2023 New York Laws › PVH - Private Housing Finance › Article 3 - New York State Housing Finance Agency › 47 - Reserve Funds and Appropriations.

§ 47. Reserve funds and appropriations. 1. (a) The agency shall create
and  establish  a  special  fund  (herein referred to as capital reserve
fund), and shall pay into such  capital  reserve  fund  (1)  any  monies
appropriated  and  made  available by the state for the purposes of such
fund, (2) any proceeds of sale  of  notes  or  bonds  other  than  state
university  construction  notes  or state university construction bonds,
equity notes or equity bonds, non-profit  project  notes  or  non-profit
project  bonds,  hospital and nursing home project notes or hospital and
nursing home project bonds, urban rental project notes or  urban  rental
project bonds, health facilities notes or health facilities bonds, youth
facilities  project  notes  or youth facilities project bonds, community
mental health services and developmental disabilities  services  project
notes or community mental health services and developmental disabilities
services project bonds, community senior citizens services project notes
or  community  senior  citizens  services  project bonds, mental hygiene
improvement notes  or  mental  hygiene  improvement  bonds  and  revenue
housing bonds, and bonds and notes for the housing program to the extent
provided  in  the  resolution  of  the  agency  authorizing the issuance
thereof, and (3) any other moneys which may be  made  available  to  the
agency  for  the  purpose of such fund from any other source or sources.
All moneys held in the  capital  reserve  fund,  except  as  hereinafter
provided, shall be used solely for the payment of the principal of bonds
of  the  agency  other  than state university construction bonds, equity
bonds, non-profit project  bonds,  hospital  and  nursing  home  project
bonds,  urban  rental  project  bonds,  health  facilities  bonds, youth
facilities  project  bonds,  community  mental   health   services   and
developmental  disabilities  services  project  bonds,  community senior
citizens services project bonds, mental hygiene  improvement  bonds  and
revenue  housing  bonds,  and bonds and notes for the housing program as
the same mature, required payments to any sinking fund established in  a
resolution of the agency for the amortization of term bonds (hereinafter
referred  to  as "sinking fund payments"), the purchase or redemption of
bonds of the agency other  than  state  university  construction  bonds,
equity  bonds,  non-profit  project  bonds,  hospital  and  nursing home
project bonds, urban rental  project  bonds,  health  facilities  bonds,
youth  facilities  project  bonds,  community mental health services and
developmental disabilities  services  project  bonds,  community  senior
citizens  services  project  bonds, mental hygiene improvement bonds and
revenue housing bonds, and bonds and notes for the housing  program  the
payment  of  interest  on such bonds of the agency or the payment of any
redemption premium required to be paid  when  such  bonds  are  redeemed
prior to maturity; provided, however, that monies in 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 and sinking fund payments required to
be  made in any succeeding calendar year on all bonds of the agency then
outstanding other  than  state  university  construction  bonds,  equity
bonds,  non-profit  project  bonds,  hospital  and  nursing home project
bonds, urban  rental  project  bonds,  health  facilities  bonds,  youth
facilities   project   bonds,   community  mental  health  services  and
developmental disabilities  services  project  bonds,  community  senior
citizens  services  project  bonds, mental hygiene improvement bonds and
revenue housing bonds and bonds  and  notes  for  the  housing  program,
except for the purpose of paying principal of, interest and sinking fund
payments  becoming due on such bonds of the agency maturing and becoming
due and for the payment of which other moneys  of  the  agency  are  not
available.  For  the  purposes  of  this  subdivision,  in computing the
maximum amount of principal maturing at a  single  future  date  (herein

called  "term  bonds")  in  any  succeeding calendar year, the principal
amount of any such term bonds which are subject to mandatory  redemption
prior to such future date by sinking fund payments shall not be included
in  the computation determining the maximum amount of principal maturing
in said future year. Any income or interest earned by, or increment  to,
the   capital  reserve  fund  due  to  the  investment  thereof  may  be
transferred by the agency to the general reserve fund or other  fund  of
the  agency  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  such  bonds  of  the  agency  then
outstanding other  than  state  university  construction  bonds,  equity
bonds,  non-profit  project  bonds,  hospital  and  nursing home project
bonds, urban  rental  project  bonds,  health  facilities  bonds,  youth
facilities   project   bonds,   community  mental  health  services  and
developmental disabilities  services  project  bonds,  community  senior
citizens  services  project  bonds, mental hygiene improvement bonds and
revenue housing bonds and bonds and notes for the housing program.
(b) The agency shall not  issue  bonds  other  than  state  university
construction bonds, equity bonds, non-profit project bonds, hospital and
nursing   home   project  bonds,  urban  rental  project  bonds,  health
facilities bonds,  youth  facilities  project  bonds,  community  mental
health  services  and developmental disabilities services project bonds,
community  senior  citizens  services  project  bonds,  mental   hygiene
improvement  bonds and revenue housing bonds and bonds and notes for the
housing program at any time secured by the capital reserve fund  if  the
maximum  amount  of principal and interest maturing and becoming due and
sinking fund payments required to be made in a succeeding calendar  year
on  such  bonds  then  to be issued and on all other bonds of the agency
then outstanding other than state university construction bonds,  equity
bonds,  non-profit  project  bonds,  hospital  and  nursing home project
bonds, urban  rental  project  bonds,  health  facilities  bonds,  youth
facilities   project   bonds,   community  mental  health  services  and
developmental disabilities  services  project  bonds,  community  senior
citizens  services  project  bonds, mental hygiene improvement bonds and
revenue housing bonds and bonds and notes for the housing  program  will
exceed  the  amount  of the capital reserve fund at the time of issuance
unless the agency, at the time of issuance of such bonds, shall  deposit
in  such  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 calendar year on such bonds then to be issued and on
all other  bonds  of  the  agency  then  outstanding  other  than  state
university  construction  bonds, equity bonds, non-profit project bonds,
hospital and nursing home project bonds,  urban  rental  project  bonds,
health  facilities  bonds,  youth  facilities  project  bonds, community
mental health services and developmental disabilities  services  project
bonds,  community senior citizens services project bonds, mental hygiene
improvement bonds and revenue housing bonds and bonds and notes for  the
housing program.
(c)  The  agency  shall  not  issue  bonds  and notes other than state
university construction bonds and state university  construction  notes,
hospital  and  nursing  home project bonds and hospital and nursing home
project notes, health facilities  bonds  and  health  facilities  notes,
youth  facilities  project  bonds  and  youth  facilities project notes,
community mental health services and developmental disabilities services
project bonds and community mental  health  services  and  developmental

disabilities  services project notes, community senior citizens services
project notes or community senior citizens services  project  bonds  and
mental  hygiene  improvement  bonds and mental hygiene improvement notes
and  bonds  and  notes  for the housing program for any of its corporate
purposes in an aggregate principal amount exceeding  thirty-one  billion
two  hundred eighty million dollars, excluding bonds and notes issued to
refund outstanding bonds and notes.
(d) To assure the continued operation and solvency of the  agency  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 calendar year on all
bonds of  the  agency  then  outstanding  other  than  state  university
construction bonds, equity bonds, non-profit project bonds, hospital and
nursing   home   project  bonds,  urban  rental  project  bonds,  health
facilities bonds,  youth  facilities  project  bonds,  community  mental
health  services  and developmental disabilities services project bonds,
community  senior  citizens  services  project  bonds,  mental   hygiene
improvement  bonds and revenue housing bonds and bonds and notes for the
housing program. In order further to  assure  such  maintenance  of  the
capital  reserve  fund,  there shall be annually apportioned and paid to
the agency for deposit in the capital reserve fund such sum, if any,  as
shall  be  certified  by  the chairman of the agency to the governor and
director of the budget 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  any  succeeding  calendar  year  on  the  bonds  of  the agency then
outstanding other  than  state  university  construction  bonds,  equity
bonds,  non-profit  project  bonds,  hospital  and  nursing home project
bonds, urban  rental  project  bonds,  health  facilities  bonds,  youth
facilities   project   bonds,   community  mental  health  services  and
developmental disabilities  services  project  bonds,  community  senior
citizens  services  project  bonds, mental hygiene improvement bonds and
revenue housing bonds and bonds and notes for the housing  program.  The
chairman of the agency 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 the capital reserve fund
to the amount aforesaid and the amount  so  stated,  if  any,  shall  be
apportioned  and paid to the agency during the then current state fiscal
year. The principal amount of bonds secured by the capital reserve  fund
to  which state funds are apportionable pursuant to this paragraph 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  the  public authorities law whose affirmative determination shall be
conclusive as to all matters of law and fact solely for the purposes  of
the  limitations  contained in this paragraph, but in no event shall the
total amount of bonds so secured by such a capital reserve fund or funds
exceed three  hundred  thirty-eight  million  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.
(e)  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 agency.
2.  The  agency  shall  create  and  establish  a special fund (herein
referred to as general reserve fund) and shall pay into  such  fund  all
fees  and  charges  collected by the agency pursuant to paragraph (a) of
subdivision eleven of section forty-four of this article, or  otherwise,
other  than  fees and charges collected in connection with the making of
mortgage loans (or commitments therefor) to mutual companies, non-profit
companies, urban rental companies or community development corporations,
and any monies which the agency shall transfer from the capital  reserve
fund  pursuant  to the provisions of paragraph (a) of subdivision one of
this section. Such monies and any other monies  paid  into  the  general
reserve  fund  may,  in  the  discretion  of  the  agency but subject to
agreements with bondholders and noteholders, be used by the  agency  (a)
for  the  repayment  of  advances  from the state in accordance with the
provisions of repayment agreements between the agency and  the  director
of  the  budget,  (b) to reimburse the division of housing and community
renewal  the  reasonable  costs  of  the  services  performed   by   the
commissioner  of  housing  and community renewal and division of housing
and community renewal pursuant to section 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 the principal of and
interest on bonds or notes  other  than  state  university  construction
bonds  or  state  university  construction notes, equity bonds or equity
notes, non-profit project bonds or non-profit  project  notes,  hospital
and  nursing  home  project  bonds  or hospital and nursing home project
notes, urban rental project bonds or urban rental project notes,  health
facilities  bonds  or  health facilities notes, youth facilities project
bonds  or  youth  facilities  project  notes,  community  mental  health
services  and  developmental  disabilities  services  project  bonds  or
community mental health services and developmental disabilities services
project notes, community  senior  citizens  services  project  notes  or
community   senior  citizens  services  project  bonds,  mental  hygiene
improvement bonds  or  mental  hygiene  improvement  notes  and  revenue
housing  bonds and bonds and notes for the housing program issued by the
agency 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 other than  state  university
construction  bonds or state university construction notes, equity bonds
or equity notes, non-profit project bonds or non-profit  project  notes,
hospital  and  nursing  home  project bonds or hospital and nursing home
project notes, urban rental project bonds or urban rental project notes,
health facilities bonds or health  facilities  notes,  youth  facilities
project bonds or youth facilities project notes, community mental health
services  and  developmental  disabilities  services  project  bonds  or
community mental health services and developmental disabilities services
project notes, community  senior  citizens  services  project  notes  or
community   senior  citizens  services  project  bonds,  mental  hygiene
improvement bonds  or  mental  hygiene  improvement  notes  and  revenue
housing  bonds and bonds and notes for the housing program issued by the
agency, or (f) for such other corporate purposes of the  agency  as  the
agency in its discretion shall determine and provide.
3.  (a)  The  agency shall create and establish a special fund (herein
referred to as equity reserve fund), and  shall  pay  into  such  equity

reserve fund (1) any monies appropriated and made available by the state
for  the purposes of such fund, (2) any proceeds of sale of equity notes
or equity bonds, to the extent provided in the resolution of the  agency
authorizing  the issuance thereof, and (3) any other monies which may be
made available to the agency for the purpose of such fund from any other
source or sources. All moneys held in the equity reserve fund, except as
hereinafter provided, shall be  used  solely  for  the  payment  of  the
principal  of  equity  bonds  of  the  agency,  as  the same mature, the
purchase of equity bonds of the  agency,  the  payment  of  interest  on
equity  bonds  of  the  agency  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  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 all equity bonds  of
the  agency then outstanding, except for the purpose of paying principal
and interest on equity bonds of the agency maturing and becoming due and
for the payment of which other monies of the agency are  not  available.
Any  income  or  interest earned by, or increment to, the equity reserve
fund due to the investment thereof may be transferred to the equity loan
fund or other fund of the agency to the extent it does  not  reduce  the
amount  of the equity reserve fund below the maximum amount of principal
and interest maturing and becoming due in any succeeding  calendar  year
on all equity bonds of the agency then outstanding.
(b) The agency shall not issue equity bonds at any time secured by the
equity  reserve  fund  if  the  maximum amount of principal and interest
maturing and becoming due in a succeeding calendar year  on  the  equity
bonds then to be issued and on all other equity bonds of the agency then
outstanding  will  exceed  the  amount of the equity reserve fund at the
time of issuance, unless the agency, at the time  of  issuance  of  such
bonds,  shall  deposit in such 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 in any succeeding  calendar  year  on
the  equity bonds then to be issued and on all other equity bonds of the
agency then outstanding.
(c) The agency shall not issue equity bonds and  equity  notes  in  an
aggregate  principal  amount  exceeding fifty million dollars, excluding
equity bonds and notes issued to refund  outstanding  equity  bonds  and
notes.
(d)  To  assure the continued operation and solvency of the agency 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
equity 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 equity bonds of the  agency  then  outstanding.  In
order  further  to  assure  such maintenance of the equity reserve fund,
there shall be annually apportioned and paid to the agency  for  deposit
in  the  equity  reserve fund such sum, if any, as shall be certified by
the chairman of the agency to the governor and director of the budget as
necessary to restore the equity 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 equity  bonds  of  the  agency  then
outstanding.  The  chairman  of  the agency 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
the equity reserve fund to  the  amount  aforesaid  and  the  amount  so
stated,  if  any, shall be apportioned and paid to the agency during the

then current state fiscal year. The principal amount of bonds secured by
the equity reserve fund to which state funds are apportionable  pursuant
to  this  paragraph  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 the public authorities law whose
affirmative determination shall be conclusive as to all matters  of  law
and  fact  solely  for the purposes of the limitations contained in this
paragraph, but in no event shall the total amount of bonds so secured by
such a equity  reserve  fund  or  funds  exceed  three  hundred  fifteen
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.
(e)  In  computing  the  amount  of  the  equity  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 if purchased at par, or if
purchased at other than par, at amortized value.
4.  The  agency  shall  create  and  establish  a special fund (herein
referred to as equity loan fund) and shall pay into such fund any monies
which the agency shall transfer from the equity reserve fund pursuant to
the provisions of paragraph (a) of subdivision three of this section and
any monies received in payment of principal of  or  interest  on  equity
loans.   Such monies and any other monies paid into the equity loan fund
may, in the discretion of the agency, but subject to agreements with the
holders of equity bonds and equity notes be used by the agency  (a)  for
the  repayment  of  advances  from  the  state  in  accordance  with the
provisions of repayment agreements between the agency and  the  director
of  the  budget, (b) to reimburse the division of housing the reasonable
costs of the services performed  by  the  commissioner  of  housing  and
division  of housing pursuant to section fifty-five of this article, (c)
to pay all costs,  expenses  and  charges  of  financing  equity  loans,
including  fees  and  expenses  of  trustees  and paying agents, (d) for
transfers to the equity  reserve  fund,  (e)  for  the  payment  of  the
principal  of and interest on equity bonds or equity notes issued by the
agency 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 equity bonds or equity notes issued  by  the
agency,  or  (f)  for such other corporate purposes of the agency as the
agency in its discretion shall determine and provide.
5. (a) The agency may create and  establish  one  or  more  additional
reserve funds to be known as debt service reserve funds and may pay into
such reserve funds (1) any moneys appropriated and made available by the
state  for  the  purposes  of  such  funds,  (2) any proceeds of sale of
non-profit project notes or non-profit  project  bonds,  to  the  extent
provided  in  the  resolution  of  the  agency  authorizing the issuance
thereof, and (3) any other moneys which may be  made  available  to  the
agency  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 non-profit project
bonds of the agency secured by such reserve fund, as  the  same  mature,
required payments to any sinking fund established in a resolution of the
agency  for  the  amortization of term bonds (hereinafter referred to as

"sinking fund payments"), the purchase or redemption of such  non-profit
project  bonds of the agency, the payment of interest on such non-profit
project bonds of the agency 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, interest maturing and
becoming due and sinking fund  payments  required  to  be  made  in  any
succeeding  calendar  year on the non-profit project bonds of the agency
then outstanding and secured  by  such  reserve  fund,  except  for  the
purpose  of  paying  principal  and  interest  and sinking fund payments
becoming due on the non-profit project bonds of the  agency  secured  by
such reserve fund maturing and becoming due and for the payment of which
other  moneys  of the agency are not available. For the purposes of this
subdivision five, in computing the maximum amount of principal  maturing
at  a  single future date (herein called "term bonds") in any succeeding
calendar year, the principal amount of any such  term  bonds  which  are
subject  to  mandatory  redemption  prior to such future date by sinking
fund payments shall not be included in the computation  determining  the
maximum  amount of principal maturing in said future year. 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 agency 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 and sinking fund payments required to
be  made in any succeeding calendar year on all non-profit project bonds
of the agency then outstanding and secured by such reserve fund.
(b) The agency shall not issue non-profit project bonds 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 calendar
year on the non-profit project bonds outstanding and then to  be  issued
and  secured  by  a  debt service reserve fund will exceed the amount of
such reserve account at the time of issuance, unless the agency, 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 and sinking fund payments required to  be  made  in  any  succeeding
calendar  year  on the non-profit project bonds then to be issued and on
all other non-profit project bonds of the agency  then  outstanding  and
secured by such reserve fund.
(c)  To  assure the continued operation and solvency of the agency for
the carrying out of the public purposes of  this  article  provision  is
made  in  paragraph (a) of this subdivision 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  and sinking fund
payments required to be made in any  succeeding  calendar  year  on  all
non-profit  project  bonds of the agency 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 agency for deposit in each debt service reserve fund such sum, if
any, as shall be certified by the chairman of the agency to the governor
and  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 and sinking fund payments required to be  made  in  any
succeeding  calendar  year on the non-profit project bonds of the agency
then outstanding and secured by such reserve fund. The chairman  of  the
agency  shall annually, on or before December first, make and deliver to

the governor and 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 agency 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
paragraph 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 the public authorities law whose
affirmative determination shall be conclusive as to all matters  of  law
and  fact  solely  for  the purpose of the limitations contained in this
paragraph, but in no event shall the total amount of bonds so secured by
such  a  debt  service  reserve  fund  or  funds  exceed  seven  hundred
ninety-three  million  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.
(d) In computing any debt service reserve fund  for  the  purposes  of
this  section, securities in which all or a portion of such reserve fund
shall be invested shall be valued at par, or if purchased at  less  than
par, at their cost to the agency.
6.  (a) The agency may create and establish a special fund to be known
as hospital and nursing home capital reserve fund and may pay into  such
reserve  funds  (1)  any  monies  appropriated and made available by the
state for the purposes of such  funds,  (2)  any  proceeds  of  sale  of
hospital  and  nursing  home  project notes or hospital and nursing home
project bonds, to the extent provided in the resolution  of  the  agency
authorizing  the issuance thereof, and (3) any other monies which may be
made available to the agency for the purposes of such accounts from  any
other  source  or sources. The monies held in or credited to the capital
reserve fund established under this subdivision  except  as  hereinafter
provided,  shall  be  used  solely  for  the payment of the principal of
hospital and nursing home project bonds of the agency  secured  by  such
reserve  fund, as the same mature, required payments to any sinking fund
established in a resolution of the agency for the amortization  of  term
bonds  (hereinafter referred to as "sinking fund payments") the purchase
or redemption of such hospital and nursing home  project  bonds  of  the
agency,  the  payment  of  interest  on  such  hospital and nursing home
project bonds of the agency, or the payment of  any  redemption  premium
required  to  be  paid  when  such bonds are redeemed prior to maturity;
provided, however, 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 principal and interest  maturing
and  becoming  due  and sinking fund payments required to be made in any
succeeding calendar year on the hospital and nursing home project  bonds
of  the agency then outstanding and secured by such reserve fund, except
for the purpose of paying principal, interest on  hospital  and  nursing
home  project  bonds of the agency secured by such reserve fund maturing
and becoming due and sinking fund payments  becoming  due  and  for  the
payment  of  which other monies of the agency are not available. For the
purposes of this subdivision six, in computing  the  maximum  amount  of
principal  maturing at a single future date (herein called "term bonds")
in any succeeding calendar year, the principal amount of any  such  term

bonds  which  are  subject  to mandatory redemption prior to such future
date by sinking fund payments shall not be included in  the  computation
determining  the  maximum  amount  of  principal maturing in said future
year.  Any  income  or  interest  earned  by,  or increment to, any such
hospital and nursing home capital reserve fund  due  to  the  investment
thereof  may  be  transferred  to  the hospital and nursing home general
reserve fund or other fund of the agency, to  the  extent  it  does  not
reduce the amount of such hospital and nursing home 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 hospital and nursing  home  project  bonds  of  the
agency then outstanding and secured by such reserve fund.
(b) The agency shall not issue hospital and nursing home project bonds
and  notes  in  an aggregate principal amount exceeding one billion nine
hundred fifty  million  dollars  excluding  hospital  and  nursing  home
project  bonds  and  hospital  and  nursing home project notes issued to
refund outstanding hospital and nursing home project bonds and  hospital
and  nursing home project notes, nor shall it issue hospital and nursing
home project bonds at any time secured by the hospital and nursing  home
capital  reserve  fund  if  the maximum amount of principal and interest
maturing and becoming due and sinking fund payments required to be  made
in  a  succeeding calendar year on the hospital and nursing home project
bonds outstanding and then to be issued and secured by the hospital  and
nursing home capital reserve fund will exceed the amount of such reserve
fund at the time of issuance, unless the agency, 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  and  sinking
fund payments required to be made in any succeeding calendar year on the
hospital  and  nursing  home  project bonds then to be issued and on all
other hospital and  nursing  home  project  bonds  of  the  agency  then
outstanding and secured by such reserve fund.
(c)  To  assure the continued operation and solvency of the agency 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
hospital and nursing home capital reserve fund of an amount equal to the
maximum amount of principal and interest maturing and becoming  due  and
sinking  fund payments to be made in any succeeding calendar year on all
hospital and nursing home project bonds of the agency  then  outstanding
and  secured  by  such  reserve  fund.  In  order  further to assure the
maintenance of such hospital and  nursing  home  capital  reserve  fund,
there  shall  be annually apportioned and paid to the agency for deposit
in such hospital and nursing home capital reserve fund such sum, if any,
as shall be certified by the chairman of the agency to the governor  and
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  and sinking fund payments required to be made in any
succeeding calendar year on the hospital and nursing home project  bonds
of  the  agency  then  outstanding and secured by such reserve fund. The
chairman of the agency shall annually, on or before December first, make
and deliver to the governor and director of the budget  his  certificate
stating  the sums, if any, required to restore such hospital and nursing
home capital reserve fund to the  amount  aforesaid,  and  the  sums  so
certified,  if  any,  shall be apportioned and paid to the agency during
the then current state  fiscal  year.  The  principal  amount  of  bonds
secured  by  the hospital and nursing home capital reserve fund to which
state funds are  apportionable  pursuant  to  this  paragraph  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 on
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  the  public authorities law whose affirmative determination shall be
conclusive as to all matters of law and fact solely for the purposes  of
the  limitations  contained in this paragraph, but in no event shall the
total amount of bonds so secured by such a capital reserve fund or funds
exceed nine hundred sixteen million 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.
(d)  In  computing  any hospital and nursing home capital reserve fund
for the purposes of this section, securities in which all or  a  portion
of  such  reserve  fund  shall be invested shall be valued at par, or if
purchased at less than par, at their cost to the agency.
7. The agency shall  create  and  establish  one  or  more  additional
special  funds  (herein referred to as hospital and nursing home general
reserve funds) and shall, to the extent provided in the applicable  bond
resolution  of  the  agency  authorizing  the  issuance  of hospital and
nursing home project bonds, pay into any such fund the fees and  charges
collected  by the agency pursuant to paragraph (b) of subdivision eleven
of section forty-four of this article and any monies  which  the  agency
shall  transfer  from the hospital and nursing home capital reserve fund
pursuant to the provisions of paragraph (a) of subdivision six  of  this
section.  Such  monies  and  any  other  monies paid into a hospital and
nursing home general reserve fund may, in the discretion of the  agency,
but  subject  to agreements with bondholders and noteholders, be used by
the agency  (a)  for  the  repayment  of  advances  from  the  state  in
accordance  with  the  provisions  of  repayment  agreements between the
agency and the director of the budget, (b) to reimburse  the  department
of  health  the  reasonable  costs  of  the  services  performed  by the
commissioner  of  health  and  the  department  of  health  pursuant  to
subdivision  three of section 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  hospital  and
nursing  home capital reserve fund, (e) for the payment of principal and
interest on hospital and nursing home project bonds and notes issued  by
the agency 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 hospital and nursing home project bonds and notes are
redeemed  prior  to their stated maturities and to purchase hospital and
nursing home project bonds or notes issued by the  agency,  or  (f)  for
such  other  corporate  purposes  of  the  agency  as  the agency in its
discretion shall determine and provide.
8. (a) The agency may create and  establish  one  or  more  additional
reserve funds to be known as health facilities reserve funds and may pay
into  such  reserve funds (1) any monies appropriated and made available
by the state for the purposes of such funds, (2) any proceeds of sale of
health facilities notes  or  health  facilities  bonds,  to  the  extent
provided  in  the  resolution  of  the  agency  authorizing the issuance
thereof, and (3) any other monies which may be  made  available  to  the
agency  for the purposes of such funds from any other source or sources.
The monies held in or credited to any  health  facilities  reserve  fund
established  under  this  subdivision,  except  as hereinafter provided,

shall be used  solely  for  the  payment  of  the  principal  of  health
facilities bonds of the agency secured by such reserve fund, as the same
mature,   required  payments  to  any  sinking  fund  established  in  a
resolution of the agency for the amortization of term bonds (hereinafter
referred  to  as  "sinking fund payments") the purchase or redemption of
such health facilities bonds of the agency, the payment of  interest  on
such  health  facilities  bonds  of  the  agency,  or the payment of any
redemption premium required to be paid  when  such  bonds  are  redeemed
prior to maturity; provided, however, 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 principal and
interest maturing and becoming due and sinking fund payments required to
be made in any succeeding calendar year on the health  facilities  bonds
of  the agency then outstanding and secured by such reserve fund, except
for the purpose of paying principal, interest and sinking fund  payments
becoming  due  on  the  health facilities bonds of the agency secured by
such reserve fund maturing and becoming due and for the payment of which
other monies of the agency are not available. For the purposes  of  this
subdivision eight, in computing the maximum amount of principal maturing
at  a  single future date (herein called "term bonds") in any succeeding
calendar year, the principal amount of any such  term  bonds  which  are
subject  to  mandatory  redemption  prior to such future date by sinking
fund payments shall not be included in the computation  determining  the
maximum  amount of principal maturing in said future year. Any income or
interest earned by, or increment to, any such health facilities  reserve
fund  due to the investment thereof may be transferred to any other fund
or account of the agency to the extent it does not reduce the amount  of
such  health  facilities  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
health facilities bonds of the agency then outstanding  and  secured  by
such reserve fund.
(b)  The agency shall not issue health facilities bonds 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 calendar
year on the health facilities bonds outstanding and then  to  be  issued
and secured by any health facilities reserve fund will exceed the amount
of  such  reserve account at the time of issuance, unless the agency, 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 and sinking fund  payments  required  to  be  made  in  any
succeeding  calendar  year  on  the  health  facilities bonds then to be
issued and on all other health  facilities  bonds  of  the  agency  then
outstanding and secured by such reserve fund.
(c)  To  assure the continued operation and solvency of the agency for
the carrying out of the public purposes of this  article,  provision  is
made  in  paragraph (a) of this subdivision for the accumulation in each
health facilities 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  calendar  year  on  all
health  facilities  bonds  of the agency then outstanding and secured by
such reserve fund. In order further to assure the  maintenance  of  such
health facilities reserve funds, there shall be annually apportioned and
paid  to  the  agency for deposit in each health facilities reserve fund
such sum, if any, as shall be certified by the chairman of the agency to
the governor and 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 and sinking fund payments required to
be made in any succeeding calendar year on the health  facilities  bonds
of  the  agency  then  outstanding and secured by such reserve fund. The
chairman of the agency shall annually, on or before December first, make
and deliver to the governor and director of the budget  his  certificate
stating  the  sums,  if  any,  required  to  restore  each  such  health
facilities reserve fund  to  the  amount  aforesaid,  and  the  sums  so
certified,  if  any,  shall be apportioned and paid to the agency during
the then current state  fiscal  year.  The  principal  amount  of  bonds
secured  by  a  health  facilities  reserve fund or funds to which state
funds are apportionable pursuant to this paragraph 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  the
public   authorities   law  whose  affirmative  determination  shall  be
conclusive as to all matters of law and fact solely for the purposes  of
the  limitations  contained in this paragraph, but in no event shall the
total amount of bonds so secured by such a reserve fund or funds  exceed
six  hundred  seventy-five  million  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 amounts so secured.
(d) In computing any health facilities reserve fund for  the  purposes
of  this  section,  securities in which all or a portion of such reserve
fund shall be invested shall be valued at par, or if purchased  at  less
than par, at their cost to the agency.
9.  (a)  The  agency  may  create and establish one or more additional
reserve funds to be known as urban rental debt service reserve funds and
may pay into such reserve funds (1) any  monies  appropriated  and  made
available  by the state for the purposes of such funds, (2) any proceeds
of sale of urban rental project notes or urban rental project bonds,  to
the  extent  provided  in  the  resolution of the agency authorizing the
issuance thereof, and (3) any other monies which may be  made  available
to  the  agency  for the purposes of such funds from any other source or
sources. The monies held in or credited to any urban rental debt service
reserve fund established under this subdivision  except  as  hereinafter
provided, shall be used solely for the payment of the principal of urban
rental  project bonds of the agency secured by such reserve fund, as the
same mature, required payments to any  sinking  fund  established  in  a
resolution of the agency for the amortization of term bonds (hereinafter
referred  to  as "sinking fund payments"), the purchase or redemption of
such urban rental project bonds of the agency, the payment  of  interest
on  such urban rental project bonds of the agency, or the payment of any
redemption premium required to be paid  when  such  bonds  are  redeemed
prior to maturity; provided, however, 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 principal and
interest maturing and becoming due and sinking fund payments required to
be made in any succeeding calendar year  on  the  urban  rental  project
bonds  of  the agency then outstanding and secured by such reserve fund,
except for the purpose of paying principal, interest  and  sinking  fund
payments  becoming  due  on the urban rental project bonds of the agency
secured by such reserve fund maturing  and  becoming  due  and  for  the

payment  of  which other monies of the agency are not available. For the
purposes of this subdivision nine, in computing the  maximum  amount  of
principal  maturing at a single future date (herein called "term bonds")
in  any  succeeding calendar year, the principal amount of any such term
bonds which are subject to mandatory redemption  prior  to  such  future
date  by  sinking fund payments shall not be included in the computation
determining the maximum amount of  principal  maturing  in  said  future
year.  Any income or interest earned by, or increment to, any such urban
rental debt service reserve fund due to the investment  thereof  may  be
transferred  to any other fund or account of the agency to the extent it
does not reduce the amount of such urban  rental  debt  service  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 urban rental project bonds of the agency
then outstanding and secured by such reserve fund.
(b)  The agency shall not issue urban rental project bonds at any time
if 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 the urban rental project bonds outstanding and then  to
be  issued and secured by an urban rental debt service reserve fund will
exceed the amount of such reserve  account  at  the  time  of  issuance,
unless  the agency, 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 and sinking fund payments required to be made
in any succeeding calendar year on the urban rental project  bonds  then
to  be  issued and on all other urban rental project bonds of the agency
then outstanding and secured by such reserve fund.
(c) To assure the continued operation and solvency of the  agency  for
the  carrying  out  of  the public purposes of this article provision is
made in paragraph (a) of this subdivision for the accumulation  in  each
urban rental debt service 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 calendar year on all
urban rental project bonds of the agency then outstanding and secured by
such reserve fund. In order further to assure the  maintenance  of  such
urban  rental  debt  service  reserve  funds,  there  shall  be annually
apportioned and paid to the agency for deposit in each urban rental debt
service reserve fund such sum, if any, as  shall  be  certified  by  the
chairman  of  the  agency  to the governor and 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  and  sinking
fund payments required to be made in any succeeding calendar year on the
urban rental project bonds of the agency then outstanding and secured by
such  reserve  fund.  The  chairman  of the agency shall annually, on or
before December first, make and deliver to the governor and director  of
the budget his certificate stating the sums, if any, required to restore
each  such  urban  rental  debt  service  reserve  fund  to  the  amount
aforesaid, and the sums so certified, if any, shall be  apportioned  and
paid  to  the  agency  during  the  then  current state fiscal year. The
principal amount of bonds  secured  by  an  urban  rental  debt  service
reserve fund or funds to which state funds are apportionable pursuant to
this  paragraph  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 the public  authorities  law  whose
affirmative  determination  shall be conclusive as to all matters of law
and fact solely for the purposes of the limitations  contained  in  this
paragraph, but in no event shall the total amount of bonds so secured by
such  a debt service reserve fund or funds exceed six hundred forty-five
million 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.
(d)  In  computing  any urban rental debt service reserve fund for the
purposes of this section, securities in which all or a portion  of  such
reserve  fund  shall  be invested shall be valued at par if purchased at
par, or if purchased at other than par, at amortized value.
10. (a) The agency may create and establish a special fund to be known
as youth facilities capital reserve fund and may pay into  such  reserve
funds  (1)  any  monies appropriated and made available by the state for
the purposes of such funds, (2) any proceeds of sale of youth facilities
project notes or youth facilities project bonds, to the extent  provided
in  the  resolution  of the agency authorizing the issuance thereof, and
(3) any other monies which may be made available to the agency  for  the
purposes  of  such accounts from any other source or sources. The monies
held in or credited to the capital reserve fund established  under  this
subdivision except as hereinafter provided, shall be used solely for the
payment  of  principal  of  youth facilities project bonds of the agency
secured by such reserve fund, as the same mature, the purchase  of  such
youth facilities project bonds of the agency, the payment of interest on
youth  facilities  project  bonds  of  the agency, or the payment of any
redemption premium required to be paid  when  such  bonds  are  redeemed
prior to maturity; provided, however, 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 principal and
interest maturing and becoming due in any succeeding  calendar  year  on
the  youth  facilities  project bonds of the agency then outstanding and
secured by such reserve fund, except for the purpose of paying principal
and interest on youth facilities project bonds of the agency secured  by
such reserve fund maturing and becoming due and for the payment of which
other  monies  of  the  agency are not available. Any income or interest
earned by, or increment to, any such youth  facilities  capital  reserve
fund  due  to  the  investment  thereof  may be transferred to the youth
facilities general reserve fund or other fund  of  the  agency,  to  the
extent  it  does  not reduce the amount of such youth facilities capital
reserve fund below the maximum amount of principal and interest maturing
and becoming due in any succeeding calendar year on all youth facilities
project bonds of the agency then outstanding and secured by such reserve
fund.
(b) The agency shall not issue  youth  facilities  project  bonds  and
notes  in  an  aggregate  principal amount exceeding one hundred million
dollars excluding youth facilities project bonds  and  youth  facilities
project  notes  issued  to  refund  outstanding youth facilities project
bonds and youth facilities project  notes,  nor  shall  it  issue  youth
facilities  project  bonds  at  any time secured by the youth facilities
capital reserve fund if the maximum amount  of  principal  and  interest
maturing  and  becoming  due  in a succeeding calendar year on the youth
facilities project bonds outstanding and then to be issued  and  secured
by  the  youth facilities capital reserve fund will exceed the amount of
such reserve fund at the time of issuance, unless  the  agency,  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 youth facilities project
bonds then to be issued and on all other youth facilities project  bonds
of the agency then outstanding and secured by such reserve fund.
(c)  To  assure the continued operation and solvency of the agency 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
youth facilities capital 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 youth facilities project  bonds  of  the
agency  then  outstanding  and  secured  by  such reserve fund. In order
further to assure the  maintenance  of  such  youth  facilities  capital
reserve fund, there shall be annually apportioned and paid to the agency
for  deposit  in such youth facilities capital reserve fund such sum, if
any, as shall be certified by the chairman of the agency to the governor
and 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 youth facilities
project bonds of the agency then outstanding and secured by such reserve
fund.   The chairman of the agency shall annually, on or before December
first, make and deliver to the governor and director of the  budget  his
certificate  stating  the  sums,  if any, required to restore such youth
facilities capital reserve fund to the amount aforesaid, and the sums so
certified, if any, shall be apportioned and paid to  the  agency  during
the  then  current  state  fiscal  year.  The  principal amount of bonds
secured by the youth facilities capital  reserve  fund  to  which  state
funds  are  apportionable pursuant to this paragraph 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 the
public  authorities  law  whose  affirmative  determination   shall   be
conclusive  as to all matters of law and fact solely for the purposes of
the limitations contained in this paragraph, but in no event  shall  the
total  amount  of bonds so secured by such a capital reserve fund exceed
twenty-four million 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.
(d)  In  computing  any  youth facilities capital reserve fund for the
purpose of this section, securities in which all or a  portion  of  such
reserve  fund  shall  be invested shall be valued at par if purchased at
par, or if purchased at other than par, at amortized value.
11. The agency shall create  and  establish  a  special  fund  (herein
referred  to as the youth facilities general reserve fund) and shall pay
into such fund all fees and charges collected by the agency pursuant  to
paragraph  (c)  of  subdivision  eleven  of  section  forty-four of this
article and any monies which the agency shall transfer  from  the  youth
facilities  capital reserve fund pursuant to the provisions of paragraph
(a) of subdivision ten of this section. Such monies and any other monies
paid into  the  youth  facilities  general  reserve  fund  may,  in  the
discretion of the agency, but subject to agreements with bondholders and
noteholders,  be  used  by  the agency (a) for the repayment of advances

from the state in accordance with the provisions of repayment agreements
between the agency and the director of the budget, (b) to reimburse  the
department  of  social  services  the  reasonable  costs of the services
performed  by  the commissioner of social services and the department of
social services pursuant to subdivision four of  section  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  youth  facilities  capital reserve fund, (e) for the
payment of principal of and interest on youth facilities  project  bonds
and notes issued by the agency 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 youth facilities project bonds
and notes are redeemed prior to their stated maturities and to  purchase
youth facilities project bonds or notes issued by the agency, or (f) for
such  other  corporate  purposes  of  the  agency  as  the agency in its
discretion shall determine and provide.
12. (a) The agency may create and establish a special fund to be known
as community  mental  health  services  and  developmental  disabilities
services  capital  reserve  fund and may pay into such reserve funds (1)
any monies appropriated and made available by the state for the purposes
of such funds, (2) any proceeds  of  sale  of  community  mental  health
services  and  developmental  disabilities  services  project  notes  or
community mental health services and developmental disabilities services
project bonds, to the extent provided in the resolution  of  the  agency
authorizing  the issuance thereof, and (3) any other monies which may be
made available to the agency for the purposes of such accounts from  any
other  source  or sources. The monies held in or credited to the capital
reserve fund established under this subdivision  except  as  hereinafter
provided, shall be used solely for the payment of principal of community
mental  health  services and developmental disabilities services project
bonds of the agency secured by such reserve fund, as  the  same  mature,
the  purchase of such community mental health services and developmental
disabilities services project  bonds  of  the  agency,  the  payment  of
interest  on  such  community  mental  health services and developmental
disabilities services project bonds of the agency, or the payment of any
redemption premium required to be paid  when  such  bonds  are  redeemed
prior to maturity; provided, however, 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 principal and
interest maturing and becoming due in any succeeding  calendar  year  on
the  community  mental  health  services  and developmental disabilities
services project bonds of the agency then  outstanding  and  secured  by
such  reserve  fund,  except  for  the  purpose  of paying principal and
interest  on  community  mental  health   services   and   developmental
disabilities  services  project  bonds  of  the  agency  secured by such
reserve fund maturing and becoming due and  for  the  payment  of  which
other  monies  of  the  agency are not available. Any income or interest
earned by, or increment to, any such community  mental  health  services
and  developmental disabilities services capital reserve fund due to the
investment thereof may be transferred to  the  community  mental  health
services and developmental disabilities services general reserve fund or
other fund of the agency, to the extent it does not reduce the amount of
such  community  mental  health  services and developmental disabilities
services capital reserve fund below the maximum amount of principal  and
interest  maturing  and  becoming due in any succeeding calendar year on
all community mental  health  services  and  developmental  disabilities
services  project  bonds  of  the agency then outstanding and secured by
such reserve fund.
(b) The agency shall not issue community mental  health  services  and
developmental  disabilities  services  project  bonds  and  notes  in an
aggregate  principal  amount  exceeding  one  hundred  million   dollars
excluding   community   mental   health   services   and   developmental
disabilities services project bonds and community mental health services
and  developmental  disabilities services project notes issued to refund
outstanding  community  mental   health   services   and   developmental
disabilities services project bonds and community mental health services
and  developmental  disabilities  services  project  notes, nor shall it
issue community mental health services  and  developmental  disabilities
services  project  bonds  at  any  time  secured by the community mental
health services and developmental disabilities services capital  reserve
fund  if  the  maximum  amount  of  principal  and interest maturing and
becoming due in a succeeding  calendar  year  on  the  community  mental
health  services  and  developmental disabilities services project bonds
outstanding and then to be issued and secured by  the  community  mental
health  services and developmental disabilities services capital reserve
fund will exceed the  amount  of  such  reserve  fund  at  the  time  of
issuance,  unless  the  agency,  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 community mental health services and  developmental
disabilities  services  project bonds then to be issued and on all other
community mental health services and developmental disabilities services
project bonds of the agency then outstanding and secured by such reserve
fund.
(c) To assure the continued operation and solvency of the  agency  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
community mental health services and developmental disabilities services
capital  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 community mental health services and developmental
disabilities services project bonds of the agency then  outstanding  and
secured by such reserve fund. In order further to assure the maintenance
of  such community mental health services and developmental disabilities
services capital reserve fund, there shall be annually  apportioned  and
paid  to the agency for deposit in such community mental health services
and developmental disabilities services capital reserve fund  such  sum,
if  any,  as  shall  be  certified  by the chairman of the agency to the
governor and 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
community mental health services and developmental disabilities services
project bonds of the agency then outstanding and secured by such reserve
fund. The chairman of the agency shall annually, on or  before  December
first,  make  and deliver to the governor and director of the budget his
or her certificate stating the sums, if any, required  to  restore  such
community mental health services and developmental disabilities services
capital reserve fund to the amount aforesaid, and the sums so certified,
if  any,  shall  be  apportioned  and paid to the agency during the then
current state fiscal year. The principal amount of bonds secured by  the
community mental health services and developmental disabilities services
capital  reserve fund to which state funds are apportionable pursuant to
this paragraph 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 the public authorities law whose
affirmative determination shall be conclusive as to all matters  of  law
and  fact  solely  for the purposes of the limitations contained in this
paragraph, but in no event shall the total amount of bonds so secured by
such a capital reserve fund or funds exceed  thirteen  million  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.
(d)  In  computing  any   community   mental   health   services   and
developmental   disabilities  services  capital  reserve  fund  for  the
purposes of this section, securities in which all or a portion  of  such
reserve  fund  shall  be invested shall be valued at par if purchased at
par, or if purchased at other than par, at amortized value.
13. The agency shall create  and  establish  a  special  fund  (herein
referred  to  as  community  mental  health  services  and developmental
disabilities services general reserve fund) and shall pay into such fund
all fees and charges collected by the agency pursuant to  paragraph  (c)
of  subdivision  eleven  of  section  forty-four of this article and any
monies which the agency shall transfer from the community mental  health
services  and  developmental  disabilities services capital reserve fund
pursuant to the provisions of paragraph (a) of subdivision ten  of  this
section. Such monies and any other monies paid into the community mental
health  services and developmental disabilities services general reserve
fund may, in the discretion of the agency,  but  subject  to  agreements
with  bondholders  and  noteholders,  be  used by the agency (a) for the
repayment of advances from the state in accordance with  the  provisions
of  repayment  agreements  between  the  agency  and the director of the
budget, (b) to reimburse the department of mental hygiene the reasonable
costs of the services performed by the commissioner  of  mental  hygiene
and  the  department  of  mental hygiene pursuant to subdivision four of
section fifty-five of this article, including the  reasonable  costs  of
such  services  performed  by  the  health and mental hygiene facilities
improvement corporation upon  request  by  the  commissioner  of  mental
hygiene  pursuant  to  the  provisions  of  section  75.25 of the mental
hygiene law, (c) to pay all costs, expenses and  charges  of  financing,
including  fees  and  expenses  of  trustees  and paying agents, (d) for
transfers to the community  mental  health  services  and  developmental
disabilities  services  capital  reserve  fund,  (e)  for the payment of
principal of and  interest  on  community  mental  health  services  and
developmental  disabilities  services  project bonds and notes issued by
the agency 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 community mental health  services  and  developmental
disabilities  services  project  bonds  and  notes are redeemed prior to
their stated maturities and to purchase community mental health services
and developmental disabilities services project bonds or notes issued by
the agency, or (f) for such other corporate purposes of  the  agency  as
the agency in its discretion shall determine and provide.
14. (a) The agency may create and establish a special fund to be known
as  community  senior citizens services capital reserve fund and may pay
into such reserve fund (1) any moneys appropriated and made available by
the state for the purposes of such fund, (2) any  proceeds  of  sale  of
community  senior  citizens  services  project notes or community senior

citizens  services  project  bonds,  to  the  extent  provided  in   the
resolution  of  the agency authorizing the issuance thereof, and (3) any
other moneys which may be made available to the agency for the  purposes
of such accounts from any other source or sources. The moneys held in or
credited  to the capital reserve fund established under this subdivision
except as hereinafter provided, shall be used solely for the payment  of
principal  of  community  senior  citizens services project bonds of the
agency secured by such reserve fund, as the same mature, the purchase of
such community senior citizens services project bonds of the agency, the
payment of interest on such community senior citizens  services  project
bonds  of  the agency, 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 thereform
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  community  senior
citizens  services  project  bonds  of  the  agency then outstanding and
secured by such reserve fund, except for the purpose of paying principal
and interest on community senior citizens services project bonds of  the
agency  secured  by  such reserve fund maturing and becoming due and for
the payment of which other moneys of the agency are not  available.  Any
income or interest earned by, or increment to, any such community senior
citizens services capital reserve fund due to the investment thereof may
be transferred to the community senior citizens services general reserve
fund  or  other fund of the agency, to the extent it does not reduce the
amount of such community senior citizens services capital  reserve  fund
below the maximum amount of principal and interest maturing and becoming
due  in  any  succeeding  calendar year on all community senior citizens
services project bonds of the agency then  outstanding  and  secured  by
such reserve fund.
(b)  The  agency  shall  not  issue community senior citizens services
project bonds and notes in an aggregate principal amount exceeding fifty
million dollars excluding community  senior  citizens  services  project
bonds  and  community  senior  citizens services project notes issued to
refund outstanding community senior citizens services project bonds  and
community  senior  citizens  services  project notes, nor shall it issue
community senior citizens services project bonds at any time secured  by
the community senior citizens capital reserve fund if the maximum amount
of  principal  and  interest  maturing  and becoming due in a succeeding
calendar year on the community senior citizens  services  project  bonds
outstanding  and  then  to be issued and secured by the community senior
citizens services capital reserve fund will exceed the  amount  of  such
reserve  fund at the time of issuance, unless the agency, 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  community  senior  citizens
services  project  bonds  then  to  be issued and on all other community
senior citizens services project bonds of the  agency  then  outstanding
and secured by such reserve fund.
(c)  To  assure the continued operation and solvency of the agency 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
community senior citizens services capital 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  community  senior
citizens  services  project  bonds  of  the  agency then outstanding and

secured by such reserve fund. In order further to assure the maintenance
of such community senior citizens services capital reserve  fund,  there
shall be annually apportioned and paid to the agency for deposit in such
community  senior  citizens  services  capital reserve fund such sum, if
any, as shall be certified by the chairman of the agency to the governor
and 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 community senior
citizens  services  project  bonds  of  the  agency then outstanding and
secured by such reserve fund. The chairman of the agency shall annually,
on or before December first,  make  and  deliver  to  the  governor  and
director  of  the  budget  his  certificate  stating  the  sums, if any,
required to restore such  community  senior  citizens  services  capital
reserve fund to the amount aforesaid, and the sums so certified, if any,
shall  be  apportioned  and  paid  to the agency during the then current
state fiscal  year.  The  principal  amount  of  bonds  secured  by  the
community  senior  citizens services capital reserve fund to which state
funds are apportionable pursuant to this paragraph 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  the
public   authorities   law  whose  affirmative  determination  shall  be
conclusive as to all matters of law and fact solely for the purposes  of
the  limitations  contained in this paragraph, but in no event shall the
total amount of bonds so secured by such a capital reserve fund or funds
exceed two million  eight  hundred  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.
(d)  In  computing  any  community  senior  citizens  services capital
reserve fund for the purposes of this section, securities in  which  all
or  a  portion of such reserve fund shall be invested shall be valued at
par if purchased at par, or if purchased at other than par, at amortized
value.
15. The agency shall create  and  establish  a  special  fund  (herein
referred  to as community senior citizens services general reserve fund)
and shall pay into such fund all  fees  and  charges  collected  by  the
agency  pursuant  to  subdivision eleven-a of section forty-four of this
article and  any  moneys  which  the  agency  shall  transfer  from  the
community  senior citizens services capital reserve fund pursuant to the
provisions of paragraph (a) of subdivision  fourteen  of  this  section.
Such moneys and any other moneys paid into the community senior citizens
services  general reserve fund may, in the discretion of the agency, but
subject to agreements with bondholders and noteholders, be used  by  the
agency  (a)  for  the repayment of advances from the state in accordance
with the provisions of repayment agreements between the agency  and  the
director  of  the  budget,  (b)  to  reimburse  the department of social
services of the state of New  York  for  the  reasonable  costs  of  the
services  performed  by  such  department pursuant to subdivision six of
section 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 community senior citizens services
capital reserve fund, (e) for the payment of principal of  and  interest
on  community senior citizens services project bonds and notes issued by

the agency 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 community senior citizens services project bonds  and
notes  are  redeemed  prior  to  their stated maturities and to purchase
community senior citizens services project bonds or notes issued by  the
agency, or (f) for such other corporate purposes of the agency as it, in
its discretion, shall determine and provide.
16.  (a) The agency may create and establish one or more special funds
to be known  as  community  mental  health  services  and  developmental
disabilities  services  capital  reserve  funds  and  may  pay into such
reserve funds (1) any monies appropriated  and  made  available  by  the
state  for  the  purposes of such funds, (2) any proceeds of the sale of
community mental health services and developmental disabilities services
project revenue bonds or notes, to the extent provided in the resolution
of the agency authorizing the issuance thereof, and (3) any other monies
which may be made available to the agency for the purposes of such  fund
or  funds  from  any  other  source  or  sources.  The monies held in or
credited to a capital reserve fund established under  this  subdivision,
except  as  hereinafter  provided  and  as  provided  in agreements with
bondholders and noteholders, shall be used solely  for  the  payment  of
principal   of   community  mental  health  services  and  developmental
disabilities services project revenue bonds of  the  agency  secured  by
such  reserve fund, as the same mature, required payments to any sinking
fund established in a resolution of the agency for the  amortization  of
term  bonds  (hereinafter  referred  to as "sinking fund payments"), the
purchase of such revenue bonds of the agency, the payment of interest on
such revenue bonds of the agency,  or  the  payment  of  any  redemption
premium  required  to  be  paid  when  such  bonds are redeemed prior to
maturity. Any income or interest earned by, or increment  to,  any  such
community mental health services and developmental disabilities services
capital reserve fund due to the investment thereof may be transferred to
the agency, subject to agreements with bondholders and noteholders.
(b)   In   computing   any   community   mental  health  services  and
developmental  disabilities  services  capital  reserve  fund  for   the
purposes  of  this section, securities in which all or a portion of such
reserve fund shall be invested shall be valued at par  if  purchased  at
par, or if purchased at other than par, at the amortized value.
(c)  The  agency  shall create and establish one or more special funds
(herein  referred  to  as   community   mental   health   services   and
developmental  disabilities services general reserve funds) and shall to
the extent provided in the applicable  bond  resolution  of  the  agency
authorizing  the  issuance  of  community  mental  health  services  and
developmental disabilities services project revenue bonds, pay into  any
such  fund  the  fees  and  charges  collected by the agency pursuant to
paragraph (d) of  subdivision  eleven  of  section  forty-four  of  this
article  and any monies which the agency shall transfer from a community
mental health services and developmental disabilities  services  capital
reserve  fund  pursuant  to  the  provisions  of  paragraph  (a) of this
subdivision. Such monies and any other  monies  paid  into  a  community
mental  health  services  and developmental disabilities service general
reserve fund may, in the  discretion  of  the  agency,  but  subject  to
agreements  with  bondholders and noteholders, be used by the agency (i)
for the repayment of advances from the  state  in  accordance  with  the
provisions  of  repayment agreements between the agency and the director
of the budget, (ii) to reimburse the department of  mental  hygiene  the
reasonable costs of the services performed by the commissioner of mental
hygiene  and  the  department  of mental hygiene pursuant to subdivision
five of section fifty-five of this  article,  including  the  reasonable

costs   of   such  services  performed  by  the  facilities  development
corporation upon request by the commissioner of mental hygiene  pursuant
to  the  provisions of section 75.25 of the mental hygiene law, (iii) to
pay  all  costs,  expenses  and charges of financing, including fees and
expenses of  trustees  and  paying  agents,  (iv)  for  transfers  to  a
community mental health services and developmental disabilities services
capital  reserve  fund, (v) for the payment of principal of and interest
on community  mental  health  services  and  developmental  disabilities
services  project  revenue bonds and notes issued by the agency 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
community mental health services and developmental disabilities services
project  revenue  bonds  and  notes  are  redeemed prior to their stated
maturities  and  to  purchase  community  mental  health  services   and
developmental disabilities services revenue bonds or notes issued by the
agency,  or  (vi) for such other corporate purposes of the agency as the
agency in its discretion shall determine and provide.