NY Pub Auth L § 1311 (2021)
2021 New York Laws PBA - Public Authorities Article 5 - Public Utility Authorities Title 11-C - Capital District Transportation Authority 1311 - Reserve Funds and Appropriations.

§  1311. 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 debt service reserve funds (a) any   moneys 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  authority  authorizing  the  issuance   thereof,  and  (c)  any  other moneys which may be made available to the   authority for the purpose  of  such  funds  from  any  other  source  or   sources. The moneys 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 authority   secured by such debt service  reserve  fund  as  the  same  mature,  the   purchase 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provided,   however, that the authority shall have power to provide that  moneys  in   any  such  fund  shall  not  be  withdrawn therefrom at any time in such   amount as would reduce the amount of such fund to less than the  maximum   amount  of  principal  and  interest  maturing  and 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 or years not exceeding two such  years  on  the   bonds of the authority then outstanding and secured by such debt service   reserve fund, except for the purpose of paying principal of and interest   on such bonds of the authority secured by such debt service reserve fund   maturing  and  becoming due and 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 by the authority to any other fund or account   of the authority and the authority 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 principal  and  interest  maturing  and   becoming  due in any succeeding calendar year or years not exceeding two   such years on all bonds of the authority then outstanding and secured by   such debt service reserve fund.2. The authority shall have power to provide that it shall  not  issue   bonds  at  any  time  if  the  maximum  amount of principal and interest   maturing and becoming due in any succeeding calendar year or  years  not   exceeding  two such years 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   authority, at the time of the issuance of such bonds, shall  deposit  in   such  debt  service 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   principal and interest maturing and becoming due in any such  succeeding   calendar year or years not exceeding two such years on the bonds then to   be  issued  and on all other bonds of the authority then outstanding and   secured by such debt service reserve fund.3. 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 authority.