NY Educ L § 462 (2021)
2021 New York Laws EDN - Education Title 1 - General Provisions Article 10 - New York City Educational Construction Fund 462 - Reserve Funds, Appropriations and Other Funds and Accounts.

§  462. Reserve funds, appropriations and other funds and accounts. 1. (a) The fund shall create and establish a special fund (herein  referred to  as  capital  reserve  fund), and, to secure bonds of the fund issued prior to the twenty-fourth day of July,  nineteen  hundred  seventy-six, shall pay into such capital reserve fund (1) any monies appropriated and made  available by the state or the city of New York for the purposes of such fund, (2) any proceeds of sale of notes  or  bonds  to  the  extent provided in the resolution of the fund authorizing the issuance thereof, and (3) any other monies which may be made available to the fund for the purpose  of  such capital reserve fund from any other source or sources. All moneys held in the capital reserve fund, established  for  bonds  of the  fund  secured  by  such  capital reserve fund except as hereinafter provided, shall be used solely for the payment of the principal of  such bonds  as  the  same  mature,  required  payments  to  any  sinking fund established  for  the  amortization  of  such  term  bonds  (hereinafter referred  to  as "sinking fund payments"), 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 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bonds are redeemed prior to maturity;  provided,  however,  that  moneys  in  such  capital reserve fund shall not be withdrawn therefrom at any time in such amount as  would reduce the amount of such fund to less than the maximum amount of principal and interest maturing and becoming  due  and  sinking  fund payments  required to be made in any succeeding fiscal year on all bonds of the fund secured by the capital reserve fund then outstanding, except for the purpose of paying principal, interest and sinking fund  payments becoming due on such bonds of the fund maturing and becoming due and for the payment of which other monies of the fund are not available. For the purposes  of  this  subdivision,  in  computing  the  maximum  amount of principal maturing in any succeeding calendar year, the principal amount of any term bonds which are to be amortized  by  sinking  fund  payments shall  not be included in the computation. Any income or interest earned by, or increment to, the capital reserve  fund  due  to  the  investment thereof  may  be transferred to other funds or accounts to the extent it does not reduce the amount of the 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 bonds of the fund then outstanding secured by the capital reserve fund.  (b) The fund shall not issue bonds secured by the capital reserve fund 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 fiscal year on the bonds then to be issued and on  all  other bonds  of  the fund then outstanding secured by the capital reserve fund will exceed the amount of the  capital  reserve  fund  at  the  time  of issuance  unless  the fund, at the time of issuance of such bonds, shall deposit in the capital reserve fund from the proceeds of the bonds so to be issued, or otherwise, an amount which, together with the amount  then in  such fund, will be not less than the maximum amount of principal and interest maturing and becoming due and sinking fund payments required to be made in any succeeding fiscal year on such bonds then  to  be  issued and  on  all  other  bonds  of  the fund then outstanding secured by the capital reserve fund.  (c) To assure the continued operation  and  solvency  of  the  capital reserve  fund  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 fiscal year on all bonds of the fund then outstanding secured by the capital reserve  fund. In order further to assure such maintenance of the capital reserve fund, the board of education shall annually request from the city of New York and pay over to the fund, for deposit in the capital reserve  fund, such  sum,  if any, as shall be certified by the chairman of the fund to the board, the mayor and the director of management and  budget  of  the city  of New York 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 the next succeeding fiscal year on the bonds of the  fund  then  outstanding secured  by  the  capital reserve fund; provided, however, that such sum shall have been first appropriated by the city to  the  board  or  shall otherwise  have  been  made  lawfully  available  to  the board for such purpose. The chairman of the fund shall annually,  not  later  than  the fifteenth  day  of February in each year, make and deliver to the board, the mayor and the director of  management  and  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 paid to the fund by the board during the then  current  fiscal  year  of  the fund.  In the event of the failure or inability of the board to pay over the stated amount to the fund on or before  August  first  of  the  same year,  the  chairman of the fund shall forthwith make and deliver to the comptroller of the state of New York a further certificate restating the amount so required and, after the comptroller of the state of  New  York shall  have  given  written notice to the commissioner of education, the mayor and director of management and budget, such amount shall  be  paid over  to the fund by the comptroller of the state of New York out of the next payment of state aid apportioned to the city of New York on  behalf of  the  city school district of the city of New York for the support of common schools or such other aid or assistance  payable  in  support  of common  schools  as shall supersede or supplement such state aid for the support of common schools, including federal moneys apportioned  by  the state  to the city of New York on behalf of the city school district for the support of common schools. Any amount so paid over to the fund shall be deducted from the corresponding apportionment of state education  aid or other aid or assistance for education otherwise credited to the board of  education  for its purposes and shall not obligate the state to make or entitle the city or the board of education to receive any  additional or increased apportionment or payment of state aid for school purposes.  (d)  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 fund.   2. The fund may create and establish with the comptroller  or  with  a trustee  one  or  more  additional  funds  or  accounts  and, subject to agreements with bondholders and noteholders, may pay into such funds  or accounts  (i)  fees and charges collected by the fund, (ii) monies which shall be transferred from the  capital  reserve  fund  pursuant  to  the provisions  of  paragraph  (a)  of  subdivision one of this section, and (iii) any other monies which may be made available to the fund from  any other  source  or  sources.  The  monies held in or credited to any such reserve fund or account may, in the discretion of the fund  but  subject to  agreements with bondholders and noteholders, be used by the fund (a) for the repayment of  advances  from  the  city  of  New  York,  (b)  to reimburse  the board of education of the city of New York the reasonable costs of services performed by  the  board  for  the  fund  pursuant  to section  four  hundred 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 principal of and interest on bonds or notes issued by the fund 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  issued  by  the fund,  (f)  for  such  other  corporate  purposes  as  the  fund  in its discretion shall determine and provide, or (g) for payment to the  board of education for school purposes.   3.  (a)  The  fund  may create and establish one or more special funds (herein referred to as debt service reserve funds), and, to secure bonds of the fund issued on or after the twenty-fourth day of  July,  nineteen hundred  seventy-six, shall pay into each such debt service reserve fund (1) any monies appropriated and made available by the state or  city  of New  York  for  the  purposes  of such fund, (2) any proceeds of sale of notes or bonds to the extent provided in  the  resolution  of  the  fund authorizing  the issuance thereof, and (3) any other monies which may be made available to the fund for the purposes of  any  such  debt  service reserve fund from any other source or sources. All moneys held in a debt service  reserve  fund,  except  as  hereinafter provided, shall be used solely for the payment of the principal of bonds of the fund as the same mature, required payments  to  any  sinking  fund  established  for  the amortization  of  term  bonds  (hereinafter referred to as "sinking fund payments"), so secured, the purchase or redemption of bonds of the  fund so secured, the payment of interest on such bonds of the fund so secured or  the  payment of any redemption premium required to be paid when such bonds secured by a debt service  reserve  fund  are  redeemed  prior  to maturity;  provided, however, that moneys in a debt service 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 debt service reserve fund requirement established pursuant to the agreement with the  holders of  the  bonds  of  the  fund secured by such debt service reserve fund, except for the purpose of paying principal of, interest and sinking fund payments becoming due on such bonds of the fund  maturing  and  becoming due  and  for  the  payment  of  which  other monies of the fund are not available. Any income or interest earned by, or  increment  to,  a  debt service reserve fund due to the investment thereof may be transferred to other funds or accounts to the extent it does not reduce the amount of a debt   service   reserve  fund  below  the  debt  service  reserve  fund requirement.  (b) The fund shall not issue bonds secured by a debt  service  reserve fund at any time if the amount in such debt service reserve fund is less than  the  debt service reserve fund requirement at the time of issuance unless the fund, at the time of issuance of such bonds, shall deposit in the debt service reserve fund from the proceeds of the bonds  so  to  be issued,  or otherwise, an amount which, together with the amount then in such fund,  will  be  not  less  than  the  debt  service  reserve  fund requirement  established  by the agreement with the holders of the bonds of the fund secured thereby.  (c) To assure the continued operation and solvency of the fund for the carrying out of the public purposes of this article, provision  is  made in  paragraph  (a)  of  this  subdivision for the accumulation in a debt service reserve fund of an amount equal to the debt service reserve fund requirement on all bonds of the fund then outstanding secured by a  debt service  or  debt  service reserve fund. In order further to assure such maintenance of a debt service reserve fund, the board of education shall annually request from the city of New York and  pay  over  to  the  fund after making the payment required by paragraph (c) of subdivision one of this  section  for  deposit in a debt service reserve fund, such sum, if  any, as shall be certified by the chairman of the fund to the board, the mayor and the director of  the  budget  of  the  city  of  New  York  as necessary  to  restore such debt service reserve fund to an amount equal to  the  debt service reserve fund requirement for the bonds of the fund secured by such debt service reserve fund; provided, however, that  such sum shall have been first appropriated by the city to the board or shall otherwise  have  been  made  lawfully  available  to  the board for such purpose. The chairman of the fund shall annually,  not  later  than  the fifteenth  day  of February in each year, make and deliver to the board, the mayor and the director of the budget  his  certificate  stating  the amount,  if  any, required to restore a debt service reserve fund to the amount aforesaid and the amount  so  stated  after  making  the  payment required  by  paragraph  (c)  of subdivision one of this section if any, shall be paid to the fund by the board during the  then  current  fiscal year  of the fund. In the event of the failure or inability of the board to pay over the stated amount to the fund on or before August  first  of the same year, the chairman of the fund shall forthwith make and deliver to  the  comptroller  of  the  state  of  New York a further certificate restating the amount so required and, after the comptroller of the state of New York shall have given written notice  to  the  commissioner,  the mayor  and  director of the budget, such amount after making the payment required by paragraph (c) of subdivision one of this  section  shall  be paid over to the fund by the comptroller of the state of New York out of the  next  payment  of  state aid apportioned to the city of New York on behalf of the city school district of the  city  of  New  York  for  the support  of  common  schools  or such other aid or assistance payable in support of common schools as shall supersede or  supplement  such  state aid  for  the  support  of  common  schools,  including  federal  moneys apportioned by the state to the city of New York on behalf of  the  city school  district  for  the support of common schools. Any amount so paid over to the fund under paragraph (c) of subdivision one of this  section shall   be  deducted  from  the  corresponding  apportionment  of  state education aid  or  other  aid  or  assistance  for  education  otherwise credited  to  the  board  of  education  for  its purposes and shall not obligate the state to make or entitle the city or the board of education to receive any additional or increased apportionment or payment of state aid for school purposes.  (d) In computing the amount of any debt service 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 fund.  (e)  The  maximum  debt  service reserve fund requirement for any debt service reserve fund created pursuant  to  this  subdivision  shall  not exceed  the  amount  of principal and interest maturing and becoming due and sinking fund payments required to be made in any year on  all  bonds of  the  fund secured by such debt service reserve fund. For purposes of this subdivision, in computing the maximum amount of principal  maturing in  any  year,  the  principal  amount of any term bonds which are to be amortized by  sinking  fund  payments  shall  not  be  included  in  the computation.   4.  In  addition  to the funds permitted to be established pursuant to subdivision two hereof, the fund  may  create  and  establish  with  the comptroller  or  with a trustee one or more additional funds or accounts and, subject to agreements with bondholders  and  noteholders,  may  pay into  such funds or accounts (i) fees and charges collected by the fund, (ii) monies which shall be transferred from a debt  service  or  reserve fund  pursuant  to the provisions of paragraph (a) of subdivision one of this section, and (iii) any other monies which may be made available  to  the  fund  from  any  other  source  or  sources.  The monies held in or credited to any such fund may, in the discretion of the fund but subject to agreements with bondholders and noteholders, be used by the fund  (a) for  the  repayment  of  advances  from  the  city  of  New York, (b) to reimburse the board of education of the city of New York the  reasonable costs  of  services  performed  by  the  board  for the fund pursuant to section four hundred 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 a  debt  service  or  a debt  service  reserve  fund, (e) for the payment of principal, interest and sinking fund payments for any bonds or notes issued by the fund 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 issued by the fund,  (f)  for such  other  corporate  purposes  as  the  fund  in its discretion shall determine and provide, or (g) for payment to the board of education  for school purposes.