2006 New York Code - Reserve Funds And Appropriations.

 
    §  2439. Reserve funds and appropriations. The agency shall create and
  establish one or more special funds to be known as debt service  reserve
  funds  and shall pay into such reserve funds (a) any moneys appropriated
  and made available by the state for the purposes of such funds, (b)  any
  proceeds  of  sale  of  bonds  or  notes,  to the extent provided in the
  resolution of the agency authorizing the issuance thereof  and  (c)  any
  other  moneys  which  may be available to the agency for the purposes of
  such funds from any other source or  sources.  The  moneys  held  in  or
  credited  to  the  debt  service  reserve  fund  established  under this
  subdivision, except as hereinafter provided, shall be  used  solely  for
  the  payment of the principal of the bonds of the agency secured by such
  reserve fund, as the same mature, sinking fund payments, the purchase of
  such bonds of the agency, 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
  moneys  in any such fund shall not be withdrawn therefrom at any time in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
  debt  service reserve fund requirement, except for the purpose of paying
  principal and interest on the  bonds  of  the  agency  secured  by  such
  reserve fund maturing and becoming due and any sinking fund payments and
  for  the  payment of which other moneys of the agency are not available.
  Moneys in any debt service reserve fund not required for  immediate  use
  or  disbursement, at the discretion of the agency may be invested in any
  investments approved or authorized in accordance with the provisions  of
  section  ninety-eight of the state finance law.  In computing the amount
  of any debt service 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 if purchased at par, or if purchased at other than par, at
  amortized value. The agency shall not issue bonds at any  time  if  upon
  issuance,  the  amount  in  the  debt service reserve fund securing such
  bonds will be less than  the  debt  service  reserve  fund  requirement,
  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  debt  service  reserve  fund
  requirement.
    Any excess in any debt service reserve fund at the close of any fiscal
  year of the agency over the debt service reserve fund requirement may be
  transferred to any other fund or account of the agency as the agency may
  determine.