NY Pub Auth L § 1860-A (2021)
2021 New York Laws PBA - Public Authorities Article 8 - Miscellaneous Authorities Title 9 - New York State Energy Research and Development Authority 1860-A - Reserve Funds and Appropriations.

§  1860-a.  Reserve  funds  and  appropriations.  1. The authority may   create and establish one or more reserve  funds  to  be  known  as  debt   service reserve funds and may pay into such reserve funds (a) any moneys   appropriated  and  made  available by the state for the purposes of such   funds, (b) any proceeds of  sale  of  bonds  and  notes  to  the  extent   provided  in  the  resolution  of the authority authorizing the issuance   thereof, (c) any moneys directed to be transferred by the  authority  to   such  funds, and (d) any other moneys which may be made available to the   authority 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  bonds  of  the   authority  secured  by  such  reserve fund, as the same mature, required   payments to any sinking fund established for the  amortization  of  such   bonds (hereinafter referred to as "sinking fund payments"), the purchase   or redemption of such bonds of the authority, the payment of interest on   such  bonds  of  the  authority 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when such bonds  are  redeemed  prior  to  maturity;   provided,  however,  that moneys in any such fund shall not be withdrawn   therefrom at any time in such amount as would reduce the amount of  such   fund  to less than the maximum amount of principal and interest maturing   and becoming due in any succeeding calendar year on  the  bonds  of  the   authority  then outstanding and secured by such reserve fund, except for   the purpose of paying  principal  and  interest  on  the  bonds  of  the   authority  secured  by  such  reserve fund maturing and becoming due and   sinking fund payments for the payment  of  which  other  moneys  of  the   authority  are  not  available.    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 authority   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 in any  succeeding  calendar  year  on  all  bonds  of  the   authority  then  outstanding  and  secured  by  such  reserve  fund.  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 reserve   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 bonds at any time if the maximum   amount of  principal  and  interest  maturing  and  becoming  due  in  a   succeeding  calendar year on the bonds outstanding and then to be issued   and secured by a debt service reserve fund will  exceed  the  amount  of   such  reserve fund at the time of issuance, unless the authority, 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 bonds then to be issued and   on all other bonds of the authority then outstanding and secured by such   reserve fund.3. To assure the continued operation and solvency of the authority for   the carrying out of the public purposes of this act provision is made in   subdivision one of this  section  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  in  any  succeeding   calendar year on all bonds of the authority 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 authority for deposit in each debt service reserve fund such sum,    if  any,  as  shall be certified by the chairman of the authority to the   governor and state 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 bonds of the authority then outstanding and secured by such  reserve   fund.  The  chairman  of  the  authority  shall  annually,  on or before   December first, make and deliver to the governor and state  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   authority  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  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 debt service reserve fund or   funds exceed nine million six hundred sixty 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.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 debt service reserve   fund requirements and operating expenses.5. As used in this section, (a) the term  "operating  expenses"  shall   mean  ordinary  expenditures  for  operation  and  administration of the   authority, including maintenance, repair and  replacement  of  authority   property; and (b) the term "available operating revenues" 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 covenant or agreement  with  holders  of  any   bonds or notes of the authority to be applied to any purposes other than   payment of operating expenses of the authority.