2006 New York Code - Use Of Revenue Of Undertaking.

 
    §  412.  Use of revenue of undertaking. Any municipality issuing bonds
  for  the   acquisition,   construction,   reconstruction,   improvement,
  betterment  or  extension  of  an  undertaking  shall  have the right to
  appropriate, apply or expend the revenue of  such  undertaking  for  the
  following  purposes: (a) to pay when due all bonds and interest thereon,
  for the payment of which such revenue is or  shall  have  been  pledged,
  charged  or  otherwise  encumbered,  including reserves therefor, (b) to
  provide  for  all  expenses  of  operation  and  maintenance   of   such
  undertaking,  including  reserves  therefor,  (c)  to  pay and discharge
  notes, bonds or other obligations and interest thereon, not issued under
  this article for the payment of which the revenue  of  such  undertaking
  may  have  been pledged, charged or encumbered, (d) to pay and discharge
  notes, bonds or other obligations and interest  thereon,  which  do  not
  constitute  a  lien,  charge  or  encumbrance  on  the  revenue  of such
  undertaking, which may have been issued for the purpose of financing the
  acquisition, construction, reconstruction,  improvement,  betterment  or
  extension   of   such   undertaking,  and  (e)  provide  a  reserve  for
  improvements to such undertaking. Unless and  until  full  and  adequate
  provision  has  been  made  for  the foregoing purposes, no municipality
  shall have the right to transfer the revenue of such undertaking to  its
  general fund.