agency 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 and sinking fund payments required to
be made in any succeeding calendar year on all non-profit project bonds
of the agency then outstanding and secured by such reserve fund.
(b) The agency shall not issue non-profit project bonds at any time if
the maximum amount of principal and interest maturing and becoming due
and sinking fund payments required to be made in a succeeding calendar
year on the non-profit project bonds outstanding and then to be issued
and secured by a debt service reserve fund will exceed the amount of
such reserve account at the time of issuance, unless the agency, 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 and sinking fund payments required to be made in any succeeding
calendar year on the non-profit project bonds then to be issued and on
all other non-profit project bonds of the agency then outstanding and
secured by such reserve fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article provision is
made in paragraph (a) of this subdivision 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 and sinking fund
payments required to be made in any succeeding calendar year on all
non-profit project bonds of the agency then outstanding and secured by
such reserve fund. In order further to assure the maintenance of such
debt service reserve funds, 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 such reserve fund to
an amount equal to the maximum amount of principal and interest maturing
and becoming due and sinking fund payments required to be made in any
succeeding calendar year on the non-profit project bonds of the agency
then outstanding and secured by such reserve fund. The chairman of the
agency 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 such debt service reserve fund to the
amount aforesaid, and the sum or sums so certified, if any, shall be
apportioned and paid to the agency during the then current state fiscal
year. The principal amount of bonds secured by a debt service 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 the public authorities law whose
affirmative determination shall be conclusive as to all matters of law
and fact solely for the purpose of the limitations contained in this
paragraph, but in no event shall the total amount of bonds so secured by
such a debt service reserve fund or funds exceed seven hundred
ninety-three 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.
(d) In computing any debt service reserve fund for the purposes of
this section, securities in which all or a portion of such reserve fund
shall be invested shall be valued at par, or if purchased at less than
par, at their cost to the agency.
6. (a) The agency may create and establish a special fund to be known
as hospital and nursing home capital reserve fund and may pay into such
reserve funds (1) any monies appropriated and made available by the
state for the purposes of such funds, (2) any proceeds of sale of
hospital and nursing home project notes or hospital and nursing home
project bonds, to the extent provided in the resolution of the agency
authorizing the issuance thereof, and (3) any other monies which may be
made available to the agency for the purposes of such accounts from any
other source or sources. The monies held in or credited to the capital
reserve fund established under this subdivision except as hereinafter
provided, shall be used solely for the payment of the principal of
hospital and nursing home project bonds of the agency secured by such
reserve fund, as the same mature, required payments to any sinking fund
established in a resolution of the agency for the amortization of term
bonds (hereinafter referred to as "sinking fund payments") the purchase
or redemption of such hospital and nursing home project bonds of the
agency, the payment of interest on such hospital and nursing home
project bonds of the agency, or the payment of any redemption premium
required to be paid when such bonds are redeemed prior to maturity;
provided, however, that monies 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 and sinking fund payments required to be made in any
succeeding calendar year on the hospital and nursing home project bonds
of the agency then outstanding and secured by such reserve fund, except
for the purpose of paying principal, interest on hospital and nursing
home project bonds of the agency secured by such reserve fund maturing
and becoming due and sinking fund payments becoming due and for the
payment of which other monies of the agency are not available. For the
purposes of this subdivision six, in computing the maximum amount of
principal maturing at a single future date (herein called "term bonds")
in any succeeding calendar year, the principal amount of any such term

bonds which are subject to mandatory redemption prior to such future
date by sinking fund payments shall not be included in the computation
determining the maximum amount of principal maturing in said future
year. Any income or interest earned by, or increment to, any such
hospital and nursing home capital reserve fund due to the investment
thereof may be transferred to the hospital and nursing home general
reserve fund or other fund of the agency, to the extent it does not
reduce the amount of such hospital and nursing home capital reserve fund
below the maximum amount of principal and interest maturing and becoming
due and sinking fund payments required to be made in any succeeding
calendar year on all hospital and nursing home project bonds of the
agency then outstanding and secured by such reserve fund.
(b) The agency shall not issue hospital and nursing home project bonds
and notes in an aggregate principal amount exceeding one billion nine
hundred fifty million dollars excluding hospital and nursing home
project bonds and hospital and nursing home project notes issued to
refund outstanding hospital and nursing home project bonds and hospital
and nursing home project notes, nor shall it issue hospital and nursing
home project bonds at any time secured by the hospital and nursing home
capital reserve fund if the maximum amount of principal and interest
maturing and becoming due and sinking fund payments required to be made
in a succeeding calendar year on the hospital and nursing home project
bonds outstanding and then to be issued and secured by the hospital and
nursing home capital reserve fund will exceed the amount of such reserve
fund at the time of issuance, unless the agency, 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 and sinking
fund payments required to be made in any succeeding calendar year on the
hospital and nursing home project bonds then to be issued and on all
other hospital and nursing home project bonds of the agency then
outstanding and secured by such reserve fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article provision is
made in paragraph (a) of this subdivision for the accumulation in the
hospital and nursing home capital reserve fund of an amount equal to the
maximum amount of principal and interest maturing and becoming due and
sinking fund payments to be made in any succeeding calendar year on all
hospital and nursing home project bonds of the agency then outstanding
and secured by such reserve fund. In order further to assure the
maintenance of such hospital and nursing home capital reserve fund,
there shall be annually apportioned and paid to the agency for deposit
in such hospital and nursing home capital 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 such reserve fund to an
amount equal to the maximum amount of principal and interest maturing
and becoming due and sinking fund payments required to be made in any
succeeding calendar year on the hospital and nursing home project bonds
of the agency then outstanding and secured by such reserve fund. The
chairman of the agency shall annually, on or before December first, make
and deliver to the governor and director of the budget his certificate
stating the sums, if any, required to restore such hospital and nursing
home capital reserve fund to the amount aforesaid, and the sums so
certified, if any, shall be apportioned and paid to the agency during
the then current state fiscal year. The principal amount of bonds
secured by the hospital and nursing home capital reserve fund 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 on
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 the public authorities law 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 nine hundred sixteen 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.
(d) In computing any hospital and nursing home capital reserve fund
for the purposes of this section, securities in which all or a portion
of such reserve fund shall be invested shall be valued at par, or if
purchased at less than par, at their cost to the agency.
7. The agency shall create and establish one or more additional
special funds (herein referred to as hospital and nursing home general
reserve funds) and shall, to the extent provided in the applicable bond
resolution of the agency authorizing the issuance of hospital and
nursing home project bonds, pay into any such fund the fees and charges
collected by the agency pursuant to paragraph (b) of subdivision eleven
of section forty-four of this article and any monies which the agency
shall transfer from the hospital and nursing home capital reserve fund
pursuant to the provisions of paragraph (a) of subdivision six of this
section. Such monies and any other monies paid into a hospital and
nursing home general reserve fund may, in the discretion of the agency,
but subject to agreements with bondholders and noteholders, be used by
the agency (a) for the repayment of advances from the state in
accordance with the provisions of repayment agreements between the
agency and the director of the budget, (b) to reimburse the department
of health the reasonable costs of the services performed by the
commissioner of health and the department of health pursuant to
subdivision three of section fifty-five of this article, (c) to pay all
costs, expenses and charges of financing, including fees and expenses of
trustees and paying agents, (d) for transfers to the hospital and
nursing home capital reserve fund, (e) for the payment of principal and
interest on hospital and nursing home project bonds and notes issued by
the agency when the same shall become due whether at maturity or on call
for redemption and for the payment of any redemption premium required to
be paid where such hospital and nursing home project bonds and notes are
redeemed prior to their stated maturities and to purchase hospital and
nursing home project bonds or notes issued by the agency, or (f) for
such other corporate purposes of the agency as the agency in its
discretion shall determine and provide.
8. (a) The agency may create and establish one or more additional
reserve funds to be known as health facilities reserve funds and may pay
into such reserve funds (1) any monies appropriated and made available
by the state for the purposes of such funds, (2) any proceeds of sale of
health facilities notes or health facilities bonds, to the extent
provided in the resolution of the agency authorizing the issuance
thereof, and (3) any other monies which may be made available to the
agency for the purposes of such funds from any other source or sources.
The monies held in or credited to any health facilities reserve fund
established under this subdivision, except as hereinafter provided,

shall be used solely for the payment of the principal of health
facilities bonds of the agency secured by such reserve fund, as the same
mature, required payments to any sinking fund established in a
resolution of the agency for the amortization of term bonds (hereinafter
referred to as "sinking fund payments") the purchase or redemption of
such health facilities bonds of the agency, the payment of interest on
such health facilities bonds of the agency, or the payment of any
redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that monies 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 and sinking fund payments required to
be made in any succeeding calendar year on the health facilities bonds
of the agency then outstanding and secured by such reserve fund, except
for the purpose of paying principal, interest and sinking fund payments
becoming due on the health facilities bonds of the agency secured by
such reserve fund maturing and becoming due and for the payment of which
other monies of the agency are not available. For the purposes of this
subdivision eight, in computing the maximum amount of principal maturing
at a single future date (herein called "term bonds") in any succeeding
calendar year, the principal amount of any such term bonds which are
subject to mandatory redemption prior to such future date by sinking
fund payments shall not be included in the computation determining the
maximum amount of principal maturing in said future year. Any income or
interest earned by, or increment to, any such health facilities reserve
fund due to the investment thereof may be transferred to any other fund
or account of the agency to the extent it does not reduce the amount of
such health facilities reserve fund below the maximum amount of
principal and interest maturing and becoming due and sinking fund
payments required to be made in any succeeding calendar year on all
health facilities bonds of the agency then outstanding and secured by
such reserve fund.
(b) The agency shall not issue health facilities bonds at any time if
the maximum amount of principal and interest maturing and becoming due
and sinking fund payments required to be made in a succeeding calendar
year on the health facilities bonds outstanding and then to be issued
and secured by any health facilities reserve fund will exceed the amount
of such reserve account at the time of issuance, unless the agency, 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 and sinking fund payments required to be made in any
succeeding calendar year on the health facilities bonds then to be
issued and on all other health facilities bonds of the agency then
outstanding and secured by such reserve fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article, provision is
made in paragraph (a) of this subdivision for the accumulation in each
health facilities reserve fund of an amount equal to the maximum amount
of principal and interest maturing and becoming due and sinking fund
payments required to be made in any succeeding calendar year on all
health facilities bonds of the agency then outstanding and secured by
such reserve fund. In order further to assure the maintenance of such
health facilities reserve funds, there shall be annually apportioned and
paid to the agency for deposit in each health facilities 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 such

reserve fund to an amount equal to the maximum amount of principal and
interest maturing and becoming due and sinking fund payments required to
be made in any succeeding calendar year on the health facilities bonds
of the agency then outstanding and secured by such reserve fund. The
chairman of the agency shall annually, on or before December first, make
and deliver to the governor and director of the budget his certificate
stating the sums, if any, required to restore each such health
facilities reserve fund to the amount aforesaid, and the sums so
certified, if any, shall be apportioned and paid to the agency during
the then current state fiscal year. The principal amount of bonds
secured by a health facilities 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 the
public authorities law 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 reserve fund or funds exceed
six hundred seventy-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 amounts so secured.
(d) In computing any health facilities reserve fund for the purposes
of this section, securities in which all or a portion of such reserve
fund shall be invested shall be valued at par, or if purchased at less
than par, at their cost to the agency.
9. (a) The agency may create and establish one or more additional
reserve funds to be known as urban rental debt service reserve funds and
may pay into such reserve funds (1) any monies appropriated and made
available by the state for the purposes of such funds, (2) any proceeds
of sale of urban rental project notes or urban rental project bonds, to
the extent provided in the resolution of the agency authorizing the
issuance thereof, and (3) any other monies which may be made available
to the agency for the purposes of such funds from any other source or
sources. The monies held in or credited to any urban rental debt service
reserve fund established under this subdivision except as hereinafter
provided, shall be used solely for the payment of the principal of urban
rental project bonds of the agency secured by such reserve fund, as the
same mature, required payments to any sinking fund established in a
resolution of the agency for the amortization of term bonds (hereinafter
referred to as "sinking fund payments"), the purchase or redemption of
such urban rental project bonds of the agency, the payment of interest
on such urban rental project bonds of the agency, or the payment of any
redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that monies 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 and sinking fund payments required to
be made in any succeeding calendar year on the urban rental project
bonds of the agency then outstanding and secured by such reserve fund,
except for the purpose of paying principal, interest and sinking fund
payments becoming due on the urban rental project bonds of the agency
secured by such reserve fund maturing and becoming due and for the

payment of which other monies of the agency are not available. For the
purposes of this subdivision nine, in computing the maximum amount of
principal maturing at a single future date (herein called "term bonds")
in any succeeding calendar year, the principal amount of any such term
bonds which are subject to mandatory redemption prior to such future
date by sinking fund payments shall not be included in the computation
determining the maximum amount of principal maturing in said future
year. Any income or interest earned by, or increment to, any such urban
rental debt service reserve fund due to the investment thereof may be
transferred to any other fund or account of the agency to the extent it
does not reduce the amount of such urban rental debt service reserve
fund below the maximum amount of principal and interest maturing and
becoming due and sinking fund payments required to be made in any
succeeding calendar year on all urban rental project bonds of the agency
then outstanding and secured by such reserve fund.
(b) The agency shall not issue urban rental project bonds at any time
if the maximum amount of principal and interest maturing and becoming
due and sinking fund payments required to be made in any succeeding
calendar year on the urban rental project bonds outstanding and then to
be issued and secured by an urban rental debt service reserve fund will
exceed the amount of such reserve account at the time of issuance,
unless the agency, 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 and sinking fund payments required to be made
in any succeeding calendar year on the urban rental project bonds then
to be issued and on all other urban rental project bonds of the agency
then outstanding and secured by such reserve fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article provision is
made in paragraph (a) of this subdivision for the accumulation in each
urban rental debt service reserve fund of an amount equal to the maximum
amount of principal and interest maturing and becoming due and sinking
fund payments required to be made in any succeeding calendar year on all
urban rental project bonds of the agency then outstanding and secured by
such reserve fund. In order further to assure the maintenance of such
urban rental debt service reserve funds, there shall be annually
apportioned and paid to the agency for deposit in each urban rental 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 such reserve fund to an amount equal to the maximum
amount of principal and interest maturing and becoming due and sinking
fund payments required to be made in any succeeding calendar year on the
urban rental project bonds of the agency then outstanding and secured by
such reserve fund. The chairman of the agency shall annually, on or
before December first, make and deliver to the governor and director of
the budget his certificate stating the sums, if any, required to restore
each such urban rental debt service reserve fund to the amount
aforesaid, and the sums so certified, if any, shall be apportioned and
paid to the agency during the then current state fiscal year. The
principal amount of bonds secured by an urban rental debt service
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 the public authorities law 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 debt service reserve fund or funds exceed six hundred forty-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.
(d) In computing any urban rental debt service reserve fund for the
purposes of this section, securities in which all or a portion of such
reserve fund shall be invested shall be valued at par if purchased at
par, or if purchased at other than par, at amortized value.
10. (a) The agency may create and establish a special fund to be known
as youth facilities capital reserve fund and may pay into such reserve
funds (1) any monies appropriated and made available by the state for
the purposes of such funds, (2) any proceeds of sale of youth facilities
project notes or youth facilities project bonds, to the extent provided
in the resolution of the agency authorizing the issuance thereof, and
(3) any other monies which may be made available to the agency for the
purposes of such accounts from any other source or sources. The monies
held in or credited to the capital reserve fund established under this
subdivision except as hereinafter provided, shall be used solely for the
payment of principal of youth facilities project bonds of the agency
secured by such reserve fund, as the same mature, the purchase of such
youth facilities project bonds of the agency, the payment of interest on
youth facilities project bonds of the agency, or the payment of any
redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that monies 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 any succeeding calendar year on
the youth facilities project bonds of the agency then outstanding and
secured by such reserve fund, except for the purpose of paying principal
and interest on youth facilities project bonds of the agency secured by
such reserve fund maturing and becoming due and for the payment of which
other monies of the agency are not available. Any income or interest
earned by, or increment to, any such youth facilities capital reserve
fund due to the investment thereof may be transferred to the youth
facilities general reserve fund or other fund of the agency, to the
extent it does not reduce the amount of such youth facilities capital
reserve fund below the maximum amount of principal and interest maturing
and becoming due in any succeeding calendar year on all youth facilities
project bonds of the agency then outstanding and secured by such reserve
fund.
(b) The agency shall not issue youth facilities project bonds and
notes in an aggregate principal amount exceeding one hundred million
dollars excluding youth facilities project bonds and youth facilities
project notes issued to refund outstanding youth facilities project
bonds and youth facilities project notes, nor shall it issue youth
facilities project bonds at any time secured by the youth facilities
capital reserve fund if the maximum amount of principal and interest
maturing and becoming due in a succeeding calendar year on the youth
facilities project bonds outstanding and then to be issued and secured
by the youth facilities capital reserve fund will exceed the amount of
such reserve fund at the time of issuance, unless the agency, 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 any succeeding calendar year on the youth facilities project
bonds then to be issued and on all other youth facilities project bonds
of the agency then outstanding and secured by such reserve fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article provision is
made in paragraph (a) of this subdivision for the accumulation in the
youth facilities 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 youth facilities project bonds of the
agency then outstanding and secured by such reserve fund. In order
further to assure the maintenance of such youth facilities capital
reserve fund, there shall be annually apportioned and paid to the agency
for deposit in such youth facilities capital 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 such 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 youth facilities
project bonds of the agency then outstanding and secured by such reserve
fund. The chairman of the agency shall annually, on or before December
first, make and deliver to the governor and director of the budget his
certificate stating the sums, if any, required to restore such youth
facilities capital reserve fund to the amount aforesaid, and the sums so
certified, if any, shall be apportioned and paid to the agency during
the then current state fiscal year. The principal amount of bonds
secured by the youth facilities capital reserve fund 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 the
public authorities law 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 exceed
twenty-four 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.
(d) In computing any youth facilities capital reserve fund for the
purpose of this section, securities in which all or a portion of such
reserve fund shall be invested shall be valued at par if purchased at
par, or if purchased at other than par, at amortized value.
11. The agency shall create and establish a special fund (herein
referred to as the youth facilities general reserve fund) and shall pay
into such fund all fees and charges collected by the agency pursuant to
paragraph (c) of subdivision eleven of section forty-four of this
article and any monies which the agency shall transfer from the youth
facilities capital reserve fund pursuant to the provisions of paragraph
(a) of subdivision ten of this section. Such monies and any other monies
paid into the youth facilities general reserve fund may, in the
discretion of the agency, but subject to agreements with bondholders and
noteholders, be used by the agency (a) for the repayment of advances

from the state in accordance with the provisions of repayment agreements
between the agency and the director of the budget, (b) to reimburse the
department of social services the reasonable costs of the services
performed by the commissioner of social services and the department of
social services pursuant to subdivision four of section fifty-five of
this article, (c) to pay all costs, expenses and charges of financing,
including fees and expenses of trustees and paying agents, (d) for
transfers to the youth facilities capital reserve fund, (e) for the
payment of principal of and interest on youth facilities project bonds
and notes issued by the agency when the same shall become due whether at
maturity or on call for redemption and for the payment of any redemption
premium required to be paid where such youth facilities project bonds
and notes are redeemed prior to their stated maturities and to purchase
youth facilities project bonds or notes issued by the agency, or (f) for
such other corporate purposes of the agency as the agency in its
discretion shall determine and provide.
12. (a) The agency may create and establish a special fund to be known
as community mental health services and developmental disabilities
services capital reserve fund and may pay into such reserve funds (1)
any monies appropriated and made available by the state for the purposes
of such funds, (2) any proceeds of sale of community mental health
services and developmental disabilities services project notes or
community mental health services and developmental disabilities services
project bonds, to the extent provided in the resolution of the agency
authorizing the issuance thereof, and (3) any other monies which may be
made available to the agency for the purposes of such accounts from any
other source or sources. The monies held in or credited to the capital
reserve fund established under this subdivision except as hereinafter
provided, shall be used solely for the payment of principal of community
mental health services and developmental disabilities services project
bonds of the agency secured by such reserve fund, as the same mature,
the purchase of such community mental health services and developmental
disabilities services project bonds of the agency, the payment of
interest on such community mental health services and developmental
disabilities services project bonds of the agency, or the payment of any
redemption premium required to be paid when such bonds are redeemed
prior to maturity; provided, however, that monies 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 any succeeding calendar year on
the community mental health services and developmental disabilities
services project bonds of the agency then outstanding and secured by
such reserve fund, except for the purpose of paying principal and
interest on community mental health services and developmental
disabilities services project bonds of the agency secured by such
reserve fund maturing and becoming due and for the payment of which
other monies of the agency are not available. Any income or interest
earned by, or increment to, any such community mental health services
and developmental disabilities services capital reserve fund due to the
investment thereof may be transferred to the community mental health
services and developmental disabilities services general reserve fund or
other fund of the agency, to the extent it does not reduce the amount of
such community mental health services and developmental disabilities
services capital reserve fund below the maximum amount of principal and
interest maturing and becoming due in any succeeding calendar year on
all community mental health services and developmental disabilities
services project bonds of the agency then outstanding and secured by
such reserve fund.
(b) The agency shall not issue community mental health services and
developmental disabilities services project bonds and notes in an
aggregate principal amount exceeding one hundred million dollars
excluding community mental health services and developmental
disabilities services project bonds and community mental health services
and developmental disabilities services project notes issued to refund
outstanding community mental health services and developmental
disabilities services project bonds and community mental health services
and developmental disabilities services project notes, nor shall it
issue community mental health services and developmental disabilities
services project bonds at any time secured by the community mental
health services and developmental disabilities services capital reserve
fund if the maximum amount of principal and interest maturing and
becoming due in a succeeding calendar year on the community mental
health services and developmental disabilities services project bonds
outstanding and then to be issued and secured by the community mental
health services and developmental disabilities services capital reserve
fund will exceed the amount of such reserve fund at the time of
issuance, unless the agency, 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 any succeeding
calendar year on the community mental health services and developmental
disabilities services project bonds then to be issued and on all other
community mental health services and developmental disabilities services
project bonds of the agency then outstanding and secured by such reserve
fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article provision is
made in paragraph (a) of this subdivision for the accumulation in the
community mental health services and developmental disabilities services
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 community mental health services and developmental
disabilities services project bonds of the agency then outstanding and
secured by such reserve fund. In order further to assure the maintenance
of such community mental health services and developmental disabilities
services capital reserve fund, there shall be annually apportioned and
paid to the agency for deposit in such community mental health services
and developmental disabilities services capital 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 such 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
community mental health services and developmental disabilities services
project bonds of the agency then outstanding and secured by such reserve
fund. The chairman of the agency shall annually, on or before December
first, make and deliver to the governor and director of the budget his
or her certificate stating the sums, if any, required to restore such
community mental health services and developmental disabilities services
capital reserve fund to the amount aforesaid, and the sums so certified,
if any, shall be apportioned and paid to the agency during the then
current state fiscal year. The principal amount of bonds secured by the
community mental health services and developmental disabilities services
capital reserve fund 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 the public authorities law 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 thirteen 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.
(d) In computing any community mental health services and
developmental disabilities services capital reserve fund for the
purposes of this section, securities in which all or a portion of such
reserve fund shall be invested shall be valued at par if purchased at
par, or if purchased at other than par, at amortized value.
13. The agency shall create and establish a special fund (herein
referred to as community mental health services and developmental
disabilities services general reserve fund) and shall pay into such fund
all fees and charges collected by the agency pursuant to paragraph (c)
of subdivision eleven of section forty-four of this article and any
monies which the agency shall transfer from the community mental health
services and developmental disabilities services capital reserve fund
pursuant to the provisions of paragraph (a) of subdivision ten of this
section. Such monies and any other monies paid into the community mental
health services and developmental disabilities services general reserve
fund may, in the discretion of the agency, but subject to agreements
with bondholders and noteholders, be used by the agency (a) for the
repayment of advances from the state in accordance with the provisions
of repayment agreements between the agency and the director of the
budget, (b) to reimburse the department of mental hygiene the reasonable
costs of the services performed by the commissioner of mental hygiene
and the department of mental hygiene pursuant to subdivision four of
section fifty-five of this article, including the reasonable costs of
such services performed by the health and mental hygiene facilities
improvement corporation upon request by the commissioner of mental
hygiene pursuant to the provisions of section 75.25 of the mental
hygiene law, (c) to pay all costs, expenses and charges of financing,
including fees and expenses of trustees and paying agents, (d) for
transfers to the community mental health services and developmental
disabilities services capital reserve fund, (e) for the payment of
principal of and interest on community mental health services and
developmental disabilities services project bonds and notes issued by
the agency when the same shall become due whether at maturity or on call
for redemption and for the payment of any redemption premium required to
be paid where such community mental health services and developmental
disabilities services project bonds and notes are redeemed prior to
their stated maturities and to purchase community mental health services
and developmental disabilities services project bonds or notes issued by
the agency, or (f) for such other corporate purposes of the agency as
the agency in its discretion shall determine and provide.
14. (a) The agency may create and establish a special fund to be known
as community senior citizens services capital reserve fund and may pay
into such reserve fund (1) any moneys appropriated and made available by
the state for the purposes of such fund, (2) any proceeds of sale of
community senior citizens services project notes or community senior

citizens services project bonds, to the extent provided in the
resolution of the agency authorizing the issuance thereof, and (3) any
other moneys which may be made available to the agency for the purposes
of such accounts from any other source or sources. The moneys held in or
credited to the capital reserve fund established under this subdivision
except as hereinafter provided, shall be used solely for the payment of
principal of community senior citizens services project bonds of the
agency secured by such reserve fund, as the same mature, the purchase of
such community senior citizens services project bonds of the agency, the
payment of interest on such community senior citizens services project
bonds of the agency, 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 thereform
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 any succeeding calendar year on the community senior
citizens services project bonds of the agency then outstanding and
secured by such reserve fund, except for the purpose of paying principal
and interest on community senior citizens services project bonds of the
agency secured by such reserve fund maturing and becoming due and for
the payment of which other moneys of the agency are not available. Any
income or interest earned by, or increment to, any such community senior
citizens services capital reserve fund due to the investment thereof may
be transferred to the community senior citizens services general reserve
fund or other fund of the agency, to the extent it does not reduce the
amount of such community senior citizens services capital reserve fund
below the maximum amount of principal and interest maturing and becoming
due in any succeeding calendar year on all community senior citizens
services project bonds of the agency then outstanding and secured by
such reserve fund.
(b) The agency shall not issue community senior citizens services
project bonds and notes in an aggregate principal amount exceeding fifty
million dollars excluding community senior citizens services project
bonds and community senior citizens services project notes issued to
refund outstanding community senior citizens services project bonds and
community senior citizens services project notes, nor shall it issue
community senior citizens services project bonds at any time secured by
the community senior citizens capital reserve fund if the maximum amount
of principal and interest maturing and becoming due in a succeeding
calendar year on the community senior citizens services project bonds
outstanding and then to be issued and secured by the community senior
citizens services capital reserve fund will exceed the amount of such
reserve fund at the time of issuance, unless the agency, 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 any succeeding calendar year on the community senior citizens
services project bonds then to be issued and on all other community
senior citizens services project bonds of the agency then outstanding
and secured by such reserve fund.
(c) To assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this article provision is
made in paragraph (a) of this subdivision for the accumulation in the
community senior citizens services 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 community senior
citizens services project bonds of the agency then outstanding and

secured by such reserve fund. In order further to assure the maintenance
of such community senior citizens services capital reserve fund, there
shall be annually apportioned and paid to the agency for deposit in such
community senior citizens services capital 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 such 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 community senior
citizens services project bonds of the agency then outstanding and
secured by such reserve fund. The chairman of the agency shall annually,
on or before December first, make and deliver to the governor and
director of the budget his certificate stating the sums, if any,
required to restore such community senior citizens services capital
reserve fund to the amount aforesaid, and the sums so certified, if any,
shall be apportioned and paid to the agency during the then current
state fiscal year. The principal amount of bonds secured by the
community senior citizens services capital reserve fund 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 the
public authorities law 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 two million eight hundred thousand 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.
(d) In computing any community senior citizens services capital
reserve fund for the purposes of this section, securities in which all
or a portion of such reserve fund shall be invested shall be valued at
par if purchased at par, or if purchased at other than par, at amortized
value.
15. The agency shall create and establish a special fund (herein
referred to as community senior citizens services general reserve fund)
and shall pay into such fund all fees and charges collected by the
agency pursuant to subdivision eleven-a of section forty-four of this
article and any moneys which the agency shall transfer from the
community senior citizens services capital reserve fund pursuant to the
provisions of paragraph (a) of subdivision fourteen of this section.
Such moneys and any other moneys paid into the community senior citizens
services general reserve fund may, in the discretion of the agency, but
subject to agreements with bondholders and noteholders, be used by the
agency (a) for the repayment of advances from the state in accordance
with the provisions of repayment agreements between the agency and the
director of the budget, (b) to reimburse the department of social
services of the state of New York for the reasonable costs of the
services performed by such department pursuant to subdivision six of
section fifty-five of this article, (c) to pay all costs, expenses and
charges of financing, including fees and expenses of trustees and paying
agents, (d) for transfers to the community senior citizens services
capital reserve fund, (e) for the payment of principal of and interest
on community senior citizens services project bonds and notes issued by

the agency when the same shall become due whether at maturity or on call
for redemption and for the payment of any redemption premium required to
be paid where such community senior citizens services project bonds and
notes are redeemed prior to their stated maturities and to purchase
community senior citizens services project bonds or notes issued by the
agency, or (f) for such other corporate purposes of the agency as it, in
its discretion, shall determine and provide.
16. (a) The agency may create and establish one or more special funds
to be known as community mental health services and developmental
disabilities services capital reserve funds and may pay into such
reserve funds (1) any monies appropriated and made available by the
state for the purposes of such funds, (2) any proceeds of the sale of
community mental health services and developmental disabilities services
project revenue bonds or notes, to the extent provided in the resolution
of the agency authorizing the issuance thereof, and (3) any other monies
which may be made available to the agency for the purposes of such fund
or funds from any other source or sources. The monies held in or
credited to a capital reserve fund established under this subdivision,
except as hereinafter provided and as provided in agreements with
bondholders and noteholders, shall be used solely for the payment of
principal of community mental health services and developmental
disabilities services project revenue bonds of the agency secured by
such reserve fund, as the same mature, required payments to any sinking
fund established in a resolution of the agency for the amortization of
term bonds (hereinafter referred to as "sinking fund payments"), the
purchase of such revenue bonds of the agency, the payment of interest on
such revenue bonds of the agency, or the payment of any redemption
premium required to be paid when such bonds are redeemed prior to
maturity. Any income or interest earned by, or increment to, any such
community mental health services and developmental disabilities services
capital reserve fund due to the investment thereof may be transferred to
the agency, subject to agreements with bondholders and noteholders.
(b) In computing any community mental health services and
developmental disabilities services capital reserve fund for the
purposes of this section, securities in which all or a portion of such
reserve fund shall be invested shall be valued at par if purchased at
par, or if purchased at other than par, at the amortized value.
(c) The agency shall create and establish one or more special funds
(herein referred to as community mental health services and
developmental disabilities services general reserve funds) and shall to
the extent provided in the applicable bond resolution of the agency
authorizing the issuance of community mental health services and
developmental disabilities services project revenue bonds, pay into any
such fund the fees and charges collected by the agency pursuant to
paragraph (d) of subdivision eleven of section forty-four of this
article and any monies which the agency shall transfer from a community
mental health services and developmental disabilities services capital
reserve fund pursuant to the provisions of paragraph (a) of this
subdivision. Such monies and any other monies paid into a community
mental health services and developmental disabilities service general
reserve fund may, in the discretion of the agency, but subject to
agreements with bondholders and noteholders, be used by the agency (i)
for the repayment of advances from the state in accordance with the
provisions of repayment agreements between the agency and the director
of the budget, (ii) to reimburse the department of mental hygiene the
reasonable costs of the services performed by the commissioner of mental
hygiene and the department of mental hygiene pursuant to subdivision
five of section fifty-five of this article, including the reasonable

costs of such services performed by the facilities development
corporation upon request by the commissioner of mental hygiene pursuant
to the provisions of section 75.25 of the mental hygiene law, (iii) to
pay all costs, expenses and charges of financing, including fees and
expenses of trustees and paying agents, (iv) for transfers to a
community mental health services and developmental disabilities services
capital reserve fund, (v) for the payment of principal of and interest
on community mental health services and developmental disabilities
services project revenue bonds and notes issued by the agency when the
same shall become due whether at maturity or on call for redemption and
for the payment of any redemption premium required to be paid where such
community mental health services and developmental disabilities services
project revenue bonds and notes are redeemed prior to their stated
maturities and to purchase community mental health services and
developmental disabilities services revenue bonds or notes issued by the
agency, or (vi) for such other corporate purposes of the agency as the
agency in its discretion shall determine and provide.

Structure New York Laws