§ 462 — Reserve funds, appropriations and other funds and accounts

New York § 462

• Jurisdiction: New York
• Law EDN: Education
• Title 1: General Provisions Article 1 Short Title and Definitions (§§
• Art. 10: New York City Educational Construction Fund

Text

§ 462. Reserve funds, appropriations and other funds and accounts. 1.\n(a) The fund shall create and establish a special fund (herein referred\nto as capital reserve fund), and, to secure bonds of the fund issued\nprior to the twenty-fourth day of July, nineteen hundred seventy-six,\nshall pay into such capital reserve fund (1) any monies appropriated and\nmade available by the state or the city of New York for the purposes of\nsuch fund, (2) any proceeds of sale of notes or bonds to the extent\nprovided in the resolution of the fund authorizing the issuance thereof,\nand (3) any other monies which may be made available to the fund for the\npurpose of such capital reserve fund from any other source or sources.\nAll moneys held in the capital reserve fund, established for bonds of\nthe fund secured by such capital reserve fund except as hereinafter\nprovided, shall be used solely for the payment of the principal of such\nbonds as the same mature, required payments to any sinking fund\nestablished for the amortization of such term bonds (hereinafter\nreferred to as "sinking fund payments"), the purchase or redemption of\nsuch bonds, the payment of interest on such bonds or the payment of any\nredemption premium required to be paid when such bonds are redeemed\nprior to maturity; provided, however, that moneys in such capital\nreserve fund shall not be withdrawn therefrom at any time in such amount\nas would reduce the amount of such fund to less than the maximum amount\nof principal and interest maturing and becoming due and sinking fund\npayments required to be made in any succeeding fiscal year on all bonds\nof the fund secured by the capital reserve fund then outstanding, except\nfor the purpose of paying principal, interest and sinking fund payments\nbecoming due on such bonds of the fund maturing and becoming due and for\nthe payment of which other monies of the fund are not available. For the\npurposes of this subdivision, in computing the maximum amount of\nprincipal maturing in any succeeding calendar year, the principal amount\nof any term bonds which are to be amortized by sinking fund payments\nshall not be included in the computation. Any income or interest earned\nby, or increment to, the capital reserve fund due to the investment\nthereof may be transferred to other funds or accounts to the extent it\ndoes not reduce the amount of the capital reserve fund below the maximum\namount of principal and interest maturing and becoming due and sinking\nfund payments required to be made in any succeeding calendar year on all\nbonds of the fund then outstanding secured by the capital reserve fund.\n (b) The fund shall not issue bonds secured by the capital reserve fund\nat any time if the maximum amount of principal and interest maturing and\nbecoming due and sinking fund payments required to be made in a\nsucceeding fiscal year on the bonds then to be issued and on all other\nbonds of the fund then outstanding secured by the capital reserve fund\nwill exceed the amount of the capital reserve fund at the time of\nissuance unless the fund, at the time of issuance of such bonds, shall\ndeposit in the capital reserve fund from the proceeds of the bonds so to\nbe issued, or otherwise, an amount which, together with the amount then\nin such fund, will be not less than the maximum amount of principal and\ninterest maturing and becoming due and sinking fund payments required to\nbe made in any succeeding fiscal year on such bonds then to be issued\nand on all other bonds of the fund then outstanding secured by the\ncapital reserve fund.\n (c) To assure the continued operation and solvency of the capital\nreserve fund for the carrying out of the public purposes of this\narticle, provision is made in paragraph (a) of this subdivision for the\naccumulation in the capital reserve fund of an amount equal to the\nmaximum amount of principal and interest maturing and becoming due and\nsinking fund payments required to be made in any succeeding fiscal year\non all bonds of the fund then outstanding secured by the capital reserve\nfund. In order further to assure such maintenance of the capital reserve\nfund, the board of education shall annually request from the city of New\nYork and pay over to the fund, for deposit in the capital reserve fund,\nsuch sum, if any, as shall be certified by the chairman of the fund to\nthe board, the mayor and the director of management and budget of the\ncity of New York as necessary to restore the capital reserve fund to an\namount equal to the maximum amount of principal and interest maturing\nand becoming due and sinking fund payments required to be made in the\nnext succeeding fiscal year on the bonds of the fund then outstanding\nsecured by the capital reserve fund; provided, however, that such sum\nshall have been first appropriated by the city to the board or shall\notherwise have been made lawfully available to the board for such\npurpose. The chairman of the fund shall annually, not later than the\nfifteenth day of February in each year, make and deliver to the board,\nthe mayor and the director of management and budget his certificate\nstating the amount, if any, required to restore the capital reserve fund\nto the amount aforesaid and the amount so stated, if any, shall be paid\nto the fund by the board during the then current fiscal year of the\nfund. In the event of the failure or inability of the board to pay over\nthe stated amount to the fund on or before August first of the same\nyear, the chairman of the fund shall forthwith make and deliver to the\ncomptroller of the state of New York a further certificate restating the\namount so required and, after the comptroller of the state of New York\nshall have given written notice to the commissioner of education, the\nmayor and director of management and budget, such amount shall be paid\nover to the fund by the comptroller of the state of New York out of the\nnext payment of state aid apportioned to the city of New York on behalf\nof the city school district of the city of New York for the support of\ncommon schools or such other aid or assistance payable in support of\ncommon schools as shall supersede or supplement such state aid for the\nsupport of common schools, including federal moneys apportioned by the\nstate to the city of New York on behalf of the city school district for\nthe support of common schools. Any amount so paid over to the fund shall\nbe deducted from the corresponding apportionment of state education aid\nor other aid or assistance for education otherwise credited to the board\nof education for its purposes and shall not obligate the state to make\nor entitle the city or the board of education to receive any additional\nor increased apportionment or payment of state aid for school purposes.\n (d) In computing the amount of the capital reserve fund for the\npurposes of this section, securities in which all or a portion of such\nfund shall be invested shall be valued at par, or if purchased at less\nthan par, at their cost to the fund.\n 2. The fund may create and establish with the comptroller or with a\ntrustee one or more additional funds or accounts and, subject to\nagreements with bondholders and noteholders, may pay into such funds or\naccounts (i) fees and charges collected by the fund, (ii) monies which\nshall be transferred from the capital reserve fund pursuant to the\nprovisions of paragraph (a) of subdivision one of this section, and\n(iii) any other monies which may be made available to the fund from any\nother source or sources. The monies held in or credited to any such\nreserve fund or account may, in the discretion of the fund but subject\nto agreements with bondholders and noteholders, be used by the fund (a)\nfor the repayment of advances from the city of New York, (b) to\nreimburse the board of education of the city of New York the reasonable\ncosts of services performed by the board for the fund pursuant to\nsection four hundred fifty-five of this article, (c) to pay all costs,\nexpenses and charges of financing, including fees and expenses of\ntrustees and paying agents, (d) for transfers to the capital reserve\nfund, (e) for the payment of principal of and interest on bonds or notes\nissued by the fund when the same shall become due, whether at maturity\nor on call for redemption, and for the payment of any redemption premium\nrequired to be paid where such bonds or notes are redeemed prior to\ntheir stated maturities, and to purchase bonds or notes issued by the\nfund, (f) for such other corporate purposes as the fund in its\ndiscretion shall determine and provide, or (g) for payment to the board\nof education for school purposes.\n 3. (a) The fund may create and establish one or more special funds\n(herein referred to as debt service reserve funds), and, to secure bonds\nof the fund issued on or after the twenty-fourth day of July, nineteen\nhundred seventy-six, shall pay into each such debt service reserve fund\n(1) any monies appropriated and made available by the state or city of\nNew York for the purposes of such fund, (2) any proceeds of sale of\nnotes or bonds to the extent provided in the resolution of the fund\nauthorizing the issuance thereof, and (3) any other monies which may be\nmade available to the fund for the purposes of any such debt service\nreserve fund from any other source or sources. All moneys held in a debt\nservice reserve fund, except as hereinafter provided, shall be used\nsolely for the payment of the principal of bonds of the fund as the same\nmature, required payments to any sinking fund established for the\namortization of term bonds (hereinafter referred to as "sinking fund\npayments"), so secured, the purchase or redemption of bonds of the fund\nso secured, the payment of interest on such bonds of the fund so secured\nor the payment of any redemption premium required to be paid when such\nbonds secured by a debt service reserve fund are redeemed prior to\nmaturity; provided, however, that moneys in a debt service reserve fund\nshall not be withdrawn therefrom at any time in such amount as would\nreduce the amount of such fund to less than the debt service reserve\nfund requirement established pursuant to the agreement with the holders\nof the bonds of the fund secured by such debt service reserve fund,\nexcept for the purpose of paying principal of, interest and sinking fund\npayments becoming due on such bonds of the fund maturing and becoming\ndue and for the payment of which other monies of the fund are not\navailable. Any income or interest earned by, or increment to, a debt\nservice reserve fund due to the investment thereof may be transferred to\nother funds or accounts to the extent it does not reduce the amount of a\ndebt service reserve fund below the debt service reserve fund\nrequirement.\n (b) The fund shall not issue bonds secured by a debt service reserve\nfund at any time if the amount in such debt service reserve fund is less\nthan the debt service reserve fund requirement at the time of issuance\nunless the fund, at the time of issuance of such bonds, shall deposit in\nthe debt service reserve fund from the proceeds of the bonds so to be\nissued, or otherwise, an amount which, together with the amount then in\nsuch fund, will be not less than the debt service reserve fund\nrequirement established by the agreement with the holders of the bonds\nof the fund secured thereby.\n (c) To assure the continued operation and solvency of the fund for the\ncarrying out of the public purposes of this article, provision is made\nin paragraph (a) of this subdivision for the accumulation in a debt\nservice reserve fund of an amount equal to the debt service reserve fund\nrequirement on all bonds of the fund then outstanding secured by a debt\nservice or debt service reserve fund. In order further to assure such\nmaintenance of a debt service reserve fund, the board of education shall\nannually request from the city of New York and pay over to the fund\nafter making the payment required by paragraph (c) of subdivision one of\nthis section for deposit in a debt service reserve fund, such sum, if\nany, as shall be certified by the chairman of the fund to the board, the\nmayor and the director of the budget of the city of New York as\nnecessary to restore such debt service reserve fund to an amount equal\nto the debt service reserve fund requirement for the bonds of the fund\nsecured by such debt service reserve fund; provided, however, that such\nsum shall have been first appropriated by the city to the board or shall\notherwise have been made lawfully available to the board for such\npurpose. The chairman of the fund shall annually, not later than the\nfifteenth day of February in each year, make and deliver to the board,\nthe mayor and the director of the budget his certificate stating the\namount, if any, required to restore a debt service reserve fund to the\namount aforesaid and the amount so stated after making the payment\nrequired by paragraph (c) of subdivision one of this section if any,\nshall be paid to the fund by the board during the then current fiscal\nyear of the fund. In the event of the failure or inability of the board\nto pay over the stated amount to the fund on or before August first of\nthe same year, the chairman of the fund shall forthwith make and deliver\nto the comptroller of the state of New York a further certificate\nrestating the amount so required and, after the comptroller of the state\nof New York shall have given written notice to the commissioner, the\nmayor and director of the budget, such amount after making the payment\nrequired by paragraph (c) of subdivision one of this section shall be\npaid over to the fund by the comptroller of the state of New York out of\nthe next payment of state aid apportioned to the city of New York on\nbehalf of the city school district of the city of New York for the\nsupport of common schools or such other aid or assistance payable in\nsupport of common schools as shall supersede or supplement such state\naid for the support of common schools, including federal moneys\napportioned by the state to the city of New York on behalf of the city\nschool district for the support of common schools. Any amount so paid\nover to the fund under paragraph (c) of subdivision one of this section\nshall be deducted from the corresponding apportionment of state\neducation aid or other aid or assistance for education otherwise\ncredited to the board of education for its purposes and shall not\nobligate the state to make or entitle the city or the board of education\nto receive any additional or increased apportionment or payment of state\naid for school purposes.\n (d) In computing the amount of any debt service reserve fund for the\npurposes of this section, securities in which all or a portion of such\nfund shall be invested shall be valued at par, or if purchased at less\nthan par, at their cost to the fund.\n (e) The maximum debt service reserve fund requirement for any debt\nservice reserve fund created pursuant to this subdivision shall not\nexceed the amount of principal and interest maturing and becoming due\nand sinking fund payments required to be made in any year on all bonds\nof the fund secured by such debt service reserve fund. For purposes of\nthis subdivision, in computing the maximum amount of principal maturing\nin any year, the principal amount of any term bonds which are to be\namortized by sinking fund payments shall not be included in the\ncomputation.\n 4. In addition to the funds permitted to be established pursuant to\nsubdivision two hereof, the fund may create and establish with the\ncomptroller or with a trustee one or more additional funds or accounts\nand, subject to agreements with bondholders and noteholders, may pay\ninto such funds or accounts (i) fees and charges collected by the fund,\n(ii) monies which shall be transferred from a debt service or reserve\nfund pursuant to the provisions of paragraph (a) of subdivision one of\nthis section, and (iii) any other monies which may be made available to\nthe fund from any other source or sources. The monies held in or\ncredited to any such fund may, in the discretion of the fund but subject\nto agreements with bondholders and noteholders, be used by the fund (a)\nfor the repayment of advances from the city of New York, (b) to\nreimburse the board of education of the city of New York the reasonable\ncosts of services performed by the board for the fund pursuant to\nsection four hundred fifty-five of this article, (c) to pay all costs,\nexpenses and charges of financing, including fees and expenses of\ntrustees and paying agents, (d) for transfers to a debt service or a\ndebt service reserve fund, (e) for the payment of principal, interest\nand sinking fund payments for any bonds or notes issued by the fund when\nthe same shall become due, whether at maturity or on call for\nredemption, and for the payment of any redemption premium required to be\npaid where such bonds or notes are redeemed prior to their stated\nmaturities, and to purchase bonds or notes issued by the fund, (f) for\nsuch other corporate purposes as the fund in its discretion shall\ndetermine and provide, or (g) for payment to the board of education for\nschool purposes.\n