2013 New York Consolidated Laws
PML - Racing, Pari-Mutuel Wagering and Breeding Law
Article 5 - (501 - 517) REGIONAL OFF-TRACK BETTING CORPORATIONS
509 - Reserve fund.

 
    §  509.  Reserve fund. 1. The corporation shall create and establish a
  special fund (herein referred to as the capital reserve fund), and shall
  pay into such capital reserve fund:
    a.  Any  moneys  appropriated  and  made  available  by  participating
  counties for the purpose of such capital reserve fund;
    b.  Any  proceeds  of sale of bonds or notes to the extent provided in
  the  resolution  or  resolutions  of  the  corporation  authorizing  the
  issuance thereof; and
    c. Any other moneys which may be made available to the corporation for
  the  purpose  of  such  capital  reserve  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 corporation, the payment of interest  on  such
  bonds, 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  moneys in such capital reserve fund shall not be withdrawn therefrom  at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 fiscal year of the corporation on all bonds of the
  corporation then outstanding, except for the purpose of paying principal
  of  and  interest on such bonds of the corporation maturing and becoming
  due and for the payment of which other moneys of the corporation are not
  available. Any income or  interest  earned  by,  or  increment  to,  the
  capital reserve fund due to the investment thereof may be transferred to
  other  funds  or accounts 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 in any such succeeding fiscal year on
  all bonds of the corporation then outstanding.
    2.  The  corporation  shall not issue bonds at any time if the maximum
  amount of  principal  and  interest  maturing  and  becoming  due  in  a
  succeeding  fiscal  year  of  the  corporation  on such bonds then to be
  issued and on all other bonds of the corporation then  outstanding  will
  exceed the amount of the capital reserve fund at the time of issuance of
  such  bonds,  unless  the  corporation,  at the time of issuance of such
  bonds, shall deposit in the capital reserve 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 not be less than the  maximum  amount
  of  principal  and  interest  maturing  and  becoming  due  in  any such
  succeeding fiscal year on such bonds then to be issued and on all  other
  bonds of the corporation then outstanding.
    3.  For  the  purposes  of computing the amount of the capital reserve
  fund, any securities in which any portion of such fund is invested shall
  be valued at the par value  thereof  or  at  the  cost  thereof  to  the
  corporation if such cost was less than said par value.