2006 New York Code - Reserve Funds.

 
    §  1840-g.  Reserve funds. 1. The authority shall create and establish
  one or more reserve funds to be known as debt service reserve funds  and
  may  pay  into such reserve funds: (a) any proceeds of sale of bonds and
  notes to  the  extent  provided  in  the  resolution  of  the  authority
  authorizing the issuance thereof, and
    (b) any moneys appropriated and made available by the counties for the
  purposes of such funds, and
    (c)  any  other  moneys made available to the authority from any other
  source or sources for the purposes of such funds, and
    (d) any moneys received by the authority or payments on account of any
  loan, lease, sale or  other  agreement  made  by  the  authority  on  an
  assisted project; and
    (e)  any  fees,  charges  or other moneys received by the authority on
  account of any  loan,  lease,  sale  or  other  agreement  made  by  the
  authority   on  an  assisted  project  or  on  account  of  applications
  therefore; and
    (f) any income or interest earned by, or any increment added  to,  any
  reserve funds due to the investment thereof.
    2.  The  moneys  held  in or credited to any debt service reserve fund
  established  pursuant  to  this  section  shall  except  as  hereinafter
  provided,  be  used  solely for the payment of the principal of bonds of
  the authority secured by such reserve funds, as  the  same  mature,  the
  purchase of such bonds of the authority, the payment of interest on such
  bonds of the authority 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  however, that moneys in any such fund shall not be  withdrawn  therefrom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  and  interest  maturing  and
  becoming  due  in  any  succeeding  calendar  year  on  the bonds of the
  corporation then outstanding and secured by such  reserve  fund,  except
  for  the  purpose  of  paying principal and interest on the bonds of the
  authority secured by such reserve fund maturing and becoming due and for
  the payment of which other moneys of the authority  are  not  available.
  Any income or interest earned by, or increment to, any such debt service
  reserve  fund  due  to  the  investment  of  the  moneys  thereof may be
  transferred to any other fund or account of the authority 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
  in  any  succeeding  calendar  year  on  all bonds of the authority then
  outstanding and secured by such reserve fund.
    3. The authority shall not issue bonds at  any  time  if  the  maximum
  amount  of  principal  and  interest  maturing  and  becoming  due  in a
  succeeding calendar year on the bonds outstanding and then to be  issued
  and  secured  by  a  debt service reserve fund will exceed the amount of
  such reserve fund at the time of issuance, unless the authority, at  the
  time  of  issuance  of such bonds, shall provide for the 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 bonds
  then to be issued and  on  all  other  bonds  of  the  corporation  then
  outstanding and secured by such reserve fund.
    4. In computing any debt service reserve fund requirements pursuant to
  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 authority.