NY Pub Auth L § 1977-B (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 12 1977-B - Reserve Funds and Appropriations.

§  1977-b. Reserve funds and appropriations. 1. In addition to setting   aside of such other reserves or sinking funds as it shall deem advisable   and necessary, and the regulation and disposition thereof, the authority   shall create and establish a special fund to be known as and hereinafter   called the "Battery Park project area capital reserve  fund"  and  shall   pay into such fund (a) any moneys appropriated and made available by the   state  only  for  the purposes of such fund, (b) any proceeds of sale of   any bonds issued to finance the Battery Park project area to the  extent   provided  in  the  resolution  of the authority authorizing the issuance   thereof, (c) any funds directed to be transferred by  the  authority  to   such fund, and (d) any other moneys made available to the authority only   for  the  purposes  of  such  fund from any other source or sources. The   moneys held in or credited to  such  capital  reserve  fund,  except  as   hereinafter  provided,  shall  be  used  solely  for  the payment of the   principal of such bonds or of  the  sinking  fund  payments  hereinafter   mentioned 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 any  of  such  bonds  are   redeemed  prior to maturity; provided, however, that moneys in such fund   shall not be withdrawn therefrom at any time in  such  amount  as  would   reduce  the  amount  of such fund to less than the amount of the Battery   Park project area capital reserve fund requirement hereinbelow  referred   to, except for the purpose of making with respect to such bonds payment,   when   due,  of  principal,  interest  and  the  sinking  fund  payments   hereinafter mentioned for the payment  of  which  other  moneys  of  the   authority  are  not  available.  Moneys in such 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 and interest of which are guaranteed by the state  or  the   United States of America or obligations of agencies of the United States   of  America  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 such 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 or, if purchased at less than   par, at their cost to the authority.2. The authority shall not issue any of such bonds at any time secured   by such capital reserve fund if the amount in such capital reserve  fund   at  the  time  of  issuance  does not equal or exceed the amount of said   capital reserve fund requirement 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 said capital   reserve fund requirement.3. In order to assure the continued  operation  and  solvency  of  the   authority  for the fulfillment of its corporate purposes with respect to   the Battery Park project area,  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  such capital reserve fund to the amount as of the   particular date of computation equal to the greatest  (herein  sometimes   called the "Battery Park project area capital reserve fund requirement")   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,   such annual debt service for any fiscal year being the amount  of  money   equal  to  the  aggregate of (a) all interest payable during such fiscal   year on all such bonds outstanding on said date of computation, plus (b)   the principal amount of all such  bonds  outstanding  on  said  date  of    computation  which  mature during such fiscal year, plus (c) 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, all   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; and   there shall be annually  apportioned  and  paid  to  the  authority  for   deposit  in  such  capital  reserve  fund  the  sums so certified by the   chairman of the authority.  All sums so apportioned and  paid  shall  be   deposited  by  the authority in such capital reserve fund. The principal   amount of bonds secured by such capital  reserve  fund  to  which  state   funds are apportionable pursuant to this subdivision 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 subdivision, but in no event shall the total amount of   bonds  so  secured  by  such  a capital reserve fund or funds exceed two   hundred  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.4. 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   operating  revenues  of  the  authority in excess of the capital reserve   fund requirement and operating expenses.5. As used in this section, (a) the term "operating expenses" for  the   fiscal   year   shall  mean  ordinary  expenditures  for  operation  and   administration of the authority; and (b) the term  "available  operating   revenues" for the fiscal year shall mean all amounts received on account   of  rentals  and  fees  charged  by the authority, if any, and income or   interest earned or added to funds of the authority due to the investment   thereof, and not required under the terms or provisions of any convenant   or agreement with holders of any bonds or notes of the authority  to  be   applied to any purposes other than payment of expenses of the authority.6.  This  section  is applicable only to the Battery Park project area   capital reserve fund.