NY Pub Auth L § 1977-C (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 12 1977-C - Reserve Funds and Appropriations for Loans, Advances and Mortgage Financing to Housing Companies.

§  1977-c.  Reserve  funds  and appropriations for loans, advances and mortgage financing to housing companies.   1. Definitions.  (a) "Revenues". All amounts received on  account  of  fees  and  other charges imposed by the authority for loans, advances and mortgage loans, if  any, and all or any part of the moneys received in payment of loans, advances and mortgage loans and interest thereon, including prepayments.  (b) "Housing loan capital reserve fund  requirement".  The  amount  of money,  as  of  any particular date of computation and with reference to outstanding bonds issued by the authority for the purposes of  financing loans,  advances  and  mortgage loans to housing companies, equal to the greatest of the respective amounts for the then current  or  any  future fiscal  year  of  the  authority, of annual debt service with respect to such bonds.   For purposes of the housing loan  capital  reserve  fund  requirement, "annual  debt  service"  shall  mean  an  amount  of  money equal to the aggregate of:  (i) All interest payable during such fiscal year  on  all  such  bonds outstanding on said date of computation; plus,  (ii)  The  principal amount of all such bonds outstanding on said date of computation which mature during such fiscal year; plus,  (iii) All  amounts  specified  in  any  resolution  of  the  authority authorizing  any  of  such bonds as payable during such fiscal year as a sinking fund payment with respect to any  of  such  bonds  which  mature after  such  fiscal year, such sinking fund payments to be calculated on the assumption that bonds will after said date of computation  cease  to be  outstanding  by  reason, but only by reason, of the payment of bonds when due and the payment when due and application in accordance with the resolution authorizing those bonds of all of such sinking fund  payments payable at or after said date of computation.  (c)  "Operating expenses". All ordinary expenditures for operation and administration of the authority in connection with its  loans,  advances and mortgage loans to housing companies.  (d)  "Amortized value". When used with respect to securities purchased at a premium above or a discount below par, the value as  of  any  given date obtained by dividing the total amount of the premium or discount at which  such securities were purchased by the number of days remaining to maturity on such  securities  at  the  time  of  such  purchase  and  by multiplying the amount so calculated by the number of days having passed since  the  date  of  such  purchase;  and (a) in the case of securities purchased at a premium, by deducting the product thus obtained from  the purchase  price,  and  (b)  in  the  case  of  securities purchased at a discount, by adding the product thus obtained to the purchase price.   2. Reserve funds. (a) In addition to the setting aside of  such  other reserves  or sinking funds as it shall deem advisable and necessary, and the regulation and disposition thereof, the  authority  may  create  and establish  one  or  more  capital  reserve funds for bonds issued by the authority for the purposes of financing  loans,  advances  and  mortgage loans to housing companies.  (b)  The  authority  shall  pay  into  each  such fund: (i) any monies appropriated and made available by the state only for  the  purposes  of such  fund;  (ii)  any  proceeds  of the sale of any bonds issued to the extent provided in the  resolution  of  the  authority  authorizing  the issuance  of  such bonds; (iii) any moneys directed to be transferred by the authority to such fund; and (iv) any other moneys made available  to the  authority  only for the purposes of such fund from any other source or sources.  (c) The moneys held in or credited to each such capital reserve  fund, except  as hereinafter provided, shall be used solely for the payment of the principal of bonds issued to finance loans,  advances  and  mortgage loans  to housing companies or of the sinking fund payments with respect to  such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when any of  such  bonds  are  redeemed  prior  to  maturity; provided, however, that moneys in such capital reserve fund shall not be withdrawn  therefrom  at  any  time  in  such amount as would reduce the amount of such fund to less than the amount of the housing loan  capital reserve fund requirement therefor, except for the purpose of making with respect  to such bonds payment, when due, of principal, interest and the sinking fund payments for the payment  of  which  other  moneys  of  the authority  are  not  available.  All  income  or  interest earned by, or increment to, each such capital  reserve  fund  due  to  the  investment thereof  may  be transferred by the authority to other funds or accounts of the authority to the extent it does not reduce  the  amount  of  such capital  reserve  fund  below  the  housing  loan  capital  reserve fund requirement therefor.  (d) Moneys in such a capital reserve fund not required  for  immediate use  or  disbursement may be invested in obligations of the state or the United States of America or obligations the principal of and interest on which are guaranteed by the state or the United  States  of  America  or obligations  of  agencies of the United States of America or obligations which may from time to time be legally purchased by savings banks of the state, as investment of funds belonging to them or in their control.  In computing  the amount of a capital reserve fund for the purposes of this section, securities in which all or a portion of such fund are  invested shall  be  valued  at  par if purchased at par or, if purchased at other than par, at their amortized value.  (e) The authority shall not issue any bonds at  any  time  secured  by such  a  capital  reserve fund if the amount in the capital reserve fund which will secure such bonds at the time of issuance does not  equal  or exceed  the  amount of the housing loan capital reserve fund requirement for such fund unless the authority at the time of issuance of such bonds shall deposit in such fund from the proceeds  of  such  bonds  or  other sources  an amount which together with the amount then in such fund will not be less than the amount of the housing  loan  capital  reserve  fund requirement for such fund.   3.  Preservation  of  solvency.  (a)  In order to assure the continued operation and solvency of the  authority  for  the  fulfillment  of  its corporate  purposes, the chairman of the authority shall annually, on or before December first, make and deliver to the governor and director  of the  budget his certificate stating the sum, if any, required to restore each capital reserve fund to  the  housing  loan  capital  reserve  fund requirement  therefor.  There  shall be annually apportioned and paid to the authority for deposit in each such capital reserve fund the  sum  so certified  by  the chairman of the authority as required to restore such capital  reserve  fund  to  the  housing  loan  capital   reserve   fund requirement  therefor.  All  sums  so  apportioned  and  paid  shall  be deposited by the authority in the respective capital reserve funds.  The principal  amount of bonds secured by a capital reserve fund or funds to which state funds are apportionable pursuant to this paragraph shall  be limited  to  the  total  amount  of  bonds  and notes outstanding on the effective date of this act, plus the total amount  of  bonds  and  notes contracted  after  the effective date of this act to finance projects in progress on the effective date of this act as determined by the New York state public authorities control board created pursuant to section fifty  of this chapter whose affirmative determination shall be  conclusive  as to  all  matters  of  law  and  fact  solely  for  the  purposes  of the limitations contained in this paragraph, but in no event shall the total amount  of  bonds  so  secured  by  such a capital reserve fund or funds exceed eighty-five million dollars, excluding  bonds  issued  to  refund such  outstanding bonds until the date of redemption of such outstanding bonds. As outstanding bonds so secured are paid, the amount  so  secured shall  be  reduced  accordingly  but  the redemption of such outstanding bonds from the proceeds of refunding bonds shall not reduce  the  amount so secured.  (b)  All  amounts  paid over to the authority by the state pursuant to the provisions of this section shall constitute and be accounted for  as advances  by  the state to the authority and, subject only to the rights of the holders of any bonds or notes of  the  authority  theretofore  or thereafter  issued,  shall  be  repaid  to  the state from all available revenues of the authority in excess of housing loan capital reserve fund requirements and operating expenses.   4. Applicability. This section is applicable solely to capital reserve funds for bonds issued to finance housing loans, advances  and  mortgage loans  and  is  not  applicable to the Battery Park project area capital reserve fund.