NY Pub Auth L § 1291 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 12 - New York State Environmental Facilities Corporation 1291 - Reserve Funds and Appropriations.

§  1291.  Reserve  funds  and  appropriations.  1. The corporation may   create and establish one or more reserve  funds  to  be  known  as  debt   service  reserve  funds and may pay into such debt service reserve funds   (a) any monies appropriated and made available  by  the  state  for  the   purposes  of  such funds, (b) any proceeds of sale of notes or bonds, to   the extent provided in the resolution of the corporation authorizing the   issuance thereof, and (c) any other monies which may be  made  available   to  the  corporation for the purpose of such funds from any other source   or sources. The monies held in or credited to any debt  service  reserve   fund  established  under  this  section, except as hereinafter provided,   shall be used solely for the payment of the principal of  bonds  of  the   corporation secured by such debt service reserve fund as the same mature   or  as  payments  required  by  the  terms  of any contracts therefor as   sinking fund payments become due, the purchase  of  such  bonds  of  the   corporation, the payment of interest on such bonds of the corporation or   the  payment  of  any  redemption  premium required to be paid when such   bonds are  redeemed  prior  to  maturity;  provided  however,  that  the   corporation  shall  have  power  to provide that monies in any such fund   shall not be withdrawn therefrom at any time in  such  amount  as  would   reduce  the  amount  of such fund to less than the maximum amount of any   sinking fund payments becoming due and principal and  interest  maturing   and  becoming  due  in  any succeeding calendar year on the bonds of the   corporation then outstanding and secured by such  debt  service  reserve   fund,  except  for  the  purpose  of  paying  any  sinking fund payments   becoming due and  principal  of  and  interest  on  such  bonds  of  the   corporation  secured  by  such  debt  service  reserve fund maturing and   becoming  due  and  for  the  payment  of  which  other  monies  of  the   corporation  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  by  the  corporation to any other fund or   account of the corporation and  the  corporation  shall  have  power  to   provide  that any such transfer shall not reduce the amount of such debt   service reserve fund below  the  maximum  amount  of  any  sinking  fund   payments  becoming  due and principal and interest maturing and becoming   due in any succeeding calendar year on all bonds of the corporation then   outstanding and secured by such debt service reserve fund.2. The corporation shall not issue bonds at any time  if  the  maximum   amount  of  any  sinking  fund  payments  becoming due and principal and   interest maturing and becoming due in any 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 debt service reserve   fund at the time of issuance, unless the corporation, at the time of the   issuance of such bonds, shall deposit in such 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 debt service reserve  fund,   will  be  not  less than the maximum amount of any sinking fund payments   becoming due and 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 corporation then  outstanding  and  secured  by  such  debt   service reserve fund.3.  To  assure the continued operation and solvency of the corporation   for the carrying out of the public purposes of this title, 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   any  sinking  fund  payments  becoming  due  and  principal and interest   maturing and becoming due in any succeeding calendar year as  determined   by  the corporation on all bonds of the corporation then outstanding and   secured by such debt service reserve fund. In order  further  to  assure    the  maintenance  of  such  debt service reserve funds in the respective   amounts provided therefor by the corporation  in  the  issuance  of  its   bonds  secured  thereby, there shall be annually apportioned and paid to   the  corporation for deposit in each such debt service reserve fund such   amount, if any, as shall be certified by the chief executive officer  of   the  corporation to the governor and director of the budget as necessary   to restore such debt service reserve fund to  an  amount  equal  to  the   maximum  amount  provided  therefor by the corporation as aforesaid. The   chief executive officer of the corporation shall annually, on or  before   December  first,  make  and  deliver to the governor and director of the   budget his certificate stating the amount, if any, required  to  restore   each debt service reserve fund to the amount aforesaid and the amount or   amounts  so  certified,  if  any,  shall  be apportioned and paid to the   corporation 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  forty  million  five  hundred  thirteen 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.  For  the  purposes of this section, "maximum amount of any sinking   fund payments becoming due  and  principal  and  interest  maturing  and   becoming  due  in  any  succeeding  year"  means,  as  of  the  date  of   computation, the largest amount of money required in any succeeding year   for the payment of interest on and  maturing  principal  of  outstanding   bonds  and payments required by the terms of any contracts to be made to   any sinking fund established for  the  payment  or  redemption  of  such   bonds,  provided  that  the principal amount of any bonds required to be   made to any such sinking fund during any year shall, for the purposes of   this definition, be considered as maturing in the year during which such   payment is required and not in the year in which the stated maturity  of   such  bonds  occurs. 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 corporation.