2023 New York Laws › PBA - Public Authorities › Article 8 - Miscellaneous Authorities › Title 12 › 1977-B - Reserve Funds and Appropriations.

§  1977-b. Reserve funds and appropriations. 1. In addition to setting
  aside of such other reserves or sinking funds as it shall deem advisable
  and necessary, and the regulation and disposition thereof, the authority
  shall create and establish a special fund to be known as and hereinafter
  called the "Battery Park project area capital reserve  fund"  and  shall
  pay into such fund (a) any moneys appropriated and made available by the
  state  only  for  the purposes of such fund, (b) any proceeds of sale of
  any bonds issued to finance the Battery Park project area to the  extent
  provided  in  the  resolution  of the authority authorizing the issuance
  thereof, (c) any funds directed to be transferred by  the  authority  to
  such fund, and (d) any other moneys made available to the authority only
  for  the  purposes  of  such  fund from any other source or sources. The
  moneys held in or credited to  such  capital  reserve  fund,  except  as
  hereinafter  provided,  shall  be  used  solely  for  the payment of the
  principal of such bonds or of  the  sinking  fund  payments  hereinafter
  mentioned with respect to such bonds, the purchase or redemption of such
  bonds,  the  payment  of  interest  on such bonds, or the payment of any
  redemption premium required to be  paid  when  any  of  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  shall not be withdrawn therefrom at any time in  such  amount  as  would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 amount of the Battery
  Park project area capital reserve fund requirement hereinbelow  referred
  to, except for the purpose of making with respect to such bonds payment,
  when   due,  of  principal,  interest  and  the  sinking  fund  payments
  hereinafter mentioned for the payment  of  which  other  moneys  of  the
  authority  are  not  available.  Moneys in such capital reserve fund not
  required  for  immediate  use  or  disbursement  may  be   invested   in
  obligations  of the state or the United States of America or obligations
  the principal and interest of which are guaranteed by the state  or  the
  United States of America or obligations of agencies of the United States
  of  America  which may from time to time be legally purchased by savings
  banks of the state as investment of funds belonging to them or in  their
  control.  In  computing  the amount of such capital reserve fund for the
  purposes of this section, securities in which all or a portion  of  such
  fund  are  invested shall be valued at par or, if purchased at less than
  par, at their cost to the authority.
2. The authority shall not issue any of such bonds at any time secured
  by such capital reserve fund if the amount in such capital reserve  fund
  at  the  time  of  issuance  does not equal or exceed the amount of said
  capital reserve fund requirement unless the authority  at  the  time  of
  issuance  of  such bonds shall deposit in such fund from the proceeds of
  such bonds or other sources an amount which  together  with  the  amount
  then  in  such  fund  will  not  be less than the amount of said capital
  reserve fund requirement.
3. In order to assure the continued  operation  and  solvency  of  the
  authority  for the fulfillment of its corporate purposes with respect to
  the Battery Park project area,  the  chairman  of  the  authority  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  such capital reserve fund to the amount as of the
  particular date of computation equal to the greatest  (herein  sometimes
  called the "Battery Park project area capital reserve fund requirement")
  of the respective amounts for the then current or any future fiscal year
  of  the  authority,  of  annual debt service with respect to such bonds,
  such annual debt service for any fiscal year being the amount  of  money
  equal  to  the  aggregate of (a) all interest payable during such fiscal
  year on all such bonds outstanding on said date of computation, plus (b)
  the principal amount of all such  bonds  outstanding  on  said  date  of

  computation  which  mature during such fiscal year, plus (c) all amounts
  specified in any resolution of the authority  authorizing  any  of  such
  bonds  as payable during such fiscal year as a sinking fund payment with
  respect  to  any  of such bonds which mature after such fiscal year, all
  calculated on  the  assumption  that  bonds  will  after  said  date  of
  computation  cease  to  be outstanding by reason, but only by reason, of
  the payment of bonds when due and the payment when due  and  application
  in accordance with the resolution authorizing those bonds of all of such
  sinking  fund payments payable at or after said date of computation; and
  there shall be annually  apportioned  and  paid  to  the  authority  for
  deposit  in  such  capital  reserve  fund  the  sums so certified by the
  chairman of the authority.  All sums so apportioned and  paid  shall  be
  deposited  by  the authority in such capital reserve fund. The principal
  amount of bonds secured by such capital  reserve  fund  to  which  state
  funds are apportionable pursuant to this subdivision shall be limited to
  the total amount of bonds and notes outstanding on the effective date of
  this  act, plus the total amount of bonds and notes contracted after the
  effective date of this act  to  finance  projects  in  progress  on  the
  effective  date  of  this act as determined by the New York state public
  authorities control board created pursuant  to  section  fifty  of  this
  chapter  whose  affirmative  determination shall be conclusive as to all
  matters of law and fact solely  for  the  purposes  of  the  limitations
  contained in this subdivision, but in no event shall the total amount of
  bonds  so  secured  by  such  a capital reserve fund or funds exceed two
  hundred  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.
4. All amounts paid over to the authority by the state pursuant to the
  provisions  of  this  section  shall  constitute and be accounted for as
  advances by the state to the authority and, subject only to  the  rights
  of  the  holders  of  any bonds or notes of the authority theretofore or
  thereafter issued, shall be repaid  to  the  state  from  all  available
  operating  revenues  of  the  authority in excess of the capital reserve
  fund requirement and operating expenses.
5. As used in this section, (a) the term "operating expenses" for  the
  fiscal   year   shall  mean  ordinary  expenditures  for  operation  and
  administration of the authority; and (b) the term  "available  operating
  revenues" for the fiscal year shall mean all amounts received on account
  of  rentals  and  fees  charged  by the authority, if any, and income or
  interest earned or added to funds of the authority due to the investment
  thereof, and not required under the terms or provisions of any convenant
  or agreement with holders of any bonds or notes of the authority  to  be
  applied to any purposes other than payment of expenses of the authority.
6.  This  section  is applicable only to the Battery Park project area
  capital reserve fund.