NY Priv Hous Fin L § 656 (2021)
2021 New York Laws PVH - Private Housing Finance Article 12 - New York City Housing Development Corporation 656 - Reserve Funds and Appropriations.

§  656.  Reserve funds and appropriations. 1. a. The corporation shall   create and establish  special  funds  (herein  referred  to  as  capital   reserve  funds)  and  shall pay into such a capital reserve fund (1) any   moneys appropriated and made available by the  state  or  city  for  the   purpose of such fund, (2) any proceeds of sale of notes or bonds, to the   extent  provided  in  the  resolution  or resolutions of the corporation   authorizing the issuance thereof, and (3) 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  a  capital  reserve  fund,   except  as  hereinafter provided, shall be used, as required, solely for   the payment of the principal of bonds as the same mature or  the  annual   sinking  fund payments, the purchase or redemption of bonds, the payment   of interest on bonds 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 be  paid  when  such bonds are redeemed prior to maturity; provided,   however, that moneys in such fund shall not be  withdrawn  therefrom  at   any  time in such amount as would reduce the amount of such fund to less   than the maximum  capital  reserve  fund  requirement,  except  for  the   purposes  of  paying  interest  on  bonds, principal of bonds and annual   sinking fund payments, as the same become due and  for  the  payment  of   which  other  moneys of the corporation are not available. Any income or   interest earned by, or increment to, a capital reserve fund due  to  the   investment  thereof  or  any  amount  in  excess  of the maximum capital   reserve fund requirement may be transferred by the corporation to  other   funds  or  accounts  of the corporation to the extent it does not reduce   the amount of such  capital  reserve  fund  below  the  maximum  capital   reserve fund requirement.b.  The corporation shall not issue bonds at any time if upon issuance   the amount in the capital reserve fund will be  less  than  the  maximum   capital reserve fund requirement, unless the corporation, 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 not be less than the maximum capital   reserve fund requirement.c. No bonds or notes of the corporation shall be issued if  upon  such   issuance  the  aggregate  principal  amount  of  bonds  and notes of the   corporation then outstanding exceeds the  lesser  of  seventeen  billion   dollars  or  such amount as would cause the maximum capital reserve fund   requirement to exceed eighty-five million  dollars;  provided  that,  in   determining such aggregate principal amounts there shall be deducted (i)   all sums then available for the payment of such bonds or notes either at   maturity  or through the operation of a sinking fund; (ii) the aggregate   principal amount of outstanding bonds issued (a) to refund notes and (b)   to refund bonds, theretofore issued and then outstanding; and (iii)  the   aggregate  principal  amount  of outstanding notes issued to renew notes   theretofore issued and then outstanding. The  provisions  of  the  prior   sentence  notwithstanding, the corporation shall not issue bonds if such   issuance shall cause the maximum  reserve  fund  requirement  to  exceed   thirty  million  dollars  unless  prior  to such issuance the senate and   assembly shall have adopted a concurrent resolution passed by the  votes   of  a  majority  of  all  the  members  elected  to each such house and,   subsequent  thereto,  the  governor  shall  evidence  in   writing   the   governor's  agreement  with  such  resolution  to the chairperson of the   corporation, which resolution shall be in full force and effect  on  the   date  of  issuance  of the bonds, permitting the maximum capital reserve   fund requirement to equal or exceed the amount of  the  maximum  capital   reserve  fund  requirement which would be effective upon the issuance of   the bonds in question, but in no event shall the maximum capital reserve   fund requirement exceed eighty-five million dollars. d. 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 shall   be  invested  shall be valued at par if purchased at par or if purchased   at other than par, at amortized value. Amortized value, when  used  with   respect  to  securities purchased at a premium above or a discount below   par, shall mean the value as of any given date obtained by dividing  the   total premium or discount at which such securities were purchased by the   number  of  interest  payments  remaining to maturity on such securities   after such purchase and by multiplying the amount so calculated  by  the   number  of  interest  payment dates having passed since the date of such   purchase; and (i) in the case of securities purchased at  a  premium  by   deducting the product thus obtained from the purchase price, and (ii) in   the  case  of  securities  purchased at a discount by adding the product   thus obtained to the purchase price.e. To assure the continued operation and solvency of  the  corporation   for  the  carrying  out  of its corporate purposes, provision is made in   paragraph a of this subdivision for the  accumulation  in  each  capital   reserve  fund  of  an  amount  equal to the maximum capital reserve fund   requirement. In order further to assure such maintenance of each capital   reserve fund, there shall be paid by the city  to  the  corporation  for   deposit  in  each  capital  reserve  fund  on or before the first day of   April, in each year, such amount, if any,  needed  for  the  purpose  of   restoring  each such capital reserve fund to the maximum capital reserve   fund requirement for such fund, as shall be certified by the chairperson   of the corporation to the mayor  and  the  director  of  management  and   budget  on  or before the first day of December next preceding; provided   that any such amount shall have been first appropriated by or on  behalf   of the city for such purpose or shall have been otherwise made available   from  the  proceeds  of notes or bonds of the city authorized and issued   pursuant to the local finance law for  such  purpose,  which  is  hereby   determined  to  be  a  specific  object  or  purpose  having a period of   probable usefulness of five years.  In  the  event  of  the  failure  or   inability  of  the  city  to pay over to the corporation, in full, on or   before such first day of April the amount so certified  the  chairperson   of  the  corporation  shall  forthwith certify to the comptroller of the   state of New York the amount remaining unpaid and  thereupon  the  state   comptroller  shall  pay  to  the  corporation,  out  of the first moneys   available for the next succeeding payments of (i) state aid  apportioned   to  the  city  of  New  York  as per capita aid for the support of local   government pursuant to section fifty-four of the state  finance  law  or   (ii)  such  other aid or assistance payable by the state to the city and   not otherwise allocated as shall supersede or supplement such state  per   capita  aid,  including  federal  moneys  apportioned to the city by the   state, such amount remaining unpaid, after giving written notice to  the   director  of management and budget of each amount to be paid out of such   state aid, until the  amount  in  each  such  capital  reserve  fund  is   restored  to  the  maximum  capital  reserve  fund  requirement thereof;   provided, however, that prior to the issuance of any notes or  bonds  of   the  corporation  pursuant to this article the city shall have enacted a   local law authorizing payments from such sources into  such  a  fund  so   long  as  any notes or bonds of the corporation shall be outstanding and   unpaid, and provided further that moneys, if any, payable  to  the  city   university  construction  fund  pursuant  to  the provisions of the city   university construction fund act shall be paid, in full, to  such  fund,   prior  to  any payments therefrom to the corporation. Any amount so paid   over to  the  corporation  shall  be  deducted  from  the  corresponding   apportionment of such per capita state aid otherwise payable to the city   of  New  York,  and shall not obligate the state to make nor entitle the    city to receive any additional apportionment or payment  of  per  capita   state  aid. All amounts paid over to the corporation as provided in this   paragraph, including amounts  paid  by  the  state  comptroller  out  of   payments  of  such  state  aid, shall constitute and be accounted for as   non-interest bearing loans by the city to the corporation and,  subject,   subordinate  and  junior  to  the  rights of the holders of any notes or   bonds of the corporation theretofore  or  thereafter  issued,  shall  be   repaid  to  the  city  from  (i)  moneys in such capital reserve fund in   excess of the maximum capital reserve fund requirement thereof  or  (ii)   any  moneys  of  the  corporation  not  required  for  any  other of its   corporate purposes.f. In the event the chairperson of the corporation  shall  certify  to   the  mayor  and  director  of  management  and  budget  or  to the state   comptroller any amount necessary to restore a capital  reserve  fund  to   the  maximum  capital  reserve  fund  requirement  thereof  pursuant  to   subdivision e of this  section,  the  chairperson  shall  simultaneously   deliver  to  such  persons  a  statement  of the cause or causes of such   capital reserve fund deficiency and the measures  to  be  taken  by  the   corporation or the department of housing preservation and development to   insure  repayment  of  any  loans  made  by the city to the corporation,   including amounts paid by the state comptroller out of payments of state   aid, for the purpose of restoring  such  capital  reserve  fund  to  the   maximum  capital  reserve  fund  requirement  thereof and to prevent the   recurrence of any such deficiency.2. Notwithstanding the  provisions  of  subdivision  one  hereof,  the   corporation  may  issue bonds for any of its corporate purposes, without   making any deposit in a capital  reserve  fund  and  the  provisions  of   subdivision  one  of section six hundred fifty-six of this article shall   not apply to such bonds and the principal of and interest on such  bonds   shall not be payable from or secured by any capital reserve fund.3. The corporation shall create and establish such other fund or funds   as may be necessary or desirable for its corporate purposes.