NY Pub Auth L § 3237 (2021)
2021 New York Laws PBA - Public Authorities Article 10-B Title 4 - New York Local Government Assistance Coporation 3237 - Capital Reserve Fund.

§  3237.  Capital  reserve  fund.  1. The corporation shall create and   establish one or more special  funds  (each  herein  referred  to  as  a   capital  reserve  fund),  which may be funded initially from proceeds of   bonds or notes of the corporation issued pursuant to this title,  in  an   amount  equal  to  the  capital reserve fund requirement of the bonds or   notes secured thereby. All amounts held in a capital reserve fund  shall   be  used solely for the payment of principal of or interest on the bonds   or notes secured thereby, sinking fund payments thereon, the  redemption   thereof  and payments to providers of bond or note facilities in respect   of payments of such principal, interest or sinking fund payments made by   them, in accordance with  the  applicable  provisions  of  any  and  all   resolutions and trust indentures, if any, securing such bonds and notes.   Any  income or interest, not required to be rebated to the United States   to provide for continued exclusion from gross income for federal  income   tax  purposes  of  interest  on  the bonds and notes of the corporation,   earned by, or  increment  to,  the  capital  reserve  fund  due  to  the   investment  thereof,  in  excess  of  the  amount  thereof needed to pay   interest on the bonds or notes issued to fund the capital reserve  fund,   shall  be  used  to  pay  debt  service  on bonds or notes issued by the   corporation. Any amounts released from a capital reserve fund  shall  be   applied, or set aside to be applied when practicable, by the corporation   to  the  payment  of  principal  on the applicable bonds or notes, or to   redemption thereof or to the providers of bond or note facilities.2. In computing the  amount  of  the  capital  reserve  fund  for  the   purposes  of this section, obligations in which all or a portion of such   fund shall be invested shall be valued at par if purchased at par or, if   purchased at a premium above or a discount below par, the value  at  any   given  date  obtained by dividing the total premium or discount at which   such obligations were purchased by the number of interest payment  dates   remaining  to  maturity  on such obligations after such purchase, and by   multiplying the number so calculated by the number of  interest  payment   dates having passed since the date of such purchase; and (i) in the case   of  such  obligations  purchased  at a premium, by deducting the product   thus obtained from the purchase price; and (ii)  in  the  case  of  such   obligations purchased at a discount, by adding the product thus obtained   to  the  purchase price. In lieu of a deposit of money or obligations to   the capital reserve fund, the corporation, having  due  regard  for  the   security  and marketability of all affected bonds and notes, may satisfy   the whole or any portion of the  capital  reserve  fund  requirement  by   providing  one  or more surety agreements, insurance agreements, letters   of credit or other type  of  agreement  or  arrangement  satisfying  the   provisions  of  all  applicable resolutions or trust indentures, if any,   each of which provides for  the  availability,  at  all  times  required   thereunder,  of  the  amount of money or the value of the obligations in   lieu of the deposit of which such agreement or arrangement is provided.